State of Illinois
91st General Assembly

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 1        AN ACT to amend the Higher Education  Student  Assistance
 2    Act by changing Section 35.

 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:

 5        Section 5.  The Higher Education Student  Assistance  Act
 6    is amended by changing Section 35 as follows:

 7        (110 ILCS 947/35)
 8        Sec. 35. Monetary award program.
 9        (a)  The   Commission   shall,  each  year,  receive  and
10    consider  applications  for  grant  assistance   under   this
11    Section.   Subject  to  a  separate  appropriation  for  such
12    purposes,  an  applicant  is  eligible for a grant under this
13    Section when the Commission finds that the applicant:
14             (1)  is a resident of this State and  a  citizen  or
15        permanent resident of the United States; and
16             (2)  in  the  absence  of  grant assistance, will be
17        deterred by financial considerations from  completing  an
18        educational  program  at the qualified institution of his
19        or her choice.
20        (b)  The Commission shall award renewals  only  upon  the
21    student's  application and upon the Commission's finding that
22    the applicant:
23             (1)  has remained a student in good standing;
24             (2)  remains a resident of this State; and
25             (3)  is in a financial situation that  continues  to
26        warrant assistance.
27        (c)  All  grants  shall be applicable only to tuition and
28    necessary fee costs for 2  semesters  or  3  quarters  in  an
29    academic  year.   Requests for summer term assistance will be
30    made separately and shall  be  considered  on  an  individual
31    basis  according  to Commission policy.   Each student who is
                            -2-                LRB9110309NTks
 1    awarded a grant under this Section and is enrolled in  summer
 2    school  classes  shall be eligible for a summer school grant.
 3    The summer school grant amount shall not exceed the lesser of
 4    50% 50 percent of the maximum annual grant amount  authorized
 5    by this Section or the actual cost of tuition and fees at the
 6    institution  at  which  the  student  is  enrolled  at  least
 7    part-time.   For  the  regular  academic year, the Commission
 8    shall determine the  grant  amount  for  each  full-time  and
 9    part-time  student,  which  shall  be  the  smallest  of  the
10    following amounts:
11             (1)  $4,530   for  2  semesters  or  3  quarters  of
12        full-time  undergraduate  enrollment  or  $2,265  for   2
13        semesters   or  3  quarters  of  part-time  undergraduate
14        enrollment, or such lesser amount as the Commission finds
15        to be available; or
16             (2)  the amount which equals the 2  semesters  or  3
17        quarters   tuition  and  other  necessary  fees  required
18        generally   by   the   institution   of   all   full-time
19        undergraduate students,  or  in  the  case  of  part-time
20        students an amount of tuition and fees for 2 semesters or
21        3  quarters which shall not exceed one-half the amount of
22        tuition and necessary fees generally charged to full-time
23        undergraduate students by the institution; or
24             (3)  such amount  as  the  Commission  finds  to  be
25        appropriate   in   view   of  the  applicant's  financial
26        resources.
27    "Tuition and other necessary fees" as used  in  this  Section
28    include  the  customary  charge  for  instruction  and use of
29    facilities in general, and the additional fixed fees  charged
30    for  specified  purposes,  which  are  required  generally of
31    nongrant recipients for each academic period  for  which  the
32    grant  applicant  actually  enrolls,  but do not include fees
33    payable only once  or  breakage  fees  and  other  contingent
34    deposits  which  are  refundable  in  whole  or in part.  The
                            -3-                LRB9110309NTks
 1    Commission may prescribe, by rule not inconsistent with  this
 2    Section,  detailed  provisions  concerning the computation of
 3    tuition and other necessary fees.
 4        (d)  No applicant, including  those  presently  receiving
 5    scholarship  assistance  under  this  Act,  is  eligible  for
 6    monetary  award  program  consideration  under this Act after
 7    receiving a baccalaureate degree  or  the  equivalent  of  10
 8    semesters  or  15 quarters of award payments.  The Commission
 9    shall determine when award payments for part-time  enrollment
10    or  interim  or  summer  terms  shall be counted as a partial
11    semester or quarter of payment.
12        (e)  The Commission, in determining the number of  grants
13    to  be offered, shall take into consideration past experience
14    with the rate of grant funds unclaimed  by  recipients.   The
15    Commission  shall  notify applicants that grant assistance is
16    contingent upon the availability of appropriated funds.
17        (f)  The  Commission  may  request   appropriations   for
18    deposit into the Monetary Award Program Reserve Fund.  Monies
19    deposited into the Monetary Award Program Reserve Fund may be
20    expended  exclusively for one purpose: to make Monetary Award
21    Program grants to eligible students.  Amounts on  deposit  in
22    the  Monetary Award Program Reserve Fund may not exceed 2% of
23    the current annual State appropriation for the Monetary Award
24    Program.
25        The purpose of the Monetary Award Program Reserve Fund is
26    to enable the Commission each year to assure as many students
27    as possible of their eligibility for a Monetary Award Program
28    grant and to do so before commencement of the academic  year.
29    Moneys deposited in this Reserve Fund are intended to enhance
30    the  Commission's  management  of the Monetary Award Program,
31    minimizing  the  necessity,  magnitude,  and   frequency   of
32    adjusting award amounts and ensuring that the annual Monetary
33    Award Program appropriation can be fully utilized.
34        (g)  The  Commission  shall  determine the eligibility of
                            -4-                LRB9110309NTks
 1    and  make  grants  to  applicants   enrolled   at   qualified
 2    for-profit  institutions  in accordance with the criteria set
 3    forth  in  this  Section.   The  eligibility  of   applicants
 4    enrolled  at such for-profit institutions shall be limited as
 5    follows:
 6             (1)  Beginning with the academic year 1997, only  to
 7        eligible  first-time  freshmen  and  first-time  transfer
 8        students who have attained an associate degree.
 9             (2)  Beginning  with the academic year 1998, only to
10        eligible freshmen students, transfer  students  who  have
11        attained  an associate degree, and students who receive a
12        grant under paragraph (1) for the academic year 1997  and
13        whose  grants  are  being  renewed  for the academic year
14        1998.
15             (3)  Beginning with the academic year 1999,  to  all
16        eligible students.
17    (Source:  P.A.  90-122,  eff.  7-17-97; 90-647, eff. 7-24-98;
18    90-769, eff. 8-14-98;  91-249,  eff.  7-22-99;  91-250,  eff.
19    7-22-99; 91-357, eff. 7-29-99; revised 8-27-99.)

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