Illinois General Assembly - Full Text of HB0897
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Full Text of HB0897  101st General Assembly


Rep. Bob Morgan

Filed: 3/12/2019





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2    AMENDMENT NO. ______. Amend House Bill 897 by replacing
3everything after the enacting clause with the following:
4    "Section 1. Short title. This Act may be cited as the
5Scholars of Service Act.
6    Section 5. Definitions. In this Act:
7    "Commission" means the Illinois Student Assistance
9    "Student loan servicer" has the meaning given to that term
10in the Student Loan Servicing Rights Act.
11    Section 10. Public service loan forgiveness grant program.
12    (a) The Commission must, each year, receive and consider
13applications for grant assistance under this Section. An
14applicant is eligible for a grant under subsection (c) if the
15Commission finds that the applicant meets all of the following



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2        (1) He or she is a resident of this State and a United
3    States citizen or eligible noncitizen.
4        (2) He or she has outstanding federal student loan
5    debt.
6        (3) He or she was enrolled in the federal Public
7    Service Loan Forgiveness Program and has (i) attested, to
8    the best of his or her knowledge and ability, that he or
9    she made a good faith effort to comply with the Program,
10    (ii) made 120 qualifying monthly payments under a
11    qualifying repayment plan during his or her participation
12    in the Program, and (iii) been denied federal student loan
13    forgiveness.
14    (b) All applications for grant assistance to be awarded
15under this Section shall be made to the Commission in a form as
16set forth by the Commission. The form of application and the
17information required to be set forth in the application shall
18be determined by the Commission, and the Commission shall
19require eligible applicants to submit with their applications
20any supporting documents that the Commission deems necessary.
21    (c) After receiving an application from an eligible
22applicant under this Section, the Commission must evaluate if
23the applicant is eligible to receive financial assistance
24through any loan forgiveness program of this State and, if
25eligible, must assist the applicant in applying for that
26financial assistance, to be used toward his or her federal



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1student loan debt. After all eligible financial assistance has
2been awarded to the applicant, the Commission must award the
3applicant a grant to be used toward any remaining federal
4student loan debt. The grant amount awarded under this
5subsection may not exceed the applicant's federal student loan
6debt and must be used toward the payment of that debt.
7    Section 15. Student loan servicer; misleading an
8applicant. If the Commission finds that a student loan
9servicer (i) has negligently or intentionally misinformed or
10misrepresented certain information to an applicant under this
11Act and (ii) the misinformation or misrepresentation led to the
12applicant's denial of federal student loan forgiveness under
13the federal Public Service Loan Forgiveness Program, then the
14Commission must report this finding to the Office of the
15Attorney General, who may pursue legal action against the
16student loan servicer. The Attorney General may deposit any
17funds recovered through legal action under this Section into
18the Scholars of Service Fund.
19    Section 20. The Scholars of Service Fund. The Scholars of
20Service Fund is created as a special fund in the State
21treasury. All money in the Scholars of Service Fund shall be
22used, subject to appropriation, by the Commission to award
23grants under this Act.



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1    Section 90. Rules. The Commission must adopt rules to
2implement this Act.
3    Section 95. The State Finance Act is amended by adding
4Section 5.891 as follows:
5    (30 ILCS 105/5.891 new)
6    Sec. 5.891. The Scholars of Service Fund.".