HB2898 EngrossedLRB103 05261 RJT 50279 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 5. The State Finance Act is amended by adding
5Section 5.990 as follows:
 
6    (30 ILCS 105/5.990 new)
7    Sec. 5.990. The MAP Refund Fund.
 
8    Section 10. The Private College Act is amended by adding
9Section 14.15 as follows:
 
10    (110 ILCS 1005/14.15 new)
11    Sec. 14.15. Unfair, misleading, or deceptive practice
12finding; refund; grant.
13    (a) In this Section, "unfair, misleading, or deceptive
14practice" means an act or practice in which a representation,
15omission, or practice misleads or is likely to mislead a
16consumer, as determined by the Federal Trade Commission, the
17United States Department of Education, or the United States
18Bureau of Consumer Financial Protection in a court of
19competent jurisdiction.
20    (b) This Section applies to a for-profit, post-secondary
21educational institution that received monetary award program

 

 

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1funds under Section 35 of the Higher Education Student
2Assistance Act at a time the institution was found to have been
3using an unfair, misleading, or deceptive practice, as defined
4by the Federal Trade Commission, the United States Department
5of Education, or the United States Bureau of Consumer
6Financial Protection, and is required to reimburse students
7for loans taken to pay for the students' education in
8accordance with a final judgment against the institution
9issued by a court of competent jurisdiction, based on acts
10occurring at least 6 months after the effective date of this
11amendatory Act of the 103rd General Assembly. Any monetary
12award program funds paid to the for-profit, post-secondary
13educational institution for students who attended the
14institution during the period of judgment must be refunded to
15the Illinois Student Assistance Commission.
16    (c) If a post-secondary educational institution is
17required to issue a refund to the Illinois Student Assistance
18Commission under this Section, the refund shall be deposited
19into the MAP Refund Fund. The Commission shall use funds
20appropriated from the MAP Refund Fund to award grants to
21students as provided in this Section. A post-secondary
22educational institution required to issue a refund to the
23Illinois Student Assistance Commission under this Section must
24notify the Illinois Student Assistance Commission within 30
25days after a final judgment issued by a court of competent
26jurisdiction, and issue the refund within 6 months. A

 

 

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1for-profit, post-secondary educational institution with a
2judgment against it must notify students who attended the
3post-secondary educational institution during the period of
4judgment and received monetary award program funds,
5electronically and by certified mail, within 6 months after
6issuance of the refund to the Illinois Student Assistance
7Commission.
8    (d) The Commission shall make applications for grants
9under subsection (c) available in the next academic year after
10the deposit of funds into the MAP Refund Fund or as soon as is
11practicable. The application process shall be administered by
12the Commission and shall remain open until no funds remain in
13the MAP Refund Fund, subject to the other provisions of this
14Section.
15    (e) The Commission shall determine the maximum amount of a
16grant that may be provided under this Section in an academic
17year. A grant under this Section may be awarded to a student in
18addition to a monetary award program grant. However, the
19combined amounts of those grants may not exceed the total cost
20of tuition and fees for the academic year at the
21post-secondary educational institution at which the student is
22enrolled.
23    (f) Beginning in the third academic year following the
24issuance of refunds under subsection (b), the remaining
25balance in the MAP Refund Fund shall be appropriated to the
26Commission for the Commission's operating budget for the

 

 

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1monetary award program.
2    (g) The MAP Refund Fund is created as a special fund in the
3State treasury. All money in the Fund shall be used, subject to
4appropriation, by the Commission for the purposes set forth in
5this Section.
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.