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1 | | AN ACT concerning finance.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 1. Short title. This Act may be cited as the |
5 | | Student Investment Account Act. |
6 | | Section 5. Findings and purpose. The General Assembly finds |
7 | | that it is vital for the State to combat the college-debt |
8 | | crisis and increase access to post-secondary education for all |
9 | | residents of this State. The purpose of this Act is to assist |
10 | | qualified residents to attend and pay for post-secondary |
11 | | education through a system of investment programs, which may |
12 | | include income-sharing agreements, linked deposits, and |
13 | | student loans. |
14 | | Section 10. Definitions.
As used in this Act: |
15 | | "Borrower" means an Illinois resident student who has |
16 | | received an education loan or an Illinois resident parent who |
17 | | has received or agreed to pay an education loan, subject to |
18 | | approval by the State Treasurer.
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19 | | "Education loan" means a loan made to a borrower in |
20 | | accordance with this Act to finance an Illinois resident |
21 | | student's attendance at an institution of higher education. |
22 | | "Income share agreement" means an agreement between a |
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1 | | participant and an eligible institution of higher education or |
2 | | an income share agreement provider approved by the State |
3 | | Treasurer in which the participant agrees to pay a percentage |
4 | | of the participant's future earnings for a fixed period in |
5 | | exchange for funds to pay for their post-secondary education.
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6 | | "Income share agreement provider" means an organization |
7 | | that allows income share agreement participants to fund their |
8 | | education by means of an income share agreement. |
9 | | "Institution of higher education" means a post-secondary |
10 | | educational institution located in Illinois and approved by the |
11 | | State Treasurer.
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12 | | "Participant" means a resident student who enters into an |
13 | | income share agreement for the purpose of funding the |
14 | | participant's attendance at an institution of higher |
15 | | education. |
16 | | "Student Investment Account" means that portion of the |
17 | | Treasurer's State Investment Portfolio described in Section |
18 | | 15.
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19 | | Section 15. Establishment of Student Investment Account. |
20 | | The State Treasurer may allocate up to 5% of the Treasurer's |
21 | | State Investment Portfolio to the Student Investment Account. |
22 | | The 5% cap shall be calculated based on: (1) the balance of the |
23 | | Treasurer's State Investment Portfolio at the inception of the |
24 | | State's fiscal year; or (2) the average balance of the |
25 | | Treasurer's State Investment Portfolio in the immediately |
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1 | | preceding 5 fiscal years, whichever number is greater. |
2 | | Section 20. Earnings from Student Investment Account. |
3 | | Earnings on the investments in the Student Investment Account |
4 | | may be reinvested into the Student Investment Account without |
5 | | being counted against the 5% cap under Section 15. Net earnings |
6 | | on investments under this Act that are not reinvested shall be |
7 | | deposited in the same manner as interest is deposited under |
8 | | Section 4.1 of the State Finance Act. The General Assembly |
9 | | shall prioritize any such funds deposited into the General |
10 | | Revenue Fund towards appropriations to support higher |
11 | | education in the State of Illinois. |
12 | | Section 25. Operation of the Student Investment Account. |
13 | | The State Treasurer may: originate, guarantee, acquire, and |
14 | | service education loans; facilitate such arrangements between |
15 | | borrowers and eligible lenders; and perform such other acts as |
16 | | may be necessary or desirable in connection with the education |
17 | | loans. The State Treasurer may receive, hold, and invest moneys |
18 | | paid into the Student Investment Account and take such other |
19 | | actions as are necessary to operate the Student Investment |
20 | | Account. The State Treasurer may invest in, and enter into |
21 | | contracts with, institutions that provide education loans. The |
22 | | State Treasurer may also: enter into income share agreements |
23 | | with participants; facilitate such arrangements between |
