HB0145ham001 100TH GENERAL ASSEMBLY

Rep. Katie Stuart

Filed: 3/14/2017

10000HB0145ham001 LRB100 03815 NHT 22244 a

AMENDMENT TO HOUSE BILL 145

AMENDMENT NO. ______. Amend House Bill 145 by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the Loan Repayment Assistance Act.

Section 5. Definitions. For the purposes of this Act:

"Commission" means the Illinois Student Assistance Commission.

"Eligible debt" means outstanding principal, interest, and related fees from loans obtained for undergraduate higher educational expenses made by government or commercial lending institutions or educational institutions. "Eligible debt" excludes loans made by a private individual or family member.

"Program" means the Loan Repayment Assistance Program.

"Public institution" means a public institution of higher education that is included in the definition of "public institutions of higher education" under the Board of Higher Education Act.

Section 10. Loan Repayment Assistance Program.

(a) The Commission shall establish and administer the Program for the purpose of providing loan repayment assistance to eligible applicants living and working in this State who have graduated from a public institution.

(b) The Loan Repayment Assistance Fund is created as a special fund in the State treasury. The Fund shall consist of all moneys appropriated to the Fund and all moneys remitted to the Commission under the terms of this Act. All money in the Fund shall be used, subject to appropriation, by the Commission for the purposes of this Act.

(c) Subject to the availability of appropriations and subsections (d) and (e) of this Section, the Commission shall distribute funds to eligible applicants.

(d) The Commission is authorized to prescribe all rules, policies, and procedures necessary or convenient for the administration of the Program and all terms and conditions applicable to payments made under this Act.

(e) The Commission shall administer the Program, including, but not limited to, establishing and implementing the following:

(1) An application process. Subject to the availability of appropriations, the Commission shall, each year, consider applications by eligible applicants for loan repayment assistance under the Program.

(2) Eligibility requirements. The Commission shall, on an annual basis, receive and consider applications for loan repayment assistance under the Program and provide assistance if the Commission finds that the applicant:

(A) has graduated from a public institution as an undergraduate student with a cumulative grade point average of a 4.0 (or the equivalent as determined by the Commission);

(B) was a resident of this State while attending the public institution and has been a resident of this State for at least 4 years after graduating from the public institution;

(C) has been employed in this State for at least 4 years after graduating from the public institution; and

(D) has eligible debt in grace or repayment status.

(3) A maximum amount of loan repayment assistance for each participant, which shall be $6,000 per year, up to a maximum of $30,000 during the participant's career.

(4) Prioritization. The Commission shall develop criteria for prioritization among eligible applicants in the event that there are insufficient funds available to make payments to all eligible applicants under this Act. The prioritization criteria shall include the timeliness of the application, the applicant's salary level, the amount of the applicant's eligible debt, the availability of other loan repayment assistance to the applicant, the applicant's length of employment, and the applicant's prior participation in the Program.

(f) The distribution of funds available after administrative costs must be made by the Commission to eligible applicants in the following manner:

(1) Loan repayment assistance must be in the form of a forgivable loan.

(2) To have the loan forgiven, the participant shall (i) complete a year of residence and employment in this State and (ii) make educational debt payments (interest or principal or both) that equal at least the amount of assistance received under the Program during the assistance year.

(3) Each loan must be documented by means of a promissory note executed by the borrower in a form provided by the Commission and shall be forgiven when an eligible participant meets the requirements set forth by the Commission.

Section 15. Ineligibility and termination of funds. If a participant becomes ineligible during the term of a loan received from the Commission, he or she must repay the outstanding amount of the loan received from the Commission. However, the Commission may, in its discretion, forgive the loan of a participant in whole or in part in certain circumstances as set forth in its written policies and guidelines.

Section 20. Other powers. The Commission may make, enter into, and execute contracts, agreements, leases, and other instruments with any person, including without limitation any federal, State, or local governmental agency, and may take other actions that may be necessary or convenient to accomplish any purpose authorized by this Act.

Section 90. The State Finance Act is amended by adding Section 5.878 as follows:

(30 ILCS 105/5.878 new)

Sec. 5.878. The Loan Repayment Assistance Fund.".