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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 5. The Eastern Illinois University Law is amended
5by adding Section 10-92 as follows:
6    (110 ILCS 665/10-92 new)
7    (Section scheduled to be repealed on July 1, 2019)
8    Sec. 10-92. Tuition waiver limitation pilot program.
9    (a) The General Assembly makes all of the following
11        (1) Both access and affordability are important points
12    in the Illinois Public Agenda for College and Career
13    Success.
14        (2) This State is in the top quartile with respect to
15    the percentage of family income needed to pay for college.
16        (3) Research suggests that as loan amounts increase,
17    versus grants-in-aid, the probability of college
18    attendance decreases.
19        (4) There is further research indicating socioeconomic
20    status may affect the willingness of students to use loans
21    to attend college.
22        (5) Strategic use of tuition waivers will decrease the
23    amount of loans that students must use to pay for tuition.



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1        (6) A modest, individually tailored tuition waiver can
2    make the difference in choosing to attend college and would
3    enhance college access for low (up to 150% of the federal
4    poverty level) and middle income (151% to 300% of the
5    federal poverty level) families.
6        (7) Even if the federally calculated financial need for
7    college attendance is met, the federally determined
8    Expected Family Contribution can still be a daunting
9    amount.
10        (8) This State is the second largest exporter of
11    students in the country.
12        (9) Illinois students need to be kept in this State.
13    State universities in other states have adopted pricing and
14    incentives that make college expenses for residents of this
15    State less than in this State.
16        (10) A mechanism is needed to stop the outflow of
17    Illinois students to institutions in other states,
18    assisting in State efforts to maintain and educate a highly
19    trained workforce.
20        (11) By being competitive on costs of attendance, this
21    State can bring out-of-state students to this State.
22        (12) The pilot program established under this Section
23    will allow Eastern Illinois University to compete for
24    highly qualified students who may reside in other states by
25    mitigating the effect of cost differences.
26        (13) Modest tuition waivers, individually targeted and



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1    tailored, result in enhanced revenue for university
2    programs.
3        (14) By increasing Eastern Illinois University's
4    capacity to strategically use tuition waivers, the
5    University will be capable of creating enhanced tuition
6    revenue by increasing enrollment yields.
7        (15) The Board of Higher Education's current
8    institutional tuition waiver limitation is 3% of total
9    available undergraduate tuition revenue.
10    (b) The Board shall establish a pilot program to increase
11the Board of Higher Education's institutional tuition waiver
12limitation for the university over a 4-year period to increase
13access to college and make college more affordable for
14undergraduate students. Under the pilot program, the
15institutional tuition waiver limitation shall be increased by 2
16percentage points in the 2012-2013 academic year, 2 percentage
17points in the 2013-2014 academic year, 2 percentage points in
18the 2014-2015 academic year, and one percentage point in the
192015-2016 academic year, resulting in an institutional tuition
20waiver limitation of 10% in the fourth year of the pilot
22    (c) The pilot program shall require that students who
23receive a tuition waiver under the pilot program be accepted to
24the university through normal admissions standards and
25processes. Individual tuition waivers granted under the pilot
26program must not exceed $2,500 per academic year. The pilot



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1program shall provide a maximum of one waiver per academic year
2for a maximum of 4 years to each student in the pilot program
3who maintains satisfactory academic progress. The pilot
4program shall be terminated after the 2015-2016 academic year,
5with no new students receiving waivers. However,
6notwithstanding the Board of Higher Education's institutional
7tuition waiver limitation, existing students receiving waivers
8under the pilot program are eligible to maintain those waivers,
9with satisfactory academic progress, under the 4-year
10limitation, after the 2015-2016 academic year due to
11maintenance of effort within their 4-year window. Sunset dates
12for waiver support shall be based upon the first academic year
13in which a student receives a waiver. The sunset dates are as
14follows for each annual cohort of pilot program participants:
15        (1) Cohort 1: the beginning year is 2012-2013 and the
16    terminal year is 2015-2016.
17        (2) Cohort 2: the beginning year is 2013-2014 and the
18    terminal year is 2016-2017.
19        (3) Cohort 3: the beginning year is 2014-2015 and the
20    terminal year is 2017-2018.
21        (4) Cohort 4: the beginning year is 2015-2016 and the
22    terminal year is 2018-2019.
23    (d) The Board shall annually report to the Board of Higher
24Education on the pilot program's impact on tuition revenue,
25enrollment goals, and increasing access and affordability on
26such dates as the Board of Higher Education shall determine.



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1    (e) The Board of Higher Education may adopt any rules that
2are necessary to implement this Section.
3    (f) This Section is repealed on July 1, 2019.
4    Section 99. Effective date. This Act takes effect July 1,