Bill Text: IL SB1524 | 2019-2020 | 101st General Assembly | Enrolled


Bill Title: Creates the Illinois Student Loan Investment Act. Provides for the establishment, operation, and administration of the Student Investment Account by the State Treasurer. Provides that the State Treasurer shall establish fees to cover the costs of administration, recordkeeping, marketing, and investment management related to the Student Investment Account. Provides that the State Treasurer may charge and collect insurance premiums and deduct wages under the Act. Requires the State Treasurer to develop, publish, and implement one or more investment policies covering the investment of moneys under the Act. Provides for the creation and use of specified Funds to be held outside of the State Treasury with the State Treasurer as custodian. Provides for the adoption of rules. Amends the Deposit of State Moneys Act. Allows the State Treasurer to invest or reinvest State money in, among other items or purposes, investments made in accordance with the Student Loan Investment Act. Amends the Student Loan Servicing Rights Act. Provides that the term "student loan servicer" shall not include, among other entities, the State Treasurer and its agents when the agents are acting on the State Treasurer's behalf. Defines terms. Effective immediately.

Spectrum: Partisan Bill (Democrat 37-0)

Status: (Enrolled) 2019-05-31 - Passed Both Houses [SB1524 Detail]

Download: Illinois-2019-SB1524-Enrolled.html



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1 AN ACT concerning finance.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5Student Investment Account Act.
6 Section 5. Findings and purpose. The General Assembly finds
7that it is vital for the State to combat the college-debt
8crisis and increase access to post-secondary education for all
9residents of this State. The purpose of this Act is to assist
10qualified residents to attend and pay for post-secondary
11education through a system of investment programs, which may
12include income-sharing agreements, linked deposits, and
13student loans.
14 Section 10. Definitions. As used in this Act:
15 "Borrower" means an Illinois resident student who has
16received an education loan or an Illinois resident parent who
17has received or agreed to pay an education loan, subject to
18approval by the State Treasurer.
19 "Education loan" means a loan made to a borrower in
20accordance with this Act to finance an Illinois resident
21student's attendance at an institution of higher education.
22 "Income share agreement" means an agreement between a

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1participant and an eligible institution of higher education or
2an income share agreement provider approved by the State
3Treasurer in which the participant agrees to pay a percentage
4of the participant's future earnings for a fixed period in
5exchange for funds to pay for their post-secondary education.
6 "Income share agreement provider" means an organization
7that allows income share agreement participants to fund their
8education by means of an income share agreement.
9 "Institution of higher education" means a post-secondary
10educational institution located in Illinois and approved by the
11State Treasurer.
12 "Participant" means a resident student who enters into an
13income share agreement for the purpose of funding the
14participant's attendance at an institution of higher
15education.
16 "Student Investment Account" means that portion of the
17Treasurer's State Investment Portfolio described in Section
1815.
19 Section 15. Establishment of Student Investment Account.
20The State Treasurer may allocate up to 5% of the Treasurer's
21State Investment Portfolio to the Student Investment Account.
22The 5% cap shall be calculated based on: (1) the balance of the
23Treasurer's State Investment Portfolio at the inception of the
24State's fiscal year; or (2) the average balance of the
25Treasurer's State Investment Portfolio in the immediately

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1preceding 5 fiscal years, whichever number is greater.
2 Section 20. Earnings from Student Investment Account.
3Earnings on the investments in the Student Investment Account
4may be reinvested into the Student Investment Account without
5being counted against the 5% cap under Section 15. Net earnings
6on investments under this Act that are not reinvested shall be
7deposited in the same manner as interest is deposited under
8Section 4.1 of the State Finance Act. The General Assembly
9shall prioritize any such funds deposited into the General
10Revenue Fund towards appropriations to support higher
11education in the State of Illinois.
12 Section 25. Operation of the Student Investment Account.
13The State Treasurer may: originate, guarantee, acquire, and
14service education loans; facilitate such arrangements between
15borrowers and eligible lenders; and perform such other acts as
16may be necessary or desirable in connection with the education
17loans. The State Treasurer may receive, hold, and invest moneys
18paid into the Student Investment Account and take such other
19actions as are necessary to operate the Student Investment
20Account. The State Treasurer may invest in, and enter into
21contracts with, institutions that provide education loans. The
22State Treasurer may also: enter into income share agreements
23with participants; facilitate such arrangements between
24participants and eligible income share agreement providers;

