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    AN ACT concerning education.

 
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    Be it enacted by the People of the State of Illinois, 
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represented in the General Assembly: 


 
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    Section 5. The State Finance Act is amended by adding 
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Section
5.675 as follows:


 
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    (30 ILCS 105/5.675 new)


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    Sec. 5.675. The Higher Education Revolving Loan Fund.

 
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    Section 10. The Higher Education Student Assistance Act is 
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amended  by adding Section 65.85 as follows:
 
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    (110 ILCS 947/65.85  new)
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    Sec. 65.85. Higher education revolving loans.
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    (a) In this Section, "eligible student" means a student 
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enrolled at the undergraduate level at an institution of higher 
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learning who (i) if the student has not yet completed one term 
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at an institution of higher learning, had a 3.0 cumulative 
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grade point average or its equivalent after graduating from an 
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approved high school; (ii) if the student has completed at 
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least one term at an institution of higher learning, has a 3.0 
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post-secondary cumulative grade point average or its 
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equivalent; (iii) is a resident of this State and a citizen or 
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permanent resident of the United States; and (iv) is from a 
 


 






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family that has an adjusted gross income not to exceed 250% of 
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the federal poverty guidelines as published in the Federal 
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Register by the U.S. Department of Health and Human Services.
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    (b) The Commission shall, subject to appropriation, 
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implement and administer a higher education revolving loan 
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program to provide loans to eligible students, as defined in 
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this Act and as determined by the Commission, for the costs of 
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attending an institution of higher learning in this State. 
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These loans must be offered at a low interest rate to be 
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determined by the Commission, taking into account in its 
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deliberations both program sustainability and affordability 
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for loan recipients.
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    (c) An individual may not receive loans under this Section 
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in excess of $5,000 or the student's tuition and mandatory 
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fees, whichever is less, per academic year. Loan funds must be 
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paid directly to the institution of higher learning.
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    (d) The repayment period for a loan made under this Section 
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may not exceed 15 years. A person who receives a loan under 
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this Section shall begin repaying the loan beginning 6 months 
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after the person no longer attends an institution of higher 
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learning. The loan recipient shall repay at a minimum 5% of the 
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principal each year or the remaining balance of the loan. 
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Additionally, in each month, the loan recipient shall repay a 
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minimum of $50 or the remaining balance of the loan. All 
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repayments of loans shall be deposited into the Higher 
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Education Revolving Loan Fund.
 


 






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    (e) The Higher Education Revolving Loan Fund is created as 
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a special fund in the State treasury.  All money in the Fund 
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shall be used, subject to appropriation, by the Commission for 
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making loans under this Section.  The Fund shall consist of any 
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moneys transferred or appropriated into the Fund, as well as 
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all repayments of loans made under the higher education 
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revolving loan program.  The Fund shall be used for the purposes 
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of this Section and for no other purpose.  All interest earned 
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on moneys in the Fund shall be deposited into the Fund.
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    (f) The Commission shall adopt any rules necessary to 
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implement and administer this Section.
 

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    Section 99. Effective date. This Act takes effect July 1, 
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2007.