(110 ILCS 947/80)
Additional assistance; Loans; Powers and Duties.
shall have the following powers in furtherance of its programs:
(a) To guarantee the loan of money in amounts not to exceed the yearly
or aggregate totals authorized by the Federal Higher Education Act of 1965.
The Commission may guarantee loans for qualified borrowers for
use at any approved institution of higher learning provided the borrower
and institution are eligible for the loan under the Higher Education Act
of 1965. All loans shall be guaranteed and bear interest as prescribed by the
Higher Education Act of 1965, or by any other Federal statute hereafter enacted
providing for Federal payment of interest or other subsidy on behalf of
borrowers. Loans made by eligible lenders in accordance with this Act shall be
guaranteed whether made from funds fully owned by the lender or from funds held
by the lender in a trust or similar capacity and available for such loans.
(b) To sue and be sued in the name of the Commission.
(c) To adopt rules and regulations governing the guarantee,
origination, or servicing of loans and
any other matters relating to the activities of the Commission.
(d) To originate, guarantee, acquire, and service
loans and to perform such other acts as may be necessary or appropriate in
connection with the loans.
(e) To require that any educational loan made under this Act shall be
repaid and be secured in such manner and at such time as the Commission
prescribes, including perfecting a security interest therein in such manner as
the Commission shall determine.
(f) To enter into such contracts and guarantee agreements
with eligible lenders, eligible education institutions, individuals,
corporations, and loan servicing organizations and with any other
governmental agency and with any agency of the United States, including
agreements for Federal reinsurance of losses resulting from the death, default,
or total and permanent disability of borrowers, as are necessary or incidental
to the performance of its duties and to carry out its functions under this
Act, and to make such payments as may be specified in such contracts and
agreements from such sources as set forth therein, all notwithstanding any
other provisions of this Act or any other law.
(g) To receive and accept from any agency of the United States or any
agency of the State of Illinois or any municipality, county, or other
political subdivision thereof or from any individual, association, or
corporation gifts, grants, or donations of money.
(h) To participate in any Federal government program for guaranteed loans
or subsidies to borrowers and to receive, hold, and disburse funds made
available for the purpose or purposes for which they are made available.
(i) To pay to eligible lenders an administrative cost allowance in such
amount, at such times, and in such manner as may be prescribed by the
(j) To pay the Federal government a portion of those funds obtained by
the Commission from collection and recoupment of losses on defaulted loans
in such amounts and in such manner as provided by any Federal reinsurance
(k) To charge and collect premiums for insurance on loans and other
appropriate charges and pay such insurance premiums or a portion thereof
and other charges as are appropriate.
(l) To create such entities and organizations and programs as the
Commission determines are necessary or incidental to the performance of its
duties and to carry out any function under this Act.
(l-5) To deduct from the salary, wages, commissions, and bonuses of any employee in this State and, to the extent permitted by the laws of the United States and individual states in which an employee might reside, any employee outside the State of Illinois by serving a notice of administrative wage garnishment on an employer, in accordance with rules adopted by the Commission, for the recovery of a student loan debt owned or serviced by the Commission. Levy must not be made until the Commission has caused a demand to be made on the employee, in a manner consistent with rules adopted by the Commission, such that the employee is provided an opportunity to contest the existence or amount of the student loan obligation.
(m) Except with respect to obligations issued prior to July 14, 1994, to
exercise all functions, rights, powers,
duties, and responsibilities now or hereafter authorized to be exercised by any
other State agency pursuant to the Higher Education Loan Act of this State.
The authorization to any other State agency to exercise those functions,
rights, powers, duties, and responsibilities is not affected by this
authorization to the Commission.
(Source: P.A. 97-950, eff. 8-13-12.)