98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB3451
 
Introduced 2/14/2014, by Sen. Michael W. Frerichs
 
SYNOPSIS AS INTRODUCED:
 

 
110 ILCS 205/9.34 new

     Amends the Board of Higher Education Act.  Requires the Board of Higher Education to create a pilot program called Pay Forward, Pay Back to replace the current system of charging undergraduate students tuition and fees and other educational expenses at a public institution of higher education.  Requires the Board to identify one public institution of higher education to participate in the pilot program. Provides that the pilot program shall (1) allow undergraduate students to attend the institution without paying for tuition and fees, books and supplies, and room and board; (2) provide that, in lieu of paying, students must sign binding contracts to pay to the State of Illinois or the institution, for a specified number of years, a certain percentage of the student's annual adjusted gross income as soon as he or she earns an income after graduation from the institution, but in no event may payments begin to be made more than 10 years after graduation from the institution; (3) specify the number of years and the percentage of annual adjusted gross income for contracts and base the specifications on research to date; (4)  guarantee graduation from the institution within 4 years after enrollment if the student makes sufficient educational progress and does not change his or her academic major or major concentration; and (5) establish an immediate funding source for the first 15 to 20 years of the pilot program and include the establishment of a revolving fund to deposit payments made under the pilot program.   Requires the Board to submit reports to the General Assembly.
  


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FISCAL NOTE ACT MAY APPLY
 
 
A BILL FOR
 

  
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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 Board of Higher Education Act is amended  by 
5adding Section 9.34 as follows:
 
6    (110 ILCS 205/9.34 new)
7    Sec. 9.34. Pay Forward, Pay Back pilot program.
8    (a)  The Board shall create a pilot program called Pay 
9Forward, Pay Back. The pilot program would replace the current 
10system of charging undergraduate students tuition and fees and 
11other educational expenses at a public institution of higher 
12education.  The Board shall identify one public institution of 
13higher education to participate in the pilot program.
14    (b) The pilot program shall do all of the following:
15        (1) Allow undergraduate students who are residents of 
16    this State, as defined by the institution, and who qualify 
17    for admission to the institution to attend the institution 
18    without paying for tuition and fees, books and supplies, 
19    and room and board.
20        (2) Provide that, in lieu of paying for tuition and 
21    fees, books and supplies, and room and board, students must 
22    sign binding contracts to pay to the State of Illinois or 
23    the institution, for a specified number of years, a certain 
 
 
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1    percentage of the student's annual adjusted gross income as 
2    soon as he or she earns an income after graduation from the 
3    institution, but in no event may payments begin to be made 
4    more than 10 years after graduation from the institution.
5        (3) Specify the number of years and the percentage of 
6    annual adjusted gross income for contracts at the 
7    institution and base the specifications on research to 
8    date.
9        (4)  Guarantee graduation from the institution within 4 
10    years after enrollment if the student makes sufficient 
11    educational progress and does not change his or her 
12    academic major or major concentration. 
13        (5) Establish an immediate funding source for the first 
14    15 to 20 years of the pilot program and include the 
15    establishment of a revolving fund to deposit payments made 
16    under the pilot program.
17    (c)  The Board shall periodically submit a report to the 
18General Assembly on students' compliance with the pilot 
19program's binding contract.  The Board shall also submit a 
20report to the General Assembly on whether the pilot program 
21should be expanded.  These reports must be submitted as provided 
22in Section 3.1 of the General Assembly Organization Act.