96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB6189


 
Introduced 2/11/2010, by Rep. Richard P. Myers - Chapin Rose
 
SYNOPSIS AS INTRODUCED:
 		





 


  



110 ILCS 947/80










     Amends the Higher Education Student Assistance Act. Provides that the Illinois Student Assistance Commission shall have the power to allow for direct lending by institutions of higher learning. Effective immediately. 
  















LRB096 20674 AMC 36393 b

















FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 




  






HB6189

LRB096 20674 AMC 36393 b





  
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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 Higher Education Student Assistance Act is 
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amended by changing Section 80 as follows:
 



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    (110 ILCS 947/80)



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

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

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

 


 






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

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

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

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

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

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    (f) To enter into such contracts and guarantee agreements

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

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    (g) To receive and accept from any agency of the United 
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States or any
agency of the State of Illinois or any 
 


 






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municipality, county, or other
political subdivision thereof 
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or from any individual, association, or
corporation gifts, 
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grants, or donations of money.

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

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

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

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

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

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    (m) Except with respect to obligations issued prior to July 
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14, 1994, to
exercise all functions, rights, powers,
duties, 
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and responsibilities now or hereafter authorized to be 
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exercised by any
other State agency pursuant to the Higher 
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Education Loan Act of this State.
The authorization to any 
 


 






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other State agency to exercise those functions,
rights, powers, 
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duties, and responsibilities is not affected by this

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authorization to the Commission.

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    (n)  To allow for direct lending by institutions of higher 
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learning. 
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(Source: P.A. 88-553; 89-442, eff. 12-21-95.)

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