Full Text of HB4397 100th General Assembly
HB4397enr 100TH GENERAL ASSEMBLY |
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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 Loan Servicing Rights Act is amended | 5 | | by changing Section 1-5 as follows: | 6 | | (110 ILCS 992/1-5) | 7 | | (This Section may contain text from a Public Act with a | 8 | | delayed effective date )
| 9 | | Sec. 1-5. Definitions. As used in this Act: | 10 | | "Applicant" means a person applying for a license pursuant | 11 | | to this Act. | 12 | | "Borrower" or "student loan borrower" means a person who | 13 | | has received or agreed to pay a student loan for his or her own | 14 | | educational expenses. | 15 | | "Cosigner" means a person who has agreed to share | 16 | | responsibility for repaying a student loan with a borrower. | 17 | | "Department" means the Department of Financial and | 18 | | Professional Regulation. | 19 | | "Division of Banking" means the Division of Banking of the | 20 | | Department of Financial and Professional Regulation. | 21 | | "Federal loan borrower eligible for referral to a repayment | 22 | | specialist" means a borrower who possesses any of the following | 23 | | characteristics: |
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| 1 | | (1) requests information related to options to reduce | 2 | | or suspend his or her monthly payment; | 3 | | (2) indicates that he or she is experiencing or | 4 | | anticipates experiencing financial hardship, distress, or | 5 | | difficulty making his or her payments; | 6 | | (3) has missed 2 consecutive monthly payments; | 7 | | (4) is at least 75 days delinquent; | 8 | | (5) is enrolled in a discretionary forbearance for more | 9 | | than 9 of the previous 12 months; | 10 | | (6) has rehabilitated or consolidated one or more loans | 11 | | out of default within the past 12 months; or | 12 | | (7) has not completed a course of study, as reflected | 13 | | in the servicer's records, or the borrower identifies | 14 | | himself or herself as not having completed a program of | 15 | | study. | 16 | | "Federal education loan" means any loan made, guaranteed, | 17 | | or insured under Title IV of the federal Higher Education Act | 18 | | of 1965. | 19 | | "Income-driven payment plan certification" means the | 20 | | documentation related to a federal student loan borrower's | 21 | | income or financial status the borrower must submit to renew an | 22 | | income-driven repayment plan. | 23 | | "Income-driven repayment options" includes the | 24 | | Income-Contingent Repayment Plan, the Income-Based Repayment | 25 | | Plan, the Income-Sensitive Repayment Plan, the Pay As You Earn | 26 | | Plan, the Revised Pay As You Earn Plan, and any other federal |
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| 1 | | student loan repayment plan that is calculated based on a | 2 | | borrower's income. | 3 | | "Licensee" means a person licensed pursuant to this Act. | 4 | | "Other repayment plans" means the Standard Repayment Plan, | 5 | | the Graduated Repayment Plan, the Extended Repayment Plan, or | 6 | | any other federal student loan repayment plan not based on a | 7 | | borrower's income. | 8 | | "Private loan borrower eligible for referral to a repayment | 9 | | specialist" means a borrower who possesses any of the following | 10 | | characteristics: | 11 | | (1) requests information related to options to reduce | 12 | | or suspend his or her monthly payments; or | 13 | | (2) indicates that he or she is experiencing or | 14 | | anticipates experiencing financial hardship, distress, or | 15 | | difficulty making his or her payments. | 16 | | "Requester" means any borrower or cosigner that submits a | 17 | | request for assistance. | 18 | | "Request for assistance" means all inquiries, complaints, | 19 | | account disputes, and requests for documentation a servicer | 20 | | receives from borrowers or cosigners. | 21 | | "Secretary" means the Secretary of Financial and | 22 | | Professional Regulation, or his or her designee, including the | 23 | | Director of the Division of Banking of the Department of | 24 | | Financial and Professional Regulation. | 25 | | "Servicing" means: (1) receiving any scheduled periodic | 26 | | payments from a student loan borrower or cosigner pursuant to |