24 | | participants and eligible income share agreement providers; |
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1 | | and perform such other acts as may be necessary or desirable in |
2 | | connection with such income share agreements. The State |
3 | | Treasurer may also deposit funds with financial institutions |
4 | | that provide education loans. |
5 | | Section 30. Administration of the Student Investment |
6 | | Account. The State Treasurer may enter into such contracts and |
7 | | guarantee agreements as are necessary to operate the Student |
8 | | Investment Account with eligible lenders, financial |
9 | | institutions, institutions of higher education, income share |
10 | | agreement providers, individuals, corporations, and qualified |
11 | | income share agreement or loan origination and servicing |
12 | | organizations and with any governmental entity, including the |
13 | | Illinois Student Assistance Commission, and with any agency or |
14 | | instrumentality of the United States. The State Treasurer is |
15 | | authorized to establish specific criteria governing the |
16 | | eligibility of entities to participate in its programs, the |
17 | | making of income share agreements or education loans, |
18 | | provisions for default, the establishment of default reserve |
19 | | funds, the purchase of default insurance, the provision of |
20 | | prudent debt service reserves, and the furnishing by |
21 | | participating entities of such additional guarantees of the |
22 | | income share agreements or education loans as the State |
23 | | Treasurer shall determine. |
24 | | Section 35. Fees. The State Treasurer shall establish fees |
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1 | | to cover the costs of administration, recordkeeping, |
2 | | marketing, and investment management related to the Student |
3 | | Investment Account. The State Treasurer may pay eligible |
4 | | lenders, income share agreement providers, financial |
5 | | institutions, institutions of higher education, individuals, |
6 | | corporations, qualified income share agreement or loan |
7 | | origination and servicing organizations, governmental |
8 | | entities, and any agencies or instrumentalities of the United |
9 | | States an administrative fee in connection with services |
10 | | provided pursuant to the Student Investment Account in such |
11 | | amounts, at such times, and in such manner as may be prescribed |
12 | | by the State Treasurer. |
13 | | Section 40. Insurance. The State Treasurer or his or her |
14 | | designee may charge and collect premiums for insurance on |
15 | | income share agreements or education loans and other related |
16 | | charges and pay such insurance premiums or a portion thereof |
17 | | and other charges as are prudent. |
18 | | Section 45. Wage deductions. The State Treasurer may deduct |
19 | | from the salary, wages, commissions, and bonuses of any |
20 | | employee in this State and, to the extent permitted by the laws |
21 | | of the United States and individual states in which an employee |
22 | | might reside, any employee outside the State of Illinois by |
23 | | serving a notice of administrative wage garnishment on an |
24 | | employer, in accordance with rules adopted by the State |
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1 | | Treasurer, for the recovery of an education loan debt or income |
2 | | share agreement owned or serviced by the State Treasurer. Levy |
3 | | must not be made until the State Treasurer has caused a demand |
4 | | to be made on the employee, in a manner consistent with rules |
5 | | adopted by the State Treasurer, such that the employee is |
6 | | provided an opportunity to contest the existence or amount of |
7 | | the income share agreement or education loan obligation. |
8 | | Section 50. Investment policy. The State Treasurer shall |
9 | | develop, publish, and implement one or more investment policies |
10 | | covering the investment of moneys in accordance with this Act. |
11 | | Section 55. Student Investment Account Administrative |
12 | | Fund. The Student Investment Account Administrative Fund is |
13 | | created as a non-appropriated separate and apart trust fund in |
14 | | the State Treasury. Moneys in the Student Investment Account |
15 | | Administrative Fund may be used by the State Treasurer to pay |
16 | | expenses related to all aspects of operation and administration |
17 | | of the Student Investment Account. The State Treasurer may |
18 | | deposit a portion of the earnings of the investments in the |
19 | | Student Investment Account and a portion of any administrative |
