Public Act 096-0880
Public Act 0880 96TH GENERAL ASSEMBLY
|Public Act 096-0880
||LRB096 11142 NHT 21510 b
AN ACT concerning education.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
This Act may be cited as the
Force on Higher Education Private Student Loans.
The General Assembly
makes all of the following findings:
(1) Today, private loans constitute 20% of total
education loan money, whereas 10 years ago private loans
constituted 5% of student loans.
(2) Tuition at public universities has risen 57% in the
past 5 years.
(3) Between 2000-2001 and 2005-2006, private student
loan volume grew at an average rate of 27% to a total of
(4) Borrowers who do not complete their degrees are 10
times as likely to default on their loan and twice as
likely to be unemployed.
(5) Predatory and subprime lending practices have
caused a crisis in the housing and real estate industry,
and it is the interest of all parties involved to avoid a
similar crisis involving private student loans.
Creation of Task Force.
There is created the
Task Force on Higher Education Private Student Loans consisting
of all of the following members:
(1) One member each appointed by the President of the
Senate, the Minority Leader of the Senate, the Speaker of
the House of Representatives, and the Minority Leader of
the House of Representatives.
(2) One member appointed by the Chairman of the
Illinois Student Assistance Commission to serve as
chairperson of the Task Force.
(3) One member appointed by the Attorney General.
(4) Four members appointed by the Governor as follows:
(A) One member representing a banking
(B) One member representing private schools and
(C) One member representing a student loan
(D) One other member.
(5) The Chairman of the Board of Higher Education or
his or her designee.
(6) The State Treasurer or his or her designee to serve
as the co-chairperson of the Task Force.
(7) The Secretary of the Department of Financial and
Professional Regulation or his or her designee.
The duties of the Task Force on Higher
Education Private Student Loans shall include without
limitation all of the following:
(1) To investigate the rates, fees, and terms
associated with private student loans made to students in
(2) To investigate how rates, fees, and terms impact
the accessibility of private student loans, affordability
of student loans, and choice of institution students have.
(3) To investigate the impact rates, fees, and terms
have on students after graduation, specifically the
(A) The amount of debt they carry.
(B) The impact on pursuing post-graduate degrees.
(C) The ability to repay their loans.
(4) To investigate the relationship between rising
tuition and the availability of private loans.
(5) To assess the impact of capping private student
loan fees charged by lenders.
(6) To investigate how many private student loans are
in default or are not able to be repaid.
(7) To investigate what rates, fees, and terms are
common to those private student loans in default.
(8) To assess what impact loan defaults have on lending
(9) To assess the impact a loan default has on the
(10) To study what additional disclosures can be made
to students regarding high risk loans, financial
information, financial choices, and financial aid
(11) To investigate what higher education institutions
can do to advise students on their financial aid and loan
(12) To investigate if race and ethnicity are a factor
in the rates, fees, and terms associated with private
Task Force assistance.
The Office of the
Illinois Student Assistance Commission shall be responsible
for administrative and logistical support of the Task Force on
Higher Education Private Student Loans, including coordination
of Task Force member appointments, distribution of meeting
notices and minutes, coordination of meeting logistics,
facilitation of public meetings, and the drafting and filing of
the report under Section 25 of this Act. Task Force members or
staff liaisons or both may confer and collaborate with relevant
State and national organizations with expertise.
Report; dissolution of Task Force.
Force on Higher Education Private Student Loans shall report
its findings and recommendations to the General Assembly by
filing copies of its report by December 31, 2010 as provided in
Section 3.1 of the General Assembly Organization Act. Upon
filing this report the Task Force is dissolved.
Expiration of Act.
This Act is repealed on
January 1, 2011.
This Act takes effect upon
Effective Date: 2/2/2010