101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB1342
 
Introduced 2/7/2019, by Sen. Martin A. Sandoval
 
SYNOPSIS AS INTRODUCED:
 

 
110 ILCS 947/71 new

     Amends the Higher Education Student Assistance Act. Requires the Illinois Student Assistance Commission to establish a student loan refinancing program for the purpose of purchasing any outstanding federal, State, or private student loans of an applicant who meets specified criteria, including Illinois residency. Provides that if the Commission refinances the loan of an applicant, the applicant must be charged the lowest possible interest rate for student loans in this State on the date the Commission approves the application. Provides that if at any time an individual who is participating in the refinancing program is no longer a resident of this State, the Commission may increase his or her loan interest rate. Requires the Commission to adopt rules.
  


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FISCAL NOTE ACT MAY APPLY
 
 
A BILL FOR
 

  
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1    AN ACT concerning education.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  
 
 
4    Section 5. The Higher Education Student Assistance Act is 
5amended  by adding Section 71 as follows:
 
6    (110 ILCS 947/71 new)
7    Sec. 71. Student loan refinancing program.
8    (a) The Commission must establish and, each year, receive 
9and consider applications under a student loan refinancing 
10program for the purpose of purchasing any outstanding federal, 
11State, or private student loans of an applicant who meets all 
12of the following qualifications:
13        (1) He or she is a resident of this State.
14        (2) He or she has graduated from an institution of 
15    higher learning or any other public or private 
16    postsecondary institution in the United States.
17        (3) He or she is not in default on any student loan and 
18    does not owe a refund or repayment on any State or federal 
19    grant or scholarship.
20        (4) Any other criteria established by the Commission.
21    (b) If the Commission refinances the loan of an applicant 
22under this Section, the applicant must be charged the lowest 
23possible interest rate for student loans in this State on the 
 
 
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1date the Commission approves the application. If at any time an 
2individual who is participating in the refinancing program is 
3no longer a resident of this State, the Commission may increase 
4his or her loan interest rate.
5    (c) All applications under this Section must be made to the 
6Commission on forms that the Commission shall provide. The 
7Commission shall determine the form of application and the 
8information required to be set forth in the application, and 
9the Commission shall require applicants to submit with their 
10applications any supporting documents that the Commission 
11deems necessary. 
12    (d) The Commission must adopt rules to implement this 
13Section.