20 | | fees, and the proceeds thereof, collected pursuant to Section |
21 | | 35 into the Student Investment Account Administrative Fund. |
22 | | Section 60. Student Investment Account Loss Reserve Fund. |
23 | | The Student Investment Account Loss Reserve Fund may be created |
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1 | | as a non-appropriated separate and apart trust fund in the |
2 | | State Treasury. Moneys in the Student Investment Account Loss |
3 | | Reserve Fund may be used by the State Treasurer to establish |
4 | | loss reserve funds. The State Treasurer may deposit a portion |
5 | | of the earnings of the investments in the Student Investment |
6 | | Account and a portion of any administrative fees, and the |
7 | | proceeds thereof, collected pursuant to Section 35 into the |
8 | | Student Investment Account Loss Reserve Fund. |
9 | | Section 65. Student Investment Account Assistance Fund. |
10 | | The Student Investment Account Assistance Fund may be created |
11 | | as a non-appropriated separate and apart trust fund in the |
12 | | State Treasury. Moneys in the Student Investment Account |
13 | | Assistance Fund may be used by the State Treasurer to provide |
14 | | assistance to qualifying borrowers or income share agreement |
15 | | participants. The State Treasurer may deposit a portion of the |
16 | | earnings of the investments in the Student Investment Account |
17 | | and a portion of any administrative fees, and the proceeds |
18 | | thereof, collected pursuant to Section 35 into the Student |
19 | | Investment Account Assistance Fund. |
20 | | Section 70. Rules. The State Treasurer may adopt rules he |
21 | | or she deems necessary or desirable to implement and administer |
22 | | this Act. |
23 | | Section 900. The Deposit of State Moneys Act is amended by |
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1 | | changing Section 22.5 as follows:
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2 | | (15 ILCS 520/22.5) (from Ch. 130, par. 41a)
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3 | | (For force and effect of certain provisions, see Section 90 |
4 | | of P.A. 94-79) |
5 | | Sec. 22.5. Permitted investments. The State Treasurer may, |
6 | | with the
approval of the Governor, invest and reinvest any |
7 | | State money in the treasury
which is not needed for current |
8 | | expenditures due or about to become due, in
obligations of the |
9 | | United States government or its agencies or of National
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10 | | Mortgage Associations established by or under the National |
11 | | Housing Act, 12 1201
U.S.C. 1701 et seq., or
in mortgage |
12 | | participation certificates representing undivided interests in
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13 | | specified, first-lien conventional residential Illinois |
14 | | mortgages that are
underwritten, insured, guaranteed, or |
15 | | purchased by the Federal Home Loan
Mortgage Corporation or in |
16 | | Affordable Housing Program Trust Fund Bonds or
Notes as defined |
17 | | in and issued pursuant to the Illinois Housing Development
Act. |
18 | | All such obligations shall be considered as cash and may
be |
19 | | delivered over as cash by a State Treasurer to his successor.
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20 | | The State Treasurer may, with the approval of the Governor, |
21 | | purchase
any state bonds with any money in the State Treasury |
22 | | that has been set
aside and held for the payment of the |
23 | | principal of and interest on the
bonds. The bonds shall be |
24 | | considered as cash and may be delivered over
as cash by the |
25 | | State Treasurer to his successor.
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1 | | The State Treasurer may, with the approval of the Governor, |
2 | | invest or
reinvest any State money in the treasury that is not |
3 | | needed for
current expenditure due or about to become due, or |
4 | | any money in the
State Treasury that has been set aside and |
5 | | held for the payment of the
principal of and the interest on |
6 | | any State bonds, in shares,
withdrawable accounts, and |
7 | | investment certificates of savings and
building and loan |
8 | | associations, incorporated under the laws of this
State or any |
9 | | other state or under the laws of the United States;
provided, |
10 | | however, that investments may be made only in those savings
and |
11 | | loan or building and loan associations the shares and |
12 | | withdrawable
accounts or other forms of investment securities |
13 | | of which are insured
by the Federal Deposit Insurance |
14 | | Corporation.
