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Illinois Senate Bill SB0169

Illinois 2025-2026 Regular Session

Illinois Senate Bill SB0169 Compare Versions

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11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0169 Introduced 1/17/2025, by Sen. Omar Aquino SYNOPSIS AS INTRODUCED: See Index 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. LRB104 07066 LNS 17103 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0169 Introduced 1/17/2025, by Sen. Omar Aquino SYNOPSIS AS INTRODUCED: See Index See Index 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. LRB104 07066 LNS 17103 b LRB104 07066 LNS 17103 b A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0169 Introduced 1/17/2025, by Sen. Omar Aquino SYNOPSIS AS INTRODUCED:
33 See Index See Index
44 See Index
55 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.
66 LRB104 07066 LNS 17103 b LRB104 07066 LNS 17103 b
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88 A BILL FOR
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1111 1 AN ACT concerning education.
1212 2 Be it enacted by the People of the State of Illinois,
1313 3 represented in the General Assembly:
1414 4 Section 5. The Student Investment Account Act is amended
1515 5 by changing Sections 5, 10, 25, 30, 35, 40, 45, and 65 as
1616 6 follows:
1717 7 (110 ILCS 991/5)
1818 8 Sec. 5. Findings and purpose. The General Assembly finds
1919 9 that it is vital for the State to combat the college-debt
2020 10 crisis and increase access to post-secondary education for all
2121 11 residents of this State. The purpose of this Act is to assist
2222 12 qualified residents to attend and pay for post-secondary
2323 13 education through a system of investment programs, which may
2424 14 include income-sharing agreements, linked deposits, and
2525 15 student loans, and refinance loans.
2626 16 (Source: P.A. 101-586, eff. 8-26-19.)
2727 17 (110 ILCS 991/10)
2828 18 Sec. 10. Definitions. As used in this Act:
2929 19 "Borrower" means an Illinois resident student who has
3030 20 received an education loan or an Illinois resident parent who
3131 21 has received or agreed to pay an education loan, subject to
3232 22 approval by the State Treasurer.
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3636 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0169 Introduced 1/17/2025, by Sen. Omar Aquino SYNOPSIS AS INTRODUCED:
3737 See Index See Index
3838 See Index
3939 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.
4040 LRB104 07066 LNS 17103 b LRB104 07066 LNS 17103 b
4141 LRB104 07066 LNS 17103 b
4242 A BILL FOR
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4848 See Index
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6767 1 "Education loan" means a loan made to a borrower in
6868 2 accordance with this Act to finance an Illinois resident
6969 3 student's attendance at an institution of higher education.
7070 4 "Income share agreement" means an agreement between a
7171 5 participant and an eligible institution of higher education or
7272 6 an income share agreement provider approved by the State
7373 7 Treasurer in which the participant agrees to pay a percentage
7474 8 of the participant's future earnings for a fixed period in
7575 9 exchange for funds to pay for their post-secondary education.
7676 10 "Income share agreement provider" means an organization
7777 11 that allows income share agreement participants to fund their
7878 12 education by means of an income share agreement.
7979 13 "Institution of higher education" means a post-secondary
8080 14 educational institution located in Illinois and approved by
8181 15 the State Treasurer.
8282 16 "Participant" means a resident student who enters into an
8383 17 income share agreement for the purpose of funding the
8484 18 participant's attendance at an institution of higher
8585 19 education.
8686 20 "Refinance loan" means a loan made to an Illinois resident
8787 21 in accordance with this Act to refinance an existing loan used
8888 22 to finance post-secondary education.
8989 23 "Student Investment Account" means that portion of the
9090 24 Treasurer's State Investment Portfolio described in Section
9191 25 15.
9292 26 (Source: P.A. 101-586, eff. 8-26-19.)
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103103 1 (110 ILCS 991/25)
104104 2 Sec. 25. Operation of the Student Investment Account. The
105105 3 State Treasurer may: originate, guarantee, acquire, and
106106 4 service education loans or refinance loans; facilitate such
107107 5 arrangements between borrowers and eligible lenders; and
108108 6 perform such other acts as may be necessary or desirable in
109109 7 connection with the education loans or refinance loans. The
110110 8 State Treasurer may receive, hold, and invest moneys paid into
111111 9 the Student Investment Account and take such other actions as
112112 10 are necessary to operate the Student Investment Account. The
113113 11 State Treasurer may invest in, and enter into contracts with,
114114 12 institutions that provide education loans or refinance loans.
115115 13 The State Treasurer may also: enter into income share
116116 14 agreements with participants; facilitate such arrangements
117117 15 between participants and eligible income share agreement
118118 16 providers; and perform such other acts as may be necessary or
119119 17 desirable in connection with such income share agreements. The
