(110 ILCS 992/5-30)
Sec. 5-30. Specialized assistance for student loan borrowers. (a) A servicer shall specially designate servicing and collections personnel deemed repayment specialists who have received enhanced training related to repayment options. (b) A servicer shall refrain from presenting forbearance as the sole or first repayment option to a student loan borrower struggling with repayment unless the servicer has determined that, based on the borrower's financial status, a short term forbearance is appropriate. (c) All inbound and outbound calls from a federal loan borrower eligible for referral to a repayment specialist and a private loan borrower eligible for referral to a repayment specialist shall be routed to a repayment specialist. (d) During each inbound or outbound communication with an eligible federal loan borrower, a repayment specialist shall first inform a federal loan borrower eligible for referral to a repayment specialist that federal income-driven repayment plans that can reduce the borrower's monthly payment may be available, discuss such plans, and assist the borrower in determining whether a particular repayment plan may be appropriate for the borrower. (e) A repayment specialist shall assess the long-term and short-term financial situation and needs of a federal loan borrower eligible for referral to a repayment specialist and consider any available specific information from the borrower as necessary to assist the borrower in determining whether a particular income-driven repayment option may be available to the borrower. (f) In each discussion with a federal loan borrower eligible for referral to a repayment specialist, a repayment specialist shall present and explain the following options, as appropriate: (1) total and permanent disability discharge, public |
| service loan forgiveness, closed school discharge, and defenses to repayment;
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(2) other repayment plans;
(3) deferment; and
(4) forbearance.
(g) A repayment specialist shall assess the long-term and short-term financial situation and needs of a private loan borrower eligible for referral to a repayment specialist in determining whether any private loan repayment options may be appropriate for the borrower.
(h) A servicer shall present and explain all private loan repayment options, including alternative repayment arrangements applicable to private student loan borrowers.
(i) A servicer shall be prohibited from implementing any compensation plan that has the intended or actual effect of incentivizing a repayment specialist to violate this Act or any other measure that encourages undue haste or lack of quality.
(j) The requirements of this Section shall not apply if a repayment specialist has already conversed with a borrower consistent with the requirements of this Section.
(k) A servicer shall:
(1) provide on its website a description of any
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| modified or flexible repayment options offered by the lender for private education loans;
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(2) establish policies and procedures and implement
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| modified or flexible repayment options consistently in order to facilitate the evaluation of such option requests, including providing accurate information regarding any options that may be available to the borrower through the promissory note or that may have been marketed to the borrower through marketing materials; and
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(3) consistently present and offer private education
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| loan modification or flexible repayment options to all borrowers with similar financial circumstances if the servicer offers such modification or repayment options.
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(l) A servicer may not place a loan or account into default or accelerate a loan while a borrower is seeking a loan modification or enrollment in a modified or flexible repayment plan, except that a servicer may place a loan or account into default or accelerate a loan for payment default 90 days or more after the borrower's default.
(Source: P.A. 103-748, eff. 8-2-24.)
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(110 ILCS 992/5-60)
Sec. 5-60. Requirements related to the transfer of servicing. (a) When acting as the transferor servicer, a servicer shall provide to each borrower subject to the transfer a written notice not less than 15 calendar days before the effective date of the transfer. The transferee servicer and transferor servicer may provide a single notice, in which case the notice shall be provided not less than 15 calendar days before the effective date of the transfer. The notice by the transferor servicer or, if applicable, the combined notice of transfer shall contain the following information: (1) the effective date of the transfer of servicing; (2) the name, address, and toll-free telephone number |
| for the transferor servicer's designated point of contact that can be contacted by the borrower to obtain answers to servicing inquiries;
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(3) the name, address, and toll-free telephone number
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| for the transferee servicer's designated point of contact that can be contacted by the borrower to obtain answers to servicing inquiries;
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(4) the date on which the transferor servicer will
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| cease to accept payments relating to the loan and the date on which the transferee servicer will begin to accept such payments; the dates shall either be the same or consecutive days;
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(5) a statement that the transfer of servicing does
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| not affect any term or condition of the loan other than terms directly related to the servicing of a loan;
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(6) information on whether the borrower's
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| authorization for recurring electronic fund transfers, if applicable, will be transferred to the transferee servicer; if any such recurring electronic funds transfers cannot be transferred, the transferee servicer shall provide information explaining how the borrower may establish new recurring electronic funds transfers with the transferee servicer; and
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(7) a statement of the current loan balance,
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| including the current unpaid amount of principal, interest, and fees.
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(b) When acting as the transferee servicer, a servicer shall provide to each borrower subject to the transfer a written notice not more than 15 calendar days after the effective date of the transfer. The transferee servicer and transferor servicer may provide a combined notice of transfer, in which case the notice shall be provided not less than 15 days before the effective date of the transfer. The notice by the transferee servicer or, if applicable, the combined notice of transfer shall contain the following information:
(1) the effective date of the transfer of servicing;
(2) the name, address, and toll-free telephone number
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| for the transferee servicer's designated point of contact that can be contacted by the borrower to obtain answers to servicing inquiries;
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(3) the date on which the transferor servicer will
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| cease to accept payments relating to the loan and the date on which the transferee servicer will begin to accept such payments; the dates shall either be the same or consecutive days;
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(4) a statement that the transfer of servicing does
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| not affect any term or condition of the student loan other than terms directly related to the servicing of a loan;
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(5) information on whether the borrower's
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| authorization for recurring electronic fund transfers, if applicable, will be transferred to the transferee servicer; if any such recurring electronic funds transfers cannot be transferred, the transferee servicer shall provide information explaining how the borrower may establish new recurring electronic funds transfers with the transferee servicer; and
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(6) a statement of the current loan balance,
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| including the current unpaid amount of principal, interest, and fees.