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15 | | The State Treasurer may not invest State money in any |
16 | | savings and
loan or building and loan association unless a |
17 | | commitment by the savings
and loan (or building and loan) |
18 | | association, executed by the president
or chief executive |
19 | | officer of that association, is submitted in the
following |
20 | | form:
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21 | | The .................. Savings and Loan (or Building |
22 | | and Loan)
Association pledges not to reject arbitrarily |
23 | | mortgage loans for
residential properties within any |
24 | | specific part of the community served
by the savings and |
25 | | loan (or building and loan) association because of
the |
26 | | location of the property. The savings and loan (or building |
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1 | | and
loan) association also pledges to make loans available |
2 | | on low and
moderate income residential property throughout |
3 | | the community within
the limits of its legal restrictions |
4 | | and prudent financial practices.
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5 | | The State Treasurer may, with the approval of the Governor, |
6 | | invest or
reinvest, at a price not to exceed par, any State |
7 | | money in the treasury
that is not needed for current |
8 | | expenditures due or about to become
due, or any money in the |
9 | | State Treasury that has been set aside and
held for the payment |
10 | | of the principal of and interest on any State
bonds, in bonds |
11 | | issued by counties or municipal corporations of the
State of |
12 | | Illinois.
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13 | | The State Treasurer may, with the approval of the Governor, |
14 | | invest or
reinvest any State money in the Treasury which is not |
15 | | needed for current
expenditure, due or about to become due, or |
16 | | any money in the State Treasury
which has been set aside and |
17 | | held for the payment of the principal of and
the interest on |
18 | | any State bonds, in participations in loans, the principal
of |
19 | | which participation is fully guaranteed by an agency or |
20 | | instrumentality
of the United States government; provided, |
21 | | however, that such loan
participations are represented by |
22 | | certificates issued only by banks which
are incorporated under |
23 | | the laws of this State or any other state
or under the laws of |
24 | | the United States, and such banks, but not
the loan |
25 | | participation certificates, are insured by the Federal Deposit
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26 | | Insurance Corporation.
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1 | | Whenever the total amount of vouchers presented to the |
2 | | Comptroller under Section 9 of the State Comptroller Act |
3 | | exceeds the funds available in the General Revenue Fund by |
4 | | $1,000,000,000 or more, then the State Treasurer may invest any |
5 | | State money in the Treasury, other than money in the General |
6 | | Revenue Fund, Health Insurance Reserve Fund, Attorney General |
7 | | Court Ordered and Voluntary Compliance Payment Projects Fund, |
8 | | Attorney General Whistleblower Reward and Protection Fund, and |
9 | | Attorney General's State Projects and Court Ordered |
10 | | Distribution Fund, which is not needed for current |
11 | | expenditures, due or about to become due, or any money in the |
12 | | State Treasury which has been set aside and held for the |
13 | | payment of the principal of and the interest on any State bonds |
14 | | with the Office of the Comptroller in order to enable the |
15 | | Comptroller to pay outstanding vouchers. At any time, and from |
16 | | time to time outstanding, such investment shall not be greater |
17 | | than $2,000,000,000. Such investment shall be deposited into |
18 | | the General Revenue Fund or Health Insurance Reserve Fund as |
19 | | determined by the Comptroller. Such investment shall be repaid |
20 | | by the Comptroller with an interest rate tied to the London |
21 | | Interbank Offered Rate (LIBOR) or the Federal Funds Rate or an |
22 | | equivalent market established variable rate, but in no case |
23 | | shall such interest rate exceed the lesser of the penalty rate |
24 | | established under the State Prompt Payment Act or the timely |
25 | | pay interest rate under Section 368a of the Illinois Insurance |
26 | | Code. The State Treasurer and the Comptroller shall enter into |
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1 | | an intergovernmental agreement to establish procedures for |
2 | | such investments, which market established variable rate to |
