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.


LRB102 04397 CMG 14415 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB0148LRB102 04397 CMG 14415 b

1    AN ACT concerning education.
 
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
5Scholars of Service Act.
 
6    Section 5. Definitions. In this Act:
7    "Commission" means the Illinois Student Assistance
8Commission.
9    "Student loan servicer" has the meaning given to that term
10in the Student Loan Servicing Rights Act.
 
11    Section 10. Public service loan forgiveness grant program.
12    (a) The Commission must, each year, receive and consider
13applications for grant assistance under this Section. An
14applicant is eligible for a grant under subsection (c) if the
15Commission finds that the applicant meets all of the following
16qualifications:
17        (1) He or she is a resident of this State and a United
18    States citizen or eligible noncitizen.
19        (2) He or she has outstanding federal student loan
20    debt.
21        (3) He or she was enrolled in the federal Public
22    Service Loan Forgiveness Program and has (i) attested, to

 

 

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1    the best of his or her knowledge and ability, that he or
2    she made a good faith effort to comply with the Program,
3    (ii) made 120 qualifying monthly payments under a
4    qualifying repayment plan during his or her participation
5    in the Program, and (iii) been denied federal student loan
6    forgiveness.
7    (b) All applications for grant assistance to be awarded
8under this Section shall be made to the Commission in a form as
9set forth by the Commission. The form of application and the
10information required to be set forth in the application shall
11be determined by the Commission, and the Commission shall
12require eligible applicants to submit with their applications
13any supporting documents that the Commission deems necessary.
14    (c) After receiving an application from an eligible
15applicant under this Section, the Commission must evaluate if
16the applicant is eligible to receive financial assistance
17through any loan forgiveness program of this State and, if
18eligible, must assist the applicant in applying for that
19financial assistance, to be used toward his or her federal
20student loan debt. After all eligible financial assistance has
21been awarded to the applicant, the Commission must award the
22applicant a grant to be used toward any remaining federal
23student loan debt. The grant amount awarded under this
24subsection may not exceed the applicant's federal student loan
25debt and must be used toward the payment of that debt.
 

 

 

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1    Section 15. Student loan servicer; misleading an
2applicant. If the Commission finds that a student loan
3servicer (i) has negligently or intentionally misinformed or
4misrepresented certain information to an applicant under this
5Act and (ii) the misinformation or misrepresentation led to
6the applicant's denial of federal student loan forgiveness
7under the federal Public Service Loan Forgiveness Program,
8then the Commission must report this finding to the Office of
9the Attorney General, who may pursue legal action against the
10student loan servicer. The Attorney General may deposit any
11funds recovered through legal action under this Section into
12the Scholars of Service Fund.
 
13    Section 20. The Scholars of Service Fund. The Scholars of
14Service Fund is created as a special fund in the State
15treasury. All money in the Scholars of Service Fund shall be
16used, subject to appropriation, by the Commission to award
17grants under this Act.
 
18    Section 90. Rules. The Commission must adopt rules to
19implement this Act.
 
20    Section 95. The State Finance Act is amended by adding
21Section 5.935 as follows:
 
22    (30 ILCS 105/5.935 new)

 

 

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1    Sec. 5.935. The Scholars of Service Fund.