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1 | AN ACT concerning education. | |||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois, | |||||||||||||||||||
3 | represented in the General Assembly: | |||||||||||||||||||
4 | Section 5. The Student Investment Account Act is amended | |||||||||||||||||||
5 | by changing Sections 5, 10, 25, 30, 35, 40, 45, and 65 as | |||||||||||||||||||
6 | follows: | |||||||||||||||||||
7 | (110 ILCS 991/5) | |||||||||||||||||||
8 | Sec. 5. Findings and purpose. The General Assembly finds | |||||||||||||||||||
9 | that it is vital for the State to combat the college-debt | |||||||||||||||||||
10 | crisis and increase access to post-secondary education for all | |||||||||||||||||||
11 | residents of this State. The purpose of this Act is to assist | |||||||||||||||||||
12 | qualified residents to attend and pay for post-secondary | |||||||||||||||||||
13 | education through a system of investment programs, which may | |||||||||||||||||||
14 | include income-sharing agreements, linked deposits, and | |||||||||||||||||||
15 | student loans , and refinance loans . | |||||||||||||||||||
16 | (Source: P.A. 101-586, eff. 8-26-19.) | |||||||||||||||||||
17 | (110 ILCS 991/10) | |||||||||||||||||||
18 | Sec. 10. Definitions. As used in this Act: | |||||||||||||||||||
19 | "Borrower" means an Illinois resident student who has | |||||||||||||||||||
20 | received an education loan or an Illinois resident parent who | |||||||||||||||||||
21 | has received or agreed to pay an education loan, subject to | |||||||||||||||||||
22 | approval by the State Treasurer. |
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1 | "Education loan" means a loan made to a borrower in | ||||||
2 | accordance with this Act to finance an Illinois resident | ||||||
3 | student's attendance at an institution of higher education. | ||||||
4 | "Income share agreement" means an agreement between a | ||||||
5 | participant and an eligible institution of higher education or | ||||||
6 | an income share agreement provider approved by the State | ||||||
7 | Treasurer in which the participant agrees to pay a percentage | ||||||
8 | of the participant's future earnings for a fixed period in | ||||||
9 | exchange for funds to pay for their post-secondary education. | ||||||
10 | "Income share agreement provider" means an organization | ||||||
11 | that allows income share agreement participants to fund their | ||||||
12 | education by means of an income share agreement. | ||||||
13 | "Institution of higher education" means a post-secondary | ||||||
14 | educational institution located in Illinois and approved by | ||||||
15 | the State Treasurer. | ||||||
16 | "Participant" means a resident student who enters into an | ||||||
17 | income share agreement for the purpose of funding the | ||||||
18 | participant's attendance at an institution of higher | ||||||
19 | education. | ||||||
20 | "Refinance loan" means a loan made to an Illinois resident | ||||||
21 | in accordance with this Act to refinance an existing loan used | ||||||
22 | to finance post-secondary education. | ||||||
23 | "Student Investment Account" means that portion of the | ||||||
24 | Treasurer's State Investment Portfolio described in Section | ||||||
25 | 15. | ||||||
26 | (Source: P.A. 101-586, eff. 8-26-19.) |
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1 | (110 ILCS 991/25) | ||||||
2 | Sec. 25. Operation of the Student Investment Account. The | ||||||
3 | State Treasurer may: originate, guarantee, acquire, and | ||||||
4 | service education loans or refinance loans ; facilitate such | ||||||
5 | arrangements between borrowers and eligible lenders; and | ||||||
6 | perform such other acts as may be necessary or desirable in | ||||||
7 | connection with the education loans or refinance loans . The | ||||||
8 | State Treasurer may receive, hold, and invest moneys paid into | ||||||
9 | the Student Investment Account and take such other actions as | ||||||
10 | are necessary to operate the Student Investment Account. The | ||||||
11 | State Treasurer may invest in, and enter into contracts with, | ||||||
12 | institutions that provide education loans or refinance loans . | ||||||
13 | The State Treasurer may also: enter into income share | ||||||
14 | agreements with participants; facilitate such arrangements | ||||||
15 | between participants and eligible income share agreement | ||||||
16 | providers; and perform such other acts as may be necessary or | ||||||
17 | desirable in connection with such income share agreements. The | ||||||
18 | State Treasurer may also deposit funds with financial | ||||||
19 | institutions that provide education loans or refinance loans . | ||||||
20 | (Source: P.A. 101-586, eff. 8-26-19.) | ||||||
21 | (110 ILCS 991/30) | ||||||
22 | Sec. 30. Administration of the Student Investment Account. | ||||||
23 | The State Treasurer may enter into such contracts and | ||||||
24 | guarantee agreements as are necessary to operate the Student |
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1 | Investment Account with eligible lenders, financial | ||||||
2 | institutions, institutions of higher education, income share | ||||||
3 | agreement providers, individuals, corporations, and qualified | ||||||
4 | income share agreement or loan origination and servicing | ||||||
5 | organizations and with any governmental entity, including the | ||||||