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| 1 | | the terms of a student loan; (2) applying the payments of | 2 | | principal and interest and such other payments with respect to | 3 | | the amounts received from a student loan borrower or cosigner, | 4 | | as may be required pursuant to the terms of a student loan; and | 5 | | (3) performing other administrative services with respect to a | 6 | | student loan. | 7 | | "Student loan" or "loan" means any federal education loan | 8 | | or other loan primarily for use to finance a postsecondary | 9 | | education and costs of attendance at a postsecondary | 10 | | institution, including, but not limited to, tuition, fees, | 11 | | books and supplies, room and board, transportation, and | 12 | | miscellaneous personal expenses. "Student loan" includes a | 13 | | loan made to refinance a student loan. | 14 | | "Student loan" shall not include an extension of credit | 15 | | under an open-end consumer credit plan, a reverse mortgage | 16 | | transaction, a residential mortgage transaction, or any other | 17 | | loan that is secured by real property or a dwelling. | 18 | | "Student loan" shall not include an extension of credit | 19 | | made by a postsecondary educational institution to a borrower | 20 | | if one of the following apply: | 21 | | (1) The term of the extension of credit is no longer | 22 | | than the borrower's education program. | 23 | | (2) The remaining, unpaid principal balance of the | 24 | | extension of credit is less than $1,500 at the time of the | 25 | | borrower's graduation or completion of the program. | 26 | | (3) The borrower fails to graduate or successfully |
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| 1 | | complete his or her education program and has a balance due | 2 | | at the time of his or her disenrollment from the | 3 | | postsecondary institution. | 4 | | "Student loan servicer" or "servicer" means any person | 5 | | engaged in the business of servicing student loans. | 6 | | "Student loan servicer" shall not include: | 7 | | (1) a bank, savings bank, savings association, or | 8 | | credit union organized under the laws of the State or any | 9 | | other state or under the laws of the United States; | 10 | | (2) a wholly owned subsidiary of any bank, savings | 11 | | bank, savings association, or credit union organized under | 12 | | the laws of the State or any other state or under the laws | 13 | | of the United States; | 14 | | (3) an operating subsidiary where each owner of the | 15 | | operating subsidiary is wholly owned by the same bank, | 16 | | savings bank, savings association, or credit union | 17 | | organized under the laws of the State or any other state or | 18 | | under the laws of the United States; | 19 | | (4) the Illinois Student Assistance Commission and its | 20 | | agents when the agents are acting on the Illinois Student | 21 | | Assistance Commission's behalf; | 22 | | (5) a public postsecondary educational institution or
| 23 | | a private nonprofit postsecondary educational institution
| 24 | | servicing a student loan it extended to the borrower; | 25 | | (6) a licensed debt management service under the Debt
| 26 | | Management Service Act, except to the extent that the
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| 1 | | organization acts as a subcontractor, affiliate, or
| 2 | | service provider for an entity that is otherwise subject to | 3 | | licensure under this Act; | 4 | | (7) any collection agency licensed under the
| 5 | | Collection Agency Act that is collecting post-default
| 6 | | debt; | 7 | | (8) in connection with its responsibilities as a | 8 | | guaranty agency engaged in default aversion, a State or | 9 | | nonprofit private institution or organization having an | 10 | | agreement with the U.S. Secretary of Education under | 11 | | Section 428(b) of the Higher Education Act (20 U.S.C. | 12 | | 1078(B)); or
| 13 | | (9) a State institution or a nonprofit private | 14 | | organization designated by a governmental entity to make or | 15 | | service student loans, provided in each case that the | 16 | | institution or organization services fewer than 20,000 | 17 | | student loan accounts of borrowers who reside in Illinois ; | 18 | | or .
| 19 | | (10) a law firm or licensed attorney that is collecting | 20 | | post-default debt. | 21 | | (Source: P.A. 100-540, eff. 12-31-18.)
| 22 | | Section 99. Effective date. This Act takes effect December | 23 | | 31, 2018.
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