120120 18 State Treasurer may also deposit funds with financial
121121 19 institutions that provide education loans or refinance loans.
122122 20 (Source: P.A. 101-586, eff. 8-26-19.)
123123 21 (110 ILCS 991/30)
124124 22 Sec. 30. Administration of the Student Investment Account.
125125 23 The State Treasurer may enter into such contracts and
126126 24 guarantee agreements as are necessary to operate the Student
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137137 1 Investment Account with eligible lenders, financial
138138 2 institutions, institutions of higher education, income share
139139 3 agreement providers, individuals, corporations, and qualified
140140 4 income share agreement or loan origination and servicing
141141 5 organizations and with any governmental entity, including the
142142 6 Illinois Student Assistance Commission, and with any agency or
143143 7 instrumentality of the United States. The State Treasurer is
144144 8 authorized to establish specific criteria governing the
145145 9 eligibility of entities to participate in its programs, the
146146 10 making of income share agreements or education loans or
147147 11 refinance loans, provisions for default, the establishment of
148148 12 default reserve funds, the purchase of default insurance, the
149149 13 provision of prudent debt service reserves, and the furnishing
150150 14 by participating entities of such additional guarantees of the
151151 15 income share agreements or education loans or refinance loans
152152 16 as the State Treasurer shall determine.
153153 17 (Source: P.A. 101-586, eff. 8-26-19.)
154154 18 (110 ILCS 991/35)
155155 19 Sec. 35. Fees. The State Treasurer may shall establish
156156 20 fees to cover the costs of administration, recordkeeping,
157157 21 marketing, and investment management related to the Student
158158 22 Investment Account. The State Treasurer may pay eligible
159159 23 lenders, income share agreement providers, financial
160160 24 institutions, institutions of higher education, individuals,
161161 25 corporations, qualified income share agreement or loan
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172172 1 origination and servicing organizations, governmental
173173 2 entities, and any agencies or instrumentalities of the United
174174 3 States an administrative fee in connection with services
175175 4 provided pursuant to the Student Investment Account in such
176176 5 amounts, at such times, and in such manner as may be prescribed
177177 6 by the State Treasurer.
178178 7 (Source: P.A. 101-586, eff. 8-26-19.)
179179 8 (110 ILCS 991/40)
180180 9 Sec. 40. Insurance. The State Treasurer or his or her
181181 10 designee may charge and collect premiums for insurance on
182182 11 income share agreements or education loans or refinance loans
183183 12 and other related charges and pay such insurance premiums or a
184184 13 portion thereof and other charges as are prudent.
185185 14 (Source: P.A. 101-586, eff. 8-26-19.)
186186 15 (110 ILCS 991/45)
187187 16 Sec. 45. Wage deductions. The State Treasurer may deduct
188188 17 from the salary, wages, commissions, and bonuses of any
189189 18 employee in this State and, to the extent permitted by the laws
190190 19 of the United States and individual states in which an
191191 20 employee might reside, any employee outside the State of
192192 21 Illinois by serving a notice of administrative wage
193193 22 garnishment on an employer, in accordance with rules adopted
194194 23 by the State Treasurer, for the recovery of an education loan
195195 24 or refinance loan debt or income share agreement owned or
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206206 1 serviced by the State Treasurer. Levy must not be made until
207207 2 the State Treasurer has caused a demand to be made on the
208208 3 employee, in a manner consistent with rules adopted by the
209209 4 State Treasurer, such that the employee is provided an
210210 5 opportunity to contest the existence or amount of the income
211211 6 share agreement or education loan or refinance loan
212212 7 obligation.
213213 8 (Source: P.A. 101-586, eff. 8-26-19.)
214214 9 (110 ILCS 991/65)
215215 10 Sec. 65. Student Investment Account Assistance Fund. The
216216 11 Student Investment Account Assistance Fund may be created as a
217217 12 non-appropriated separate and apart trust fund in the State
218218 13 Treasury. Moneys in the Student Investment Account Assistance
219219 14 Fund may be used by the State Treasurer to provide assistance
220220 15 to qualifying borrowers or income share agreement
221221 16 participants. The State Treasurer may deposit a portion of the
222222 17 earnings of the investments in the Student Investment Account
223223 18 and a portion of any administrative fees, and the proceeds
224224 19 thereof, collected pursuant to Section 35 into the Student
225225 20 Investment Account Assistance Fund.
226226 21 (Source: P.A. 101-586, eff. 8-26-19.)
227227 SB0169- 7 -LRB104 07066 LNS 17103 b 1 INDEX 2 Statutes amended in order of appearance SB0169- 7 -LRB104 07066 LNS 17103 b SB0169 - 7 - LRB104 07066 LNS 17103 b 1 INDEX 2 Statutes amended in order of appearance
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230230 1 INDEX
231231 2 Statutes amended in order of appearance
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243243 1 INDEX
244244 2 Statutes amended in order of appearance
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