99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB1712

 

Introduced 2/20/2015, by Sen. Chapin Rose

 

SYNOPSIS AS INTRODUCED:
 
110 ILCS 947/35

    Amends the Higher Education Student Assistance Act. With respect to the monetary award program, provides that, prior to receiving grant assistance for any academic year, each recipient of a grant shall be required to sign an agreement under which the recipient pledges that, within the one-year period following the termination of the academic program for which the recipient was awarded a grant, the recipient shall reside and work in this State for a period of not less than 5 consecutive years. Provides that if the recipient fails to fulfill this obligation, the Illinois Student Assistance Commission shall require the recipient to repay, over the next 10 years, the amount of all of the grants he or she received, prorated according to the fraction of the obligation not completed, plus interest at a rate of 5% and, if applicable, reasonable collection fees; sets forth exceptions.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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 Higher Education Student Assistance Act is
5amended by changing Section 35 as follows:
 
6    (110 ILCS 947/35)
7    Sec. 35. Monetary award program.
8    (a) The Commission shall, each year, receive and consider
9applications for grant assistance under this Section. Subject
10to a separate appropriation for such purposes, an applicant is
11eligible for a grant under this Section when the Commission
12finds that the applicant:
13        (1) is a resident of this State and a citizen or
14    permanent resident of the United States; and
15        (2) in the absence of grant assistance, will be
16    deterred by financial considerations from completing an
17    educational program at the qualified institution of his or
18    her choice.
19    (b) The Commission shall award renewals only upon the
20student's application and upon the Commission's finding that
21the applicant:
22        (1) has remained a student in good standing;
23        (2) remains a resident of this State; and

 

 

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1        (3) is in a financial situation that continues to
2    warrant assistance.
3    (c) All grants shall be applicable only to tuition and
4necessary fee costs. The Commission shall determine the grant
5amount for each student, which shall not exceed the smallest of
6the following amounts:
7        (1) subject to appropriation, $5,468 for fiscal year
8    2009, $5,968 for fiscal year 2010, and $6,468 for fiscal
9    year 2011 and each fiscal year thereafter, or such lesser
10    amount as the Commission finds to be available, during an
11    academic year;
12        (2) the amount which equals 2 semesters or 3 quarters
13    tuition and other necessary fees required generally by the
14    institution of all full-time undergraduate students; or
15        (3) such amount as the Commission finds to be
16    appropriate in view of the applicant's financial
17    resources.
18    Subject to appropriation, the maximum grant amount for
19students not subject to subdivision (1) of this subsection (c)
20must be increased by the same percentage as any increase made
21by law to the maximum grant amount under subdivision (1) of
22this subsection (c).
23    "Tuition and other necessary fees" as used in this Section
24include the customary charge for instruction and use of
25facilities in general, and the additional fixed fees charged
26for specified purposes, which are required generally of

 

 

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1nongrant recipients for each academic period for which the
2grant applicant actually enrolls, but do not include fees
3payable only once or breakage fees and other contingent
4deposits which are refundable in whole or in part. The
5Commission may prescribe, by rule not inconsistent with this
6Section, detailed provisions concerning the computation of
7tuition and other necessary fees.
8    (d) No applicant, including those presently receiving
9scholarship assistance under this Act, is eligible for monetary
10award program consideration under this Act after receiving a
11baccalaureate degree or the equivalent of 135 semester credit
12hours of award payments.
13    (e) The Commission, in determining the number of grants to
14be offered, shall take into consideration past experience with
15the rate of grant funds unclaimed by recipients. The Commission
16shall notify applicants that grant assistance is contingent
17upon the availability of appropriated funds.
18    (e-5) The General Assembly finds and declares that it is an
19important purpose of the Monetary Award Program to facilitate
20access to college both for students who pursue postsecondary
21education immediately following high school and for those who
22pursue postsecondary education later in life, particularly
23Illinoisans who are dislocated workers with financial need and
24who are seeking to improve their economic position through
25education. For the 2015-2016 and 2016-2017 academic years, the
26Commission shall give additional and specific consideration to

