SB0856sam001 95TH GENERAL ASSEMBLY

Sen. Martin A. Sandoval

Filed: 5/17/2007

09500SB0856sam001 LRB095 05592 NHT 36528 a

AMENDMENT TO SENATE BILL 856

AMENDMENT NO. ______. Amend Senate Bill 856 by replacing everything after the enacting clause with the following:

"Section 5. The State Finance Act is amended by adding Section 5.675 as follows:

(30 ILCS 105/5.675 new)

Sec. 5.675. The Higher Education Revolving Loan Fund.

Section 10. The Higher Education Student Assistance Act is amended by adding Section 65.85 as follows:

(110 ILCS 947/65.85 new)

Sec. 65.85. Higher education revolving loans.

(a) In this Section, "eligible student" means a student enrolled at the undergraduate level at an institution of higher learning who (i) if the student has not yet completed one term at an institution of higher learning, had a 3.0 cumulative grade point average or its equivalent after graduating from an approved high school; (ii) if the student has completed at least one term at an institution of higher learning, has a 3.0 post-secondary cumulative grade point average or its equivalent; (iii) is a resident of this State and a citizen or permanent resident of the United States; and (iv) is from a family that has an adjusted gross income not to exceed 250% of the federal poverty guidelines as published in the Federal Register by the U.S. Department of Health and Human Services.

(b) The Commission shall, subject to appropriation, implement and administer a higher education revolving loan program to provide loans to eligible students, as defined in this Act and as determined by the Commission, for the costs of attending an institution of higher learning in this State. These loans must be offered at a low interest rate to be determined by the Commission, taking into account in its deliberations both program sustainability and affordability for loan recipients.

(c) An individual may not receive loans under this Section in excess of $5,000 or the student's tuition and mandatory fees, whichever is less, per academic year. Loan funds must be paid directly to the institution of higher learning.

(d) The repayment period for a loan made under this Section may not exceed 15 years. A person who receives a loan under this Section shall begin repaying the loan beginning 6 months after the person no longer attends an institution of higher learning. The loan recipient shall repay at a minimum 5% of the principal each year or the remaining balance of the loan. Additionally, in each month, the loan recipient shall repay a minimum of $50 or the remaining balance of the loan. All repayments of loans shall be deposited into the Higher Education Revolving Loan Fund.

(e) The Higher Education Revolving Loan Fund is created as a special fund in the State treasury. All money in the Fund shall be used, subject to appropriation, by the Commission for making loans under this Section. The Fund shall consist of any moneys transferred or appropriated into the Fund, as well as all repayments of loans made under the higher education revolving loan program. The Fund shall be used for the purposes of this Section and for no other purpose. All interest earned on moneys in the Fund shall be deposited into the Fund.

(f) The Commission shall adopt any rules necessary to implement and administer this Section.

Section 99. Effective date. This Act takes effect July 1, 2007.".