3 | | which the interest rate for the investments should be tied, and |
4 | | other terms which the State Treasurer and Comptroller |
5 | | reasonably believe to be mutually beneficial concerning these |
6 | | investments by the State Treasurer. The State Treasurer and |
7 | | Comptroller shall also enter into a written agreement for each |
8 | | such investment that specifies the period of the investment, |
9 | | the payment interval, the interest rate to be paid, the funds |
10 | | in the Treasury from which the Treasurer will draw the |
11 | | investment, and other terms upon which the State Treasurer and |
12 | | Comptroller mutually agree. Such investment agreements shall |
13 | | be public records and the State Treasurer shall post the terms |
14 | | of all such investment agreements on the State Treasurer's |
15 | | official website. In compliance with the intergovernmental |
16 | | agreement, the Comptroller shall order and the State Treasurer |
17 | | shall transfer amounts sufficient for the payment of principal |
18 | | and interest invested by the State Treasurer with the Office of |
19 | | the Comptroller under this paragraph from the General Revenue |
20 | | Fund or the Health Insurance Reserve Fund to the respective |
21 | | funds in the Treasury from which the State Treasurer drew the |
22 | | investment. Public Act 100-1107 This amendatory Act of the |
23 | | 100th General Assembly shall constitute an irrevocable and |
24 | | continuing authority for all amounts necessary for the payment |
25 | | of principal and interest on the investments made with the |
26 | | Office of the Comptroller by the State Treasurer under this |
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1 | | paragraph, and the irrevocable and continuing authority for and |
2 | | direction to the Comptroller and Treasurer to make the |
3 | | necessary transfers. |
4 | | The State Treasurer may, with the approval of the Governor, |
5 | | invest or
reinvest any State money in the Treasury that is not |
6 | | needed for current
expenditure, due or about to become due, or |
7 | | any money in the State Treasury
that has been set aside and |
8 | | held for the payment of the principal of and
the interest on |
9 | | any State bonds, in any of the following:
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10 | | (1) Bonds, notes, certificates of indebtedness, |
11 | | Treasury bills, or other
securities now or hereafter issued |
12 | | that are guaranteed by the full faith
and credit of the |
13 | | United States of America as to principal and interest.
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14 | | (2) Bonds, notes, debentures, or other similar |
15 | | obligations of the United
States of America, its agencies, |
16 | | and instrumentalities.
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17 | | (2.5) Bonds, notes, debentures, or other similar |
18 | | obligations of a
foreign government, other than the |
19 | | Republic of the Sudan, that are guaranteed by the full |
20 | | faith and credit of that
government as to principal and |
21 | | interest, but only if the foreign government
has not |
22 | | defaulted and has met its payment obligations in a timely |
23 | | manner on
all similar obligations for a period of at least |
24 | | 25 years immediately before
the time of acquiring those |
25 | | obligations.
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26 | | (3) Interest-bearing savings accounts, |
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1 | | interest-bearing certificates of
deposit, interest-bearing |
2 | | time deposits, or any other investments
constituting |
3 | | direct obligations of any bank as defined by the Illinois
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4 | | Banking Act.
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5 | | (4) Interest-bearing accounts, certificates of |
6 | | deposit, or any other
investments constituting direct |
7 | | obligations of any savings and loan
associations |
8 | | incorporated under the laws of this State or any other |
9 | | state or
under the laws of the United States.
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10 | | (5) Dividend-bearing share accounts, share certificate |
11 | | accounts, or
class of share accounts of a credit union |
12 | | chartered under the laws of this
State or the laws of the |
13 | | United States; provided, however, the principal
office of |
14 | | the credit union must be located within the State of |
15 | | Illinois.
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16 | | (6) Bankers' acceptances of banks whose senior |
17 | | obligations are rated in
the top 2 rating categories by 2 |
18 | | national rating agencies and maintain that
rating during |
19 | | the term of the investment.
