102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4205

 

Introduced 1/5/2022, by Rep. Katie Stuart - Barbara Hernandez

 

SYNOPSIS AS INTRODUCED:
 
New Act
30 ILCS 105/5.970 new

    Creates the Loan Repayment Assistance Act. Requires the Illinois Student Assistance Commission to establish and administer a Loan Repayment Assistance Program for the purpose of providing loan repayment assistance to eligible applicants living and working in this State who have graduated from a high school located in this State and an institution of higher education located in this State or another state. On an annual basis, requires the Commission to receive and consider applications for loan repayment assistance under the Program and provide assistance if the Commission finds that the applicant (i) has graduated from a high school located in this State and from an institution of higher education located in this State or in another state as an undergraduate student with a cumulative grade point average of a 4.0 on a 4.0 scale, (ii) has been a resident of this State for at least 4 years after graduating from the institution of higher education, (iii) has been employed in this State for at least 4 years after graduating from the institution of higher education, and (iv) has eligible debt in grace or repayment status. Provides for the maximum amount of loan repayment assistance that may be provided. Provides that funds shall be distributed subject to the availability of appropriations. Sets forth requirements for loan forgiveness. Sets forth provisions concerning administration of the Program, ineligibility and the termination of funds, and other Commission powers. Amends the State Finance Act to create the Loan Repayment Assistance Fund as a special fund in the State treasury. Effective immediately.


LRB102 20563 CMG 29431 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4205LRB102 20563 CMG 29431 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 Loan
5Repayment Assistance Act.
 
6    Section 5. Definitions. In this Act:
7    "Commission" means the Illinois Student Assistance
8Commission.
9    "Eligible debt" means outstanding principal, interest, and
10related fees from loans obtained for undergraduate higher
11educational expenses made by government or commercial lending
12institutions or educational institutions. "Eligible debt"
13excludes loans made by a private individual or family member.
14    "Program" means the Loan Repayment Assistance Program.
15    "Institution of higher education" or "institution" has the
16meaning set forth in the Higher Education Housing and
17Opportunities Act.
 
18    Section 10. Loan Repayment Assistance Program.
19    (a) The Commission shall establish and administer a Loan
20Repayment Assistance Program for the purpose of providing loan
21repayment assistance to eligible applicants living and working
22in this State who have graduated from (i) a high school located

 

 

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1in this State and (ii) an institution of higher education
2located in this State or another state.
3    (b) The Loan Repayment Assistance Fund is created as a
4special fund in the State treasury. The Fund shall consist of
5all money appropriated to the Fund and all money remitted to
6the Commission under the terms of this Act. All money in the
7Fund shall be used, subject to appropriation, by the
8Commission for the purposes of this Act.
9    (c) Subject to the availability of appropriations and
10subsections (d) and (e) of this Section, the Commission shall
11distribute funds to eligible applicants.
12    (d) The Commission is authorized to adopt all rules,
13policies, and procedures necessary or convenient for the
14administration of the Program and prescribe all terms and
15conditions applicable to payments made under this Act.
16    (e) The Commission shall administer the Program,
17including, but not limited to, establishing and implementing
18the following:
19        (1) An application process. Subject to the
20    availability of appropriations, the Commission shall, each
21    year, consider applications by eligible applicants for
22    loan repayment assistance under the Program.
23        (2) Eligibility requirements. The Commission shall, on
24    an annual basis, receive and consider applications for
25    loan repayment assistance under the Program and provide
26    assistance if the Commission finds that the applicant:

 

 

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1            (A) has graduated from:
2                (i) a high school located in this State; and
3                (ii) an institution of higher education
4            located in this State or another state as an
5            undergraduate student with a cumulative grade
6            point average of a 4.0 on a 4.0 scale (or the
7            equivalent as determined by the Commission);
8            (B) has been a resident of this State for at least
9        4 years after graduating from the institution;
10            (C) has been employed in this State for at least 4
11        years after graduating from the institution; and
12            (D) has eligible debt in grace or repayment
13        status.
14        (3) A maximum amount of loan repayment assistance for
15    each participant, which shall be:
16            (A) $6,000 per year, up to a maximum of $30,000
17        during the participant's career, if the participant
18        graduated from an institution of higher education
19        located in this State; or
20            (B) $3,000 per year, up to a maximum of $15,000
21        during the participant's career, if the participant
22        graduated from an institution of higher education
23        located in another state.
24        (4) Prioritization. The Commission shall develop
25    criteria for prioritization among eligible applicants if
26    there are insufficient funds available to make payments to

 

 

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1    all eligible applicants under this Act. The prioritization
2    criteria shall include the timeliness of the application,
3    the applicant's salary level, the amount of the
4    applicant's eligible debt, the availability of other loan
5    repayment assistance to the applicant, the applicant's
6    length of employment, and the applicant's prior
7    participation in the Program.
8    (f) The distribution of funds available after
9administrative costs must be made by the Commission to
10eligible applicants in the following manner:
11        (1) Loan repayment assistance must be in the form of a
12    forgivable loan.
13        (2) To have the loan forgiven, the participant shall
14    (i) complete a year of residence and employment in this
15    State and (ii) make educational debt payments (interest or
16    principal or both) that equal at least the amount of
17    assistance received under the Program during the
18    assistance year.
19        (3) Each loan must be documented by means of a
20    promissory note executed by the borrower in a form
21    provided by the Commission and shall be forgiven when the
22    participant meets the requirements set forth by the
23    Commission.
 
24    Section 15. Ineligibility and termination of funds. If a
25participant becomes ineligible during the term of a loan

 

 

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1received from the Commission, the participant must repay the
2outstanding amount of the loan received from the Commission.
3However, the Commission may, in its discretion, forgive the
4loan of a participant in whole or in part in certain
5circumstances as set forth in the Commission's written
6policies and guidelines.
 
7    Section 20. Other powers. The Commission may make, enter
8into, and execute contracts, agreements, leases, and other
9instruments with any person, including without limitation any
10federal, State, or local governmental agency, and may take
11other actions that may be necessary or convenient to
12accomplish any purpose authorized by this Act.
 
13    Section 90. The State Finance Act is amended by adding
14Section 5.970 as follows:
 
15    (30 ILCS 105/5.970 new)
16    Sec. 5.970. The Loan Repayment Assistance Fund.
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.