 

 

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1the needs of dislocated workers with the intent of allowing
2applicants who are dislocated workers an opportunity to secure
3financial assistance even if applying later than the general
4pool of applicants. The Commission's consideration shall
5include, in determining the number of grants to be offered, an
6estimate of the resources needed to serve dislocated workers
7who apply after the Commission initially suspends award
8announcements for the upcoming regular academic year, but prior
9to the beginning of that academic year. For the purposes of
10this subsection (e-5), a dislocated worker is defined as in the
11federal Workforce Investment Act of 1998.
12    (f) The Commission may request appropriations for deposit
13into the Monetary Award Program Reserve Fund. Monies deposited
14into the Monetary Award Program Reserve Fund may be expended
15exclusively for one purpose: to make Monetary Award Program
16grants to eligible students. Amounts on deposit in the Monetary
17Award Program Reserve Fund may not exceed 2% of the current
18annual State appropriation for the Monetary Award Program.
19    The purpose of the Monetary Award Program Reserve Fund is
20to enable the Commission each year to assure as many students
21as possible of their eligibility for a Monetary Award Program
22grant and to do so before commencement of the academic year.
23Moneys deposited in this Reserve Fund are intended to enhance
24the Commission's management of the Monetary Award Program,
25minimizing the necessity, magnitude, and frequency of
26adjusting award amounts and ensuring that the annual Monetary

 

 

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1Award Program appropriation can be fully utilized.
2    (g) The Commission shall determine the eligibility of and
3make grants to applicants enrolled at qualified for-profit
4institutions in accordance with the criteria set forth in this
5Section. The eligibility of applicants enrolled at such
6for-profit institutions shall be limited as follows:
7        (1) Beginning with the academic year 1997, only to
8    eligible first-time freshmen and first-time transfer
9    students who have attained an associate degree.
10        (2) Beginning with the academic year 1998, only to
11    eligible freshmen students, transfer students who have
12    attained an associate degree, and students who receive a
13    grant under paragraph (1) for the academic year 1997 and
14    whose grants are being renewed for the academic year 1998.
15        (3) Beginning with the academic year 1999, to all
16    eligible students.
17    (h) Prior to receiving grant assistance for any academic
18year, each recipient of a grant under this Section shall be
19required by the Commission to sign an agreement under which the
20recipient pledges that, within the one-year period following
21the termination of the academic program for which the recipient
22was awarded a grant, the recipient shall reside and work in
23this State for a period of not less than 5 consecutive years.
24Each recipient shall, upon request of the Commission, provide
25the Commission with evidence that he or she is fulfilling or
26has fulfilled the terms of the agreement provided for in this

 

 

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1subsection (h).
2    If a recipient of a grant under this Section fails to
3fulfill the obligation set forth in this subsection (h), the
4Commission shall require the recipient to repay, over the next
510 years, the amount of all of the grants he or she received
6under this Section, prorated according to the fraction of the
7obligation not completed, plus interest at a rate of 5% and, if
8applicable, reasonable collection fees. The Commission is
9authorized to establish rules relating to its collection
10activities for repayment of grants under this Section,
11including without limitation referring the matter to a
12collection agency or to the Attorney General or instituting a
13civil suit.
14    A recipient of a grant under this Section shall not be in
15violation of the agreement entered into pursuant to this
16subsection (h) if the recipient (i) is serving as a member of
17the armed services of the United States; (ii) is unable to find
18employment following graduation from a qualified institution;
19(iii) is temporarily totally disabled, as established by sworn
20affidavit of a qualified physician; or (iii) cannot fulfill the
21obligation due to his or her death, disability, or
22incompetency, as established by sworn affidavit of a qualified
23physician, or due to family hardship, as approved by the
24Commission. No claim for repayment may be filed against the
25estate of a decedent or incompetent. Any extension of the
26period during which the obligation must be fulfilled shall be

 

 

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1subject to limitations of duration as established by the
2Commission.
3(Source: P.A. 98-967, eff. 8-15-14.)