Full Text of SB3800 97th General Assembly
SB3800enr 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning education.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Higher Education Student Assistance Act is | 5 | | amended by changing Section 80 as follows:
| 6 | | (110 ILCS 947/80)
| 7 | | Sec. 80. Additional assistance; Loans; Powers and Duties. | 8 | | The Commission
shall have the following powers in furtherance | 9 | | of its programs:
| 10 | | (a) To guarantee the loan of money in amounts not to exceed | 11 | | the yearly
or aggregate totals authorized by the Federal Higher | 12 | | Education Act of 1965.
The Commission may guarantee loans for | 13 | | qualified borrowers for
use at any approved institution of | 14 | | higher learning provided the borrower
and institution are | 15 | | eligible for the loan under the Higher Education Act
of 1965. | 16 | | All loans shall be guaranteed and bear interest as prescribed | 17 | | by the
Higher Education Act of 1965, or by any other Federal | 18 | | statute hereafter enacted
providing for Federal payment of | 19 | | interest or other subsidy on behalf of
borrowers. Loans made by | 20 | | eligible lenders in accordance with this Act shall be
| 21 | | guaranteed whether made from funds fully owned by the lender or | 22 | | from funds held
by the lender in a trust or similar capacity | 23 | | and available for such loans.
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| 1 | | (b) To sue and be sued in the name of the Commission.
| 2 | | (c) To adopt rules and regulations governing the guarantee,
| 3 | | origination, or servicing of loans and
any other matters | 4 | | relating to the activities of the Commission.
| 5 | | (d) To originate, guarantee, acquire, and service
loans and | 6 | | to perform such other acts as may be necessary or appropriate | 7 | | in
connection with the loans.
| 8 | | (e) To require that any educational loan made under this | 9 | | Act shall be
repaid and be secured in such manner and at such | 10 | | time as the Commission
prescribes, including perfecting a | 11 | | security interest therein in such manner as
the Commission | 12 | | shall determine.
| 13 | | (f) To enter into such contracts and guarantee agreements
| 14 | | with eligible lenders, eligible education institutions, | 15 | | individuals,
corporations, and loan servicing organizations | 16 | | and with any other
governmental agency and with any agency of | 17 | | the United States, including
agreements for Federal | 18 | | reinsurance of losses resulting from the death, default,
or | 19 | | total and permanent disability of borrowers, as are necessary | 20 | | or incidental
to the performance of its duties and to carry out | 21 | | its functions under this
Act, and to make such payments as may | 22 | | be specified in such contracts and
agreements from such sources | 23 | | as set forth therein, all notwithstanding any
other provisions | 24 | | of this Act or any other law.
| 25 | | (g) To receive and accept from any agency of the United | 26 | | States or any
agency of the State of Illinois or any |
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| 1 | | municipality, county, or other
political subdivision thereof | 2 | | or from any individual, association, or
corporation gifts, | 3 | | grants, or donations of money.
| 4 | | (h) To participate in any Federal government program for | 5 | | guaranteed loans
or subsidies to borrowers and to receive, | 6 | | hold, and disburse funds made
available for the purpose or | 7 | | purposes for which they are made available.
| 8 | | (i) To pay to eligible lenders an administrative cost | 9 | | allowance in such
amount, at such times, and in such manner as | 10 | | may be prescribed by the
Commission.
| 11 | | (j) To pay the Federal government a portion of those funds | 12 | | obtained by
the Commission from collection and recoupment of | 13 | | losses on defaulted loans
in such amounts and in such manner as | 14 | | provided by any Federal reinsurance
agreement.
| 15 | | (k) To charge and collect premiums for insurance on loans | 16 | | and other
appropriate charges and pay such insurance premiums | 17 | | or a portion thereof
and other charges as are appropriate.
| 18 | | (l) To create such entities and organizations and programs | 19 | | as the
Commission determines are necessary or incidental to the | 20 | | performance of its
duties and to carry out any function under | 21 | | this Act.
| 22 | | (l-5) To deduct from the salary, wages, commissions, and | 23 | | bonuses of any employee in this State and, to the extent | 24 | | permitted by the laws of the United States and individual | 25 | | states in which an employee might reside, any employee outside | 26 | | the State of Illinois by serving a notice of administrative |
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| 1 | | wage garnishment on an employer, in accordance with rules | 2 | | adopted by the Commission, for the recovery of a student loan | 3 | | debt owned or serviced by the Commission. Levy must not be made | 4 | | until the Commission has caused a demand to be made on the | 5 | | employee, in a manner consistent with rules adopted by the | 6 | | Commission, such that the employee is provided an opportunity | 7 | | to contest the existence or amount of the student loan | 8 | | obligation. | 9 | | (m) Except with respect to obligations issued prior to July | 10 | | 14, 1994, to
exercise all functions, rights, powers,
duties, | 11 | | and responsibilities now or hereafter authorized to be | 12 | | exercised by any
other State agency pursuant to the Higher | 13 | | Education Loan Act of this State.
The authorization to any | 14 | | other State agency to exercise those functions,
rights, powers, | 15 | | duties, and responsibilities is not affected by this
| 16 | | authorization to the Commission.
| 17 | | (Source: P.A. 88-553; 89-442, eff. 12-21-95.)
| 18 | | Section 99. Effective date. This Act takes effect upon | 19 | | becoming law.
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