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(c) During the 60 calendar day period beginning on the effective date of transfer of the servicing of any loan, a payment timely made to the transferor servicer may not be treated as late for any purpose by the transferee servicer, including the assessment of late fees, accrual of additional interest, and furnishing negative credit information.
(d) To the extent practicable, for at least 120 calendar days beginning on the effective date of transfer of servicing of any loan, when acting as the transferor servicer, a servicer shall promptly transfer payments received to the transferee servicer for application to the borrower's loan account.
(e) Unless a borrower's authorizations for recurring electronic fund transfers are automatically transferred to the transferee servicer, when acting as transferee servicer, a servicer shall make available to a borrower whose loan servicing is transferred an online process through which a borrower may make a new authorization for recurring electronic fund transfers. A servicer shall also provide a process through which the borrower may make a new authorization for recurring electronic funds transfers by phone or through written approval.
(Source: P.A. 100-540, eff. 12-31-18 .)
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(110 ILCS 992/5-65)
Sec. 5-65. Requests for assistance; account dispute resolution; appeals. (a) A servicer shall implement reasonable policies and procedures for accepting, processing, investigating, and responding to requests for assistance in a timely and effective manner, including, but not limited to, the following requirements: (1) A servicer shall provide readily accessible |
| methods for consumers to submit a request for assistance to the servicer, including such methods as phone, email, and U.S. mail.
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(2) A servicer shall post on its website and disclose
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| on its billing statements:
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(A) the toll-free telephone number, email
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| address, and mailing address for consumers to submit a requests for assistance to the servicer; and
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(B) the procedures for a requester to send a
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| written communication to the servicer regarding any request for assistance.
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(3) For any request for assistance that includes a
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| request for documentation or information, where a response cannot be immediately provided, a servicer shall provide the requested documentation or information to the requester within 14 calendar days of the request; if a servicer determines in good faith that it is unable to provide the documentation or information within 14 calendar days, promptly after making the determination, the servicer shall notify the requester of the expected response period, which must be reasonable for the request for assistance.
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(b) A servicer shall implement a process by which a requester can escalate any request for assistance. Such process shall allow a requester who has made a request for assistance on the phone and who receives a response during the call to obtain immediate review of the response by an employee of the servicer at a higher supervisory level.
(c) The following requirements shall apply when a requester submits a written or oral request for assistance which contains an account dispute to a servicer:
(1) Within 14 calendar days after its receipt of the
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| written communication or oral request for further escalation, a servicer shall attempt to make contact, including providing the requester with name and contact information of the representative handling the account dispute, by phone or in writing, to the requester and document such attempt in the borrower's account.
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(2) A servicer shall complete the following actions
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| within 30 calendar days of its receipt of the written communication or oral request for further escalation, subject to paragraph (3) of this subsection:
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(A) conduct a thorough investigation of the
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(B) make all appropriate corrections to the
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| account of the requester, including crediting any late fees assessed and derogatory credit furnishing as the result of any error, and, if any corrections are made, sending the requester a written notification that includes the following information:
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(i) an explanation of the correction or
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| corrections to the requester's account that have been made; and
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(ii) the toll-free telephone number, email
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| address, and mailing address of the servicer's personnel knowledgeable about the investigation and resolution of the account dispute.
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(3) If a servicer determines in good faith that it
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| cannot complete a thorough investigation of the account dispute within 30 calendar days after receiving the written communication or oral request for further escalation regarding the account dispute, then, promptly after making the determination, the servicer shall notify the requester of the expected resolution time period, which must be reasonable for the account dispute. A servicer must complete the actions listed in the investigation and resolution of account dispute within this time period.
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(4) If a servicer determines as a result of its
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| investigation that the requested changes to a requester's dispute will not be made, the servicer shall provide the requester with a written notification that includes the following information:
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(A) a description of its determination and an
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| explanation of the reasons for that determination;
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(B) the toll-free telephone number, email
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| address, and mailing address of the servicer's personnel knowledgeable about the investigation and resolution of the account dispute;
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(C) instructions about how the requester can
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| appeal the servicer's determination in accordance with paragraph (5) of this subsection; and
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(D) information regarding the method by which a
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| borrower may request copies of documents a servicer relied on to make a determination that no changes to a requester's account will be made.
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(5) After the requester receives a determination
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| regarding an account dispute in accordance with paragraph (4) of this subsection, the servicer shall allow a process by which the requester can appeal, in writing, the determination. The appeals process shall include:
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(A) a written acknowledgment notifying the
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| requester that the servicer has commenced the appeals process; such acknowledgment shall be sent within 14 calendar days after receiving a written request for appeal from the requester;
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(B) an independent reassessment of the servicer's
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| determination regarding the account dispute, performed by another employee of the servicer at an equal or higher supervisory level than the employee or employees involved in the initial account dispute determination;
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(C) investigation and resolution of appeals
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| within 30 calendar days after a servicer's commencement of the appeals process; and
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(D) notification sent to the requester, in
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| writing, documenting the outcome of the appeal, including any reason for denial.
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(d) While a requester has a pending account dispute, including any applicable appeal, a servicer shall take reasonable steps to:
(1) prevent negative credit reporting with respect to
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| the borrower's or cosigner's account while the dispute is under review; and
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(2) suspend all collection activities on the account
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| while the account dispute is being researched or resolved, if the account dispute is related to the delinquency.
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(Source: P.A. 100-540, eff. 12-31-18 .)
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