summary
Introduced
01/16/2025
01/16/2025
In Committee
05/07/2025
05/07/2025
Crossed Over
04/07/2025
04/07/2025
Passed
08/15/2025
08/15/2025
Dead
Signed/Enacted/Adopted
08/15/2025
08/15/2025
Introduced Session
104th General Assembly
Bill Summary
Amends the Student Investment Account Act. Allows the State Treasurer to originate, guarantee, acquire, and service refinance loans; invest in, and enter into contracts with, institutions that provide refinance loans; deposit funds with financial institutions that provide refinance loans; establish specific criteria governing the eligibility of entities to participate in the making of refinance loans; charge and collect premiums for insurance on refinance loans; and deduct from a State employee's salary, wages, commissions, and bonuses the recovery of a refinance loan debt. Removes language allowing the State Treasurer to: enter into income share agreements with participants, facilitate income share agreements between participants and eligible income share agreement providers, and perform other acts as may be necessary or desirable in connection with income share agreements; enter into contracts and guarantee agreements as necessary to operate the Student Investment Account with income share agreement providers or qualified income share agreement organizations; establish specific criteria governing the eligibility of entities to participate in the making of income share agreements; pay income share agreement providers or qualified income share agreement organizations an administrative fee in connection with services provided pursuant to the Student Investment Account; charge and collect premiums for insurance on income share agreements; and deduct from a State employee's salary, wages, commissions, and bonuses the recovery of an income share agreement. Allows (rather than requires) the State Treasurer to establish fees to cover the costs of administration, recordkeeping, marketing, and investment management related to the Student Investment Account. Removes language allowing moneys in the Student Investment Account Assistance Fund to be used to provide assistance to income share agreement participants. Makes conforming changes.
AI Summary
This bill modifies the Student Investment Account Act to remove provisions related to income share agreements and expand the State Treasurer's authority regarding student loans and refinance loans. The bill allows the State Treasurer to originate, guarantee, acquire, and service refinance loans, which are defined as loans made to Illinois residents to refinance existing post-secondary education loans. The legislation changes the Treasurer's fee structure from mandatory to optional, removing the requirement to establish fees for account administration. Importantly, the bill eliminates previous language about income share agreements, which were financial arrangements where students would pay a percentage of future earnings in exchange for education funding. The bill broadens the Treasurer's powers to invest in and contract with financial institutions providing education and refinance loans, and maintains the ability to deposit funds with such institutions. Additionally, the Treasurer can now charge insurance premiums for education and refinance loans and can deduct loan payments from state employees' wages through administrative wage garnishment. The overall purpose remains combating the college-debt crisis and increasing access to post-secondary education for Illinois residents by providing flexible financial assistance mechanisms.
Committee Categories
Business and Industry, Education
Sponsors (13)
Omar Aquino (D)*,
Eva-Dina Delgado (D)*,
Carol Ammons (D),
Jaime Andrade (D),
Kelly Cassidy (D),
Angelica Guerrero-Cuellar (D),
Graciela Guzmán (D),
Barbara Hernandez (D),
Hoan Huynh (D),
Rob Martwick (D),
Kevin Olickal (D),
Robert Peters (D),
Mark Walker (D),
Last Action
Public Act . . . . . . . . . 104-0180 (on 08/15/2025)
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