Public Act 097-0950
 
SB3800 EnrolledLRB097 14469 NHT 59322 b


  
    AN ACT concerning education.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  
 
 
    Section 5. The Higher Education Student Assistance Act is 
amended  by changing Section 80 as follows:
 



    (110 ILCS 947/80)



    Sec. 80. Additional assistance; Loans; Powers and Duties. 
The Commission
shall have the following powers in furtherance 
of its programs:

    (a) To guarantee the loan of money in amounts not to exceed 
the yearly
or aggregate totals authorized by the Federal Higher 
Education Act of 1965.
The Commission may guarantee loans for 
qualified borrowers for
use at any approved institution of 
higher learning provided the borrower
and institution are 
eligible for the loan under the Higher Education Act
of 1965. 
All loans shall be guaranteed and bear interest as prescribed 
by the
Higher Education Act of 1965, or by any other Federal 
statute hereafter enacted
providing for Federal payment of 
interest or other subsidy on behalf of
borrowers. Loans made by 
eligible lenders in accordance with this Act shall be

guaranteed whether made from funds fully owned by the lender or 
from funds held
by the lender in a trust or similar capacity 
and available for such loans.

    (b) To sue and be sued in the name of the Commission.

    (c) To adopt rules and regulations governing the guarantee,

origination, or servicing of loans and
any other matters 
relating to the activities of the Commission.

    (d) To originate, guarantee, acquire, and service
loans and 
to perform such other acts as may be necessary or appropriate 
in
connection with the loans.

    (e) To require that any educational loan made under this 
Act shall be
repaid and be secured in such manner and at such 
time as the Commission
prescribes, including perfecting a 
security interest  therein in such manner as
the Commission 
shall determine.

    (f) To enter into such contracts and guarantee agreements

with eligible lenders, eligible education institutions, 
individuals,
corporations, and loan servicing organizations 
and with any other
governmental agency and with any agency of 
the United States, including
agreements for Federal 
reinsurance of losses resulting from the death, default,
or 
total and permanent disability of borrowers, as are necessary 
or incidental
to the performance of its duties and to carry out 
its functions under this
Act, and to make such payments as may 
be specified in such contracts and
agreements from such sources 
as set forth therein, all notwithstanding any
other provisions 
of this Act or any other law.

    (g) To receive and accept from any agency of the United 
States or any
agency of the State of Illinois or any 
municipality, county, or other
political subdivision thereof 
or from any individual, association, or
corporation gifts, 
grants, or donations of money.

    (h) To participate in any Federal government program for 
guaranteed loans
or subsidies to borrowers and to receive, 
hold, and disburse funds made
available for the purpose or 
purposes for which they are made available.

    (i) To pay to eligible lenders an administrative cost 
allowance in such
amount, at such times, and in such manner as 
may be prescribed by the
Commission.

    (j) To pay the Federal government a portion of those funds 
obtained by
the Commission from collection and recoupment of 
losses on defaulted loans
in such amounts and in such manner as 
provided by any Federal reinsurance
agreement.

    (k) To charge and collect premiums for insurance on loans 
and other
appropriate charges and pay such insurance premiums 
or a portion thereof
and other charges as are appropriate.

    (l) To create such entities and organizations and programs 
as the
Commission determines are necessary or incidental to the 
performance of its
duties and to carry out any function under 
this Act.

    (l-5) To deduct from the salary, wages, commissions, and 
bonuses of any employee in this State and, to the extent 
permitted by the laws of the United States and individual 
states in which an employee might reside, any employee outside 
the State of Illinois by serving a notice of administrative 
wage garnishment on an employer, in accordance with rules 
adopted by the Commission, for the recovery of a student loan 
debt owned or serviced by the Commission.  Levy must not be made 
until the Commission has caused a demand to be made on the 
employee, in a manner consistent with rules adopted by the 
Commission, such that the employee is provided an opportunity 
to contest the existence or amount of the student loan 
obligation. 
    (m) Except with respect to obligations issued prior to July 
14, 1994, to
exercise all functions, rights, powers,
duties, 
and responsibilities now or hereafter authorized to be 
exercised by any
other State agency pursuant to the Higher 
Education Loan Act of this State.
The authorization to any 
other State agency to exercise those functions,
rights, powers, 
duties, and responsibilities is not affected by this

authorization to the Commission.

(Source: P.A. 88-553; 89-442, eff. 12-21-95.)

 
 
    Section 99. Effective date. This Act takes effect upon 
becoming law.