SB3800 EngrossedLRB097 14469 NHT 59322 b

1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Higher Education Student Assistance Act is
5amended by changing Section 80 as follows:
 
6    (110 ILCS 947/80)
7    Sec. 80. Additional assistance; Loans; Powers and Duties.
8The Commission shall have the following powers in furtherance
9of its programs:
10    (a) To guarantee the loan of money in amounts not to exceed
11the yearly or aggregate totals authorized by the Federal Higher
12Education Act of 1965. The Commission may guarantee loans for
13qualified borrowers for use at any approved institution of
14higher learning provided the borrower and institution are
15eligible for the loan under the Higher Education Act of 1965.
16All loans shall be guaranteed and bear interest as prescribed
17by the Higher Education Act of 1965, or by any other Federal
18statute hereafter enacted providing for Federal payment of
19interest or other subsidy on behalf of borrowers. Loans made by
20eligible lenders in accordance with this Act shall be
21guaranteed whether made from funds fully owned by the lender or
22from funds held by the lender in a trust or similar capacity
23and 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,
3origination, or servicing of loans and any other matters
4relating to the activities of the Commission.
5    (d) To originate, guarantee, acquire, and service loans and
6to perform such other acts as may be necessary or appropriate
7in connection with the loans.
8    (e) To require that any educational loan made under this
9Act shall be repaid and be secured in such manner and at such
10time as the Commission prescribes, including perfecting a
11security interest therein in such manner as the Commission
12shall determine.
13    (f) To enter into such contracts and guarantee agreements
14with eligible lenders, eligible education institutions,
15individuals, corporations, and loan servicing organizations
16and with any other governmental agency and with any agency of
17the United States, including agreements for Federal
18reinsurance of losses resulting from the death, default, or
19total and permanent disability of borrowers, as are necessary
20or incidental to the performance of its duties and to carry out
21its functions under this Act, and to make such payments as may
22be specified in such contracts and agreements from such sources
23as set forth therein, all notwithstanding any other provisions
24of this Act or any other law.
25    (g) To receive and accept from any agency of the United
26States or any agency of the State of Illinois or any

 

 

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1municipality, county, or other political subdivision thereof
2or from any individual, association, or corporation gifts,
3grants, or donations of money.
4    (h) To participate in any Federal government program for
5guaranteed loans or subsidies to borrowers and to receive,
6hold, and disburse funds made available for the purpose or
7purposes for which they are made available.
8    (i) To pay to eligible lenders an administrative cost
9allowance in such amount, at such times, and in such manner as
10may be prescribed by the Commission.
11    (j) To pay the Federal government a portion of those funds
12obtained by the Commission from collection and recoupment of
13losses on defaulted loans in such amounts and in such manner as
14provided by any Federal reinsurance agreement.
15    (k) To charge and collect premiums for insurance on loans
16and other appropriate charges and pay such insurance premiums
17or a portion thereof and other charges as are appropriate.
18    (l) To create such entities and organizations and programs
19as the Commission determines are necessary or incidental to the
20performance of its duties and to carry out any function under
21this Act.
22    (l-5) To deduct from the salary, wages, commissions, and
23bonuses of any employee in this State and, to the extent
24permitted by the laws of the United States and individual
25states in which an employee might reside, any employee outside
26the State of Illinois by serving a notice of administrative

 

 

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1wage garnishment on an employer, in accordance with rules
2adopted by the Commission, for the recovery of a student loan
3debt owned or serviced by the Commission. Levy must not be made
4until the Commission has caused a demand to be made on the
5employee, in a manner consistent with rules adopted by the
6Commission, such that the employee is provided an opportunity
7to contest the existence or amount of the student loan
8obligation.
9    (m) Except with respect to obligations issued prior to July
1014, 1994, to exercise all functions, rights, powers, duties,
11and responsibilities now or hereafter authorized to be
12exercised by any other State agency pursuant to the Higher
13Education Loan Act of this State. The authorization to any
14other State agency to exercise those functions, rights, powers,
15duties, and responsibilities is not affected by this
16authorization 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
19becoming law.