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1and perform such other acts as may be necessary or desirable in
2connection with such income share agreements. The State
3Treasurer may also deposit funds with financial institutions
4that provide education loans.
5 Section 30. Administration of the Student Investment
6Account. The State Treasurer may enter into such contracts and
7guarantee agreements as are necessary to operate the Student
8Investment Account with eligible lenders, financial
9institutions, institutions of higher education, income share
10agreement providers, individuals, corporations, and qualified
11income share agreement or loan origination and servicing
12organizations and with any governmental entity, including the
13Illinois Student Assistance Commission, and with any agency or
14instrumentality of the United States. The State Treasurer is
15authorized to establish specific criteria governing the
16eligibility of entities to participate in its programs, the
17making of income share agreements or education loans,
18provisions for default, the establishment of default reserve
19funds, the purchase of default insurance, the provision of
20prudent debt service reserves, and the furnishing by
21participating entities of such additional guarantees of the
22income share agreements or education loans as the State
23Treasurer shall determine.
24 Section 35. Fees. The State Treasurer shall establish fees

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1to cover the costs of administration, recordkeeping,
2marketing, and investment management related to the Student
3Investment Account. The State Treasurer may pay eligible
4lenders, income share agreement providers, financial
5institutions, institutions of higher education, individuals,
6corporations, qualified income share agreement or loan
7origination and servicing organizations, governmental
8entities, and any agencies or instrumentalities of the United
9States an administrative fee in connection with services
10provided pursuant to the Student Investment Account in such
11amounts, at such times, and in such manner as may be prescribed
12by the State Treasurer.
13 Section 40. Insurance. The State Treasurer or his or her
14designee may charge and collect premiums for insurance on
15income share agreements or education loans and other related
16charges and pay such insurance premiums or a portion thereof
17and other charges as are prudent.
18 Section 45. Wage deductions. The State Treasurer may deduct
19from the salary, wages, commissions, and bonuses of any
20employee in this State and, to the extent permitted by the laws
21of the United States and individual states in which an employee
22might reside, any employee outside the State of Illinois by
23serving a notice of administrative wage garnishment on an
24employer, in accordance with rules adopted by the State

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1Treasurer, for the recovery of an education loan debt or income
2share agreement owned or serviced by the State Treasurer. Levy
3must not be made until the State Treasurer has caused a demand
4to be made on the employee, in a manner consistent with rules
5adopted by the State Treasurer, such that the employee is
6provided an opportunity to contest the existence or amount of
7the income share agreement or education loan obligation.
8 Section 50. Investment policy. The State Treasurer shall
9develop, publish, and implement one or more investment policies
10covering the investment of moneys in accordance with this Act.
11 Section 55. Student Investment Account Administrative
12Fund. The Student Investment Account Administrative Fund is
13created as a non-appropriated separate and apart trust fund in
14the State Treasury. Moneys in the Student Investment Account
15Administrative Fund may be used by the State Treasurer to pay
16expenses related to all aspects of operation and administration
17of the Student Investment Account. The State Treasurer may
18deposit a portion of the earnings of the investments in the
19Student Investment Account and a portion of any administrative
20fees, and the proceeds thereof, collected pursuant to Section
2135 into the Student Investment Account Administrative Fund.
22 Section 60. Student Investment Account Loss Reserve Fund.
23The Student Investment Account Loss Reserve Fund may be created