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20 | | (7) Short-term obligations of either corporations or |
21 | | limited liability companies organized in the United
States |
22 | | with assets exceeding $500,000,000 if (i) the obligations |
23 | | are rated
at the time of purchase at one of the 3 highest |
24 | | classifications established
by at least 2 standard rating |
25 | | services and mature not later than 270
days from the date |
26 | | of purchase, (ii) the purchases do not exceed 10% of
the |
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1 | | corporation's or the limited liability company's |
2 | | outstanding obligations, (iii) no more than one-third of
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3 | | the public agency's funds are invested in short-term |
4 | | obligations of
either corporations or limited liability |
5 | | companies, and (iv) the corporation or the limited |
6 | | liability company has not been placed on the list of |
7 | | restricted companies by the Illinois Investment Policy |
8 | | Board under Section 1-110.16 of the Illinois Pension Code.
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9 | | (7.5) Obligations of either corporations or limited |
10 | | liability companies organized in the United States, that |
11 | | have a significant presence in this State, with assets |
12 | | exceeding $500,000,000 if: (i) the obligations are rated at |
13 | | the time of purchase at one of the 3 highest |
14 | | classifications established by at least 2 standard rating |
15 | | services and mature more than 270 days, but less than 5 |
16 | | years, from the date of purchase; (ii) the purchases do not |
17 | | exceed 10% of the corporation's or the limited liability |
18 | | company's outstanding obligations; (iii) no more than 5% of |
19 | | the public agency's funds are invested in such obligations |
20 | | of corporations or limited liability companies; and (iv) |
21 | | the corporation or the limited liability company has not |
22 | | been placed on the list of restricted companies by the |
23 | | Illinois Investment Policy Board under Section 1-110.16 of |
24 | | the Illinois Pension Code. The authorization of the |
25 | | Treasurer to invest in new obligations under this paragraph |
26 | | shall expire on June 30, 2019. |
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1 | | (8) Money market mutual funds registered under the |
2 | | Investment Company
Act of 1940, provided that the portfolio |
3 | | of the money market mutual fund is
limited to obligations |
4 | | described in this Section and to agreements to
repurchase |
5 | | such obligations.
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6 | | (9) The Public Treasurers' Investment Pool created |
7 | | under Section 17 of
the State Treasurer Act or in a fund |
8 | | managed, operated, and administered by
a bank.
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9 | | (10) Repurchase agreements of government securities |
10 | | having the meaning
set out in the Government Securities Act |
11 | | of 1986, as now or hereafter amended or succeeded, subject |
12 | | to the provisions
of that Act and the regulations issued |
13 | | thereunder.
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14 | | (11) Investments made in accordance with the |
15 | | Technology Development
Act.
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16 | | (12) Investments made in accordance with the Student |
17 | | Investment Account Act. |
18 | | For purposes of this Section, "agencies" of the United |
19 | | States
Government includes:
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20 | | (i) the federal land banks, federal intermediate |
21 | | credit banks, banks for
cooperatives, federal farm credit |
22 | | banks, or any other entity authorized
to issue debt |
23 | | obligations under the Farm Credit Act of 1971 (12 U.S.C. |
24 | | 2001
et seq.) and Acts amendatory thereto;
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25 | | (ii) the federal home loan banks and the federal home |
26 | | loan
mortgage corporation;
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1 | | (iii) the Commodity Credit Corporation; and
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2 | | (iv) any other agency created by Act of Congress.
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3 | | The Treasurer may, with the approval of the Governor, lend |
4 | | any securities
acquired under this Act. However, securities may |
5 | | be lent under this Section
only in accordance with Federal |
6 | | Financial Institution Examination Council
guidelines and only |
7 | | if the securities are collateralized at a level sufficient
to |
8 | | assure the safety of the securities, taking into account market |
9 | | value
fluctuation. The securities may be collateralized by cash |
10 | | or collateral
acceptable under Sections 11 and 11.1.
