Bill Text: IL HB0148 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Creates the Scholars of Service Act. Defines terms. Creates the public service student loan forgiveness grant program, and provides that the Illinois Student Assistance Commission must, each year, receive and consider applications for grant assistance under the program. Specifies grant eligibility requirements, including requiring an applicant to have been enrolled in the federal Public Service Loan Forgiveness Program and been denied federal student loan forgiveness. Provides that after receiving an application from an eligible applicant, the Commission must evaluate if the applicant is eligible to receive financial assistance through any loan forgiveness program of this State and, if eligible, must assist the applicant in applying for that financial assistance, to be used toward his or her federal student loan debt. Provides that after all eligible financial assistance has been awarded to the applicant, the Commission must award the applicant a grant to be used toward any remaining federal student loan debt. Provides that if the Commission finds that a student loan servicer (i) has negligently or intentionally misinformed or misrepresented certain information to an applicant and (ii) the misinformation or misrepresentation led to the applicant's denial of federal student loan forgiveness under the federal Public Service Loan Forgiveness Program, then the Commission must report this finding to the Office of the Attorney General, who may pursue legal action against the student loan servicer. Requires the Commission to adopt rules. Amends the State Finance Act to create the Scholars of Service Fund as a special fund in the State treasury.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB0148 Detail]

Download: Illinois-2021-HB0148-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB0148 Introduced , by Rep. Bob Morgan SYNOPSIS AS INTRODUCED:
New Act
30 ILCS 105/5.935 new
Creates the Scholars of Service Act. Defines terms. Creates the public service student loan forgiveness grant program, and provides that the Illinois Student Assistance Commission must, each year, receive and consider applications for grant assistance under the program. Specifies grant eligibility requirements, including requiring an applicant to have been enrolled in the federal Public Service Loan Forgiveness Program and been denied federal student loan forgiveness. Provides that after receiving an application from an eligible applicant, the Commission must evaluate if the applicant is eligible to receive financial assistance through any loan forgiveness program of this State and, if eligible, must assist the applicant in applying for that financial assistance, to be used toward his or her federal student loan debt. Provides that after all eligible financial assistance has been awarded to the applicant, the Commission must award the applicant a grant to be used toward any remaining federal student loan debt. Provides that if the Commission finds that a student loan servicer (i) has negligently or intentionally misinformed or misrepresented certain information to an applicant and (ii) the misinformation or misrepresentation led to the applicant's denial of federal student loan forgiveness under the federal Public Service Loan Forgiveness Program, then the Commission must report this finding to the Office of the Attorney General, who may pursue legal action against the student loan servicer. Requires the Commission to adopt rules. Amends the State Finance Act to create the Scholars of Service Fund as a special fund in the State treasury.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning education.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Scholars of Service Act.
Section 5. Definitions. In this Act:
"Commission" means the Illinois Student Assistance
Commission.
"Student loan servicer" has the meaning given to that term
in the Student Loan Servicing Rights Act.
Section 10. Public service loan forgiveness grant program.
(a) The Commission must, each year, receive and consider
applications for grant assistance under this Section. An
applicant is eligible for a grant under subsection (c) if the
Commission finds that the applicant meets all of the following
qualifications:
(1) He or she is a resident of this State and a United
States citizen or eligible noncitizen.
(2) He or she has outstanding federal student loan
debt.
(3) He or she was enrolled in the federal Public
Service Loan Forgiveness Program and has (i) attested, to

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the best of his or her knowledge and ability, that he or
she made a good faith effort to comply with the Program,
(ii) made 120 qualifying monthly payments under a
qualifying repayment plan during his or her participation
in the Program, and (iii) been denied federal student loan
forgiveness.
(b) All applications for grant assistance to be awarded
under this Section shall be made to the Commission in a form as
set forth by the Commission. The form of application and the
information required to be set forth in the application shall
be determined by the Commission, and the Commission shall
require eligible applicants to submit with their applications
any supporting documents that the Commission deems necessary.
(c) After receiving an application from an eligible
applicant under this Section, the Commission must evaluate if
the applicant is eligible to receive financial assistance
through any loan forgiveness program of this State and, if
eligible, must assist the applicant in applying for that
financial assistance, to be used toward his or her federal
student loan debt. After all eligible financial assistance has
been awarded to the applicant, the Commission must award the
applicant a grant to be used toward any remaining federal
student loan debt. The grant amount awarded under this
subsection may not exceed the applicant's federal student loan
debt and must be used toward the payment of that debt.

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Section 15. Student loan servicer; misleading an
applicant. If the Commission finds that a student loan
servicer (i) has negligently or intentionally misinformed or
misrepresented certain information to an applicant under this
Act and (ii) the misinformation or misrepresentation led to
the applicant's denial of federal student loan forgiveness
under the federal Public Service Loan Forgiveness Program,
then the Commission must report this finding to the Office of
the Attorney General, who may pursue legal action against the
student loan servicer. The Attorney General may deposit any
funds recovered through legal action under this Section into
the Scholars of Service Fund.
Section 20. The Scholars of Service Fund. The Scholars of
Service Fund is created as a special fund in the State
treasury. All money in the Scholars of Service Fund shall be
used, subject to appropriation, by the Commission to award
grants under this Act.
Section 90. Rules. The Commission must adopt rules to
implement this Act.
Section 95. The State Finance Act is amended by adding
Section 5.935 as follows:
(30 ILCS 105/5.935 new)

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