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1as a non-appropriated separate and apart trust fund in the
2State Treasury. Moneys in the Student Investment Account Loss
3Reserve Fund may be used by the State Treasurer to establish
4loss reserve funds. The State Treasurer may deposit a portion
5of the earnings of the investments in the Student Investment
6Account and a portion of any administrative fees, and the
7proceeds thereof, collected pursuant to Section 35 into the
8Student Investment Account Loss Reserve Fund.
9 Section 65. Student Investment Account Assistance Fund.
10The Student Investment Account Assistance Fund may be created
11as a non-appropriated separate and apart trust fund in the
12State Treasury. Moneys in the Student Investment Account
13Assistance Fund may be used by the State Treasurer to provide
14assistance to qualifying borrowers or income share agreement
15participants. The State Treasurer may deposit a portion of the
16earnings of the investments in the Student Investment Account
17and a portion of any administrative fees, and the proceeds
18thereof, collected pursuant to Section 35 into the Student
19Investment Account Assistance Fund.
20 Section 70. Rules. The State Treasurer may adopt rules he
21or she deems necessary or desirable to implement and administer
22this Act.
23 Section 900. The Deposit of State Moneys Act is amended by

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1changing Section 22.5 as follows:
2 (15 ILCS 520/22.5) (from Ch. 130, par. 41a)
3 (For force and effect of certain provisions, see Section 90
4of P.A. 94-79)
5 Sec. 22.5. Permitted investments. The State Treasurer may,
6with the approval of the Governor, invest and reinvest any
7State money in the treasury which is not needed for current
8expenditures due or about to become due, in obligations of the
9United States government or its agencies or of National
10Mortgage Associations established by or under the National
11Housing Act, 12 1201 U.S.C. 1701 et seq., or in mortgage
12participation certificates representing undivided interests in
13specified, first-lien conventional residential Illinois
14mortgages that are underwritten, insured, guaranteed, or
15purchased by the Federal Home Loan Mortgage Corporation or in
16Affordable Housing Program Trust Fund Bonds or Notes as defined
17in and issued pursuant to the Illinois Housing Development Act.
18All such obligations shall be considered as cash and may be
19delivered over as cash by a State Treasurer to his successor.
20 The State Treasurer may, with the approval of the Governor,
21purchase any state bonds with any money in the State Treasury
22that has been set aside and held for the payment of the
23principal of and interest on the bonds. The bonds shall be
24considered as cash and may be delivered over as cash by the
25State Treasurer to his successor.

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1 The State Treasurer may, with the approval of the Governor,
2invest or reinvest any State money in the treasury that is not
3needed for current expenditure due or about to become due, or
4any money in the State Treasury that has been set aside and
5held for the payment of the principal of and the interest on
6any State bonds, in shares, withdrawable accounts, and
7investment certificates of savings and building and loan
8associations, incorporated under the laws of this State or any
9other state or under the laws of the United States; provided,
10however, that investments may be made only in those savings and
11loan or building and loan associations the shares and
12withdrawable accounts or other forms of investment securities
13of which are insured by the Federal Deposit Insurance
14Corporation.
15 The State Treasurer may not invest State money in any
16savings and loan or building and loan association unless a
17commitment by the savings and loan (or building and loan)
18association, executed by the president or chief executive
19officer of that association, is submitted in the following
20form:
21 The .................. Savings and Loan (or Building
22 and Loan) Association pledges not to reject arbitrarily
23 mortgage loans for residential properties within any
24 specific part of the community served by the savings and
25 loan (or building and loan) association because of the
26 location of the property. The savings and loan (or building

