Illinois General Assembly - Full Text of SB0049
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Full Text of SB0049  103rd General Assembly

SB0049 103RD GENERAL ASSEMBLY

  
  

 


 
103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB0049

 

Introduced 1/20/2023, by Sen. Laura Fine

 

SYNOPSIS AS INTRODUCED:
 
110 ILCS 66/5
110 ILCS 66/15
110 ILCS 66/30 new
110 ILCS 66/35 new
110 ILCS 66/40 new

    Amends the Student Debt Assistance Act. Provides that an institution of higher education shall provide an official transcript of a current or former student to the current or former student under specified conditions (instead of providing that an institution of higher education must provide an official transcript of a current or former student to a current or potential employer, even if the current or former student owes a debt). Provides that an institution of higher education may adopt a more lenient policy on providing an official transcript to a current or former student who owes a debt. Provides that beginning with the 2023-2024 academic year, each institution of higher education shall adopt a policy that outlines the process by which a current or former student may obtain a transcript or diploma that has been withheld from the student because the student owes a debt. Provides for minimum requirements for the policy. Provides that the institution of higher education does not need to institute a new policy if the institution's current policy meets the minimum requirements. Provides that on or before July 1, 2024 and on or before each July 1 thereafter, each institution of higher education shall report to the Board of Higher Education information regarding financial-based transcript and registration holds. Provides that complaints from current or former students who have had an unofficial or official transcript withheld may be filed with the Attorney General's student loan ombudsperson. Makes conforming changes.


LRB103 04912 RJT 49922 b

 

 

A BILL FOR

 

SB0049LRB103 04912 RJT 49922 b

1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Student Debt Assistance Act is amended by
5changing Sections 5 and 15 and by adding Sections 30, 35, and
640 as follows:
 
7    (110 ILCS 66/5)
8    Sec. 5. Definitions. In this Act:
9    "Debt" means any money, obligation, claim, or sum due or
10owing or alleged to be due or owing from a student to an
11institution of higher education. "Debt" does not include the
12fee, if any, that is charged to students by an applicable
13provider for the actual cost of providing an academic
14transcript to a student.
15    "Financial aid funds" means financial aid funds that a
16current or former student owes to an institution of higher
17education under Title IV of the federal Higher Education Act
18of 1965 or to the State due to miscalculation, withdrawal,
19misinformation, or any other reason, not including the
20standard repayment of student loans.
21    "Institution of higher education" includes, but is not
22limited to, an institution to which the Private Business and
23Vocational Schools Act of 2012 or the Private College Act

 

 

SB0049- 2 -LRB103 04912 RJT 49922 b

1applies and a public institution of higher education included
2in the definition of "public institutions of higher education"
3under the Board of Higher Education Act. "Institution of
4higher education" also includes a person engaged in the
5business of providing postsecondary education, via
6correspondence or online or in this State, to an individual
7located in this State, regardless of whether the person has
8obtained authorization from the Board of Higher Education to
9operate in this State or is accredited.
10    "Official transcript" means the academic transcript or a
11similar academic record of each current or former student of
12an institution of higher education that is deemed official,
13authenticated, certified, or bona fide and that contains
14information customarily provided on an official academic
15transcript, including, but not limited to, courses taken,
16terms, grades, degrees or credentials conferred, and any other
17similar information.
18    "Room and board fees" means any money, obligation, claim,
19or sum due or owing or alleged to be due or owing from a
20current or former student for the provision of contractually
21agreed upon, on-campus housing or meal service plans.
22    "Unofficial transcript" means the academic transcript or a
23similar academic record of each current or former student of
24an institution of higher education that contains information
25customarily provided on an official transcript, but cannot be
26used to transfer academic credits to another institution of

 

 

SB0049- 3 -LRB103 04912 RJT 49922 b

1higher education.
2(Source: P.A. 102-998, eff. 5-27-22.)
 
