Illinois Compiled Statutes - Full Text

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Illinois Compiled Statutes - Full Text

Illinois Compiled Statutes (ILCS)

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110 ILCS 983/10

    (110 ILCS 983/10)
    Sec. 10. Institutional certification required.
    (a) In general. Except as provided in subsection (b) of this Section, before a private educational lender may disburse any funds with respect to a private education loan described in this Act, the private educational lender shall obtain from the relevant institution of higher education where such loan is to be used on the behalf of the borrower, such institution's certification of:
        (1) the enrollment status of the borrower;
        (2) the borrower's cost of attendance at the
    
institution as determined by the institution under Title IV, Part F, of the Higher Education Act of 1965 as amended; and
        (3) the difference between:
            (A) such cost of attendance; and
            (B) the borrower's estimated financial
        
assistance, including such assistance received under Title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) and other financial assistance known to the institution, as applicable.
    (b) Notwithstanding subsection (a), a private educational lender may disburse funds with respect to a private education loan described in this subsection without obtaining the institution's certification if the institution fails to provide the certification within 15 business days of the private educational lender's request for the certification if the private educational lender has received:
        (1) notification of the institution's refusal to
    
certify the request; or
        (2) notification that the institution has received
    
the request for certification and will need additional time to comply with the certification request.
    (c) Loans disbursed without certification. If a private educational lender disburses funds without obtaining the certification as described in subsection (b), the private educational lender shall report the disbursement of the funds in a manner determined by the Student Loan Ombudsman.
    (d) Notification of loans disbursed without certification. On or before the date a private educational lender issues any funds with respect to a private education loan described in this Section, the private educational lender shall notify the relevant institution of higher education, in writing, of the amount of the extension of credit and the borrower on whose behalf credit is extended.
    (e) Annual report. A private educational lender that disburses funds with respect to a private education loan described in this Section shall prepare and submit an annual report to the Department of Financial and Professional Regulation and the Student Loan Ombudsman containing the required information about private education loans to be determined by the Student Loan Ombudsman. Such a report shall include, at a minimum, the following information about private education loans described in this Section, including any private education loans disbursed without certification:
        (A) a list of all institutions of higher education at
    
which a private educational lender disburses funds with respect to a private education loan described in this Section;
        (B) the volume of private education loans described
    
in this Section made annually by a private educational lender;
        (C) the volume of private education loans described
    
in this Section made annually at each school identified under paragraph (A);
        (D) the historical lifetime default rate for
    
borrowers obtaining a private education loan described in this Section from the private educational lender; and
        (E) a copy of each model or template promissory note,
    
agreement, contract or other instrument used by a private educational lender during the previous year to substantiate that a private education loan described in this Section has been extended to the borrower or that a borrower owes a debt to the private educational lender.
        (f) Annual report exemption. A private educational
    
lender that funds 10 or fewer new private education loans in a calendar year shall be exempt from submitting the annual report for that year. Any lender claiming this exemption shall submit a statement to the Department of Financial and Professional Regulation and the Student Loan Ombudsman certifying the number of private education loans made in that calendar year.
(Source: P.A. 102-583, eff. 8-26-21.)