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1 and loan) association also pledges to make loans available
2 on low and moderate income residential property throughout
3 the community within the limits of its legal restrictions
4 and prudent financial practices.
5 The State Treasurer may, with the approval of the Governor,
6invest or reinvest, at a price not to exceed par, any State
7money in the treasury that is not needed for current
8expenditures due or about to become due, or any money in the
9State Treasury that has been set aside and held for the payment
10of the principal of and interest on any State bonds, in bonds
11issued by counties or municipal corporations of the State of
12Illinois.
13 The State Treasurer may, with the approval of the Governor,
14invest or reinvest any State money in the Treasury which is not
15needed for current expenditure, due or about to become due, or
16any money in the State Treasury which has been set aside and
17held for the payment of the principal of and the interest on
18any State bonds, in participations in loans, the principal of
19which participation is fully guaranteed by an agency or
20instrumentality of the United States government; provided,
21however, that such loan participations are represented by
22certificates issued only by banks which are incorporated under
23the laws of this State or any other state or under the laws of
24the United States, and such banks, but not the loan
25participation certificates, are insured by the Federal Deposit
26Insurance Corporation.

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1 Whenever the total amount of vouchers presented to the
2Comptroller under Section 9 of the State Comptroller Act
3exceeds the funds available in the General Revenue Fund by
4$1,000,000,000 or more, then the State Treasurer may invest any
5State money in the Treasury, other than money in the General
6Revenue Fund, Health Insurance Reserve Fund, Attorney General
7Court Ordered and Voluntary Compliance Payment Projects Fund,
8Attorney General Whistleblower Reward and Protection Fund, and
9Attorney General's State Projects and Court Ordered
10Distribution Fund, which is not needed for current
11expenditures, due or about to become due, or any money in the
12State Treasury which has been set aside and held for the
13payment of the principal of and the interest on any State bonds
14with the Office of the Comptroller in order to enable the
15Comptroller to pay outstanding vouchers. At any time, and from
16time to time outstanding, such investment shall not be greater
17than $2,000,000,000. Such investment shall be deposited into
18the General Revenue Fund or Health Insurance Reserve Fund as
19determined by the Comptroller. Such investment shall be repaid
20by the Comptroller with an interest rate tied to the London
21Interbank Offered Rate (LIBOR) or the Federal Funds Rate or an
22equivalent market established variable rate, but in no case
23shall such interest rate exceed the lesser of the penalty rate
24established under the State Prompt Payment Act or the timely
25pay interest rate under Section 368a of the Illinois Insurance
26Code. The State Treasurer and the Comptroller shall enter into

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1an intergovernmental agreement to establish procedures for
2such investments, which market established variable rate to
3which the interest rate for the investments should be tied, and
4other terms which the State Treasurer and Comptroller
5reasonably believe to be mutually beneficial concerning these
6investments by the State Treasurer. The State Treasurer and
7Comptroller shall also enter into a written agreement for each
8such investment that specifies the period of the investment,
9the payment interval, the interest rate to be paid, the funds
10in the Treasury from which the Treasurer will draw the
11investment, and other terms upon which the State Treasurer and
12Comptroller mutually agree. Such investment agreements shall
13be public records and the State Treasurer shall post the terms
14of all such investment agreements on the State Treasurer's
15official website. In compliance with the intergovernmental
16agreement, the Comptroller shall order and the State Treasurer
17shall transfer amounts sufficient for the payment of principal
18and interest invested by the State Treasurer with the Office of
19the Comptroller under this paragraph from the General Revenue
20Fund or the Health Insurance Reserve Fund to the respective
21funds in the Treasury from which the State Treasurer drew the
22investment. Public Act 100-1107 This amendatory Act of the
23100th General Assembly shall constitute an irrevocable and
24continuing authority for all amounts necessary for the payment
25of principal and interest on the investments made with the
26Office of the Comptroller by the State Treasurer under this