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11 | | (Source: P.A. 99-856, eff. 8-19-16; 100-1107, eff. 8-27-18; |
12 | | revised 9-27-18.)
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13 | | Section 905. The Student Loan Servicing Rights Act is |
14 | | amended by changing Section 1-5 as follows: |
15 | | (110 ILCS 992/1-5)
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16 | | Sec. 1-5. Definitions. As used in this Act: |
17 | | "Applicant" means a person applying for a license pursuant |
18 | | to this Act. |
19 | | "Borrower" or "student loan borrower" means a person who |
20 | | has received or agreed to pay a student loan for his or her own |
21 | | educational expenses. |
22 | | "Cosigner" means a person who has agreed to share |
23 | | responsibility for repaying a student loan with a borrower. |
24 | | "Department" means the Department of Financial and |
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1 | | Professional Regulation. |
2 | | "Division of Banking" means the Division of Banking of the |
3 | | Department of Financial and Professional Regulation. |
4 | | "Federal loan borrower eligible for referral to a repayment |
5 | | specialist" means a borrower who possesses any of the following |
6 | | characteristics: |
7 | | (1) requests information related to options to reduce |
8 | | or suspend his or her monthly payment; |
9 | | (2) indicates that he or she is experiencing or |
10 | | anticipates experiencing financial hardship, distress, or |
11 | | difficulty making his or her payments; |
12 | | (3) has missed 2 consecutive monthly payments; |
13 | | (4) is at least 75 days delinquent; |
14 | | (5) is enrolled in a discretionary forbearance for more |
15 | | than 9 of the previous 12 months; |
16 | | (6) has rehabilitated or consolidated one or more loans |
17 | | out of default within the past 12 months; or |
18 | | (7) has not completed a course of study, as reflected |
19 | | in the servicer's records, or the borrower identifies |
20 | | himself or herself as not having completed a program of |
21 | | study. |
22 | | "Federal education loan" means any loan made, guaranteed, |
23 | | or insured under Title IV of the federal Higher Education Act |
24 | | of 1965. |
25 | | "Income-driven payment plan certification" means the |
26 | | documentation related to a federal student loan borrower's |
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1 | | income or financial status the borrower must submit to renew an |
2 | | income-driven repayment plan. |
3 | | "Income-driven repayment options" includes the |
4 | | Income-Contingent Repayment Plan, the Income-Based Repayment |
5 | | Plan, the Income-Sensitive Repayment Plan, the Pay As You Earn |
6 | | Plan, the Revised Pay As You Earn Plan, and any other federal |
7 | | student loan repayment plan that is calculated based on a |
8 | | borrower's income. |
9 | | "Licensee" means a person licensed pursuant to this Act. |
10 | | "Other repayment plans" means the Standard Repayment Plan, |
11 | | the Graduated Repayment Plan, the Extended Repayment Plan, or |
12 | | any other federal student loan repayment plan not based on a |
13 | | borrower's income. |
14 | | "Private loan borrower eligible for referral to a repayment |
15 | | specialist" means a borrower who possesses any of the following |
16 | | characteristics: |
17 | | (1) requests information related to options to reduce |
18 | | or suspend his or her monthly payments; or |
19 | | (2) indicates that he or she is experiencing or |
20 | | anticipates experiencing financial hardship, distress, or |
21 | | difficulty making his or her payments. |
22 | | "Requester" means any borrower or cosigner that submits a |
23 | | request for assistance. |
24 | | "Request for assistance" means all inquiries, complaints, |
25 | | account disputes, and requests for documentation a servicer |
26 | | receives from borrowers or cosigners. |
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1 | | "Secretary" means the Secretary of Financial and |
2 | | Professional Regulation, or his or her designee, including the |
3 | | Director of the Division of Banking of the Department of |
4 | | Financial and Professional Regulation. |
5 | | "Servicing" means: (1) receiving any scheduled periodic |
6 | | payments from a student loan borrower or cosigner pursuant to |
7 | | the terms of a student loan; (2) applying the payments of |
8 | | principal and interest and such other payments with respect to |
9 | | the amounts received from a student loan borrower or cosigner, |
