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| Public Act 097-0950 | ||||
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AN ACT concerning education.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Higher Education Student Assistance Act is | ||||
amended by changing Section 80 as follows:
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(110 ILCS 947/80)
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Sec. 80. Additional assistance; Loans; Powers and Duties. | ||||
The Commission
shall have the following powers in furtherance | ||||
of its programs:
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(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
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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.
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(b) To sue and be sued in the name of the Commission.
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(c) To adopt rules and regulations governing the guarantee,
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origination, or servicing of loans and
any other matters | ||
relating to the activities of the Commission.
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(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.
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(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.
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(f) To enter into such contracts and guarantee agreements
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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.
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(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.
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(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.
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(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
Commission.
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(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
agreement.
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(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.
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(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.
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(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
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authorization to the Commission.
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(Source: P.A. 88-553; 89-442, eff. 12-21-95.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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