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1paragraph, and the irrevocable and continuing authority for and
2direction to the Comptroller and Treasurer to make the
3necessary transfers.
4 The State Treasurer may, with the approval of the Governor,
5invest or reinvest any State money in the Treasury that is not
6needed for current expenditure, due or about to become due, or
7any money in the State Treasury that has been set aside and
8held for the payment of the principal of and the interest on
9any State bonds, in any of the following:
10 (1) Bonds, notes, certificates of indebtedness,
11 Treasury bills, or other securities now or hereafter issued
12 that are guaranteed by the full faith and credit of the
13 United States of America as to principal and interest.
14 (2) Bonds, notes, debentures, or other similar
15 obligations of the United States of America, its agencies,
16 and instrumentalities.
17 (2.5) Bonds, notes, debentures, or other similar
18 obligations of a foreign government, other than the
19 Republic of the Sudan, that are guaranteed by the full
20 faith and credit of that government as to principal and
21 interest, but only if the foreign government has not
22 defaulted and has met its payment obligations in a timely
23 manner on all similar obligations for a period of at least
24 25 years immediately before the time of acquiring those
25 obligations.
26 (3) Interest-bearing savings accounts,

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1 interest-bearing certificates of deposit, interest-bearing
2 time deposits, or any other investments constituting
3 direct obligations of any bank as defined by the Illinois
4 Banking Act.
5 (4) Interest-bearing accounts, certificates of
6 deposit, or any other investments constituting direct
7 obligations of any savings and loan associations
8 incorporated under the laws of this State or any other
9 state or under the laws of the United States.
10 (5) Dividend-bearing share accounts, share certificate
11 accounts, or class of share accounts of a credit union
12 chartered under the laws of this State or the laws of the
13 United States; provided, however, the principal office of
14 the credit union must be located within the State of
15 Illinois.
16 (6) Bankers' acceptances of banks whose senior
17 obligations are rated in the top 2 rating categories by 2
18 national rating agencies and maintain that rating during
19 the term of the investment.
20 (7) Short-term obligations of either corporations or
21 limited liability companies organized in the United States
22 with assets exceeding $500,000,000 if (i) the obligations
23 are rated at the time of purchase at one of the 3 highest
24 classifications established by at least 2 standard rating
25 services and mature not later than 270 days from the date
26 of purchase, (ii) the purchases do not exceed 10% of the

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1 corporation's or the limited liability company's
2 outstanding obligations, (iii) no more than one-third of
3 the public agency's funds are invested in short-term
4 obligations of either corporations or limited liability
5 companies, and (iv) the corporation or the limited
6 liability company has not been placed on the list of
7 restricted companies by the Illinois Investment Policy
8 Board under Section 1-110.16 of the Illinois Pension Code.
9 (7.5) Obligations of either corporations or limited
10 liability companies organized in the United States, that
11 have a significant presence in this State, with assets
12 exceeding $500,000,000 if: (i) the obligations are rated at
13 the time of purchase at one of the 3 highest
14 classifications established by at least 2 standard rating
15 services and mature more than 270 days, but less than 5
16 years, from the date of purchase; (ii) the purchases do not
17 exceed 10% of the corporation's or the limited liability
18 company's outstanding obligations; (iii) no more than 5% of
19 the public agency's funds are invested in such obligations
20 of corporations or limited liability companies; and (iv)
21 the corporation or the limited liability company has not
22 been placed on the list of restricted companies by the
23 Illinois Investment Policy Board under Section 1-110.16 of
24 the Illinois Pension Code. The authorization of the
25 Treasurer to invest in new obligations under this paragraph
26 shall expire on June 30, 2019.

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1 (8) Money market mutual funds registered under the
2 Investment Company Act of 1940, provided that the portfolio
3 of the money market mutual fund is limited to obligations
4 described in this Section and to agreements to repurchase
5 such obligations.
6 (9) The Public Treasurers' Investment Pool created
7 under Section 17 of the State Treasurer Act or in a fund
8 managed, operated, and administered by a bank.
9 (10) Repurchase agreements of government securities
10 having the meaning set out in the Government Securities Act
11 of 1986, as now or hereafter amended or succeeded, subject
12 to the provisions of that Act and the regulations issued
13 thereunder.
14 (11) Investments made in accordance with the
15 Technology Development Act.
16 (12) Investments made in accordance with the Student
17 Investment Account Act.
18 For purposes of this Section, "agencies" of the United
19States Government includes:
20 (i) the federal land banks, federal intermediate
21 credit banks, banks for cooperatives, federal farm credit
22 banks, or any other entity authorized to issue debt
23 obligations under the Farm Credit Act of 1971 (12 U.S.C.
24 2001 et seq.) and Acts amendatory thereto;
25 (ii) the federal home loan banks and the federal home
26 loan mortgage corporation;