10 | | as may be required pursuant to the terms of a student loan; and |
11 | | (3) performing other administrative services with respect to a |
12 | | student loan. |
13 | | "Student loan" or "loan" means any federal education loan |
14 | | or other loan primarily for use to finance a postsecondary |
15 | | education and costs of attendance at a postsecondary |
16 | | institution, including, but not limited to, tuition, fees, |
17 | | books and supplies, room and board, transportation, and |
18 | | miscellaneous personal expenses. "Student loan" includes a |
19 | | loan made to refinance a student loan. |
20 | | "Student loan" shall not include an extension of credit |
21 | | under an open-end consumer credit plan, a reverse mortgage |
22 | | transaction, a residential mortgage transaction, or any other |
23 | | loan that is secured by real property or a dwelling. |
24 | | "Student loan" shall not include an extension of credit |
25 | | made by a postsecondary educational institution to a borrower |
26 | | if one of the following apply: |
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1 | | (1) The term of the extension of credit is no longer |
2 | | than the borrower's education program. |
3 | | (2) The remaining, unpaid principal balance of the |
4 | | extension of credit is less than $1,500 at the time of the |
5 | | borrower's graduation or completion of the program. |
6 | | (3) The borrower fails to graduate or successfully |
7 | | complete his or her education program and has a balance due |
8 | | at the time of his or her disenrollment from the |
9 | | postsecondary institution. |
10 | | "Student loan servicer" or "servicer" means any person |
11 | | engaged in the business of servicing student loans. "Student |
12 | | loan servicer" or "servicer" includes persons or entities |
13 | | acting on behalf of the State Treasurer. |
14 | | "Student loan servicer" shall not include: |
15 | | (1) a bank, savings bank, savings association, or |
16 | | credit union organized under the laws of the State or any |
17 | | other state or under the laws of the United States; |
18 | | (2) a wholly owned subsidiary of any bank, savings |
19 | | bank, savings association, or credit union organized under |
20 | | the laws of the State or any other state or under the laws |
21 | | of the United States; |
22 | | (3) an operating subsidiary where each owner of the |
23 | | operating subsidiary is wholly owned by the same bank, |
24 | | savings bank, savings association, or credit union |
25 | | organized under the laws of the State or any other state or |
26 | | under the laws of the United States; |
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1 | | (4) the Illinois Student Assistance Commission and its |
2 | | agents when the agents are acting on the Illinois Student |
3 | | Assistance Commission's behalf; |
4 | | (5) a public postsecondary educational institution or
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5 | | a private nonprofit postsecondary educational institution
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6 | | servicing a student loan it extended to the borrower; |
7 | | (6) a licensed debt management service under the Debt
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8 | | Management Service Act, except to the extent that the
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9 | | organization acts as a subcontractor, affiliate, or
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10 | | service provider for an entity that is otherwise subject to |
11 | | licensure under this Act; |
12 | | (7) any collection agency licensed under the
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13 | | Collection Agency Act that is collecting post-default
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14 | | debt; |
15 | | (8) in connection with its responsibilities as a |
16 | | guaranty agency engaged in default aversion, a State or |
17 | | nonprofit private institution or organization having an |
18 | | agreement with the U.S. Secretary of Education under |
19 | | Section 428(b) of the Higher Education Act (20 U.S.C. |
20 | | 1078(B));
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21 | | (9) a State institution or a nonprofit private |
22 | | organization designated by a governmental entity to make or |
23 | | service student loans, provided in each case that the |
24 | | institution or organization services fewer than 20,000 |
25 | | student loan accounts of borrowers who reside in Illinois; |
26 | | or
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