(110 ILCS 945/6.05) (from Ch. 144, par. 1606.05)
Sec. 6.05.
Determination of qualified financings and establishment
of financing programs. To establish criteria for and guidelines encompassing
the types of and qualifications for Education Loan financing programs.
In this regard, the Authority shall be empowered to issue Bonds for the
purpose of making Authority Loans to institutions of higher education and
education loan corporations participating
in a program of the Authority for the express purpose of providing Education
Loans. The criteria and guidelines established by the Authority for its
Education Loan financing programs shall include such eligibility standards
for Borrowers as the Authority shall determine are necessary or desirable
in order to effectuate the purposes of the Act, including the following:
(a) each student shall have a certificate of admission or enrollment at
a specific institution of higher education, (b) each student
or his or her parents shall satisfy such financial qualifications as the
Authority shall establish to effectuate the purposes of the Act, (c) each
student and his or her Parents shall submit such information as may be required
by the Authority to his or her institution of higher education or to the
education loan corporation providing an education loan to such student or parents.
The Authority is authorized to contract with financial institutions and
other qualified loan origination and servicing organizations, which shall
assist in pre-qualifying Borrowers for Education
Loans and which shall service and administer each Education Loan and each
institution's and education loan corporation's respective loan series
portfolio. Each Education Loan's fees
shall include a portion, if necessary, to cover the applicable pro rata
cost of such a servicing organization.
The Authority is authorized to establish specific criteria governing the
eligibility of institutions of higher education and education loan
corporations to participate in its programs,
the making of Authority Loans and Education Loans, provisions for default,
the establishment of default reserve funds, the purchase of default insurance,
the provision of prudent debt service reserves, and the furnishing by participating
institutions of higher education and education loan corporations of such additional
guarantees of the Education Loans, Authority Loans or the Bonds as the Authority
shall determine, all of such criteria to be established to assure the marketability
of the Bonds and the adequacy of the security for the Bonds.
The Authority shall establish
limitations upon the principal amounts and the terms of Education Loans,
criteria regarding the qualifications and characteristics of Borrowers and
procedures for allocating Authority Loans among institutions of higher
education and education loan corporations
eligible for its program in order to effectuate the purposes of the Act.
(Source: P.A. 85-1326.)
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