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1 (iii) the Commodity Credit Corporation; and
2 (iv) any other agency created by Act of Congress.
3 The Treasurer may, with the approval of the Governor, lend
4any securities acquired under this Act. However, securities may
5be lent under this Section only in accordance with Federal
6Financial Institution Examination Council guidelines and only
7if the securities are collateralized at a level sufficient to
8assure the safety of the securities, taking into account market
9value fluctuation. The securities may be collateralized by cash
10or collateral acceptable under Sections 11 and 11.1.
11(Source: P.A. 99-856, eff. 8-19-16; 100-1107, eff. 8-27-18;
12revised 9-27-18.)
13 Section 905. The Student Loan Servicing Rights Act is
14amended by changing Section 1-5 as follows:
15 (110 ILCS 992/1-5)
16 Sec. 1-5. Definitions. As used in this Act:
17 "Applicant" means a person applying for a license pursuant
18to this Act.
19 "Borrower" or "student loan borrower" means a person who
20has received or agreed to pay a student loan for his or her own
21educational expenses.
22 "Cosigner" means a person who has agreed to share
23responsibility for repaying a student loan with a borrower.
24 "Department" means the Department of Financial and

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1Professional Regulation.
2 "Division of Banking" means the Division of Banking of the
3Department of Financial and Professional Regulation.
4 "Federal loan borrower eligible for referral to a repayment
5specialist" means a borrower who possesses any of the following
6characteristics:
7 (1) requests information related to options to reduce
8 or suspend his or her monthly payment;
9 (2) indicates that he or she is experiencing or
10 anticipates experiencing financial hardship, distress, or
11 difficulty making his or her payments;
12 (3) has missed 2 consecutive monthly payments;
13 (4) is at least 75 days delinquent;
14 (5) is enrolled in a discretionary forbearance for more
15 than 9 of the previous 12 months;
16 (6) has rehabilitated or consolidated one or more loans
17 out of default within the past 12 months; or
18 (7) has not completed a course of study, as reflected
19 in the servicer's records, or the borrower identifies
20 himself or herself as not having completed a program of
21 study.
22 "Federal education loan" means any loan made, guaranteed,
23or insured under Title IV of the federal Higher Education Act
24of 1965.
25 "Income-driven payment plan certification" means the
26documentation related to a federal student loan borrower's

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1income or financial status the borrower must submit to renew an
2income-driven repayment plan.
3 "Income-driven repayment options" includes the
4Income-Contingent Repayment Plan, the Income-Based Repayment
5Plan, the Income-Sensitive Repayment Plan, the Pay As You Earn
6Plan, the Revised Pay As You Earn Plan, and any other federal
7student loan repayment plan that is calculated based on a
8borrower's income.
9 "Licensee" means a person licensed pursuant to this Act.
10 "Other repayment plans" means the Standard Repayment Plan,
11the Graduated Repayment Plan, the Extended Repayment Plan, or
12any other federal student loan repayment plan not based on a
13borrower's income.
14 "Private loan borrower eligible for referral to a repayment
15specialist" means a borrower who possesses any of the following
16characteristics:
17 (1) requests information related to options to reduce
18 or suspend his or her monthly payments; or
19 (2) indicates that he or she is experiencing or
20 anticipates experiencing financial hardship, distress, or
21 difficulty making his or her payments.
22 "Requester" means any borrower or cosigner that submits a
23request for assistance.
24 "Request for assistance" means all inquiries, complaints,
25account disputes, and requests for documentation a servicer
26receives from borrowers or cosigners.

