SB0309 103RD GENERAL ASSEMBLY

LRB103 26404 RJT 52767 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB0309

Introduced 2/2/2023, by Sen. Ram Villivalam

SYNOPSIS AS INTRODUCED:

110 ILCS 947/65.58 new

Amends the Higher Education Student Assistance Act. Creates the Teacher Loan Repayment Program. Provides that the Illinois Student Assistance Commission shall consider applications for forgiving portions of qualified applicant's education loans each year. Provides that 10% of the applicant's yearly loan balance shall be forgiven each year for 5 years or until 50% of the applicant's outstanding balance at the time of the initial application is paid off. Effective July 1, 2024.

A BILL FOR

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 adding Section 65.58 as follows:

(110 ILCS 947/65.58 new)

Sec. 65.58. Teacher Loan Repayment Program.

(a) In order to encourage academically talented Illinois students to enter and continue teaching in Illinois schools in low-income areas and to encourage students to enter the early child care profession and serve low-income areas, the Commission shall, each year, receive and consider applications for loan forgiveness under this Section. This program shall be known as the Teacher Loan Repayment Program. The Commission shall administer the program and shall make all necessary and proper rules not inconsistent with this Section for the program's effective implementation.

(b) Subject to a separate appropriation made for such purposes, the Commission shall award a grant to each qualified applicant in an amount equal to a percentage designated in subsection (d) of the remaining balance the qualified applicant's outstanding educational loans. The Commission shall encourage the recipient of a grant under this Section to use the grant amount awarded to pay off his or her educational loans.

(c) A person is a qualified applicant under this Section if he or she meets all of the following qualifications:

(1) the person is a United States citizen or eligible noncitizen;

(2) the person is a resident of this State; and

(3) the person currently has outstanding student loans.

(d) The Commission shall yearly grant the qualified applicant an amount equal to 10% of the qualified applicant's remaining loan balance each year if he or she teaches at a public school district. The Commission shall grant this amount to the qualified applicant for 5 years or until 50% of the qualified applicant's outstanding balance at the time of the initial application is paid off.

(e) All applications for grant assistance under this Section shall be made to 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 applicants to submit with their application such supporting documents as the Commission deems necessary.

Section 99. Effective date. This Act takes effect July 1, 2024.