6 | Illinois Student Assistance Commission, and with any agency or | ||||||
7 | instrumentality of the United States. The State Treasurer is | ||||||
8 | authorized to establish specific criteria governing the | ||||||
9 | eligibility of entities to participate in its programs, the | ||||||
10 | making of income share agreements or education loans or | ||||||
11 | refinance loans , provisions for default, the establishment of | ||||||
12 | default reserve funds, the purchase of default insurance, the | ||||||
13 | provision of prudent debt service reserves, and the furnishing | ||||||
14 | by participating entities of such additional guarantees of the | ||||||
15 | income share agreements or education loans or refinance loans | ||||||
16 | as the State Treasurer shall determine. | ||||||
17 | (Source: P.A. 101-586, eff. 8-26-19.) | ||||||
18 | (110 ILCS 991/35) | ||||||
19 | Sec. 35. Fees. The State Treasurer may shall establish | ||||||
20 | fees to cover the costs of administration, recordkeeping, | ||||||
21 | marketing, and investment management related to the Student | ||||||
22 | Investment Account. The State Treasurer may pay eligible | ||||||
23 | lenders, income share agreement providers, financial | ||||||
24 | institutions, institutions of higher education, individuals, | ||||||
25 | corporations, qualified income share agreement or loan |
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1 | origination and servicing organizations, governmental | ||||||
2 | entities, and any agencies or instrumentalities of the United | ||||||
3 | States an administrative fee in connection with services | ||||||
4 | provided pursuant to the Student Investment Account in such | ||||||
5 | amounts, at such times, and in such manner as may be prescribed | ||||||
6 | by the State Treasurer. | ||||||
7 | (Source: P.A. 101-586, eff. 8-26-19.) | ||||||
8 | (110 ILCS 991/40) | ||||||
9 | Sec. 40. Insurance. The State Treasurer or his or her | ||||||
10 | designee may charge and collect premiums for insurance on | ||||||
11 | income share agreements or education loans or refinance loans | ||||||
12 | and other related charges and pay such insurance premiums or a | ||||||
13 | portion thereof and other charges as are prudent. | ||||||
14 | (Source: P.A. 101-586, eff. 8-26-19.) | ||||||
15 | (110 ILCS 991/45) | ||||||
16 | Sec. 45. Wage deductions. The State Treasurer may deduct | ||||||
17 | from the salary, wages, commissions, and bonuses of any | ||||||
18 | employee in this State and, to the extent permitted by the laws | ||||||
19 | of the United States and individual states in which an | ||||||
20 | employee might reside, any employee outside the State of | ||||||
21 | Illinois by serving a notice of administrative wage | ||||||
22 | garnishment on an employer, in accordance with rules adopted | ||||||
23 | by the State Treasurer, for the recovery of an education loan | ||||||
24 | or refinance loan debt or income share agreement owned or |
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1 | serviced by the State Treasurer. Levy must not be made until | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | the State Treasurer has caused a demand to be made on the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | employee, in a manner consistent with rules adopted by the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | State Treasurer, such that the employee is provided an | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | opportunity to contest the existence or amount of the income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | share agreement or education loan or refinance loan | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | obligation. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | (Source: P.A. 101-586, eff. 8-26-19.) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9 | (110 ILCS 991/65) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10 | Sec. 65. Student Investment Account Assistance Fund. The | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11 | Student Investment Account Assistance Fund may be created as a | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12 | non-appropriated separate and apart trust fund in the State | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
13 | Treasury. Moneys in the Student Investment Account Assistance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
14 | Fund may be used by the State Treasurer to provide assistance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
15 | to qualifying borrowers or income share agreement | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
16 | participants . The State Treasurer may deposit a portion of the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
17 | earnings of the investments in the Student Investment Account | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
18 | and a portion of any administrative fees, and the proceeds | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
19 | thereof, collected pursuant to Section 35 into the Student | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
20 | Investment Account Assistance Fund. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
21 | (Source: P.A. 101-586, eff. 8-26-19.) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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