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1 "Secretary" means the Secretary of Financial and
2Professional Regulation, or his or her designee, including the
3Director of the Division of Banking of the Department of
4Financial and Professional Regulation.
5 "Servicing" means: (1) receiving any scheduled periodic
6payments from a student loan borrower or cosigner pursuant to
7the terms of a student loan; (2) applying the payments of
8principal and interest and such other payments with respect to
9the amounts received from a student loan borrower or cosigner,
10as may be required pursuant to the terms of a student loan; and
11(3) performing other administrative services with respect to a
12student loan.
13 "Student loan" or "loan" means any federal education loan
14or other loan primarily for use to finance a postsecondary
15education and costs of attendance at a postsecondary
16institution, including, but not limited to, tuition, fees,
17books and supplies, room and board, transportation, and
18miscellaneous personal expenses. "Student loan" includes a
19loan made to refinance a student loan.
20 "Student loan" shall not include an extension of credit
21under an open-end consumer credit plan, a reverse mortgage
22transaction, a residential mortgage transaction, or any other
23loan that is secured by real property or a dwelling.
24 "Student loan" shall not include an extension of credit
25made by a postsecondary educational institution to a borrower
26if one of the following apply:

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1 (1) The term of the extension of credit is no longer
2 than the borrower's education program.
3 (2) The remaining, unpaid principal balance of the
4 extension of credit is less than $1,500 at the time of the
5 borrower's graduation or completion of the program.
6 (3) The borrower fails to graduate or successfully
7 complete his or her education program and has a balance due
8 at the time of his or her disenrollment from the
9 postsecondary institution.
10 "Student loan servicer" or "servicer" means any person
11engaged in the business of servicing student loans. "Student
12loan servicer" or "servicer" includes persons or entities
13acting on behalf of the State Treasurer.
14 "Student loan servicer" shall not include:
15 (1) a bank, savings bank, savings association, or
16 credit union organized under the laws of the State or any
17 other state or under the laws of the United States;
18 (2) a wholly owned subsidiary of any bank, savings
19 bank, savings association, or credit union organized under
20 the laws of the State or any other state or under the laws
21 of the United States;
22 (3) an operating subsidiary where each owner of the
23 operating subsidiary is wholly owned by the same bank,
24 savings bank, savings association, or credit union
25 organized under the laws of the State or any other state or
26 under the laws of the United States;

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1 (4) the Illinois Student Assistance Commission and its
2 agents when the agents are acting on the Illinois Student
3 Assistance Commission's behalf;
4 (5) a public postsecondary educational institution or
5 a private nonprofit postsecondary educational institution
6 servicing a student loan it extended to the borrower;
7 (6) a licensed debt management service under the Debt
8 Management Service Act, except to the extent that the
9 organization acts as a subcontractor, affiliate, or
10 service provider for an entity that is otherwise subject to
11 licensure under this Act;
12 (7) any collection agency licensed under the
13 Collection Agency Act that is collecting post-default
14 debt;
15 (8) in connection with its responsibilities as a
16 guaranty agency engaged in default aversion, a State or
17 nonprofit private institution or organization having an
18 agreement with the U.S. Secretary of Education under
19 Section 428(b) of the Higher Education Act (20 U.S.C.
20 1078(B));
21 (9) a State institution or a nonprofit private
22 organization designated by a governmental entity to make or
23 service student loans, provided in each case that the
24 institution or organization services fewer than 20,000
25 student loan accounts of borrowers who reside in Illinois;
26 or

SB1524 Enrolled- 23 -LRB101 09686 RJF 54785 b
1 (10) a law firm or licensed attorney that is collecting
2 post-default debt; or .
3 (11) the State Treasurer.
4(Source: P.A. 100-540, eff. 12-31-18; 100-635, eff. 12-31-18.)
5 Section 999. Effective date. This Act takes effect upon
6becoming law.
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