HB0148 102ND GENERAL ASSEMBLY

LRB102 04397 CMG 14415 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0148

Introduced 1/14/2021, 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.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

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 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.

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)

Sec. 5.935. The Scholars of Service Fund.