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(1) requests information related to options to reduce |
or suspend his or her monthly payment; |
(2) indicates that he or she is experiencing or |
anticipates experiencing financial hardship, distress, or |
difficulty making his or her payments; |
(3) has missed 2 consecutive monthly payments; |
(4) is at least 75 days delinquent; |
(5) is enrolled in a discretionary forbearance for more |
than 9 of the previous 12 months; |
(6) has rehabilitated or consolidated one or more loans |
out of default within the past 12 months; or |
(7) has not completed a course of study, as reflected |
in the servicer's records, or the borrower identifies |
himself or herself as not having completed a program of |
study. |
"Federal education loan" means any loan made, guaranteed, |
or insured under Title IV of the federal Higher Education Act |
of 1965. |
"Income-driven payment plan certification" means the |
documentation related to a federal student loan borrower's |
income or financial status the borrower must submit to renew an |
income-driven repayment plan. |
"Income-driven repayment options" includes the |
Income-Contingent Repayment Plan, the Income-Based Repayment |
Plan, the Income-Sensitive Repayment Plan, the Pay As You Earn |
Plan, the Revised Pay As You Earn Plan, and any other federal |
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student loan repayment plan that is calculated based on a |
borrower's income. |
"Licensee" means a person licensed pursuant to this Act. |
"Other repayment plans" means the Standard Repayment Plan, |
the Graduated Repayment Plan, the Extended Repayment Plan, or |
any other federal student loan repayment plan not based on a |
borrower's income. |
"Private loan borrower eligible for referral to a repayment |
specialist" means a borrower who possesses any of the following |
characteristics: |
(1) requests information related to options to reduce |
or suspend his or her monthly payments; or |
(2) indicates that he or she is experiencing or |
anticipates experiencing financial hardship, distress, or |
difficulty making his or her payments. |
"Requester" means any borrower or cosigner that submits a |
request for assistance. |
"Request for assistance" means all inquiries, complaints, |
account disputes, and requests for documentation a servicer |
receives from borrowers or cosigners. |
"Secretary" means the Secretary of Financial and |
Professional Regulation, or his or her designee, including the |
Director of the Division of Banking of the Department of |
Financial and Professional Regulation. |
"Servicing" means: (1) receiving any scheduled periodic |
payments from a student loan borrower or cosigner pursuant to |
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the terms of a student loan; (2) applying the payments of |
principal and interest and such other payments with respect to |
the amounts received from a student loan borrower or cosigner, |
as may be required pursuant to the terms of a student loan; and |
(3) performing other administrative services with respect to a |
student loan. |
"Student loan" or "loan" means any federal education loan |
or other loan primarily for use to finance a postsecondary |
education and costs of attendance at a postsecondary |
institution, including, but not limited to, tuition, fees, |
books and supplies, room and board, transportation, and |
miscellaneous personal expenses. "Student loan" includes a |
loan made to refinance a student loan. |
"Student loan" shall not include an extension of credit |
under an open-end consumer credit plan, a reverse mortgage |
transaction, a residential mortgage transaction, or any other |
loan that is secured by real property or a dwelling. |
"Student loan" shall not include an extension of credit |
made by a postsecondary educational institution to a borrower |
if one of the following apply: |
(1) The term of the extension of credit is no longer |
than the borrower's education program. |
(2) The remaining, unpaid principal balance of the |
extension of credit is less than $1,500 at the time of the |
borrower's graduation or completion of the program. |
(3) The borrower fails to graduate or successfully |
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complete his or her education program and has a balance due |
at the time of his or her disenrollment from the |
postsecondary institution. |
"Student loan servicer" or "servicer" means any person |
engaged in the business of servicing student loans. |
"Student loan servicer" shall not include: |
(1) a bank, savings bank, savings association, or |
credit union organized under the laws of the State or any |
other state or under the laws of the United States; |
(2) a wholly owned subsidiary of any bank, savings |
bank, savings association, or credit union organized under |
the laws of the State or any other state or under the laws |
of the United States; |
(3) an operating subsidiary where each owner of the |
operating subsidiary is wholly owned by the same bank, |
savings bank, savings association, or credit union |
organized under the laws of the State or any other state or |
under the laws of the United States; |
(4) the Illinois Student Assistance Commission and its |
agents when the agents are acting on the Illinois Student |
Assistance Commission's behalf; |
(5) a public postsecondary educational institution or
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a private nonprofit postsecondary educational institution
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servicing a student loan it extended to the borrower; |
(6) a licensed debt management service under the Debt
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Management Service Act, except to the extent that the
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organization acts as a subcontractor, affiliate, or
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service provider for an entity that is otherwise subject to |
licensure under this Act; |
(7) any collection agency licensed under the
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Collection Agency Act that is collecting post-default
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debt; |
(8) in connection with its responsibilities as a |
guaranty agency engaged in default aversion, a State or |
nonprofit private institution or organization having an |
agreement with the U.S. Secretary of Education under |
Section 428(b) of the Higher Education Act (20 U.S.C. |
1078(B)); or
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(9) a State institution or a nonprofit private |
organization designated by a governmental entity to make or |
service student loans, provided in each case that the |
institution or organization services fewer than 20,000 |
student loan accounts of borrowers who reside in Illinois; |
or .
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(10) a law firm or licensed attorney that is collecting |
post-default debt. |
(Source: P.A. 100-540, eff. 12-31-18.)
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Section 99. Effective date. This Act takes effect December |
31, 2018.
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