3    (110 ILCS 66/15)
4    Sec. 15. Withholding of official transcripts.
5    (a) An institution of higher education:
6        (1) shall must provide an official transcript of a
7    current or former student to the current or former
8    student: to a current or potential employer, even if the
9    current or former student owes a debt;
10            (A) if the student only owes a debt other than a
11        debt relating to past-due tuition, room and board
12        fees, or financial aid funds; or
13            (B) if the student requires the transcript to
14        transfer from one institution of higher education to
15        another and the student:
16                (i) owes a debt of less than $2,500; and
17                (ii) is on a repayment plan and the plan is
18            currently in good standing; or
19            (C) if the student can demonstrate that the
20        transcript is needed for:
21                (i) a job application;
22                (ii) an application for State, federal, or
23            institutional financial aid;
24                (iii) joining the U.S. Armed Forces or
25            Illinois National Guard; or

 

 

SB0049- 4 -LRB103 04912 RJT 49922 b

1                (iv) pursuing other postsecondary
2            opportunities, excluding transferring from one
3            institution of higher education to another;
4        (2) may not condition the provision of an official
5    transcript to a current or potential employer on the
6    payment of a debt, other than a fee charged to provide the
7    transcript; and
8        (3) may not charge a higher fee for providing
9    transferring an official transcript to a current or
10    potential employer or provide less favorable treatment for
11    such a request because a current or former student owes a
12    debt.
13    (b) Nothing in this Section prohibits an institution of
14higher education from adopting a more lenient policy on
15providing an official transcript to a current or former
16student who owes a debt.
17(Source: P.A. 102-998, eff. 5-27-22.)
 
18    (110 ILCS 66/30 new)
19    Sec. 30. Past-due debt policy.
20    (a) Beginning with the 2023-2024 academic year, each
21institution of higher education shall adopt a policy that
22outlines the process by which a current or former student may
23obtain a transcript or diploma that has been withheld from the
24student because the student owes a debt. At a minimum, the
25policy must include:

 

 

SB0049- 5 -LRB103 04912 RJT 49922 b

1        (1) a reasonable process for the verification of
2    conditions a current or former student may demonstrate to
3    receive an exemption pursuant to Section 15 of this Act;
4    and
5        (2) identification of the point at which a student may
6    be subject to a transcript, diploma, or registration hold,
7    including the time frames and amounts for which the holds
8    are to be used and the lowest amount of debt at which the
9    institution will assign debt to a third-party collection
10    agency.
11    (b) The institution of higher education shall post the
12policy described in subsection (a) of this Section and the
13procedures for filing a complaint with the Attorney General's
14student loan ombudsperson and an administrator of the
15institution of higher education on the institution of higher
16education's website and shall provide the policy and the
17procedures to students as part of the information the
18institution of higher education shares relating to the cost of
19attendance that includes any additional fees, financial aid,
20scholarships, or other information.
21    (c) The institution of higher education does not need to
22institute a new policy under this amendatory Act of the 102nd
23General Assembly if the institution's current policy meets the
24minimum requirements of this Section.
 
25    (110 ILCS 66/35 new)

 

 

SB0049- 6 -LRB103 04912 RJT 49922 b

1    Sec. 35. Reporting. On or before July 1, 2024 and on or
2before each July 1 thereafter, each institution of higher
3education shall report to the Board of Higher Education
4information regarding financial-based transcript and
5registration holds, which must include:
6        (1) reporting the institution of higher education's
7    policy developed pursuant to Section 30 of this Act; and
8        (2) reporting the number of students for whom the
9    institution of higher education has withheld official
10    transcripts, diplomas, or registration privileges, using
11    data from the previous academic year.
 
12    (110 ILCS 66/40 new)
13    Sec. 40. Complaints. If a current or former student
14believes the student's unofficial or official transcript is
15being withheld erroneously or in violation of this Act, the
16student may file a complaint with the Attorney General's
17student loan ombudsperson, who shall have the authority to
18investigate the complaint.