Public Act 096-0880
 		





SB1698 Re-Enrolled
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: 






 
    Section 1. Short title. This Act may be cited as the Task 
Force on Higher Education Private Student Loans.
 
    Section 5. Legislative findings. 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 
    $17.3 billion.
        (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.

 
    Section 10. 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 
        organization.
            (B)  One member representing private schools and 
        universities.
            (C)  One member representing a student loan 
        corporation.

            (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.
 
    Section 15. Duties.   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 
    this State.
        (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 
    following:

            (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 
    institutions.
        (9)  To assess the impact a  loan default has on the 
    borrower.
        (10)  To study what additional disclosures can be made 
    to students regarding high risk loans, financial 
    information, financial choices, and financial aid 
    available.
        (11)  To investigate what higher education institutions 
    can do to advise students on their financial aid and loan 
    resources.
        (12)  To investigate if race and ethnicity are a factor 
    in the rates, fees, and terms associated with private 
    student loans.
 
    Section 20. 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.
 
    Section 25. Report; dissolution of Task Force.   The Task 
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.
 
    Section 90. Expiration of Act.   This Act is repealed on 
January 1, 2011.

 

    Section 99. Effective date. This Act takes effect upon 
becoming law.



Effective Date:  2/2/2010