Public Act 097-0950
 
SB3800 EnrolledLRB097 14469 NHT 59322 b

    AN ACT concerning education.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Higher Education Student Assistance Act is
amended by changing Section 80 as follows:
 
    (110 ILCS 947/80)
    Sec. 80. Additional assistance; Loans; Powers and Duties.
The Commission shall have the following powers in furtherance
of its programs:
    (a) To guarantee the loan of money in amounts not to exceed
the yearly or aggregate totals authorized by the Federal Higher
Education Act of 1965. The Commission may guarantee loans for
qualified borrowers for use at any approved institution of
higher learning provided the borrower and institution are
eligible for the loan under the Higher Education Act of 1965.
All loans shall be guaranteed and bear interest as prescribed
by the Higher Education Act of 1965, or by any other Federal
statute hereafter enacted providing for Federal payment of
interest or other subsidy on behalf of borrowers. Loans made by
eligible lenders in accordance with this Act shall be
guaranteed whether made from funds fully owned by the lender or
from funds held by the lender in a trust or similar capacity
and available for such loans.
    (b) To sue and be sued in the name of the Commission.
    (c) To adopt rules and regulations governing the guarantee,
origination, or servicing of loans and any other matters
relating to the activities of the Commission.
    (d) To originate, guarantee, acquire, and service loans and
to perform such other acts as may be necessary or appropriate
in connection with the loans.
    (e) To require that any educational loan made under this
Act shall be repaid and be secured in such manner and at such
time as the Commission prescribes, including perfecting a
security interest therein in such manner as the Commission
shall determine.
    (f) To enter into such contracts and guarantee agreements
with eligible lenders, eligible education institutions,
individuals, corporations, and loan servicing organizations
and with any other governmental agency and with any agency of
the United States, including agreements for Federal
reinsurance of losses resulting from the death, default, or
total and permanent disability of borrowers, as are necessary
or incidental to the performance of its duties and to carry out
its functions under this Act, and to make such payments as may
be specified in such contracts and agreements from such sources
as set forth therein, all notwithstanding any other provisions
of this Act or any other law.
    (g) To receive and accept from any agency of the United
States or any agency of the State of Illinois or any
municipality, county, or other political subdivision thereof
or from any individual, association, or corporation gifts,
grants, or donations of money.
    (h) To participate in any Federal government program for
guaranteed loans or subsidies to borrowers and to receive,
hold, and disburse funds made available for the purpose or
purposes for which they are made available.
    (i) To pay to eligible lenders an administrative cost
allowance in such amount, at such times, and in such manner as
may be prescribed by the Commission.
    (j) To pay the Federal government a portion of those funds
obtained by the Commission from collection and recoupment of
losses on defaulted loans in such amounts and in such manner as
provided by any Federal reinsurance agreement.
    (k) To charge and collect premiums for insurance on loans
and other appropriate charges and pay such insurance premiums
or a portion thereof and other charges as are appropriate.
    (l) To create such entities and organizations and programs
as the Commission determines are necessary or incidental to the
performance of its duties and to carry out any function under
this Act.
    (l-5) To deduct from the salary, wages, commissions, and
bonuses of any employee in this State and, to the extent
permitted by the laws of the United States and individual
states in which an employee might reside, any employee outside
the State of Illinois by serving a notice of administrative
wage garnishment on an employer, in accordance with rules
adopted by the Commission, for the recovery of a student loan
debt owned or serviced by the Commission. Levy must not be made
until the Commission has caused a demand to be made on the
employee, in a manner consistent with rules adopted by the
Commission, such that the employee is provided an opportunity
to contest the existence or amount of the student loan
obligation.
    (m) Except with respect to obligations issued prior to July
14, 1994, to exercise all functions, rights, powers, duties,
and responsibilities now or hereafter authorized to be
exercised by any other State agency pursuant to the Higher
Education Loan Act of this State. The authorization to any
other State agency to exercise those functions, rights, powers,
duties, and responsibilities is not affected by this
authorization to the Commission.
(Source: P.A. 88-553; 89-442, eff. 12-21-95.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.