98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3653

 

Introduced , by Rep. Mary E. Flowers

 

SYNOPSIS AS INTRODUCED:
 
New Act
30 ILCS 105/5.826 new

    Creates the Underserved Population Loan Program Act and Amends the State Finance Act. Creates an interest-free loan program, which shall be known as the Underserved Population Loan Program, to be administered by the Illinois Student Assistance Commission to provide encouragement to, an opportunity for, and an incentive for qualified persons to pursue a baccalaureate degree at a public university. Requires the Commission to consider applications for participation in the Program each academic year. Sets forth eligibility requirements for participation in the Program, including requiring an applicant to have insufficient funds to pay for the costs of attending a public university. Requires the Commission to enter into a Program agreement with each Program participant; provides that prior to receiving a loan under the Program, a participant must sign the Program agreement; and sets forth what the participant must pledge to do. Contains provisions concerning the loans, the Underserved Population Loan Program Fund, and rules. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Underserved Population Loan Program Act.
 
6    Section 5. Definitions. In this Act:
7    "Commission" means the Illinois Student Assistance
8Commission.
9    "Program" means the Underserved Population Loan Program
10established under this Act.
11    "University" means a public university located in this
12State.
 
13    Section 10. Underserved Population Loan Program.
14    (a) There is created an interest-free loan program, which
15shall be known as the Underserved Population Loan Program, to
16be administered by the Commission. The implementation and
17administration of the Program is subject to appropriation from
18the Underserved Population Loan Program Fund.
19    (b) The purpose of the Program is to provide encouragement
20to, an opportunity for, and an incentive for qualified persons
21to pursue a baccalaureate degree at a university.
22    (c) Beginning with the 2014-2015 academic year, the

 

 

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1Commission shall, each academic year, consider applications
2for participation in the Program. An applicant is eligible to
3participate in the Program if the Commission finds that the
4applicant meets all of the following qualifications:
5        (1) He or she is a United States citizen or eligible
6    noncitizen.
7        (2) He or she is a resident of this State.
8        (3) He or she is enrolled, on a full-time basis, in a
9    university as a freshman undergraduate student.
10        (4) He or she has insufficient funds to pay for the
11    costs of attending a university. An applicant shall
12    demonstrate that he or she has insufficient funds by
13    providing to the Commission documentation from the Free
14    Application for Federal Student Aid verifying that he or
15    she has insufficient expected family contributions.
 
16    Section 15. Program agreement.
17    (a) The Commission shall enter into a Program agreement
18with each Program participant. Prior to receiving a loan under
19the Program, a participant must sign the Program agreement
20pledging that he or she shall do the following:
21        (1) Remain a resident of this State. A person may not
22    continue to participate in the Program if he or she fails
23    to meet this pledge.
24        (2) Remain enrolled on a full-time basis in the same
25    university or another university until he or she receives

 

 

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1    his or her baccalaureate degree. A person may not continue
2    to participate in the Program if he or she fails to meet
3    this pledge.
4        (3) Provide to the Commission, for each academic year
5    of participation, documentation from the Free Application
6    for Federal Student Aid verifying that he or she has
7    insufficient expected family contributions. A person may
8    not continue to participate in the Program if he or she
9    fails to meet this pledge.
10        (4) Maintain a cumulative grade point average of at
11    least a 2.0 on a 4.0 scale (or the equivalent as determined
12    by the Commission) at the end of each semester of
13    enrollment. If a Program participant does not maintain this
14    minimum cumulative grade point average at the end of any
15    given semester, the Commission shall place the participant
16    on probation the next semester, during which time he or she
17    may not receive a loan. If the student restores this
18    minimum cumulative grade point average at the end of the
19    probationary semester, then he or she may receive a loan
20    for the semester following the probationary semester. A
21    person may not continue to participate in the Program if he
22    or she fails to restore this minimum cumulative grade point
23    average at the end of the probationary semester.
24        (5) Receive a baccalaureate degree from a university
25    within 5 academic years, beginning with enrollment as a
26    freshman undergraduate student.

 

 

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1    (b) The fulfillment of the Program agreement may be
2postponed under any of the following circumstances:
3        (1) Any period of temporary medical disability during
4    which a participant is unable to attend school.
5        (2) Any period of time in which a participant is
6    engaged in mandatory military service as part of the U.S.
7    Armed Forces.
8        (3) Any other period of postponement agreed to or
9    determined in accordance with criteria agreed to in the
10    Program agreement.
11    The Program agreement may be discharged prematurely upon
12the death of the Program participant or in the event that the
13Program participant is unable to attend school due to permanent
14disability.
 
15    Section 20. Loans.
16    (a) Each Program participant shall receive an
17interest-free loan each semester of enrollment in an amount per
18semester to cover the educational expenses to be incurred by
19the participant for that semester, including without
20limitation tuition and fees, room and board, and books and
21supplies, less any amount received by the participant from
22other financial assistance and subject to proration due to
23insufficient funding for the Program. A person may remain a
24Program participant until he or she receives his or her
25baccalaureate degree from a university, but in no event may a

 

 

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1person be a Program participant for more than 5 academic years,
2beginning with enrollment as a freshman undergraduate student.
3    (b) All loans disbursed to a Program participant must be
4repaid beginning one year after he or she is no longer a
5Program participant, which repayment must be based on a 10-year
6repayment schedule. Payments received by the Commission in
7accordance with this subsection (b) must be deposited into the
8Underserved Population Loan Program Fund.
 
9    Section 25. Underserved Population Loan Program Fund. The
10Underserved Population Loan Program Fund is created as a
11special fund in the State treasury. All money in the Fund shall
12be used, subject to appropriation, by the Commission for
13implementing, administering, and funding the Program.
 
14    Section 80. Rules. The Commission may adopt any rules
15necessary to carry out its responsibilities under this Act.
 
16    Section 90. The State Finance Act is amended by adding
17Section 5.826 as follows:
 
18    (30 ILCS 105/5.826 new)
19    Sec. 5.826. The Underserved Population Loan Program Fund.
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.