HR0721

LRB093 21409 LRD 48072 r






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HOUSE RESOLUTION


 
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    WHEREAS, The level of higher education debt being incurred 
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by
students is having a negative effect on their access to 
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postsecondary
education, their persistence in attaining that 
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education, their career
choices, and their ability to repay 
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their debt after leaving school; and
 

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    WHEREAS, In 2002, Illinois schools gave out approximately 
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85,000
Federal Direct Student Loan Program (FDSLP) loans; and
 

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    WHEREAS, In fiscal year 2003, the Illinois Student 
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Assistance
Commission (ISAC) guaranteed federal student loans 
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for 89,746 Illinois Stafford
borrowers and 7,336 PLUS 
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borrowers; and
 

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    WHEREAS, As of August 31, 2003, there were 274,094 
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borrowers
with a student loan guaranteed by ISAC who were in 
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repayment status and 3,696
ISAC borrowers
who defaulted and are 
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currently in bankruptcy status; and

 
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    WHEREAS, Current repayment options do not provide for

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manageable monthly payments for some borrowers, which is 
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particularly
problematic when borrowers first enter the 
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workforce; and

 

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    WHEREAS, Loan consolidation was originally created by the 
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U.S.
Congress to simplify the process of loan repayment for 
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borrowers with
multiple servicers and to help lower monthly 
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payments for borrowers in
difficult financial circumstances; 
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therefore, be it
 

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    RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE 
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NINETY-THIRD GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we 
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urge the U.S. Congress to require that the interest rate 
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calculated on a Federal Direct Loan may not increase more than 
 


 






HR0721
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LRB093 21409 LRD 48072 r




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2% above the original interest rate for unconsolidated loans; 
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and be it further
 
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    RESOLVED, That we urge the U.S. Congress to allow borrowers 
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to refinance their existing consolidated loans; and be it 
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further

 

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    RESOLVED, That we urge the U.S. Congress to require (i) 
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that all repayment
options for consolidated loans allow, but 
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not mandate, dual or singular
payment options in the course of 
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a payment cycle and (ii) that this option be
available for 
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electronic or manual payment delivery; and be it further
 
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    RESOLVED, That suitable copies of this resolution be 
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delivered to
the President pro tempore of the U.S. Senate, the 
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Speaker of the U.S.
House of Representatives, and each member 
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of the Illinois congressional
delegation.