Chris Welch Co-Sponsored (Introduced) this Legislation.
Title: Amends Student Loan Company Laws
NOTE: A THREE- FIFTHS MAJORITY OF THE ELECTED MEMBERS IS REQUIRED TO OVERRIDE A GOVERNOR'S VETO.
Title: Amends Student Loan Company Laws
NOTE: A THREE- FIFTHS MAJORITY OF THE ELECTED MEMBERS IS REQUIRED TO OVERRIDE A GOVERNOR'S VETO.
Title: Amends Student Loan Company Laws
Title: Establishes Laws Governing Student Loan Servicers
Vote to pass a bill that establishes various laws governing student loan servicers, effective December 31, 2018.
Prohibits the omission or misrepresentation of any information regarding a loan to a borrower or cosigner, or any other unfair or deceptive practices, by a student loan servicer (Sec. 5-5).
Prohibits a student loan servicer from misrepresenting a delinquent amount in any communication with a borrower or cosigner (Sec. 5-10).
Requires a student loan servicer to allow a borrower or cosigner to specify the manner in which overpayment is applied to the balance of a loan (Sec. 5-10).
Prohibits a student loan servicer from charging late fees beyond those reasonable and proportional to the cost incurred by a late payment (Sec. 5-15).
Requires a student loan servicer to designate personnel as repayment specialists and to route all communications from borrowers who are eligible for referral to repayment specialists to a repayment specialist (Sec. 5-30).
Requires a repayment specialist, in each communication with a federal loan borrower, to inform the borrower of the various options available for federal student debt relief (Sec. 5-30).
Prohibits a student loan servicer from presenting forbearance as the first or sole option for repayment to a borrower struggling with their current repayment plan (Sec. 5-30).
Requires a student loan servicer who is aware that a borrower is eligible for a defense to repayment claim or permanent disability discharge to disclose such information to the borrower along with information regarding the Department of Education’s procedures for asserting such a claim (Sec. 5-35).
Requires a student loan servicer to disclose to a borrower the date on which such borrower’s income-driven payment plan will expire, the consequences for failing to recertify, and the new repayment amount should such borrower fail to recertify (Sec. 5-40).
Establishes guidelines for the presentation and disclosure of private repayment plans available to borrowers, given that a student loan servicer offers such plans (Sec. 5-45).
Establishes various guidelines and requirements for the transfer of loan servicing from one servicer to another, including how and when information must be provided to borrowers and cosigners (Sec. 5-60).
Requires a student loan servicer to implement rules and procedures for receiving and processing requests for assistance with repayment in a timely manner (Sec. 5-65).
Establishes certain requirements for how a student loan servicer must handle account disputes with borrowers (Sec. 5-65).
Establishes the office of the Student Loan Ombudsman, and the responsibilities and duties therein (Article 10).
Requires that student loan servicers operating in the state of Illinois be licensed with the Department of Financial and Professional Regulation and establishes various rules and procedures for how a servicer may be licensed and how a license may be suspended or revoked (Article 15).
Specifies the various duties and powers of the Secretary of Financial and Professional Regulation in regards to supervising licensed student loan servicers in the state (Article 20).
Specifies that violations of this act are enforceable under the Consumer Fraud and Deceptive Business Practices Act (Article 25).
Title: Establishes Laws Governing Student Loan Servicers
Vote to pass a bill that establishes various laws governing student loan servicers, effective December 31, 2018.
Prohibits the omission or misrepresentation of any information regarding a loan to a borrower or cosigner, or any other unfair or deceptive practices, by a student loan servicer (Sec. 5-5).
Prohibits a student loan servicer from misrepresenting a delinquent amount in any communication with a borrower or cosigner (Sec. 5-10).
Requires a student loan servicer to allow a borrower or cosigner to specify the manner in which overpayment is applied to the balance of a loan (Sec. 5-10).
Prohibits a student loan servicer from charging late fees beyond those reasonable and proportional to the cost incurred by a late payment (Sec. 5-15).
Requires a student loan servicer to designate personnel as repayment specialists and to route all communications from borrowers who are eligible for referral to repayment specialists to a repayment specialist (Sec. 5-30).
Requires a repayment specialist, in each communication with a federal loan borrower, to inform the borrower of the various options available for federal student debt relief (Sec. 5-30).
Prohibits a student loan servicer from presenting forbearance as the first or sole option for repayment to a borrower struggling with their current repayment plan (Sec. 5-30).
Requires a student loan servicer who is aware that a borrower is eligible for a defense to repayment claim or permanent disability discharge to disclose such information to the borrower along with information regarding the Department of Education’s procedures for asserting such a claim (Sec. 5-35).
Requires a student loan servicer to disclose to a borrower the date on which such borrower’s income-driven payment plan will expire, the consequences for failing to recertify, and the new repayment amount should such borrower fail to recertify (Sec. 5-40).
Establishes guidelines for the presentation and disclosure of private repayment plans available to borrowers, given that a student loan servicer offers such plans (Sec. 5-45).
Establishes various guidelines and requirements for the transfer of loan servicing from one servicer to another, including how and when information must be provided to borrowers and cosigners (Sec. 5-60).
Requires a student loan servicer to implement rules and procedures for receiving and processing requests for assistance with repayment in a timely manner (Sec. 5-65).
Establishes certain requirements for how a student loan servicer must handle account disputes with borrowers (Sec. 5-65).
Establishes the office of the Student Loan Ombudsman, and the responsibilities and duties therein (Article 10).
Requires that student loan servicers operating in the state of Illinois be licensed with the Department of Financial and Professional Regulation and establishes various rules and procedures for how a servicer may be licensed and how a license may be suspended or revoked (Article 15).
Specifies the various duties and powers of the Secretary of Financial and Professional Regulation in regards to supervising licensed student loan servicers in the state (Article 20).
Specifies that violations of this act are enforceable under the Consumer Fraud and Deceptive Business Practices Act (Article 25).
Title: Establishes Laws Governing Student Loan Servicers