SB 856 — EDUCATION-TECH

*LRB09505592NHT25682b* SB0856 95THEngrossed GENERALLRB095 ASSEMBLY05592 StateNHT of25682 Illinoisb andAN 2008ACT SB0856concerning Introducededucation. 2/8/2007, by Sen.

Edward D.

Maloney - Emil Jones, Jr.

SYNOPSIS AS INTRODUCED:

ILCS 947/35 Amends the Higher Education Student Assistance Act.

Makes a technical change in a Section concerning the Monetary Award Program.

LRB095 05592 NHT 25682 b A BILL FOR SB0856 LRB095 05592 NHT 25682 b AN ACT concerning education.

The HigherState EducationFinance Student Assistance Act is amended by changingadding Section 355.675 as follows:

(110(30 ILCS 947/35)105/5.675 new) Sec.

35.5.675.

MonetaryThe awardHigher program.Education Revolving Loan Fund.

(a)Section The10. Commission shall, each year, receive and and consider applications for grant assistance under this Section.

SubjectThe toHigher aEducation separateStudent appropriationAssistance forAct such purposes, an applicant is eligibleamended forby aadding grant under this Section when65.85 theas Commissionfollows: finds that the applicant:

(1)(110 isILCS a947/65.85 residentnew) ofSec. this State and a citizen or permanent resident of the United States;

and65.85. (2) in the absence of grant assistance, will be deterred by financial considerations from completing an educational program at the qualified institution of his or her choice.

(b)Higher Theeducation Commissionrevolving shallloans. award renewals only upon the student’s application and upon the Commission’s finding that the applicant:

(1)(a) hasIn remainedthis Section, "eligible student" means a student inenrolled goodat standing;the undergraduate level at an institution of higher learning who (i) if the student has not yet completed one term at an institution of higher learning, had a 3.0 cumulative grade point average or its equivalent after graduating from an approved high school;

(2)(ii) remainsif athe residentstudent has completed at least one term at an institution of thishigher State;learning, has a 3.0 post-secondary cumulative grade point average or its equivalent;

and(iii) SB0856is -a 2resident -of LRB095this 05592State NHTand 25682 b (3) is in a financialcitizen situationor thatpermanent continuesresident toof warrantthe assistance.United States;

(c)and All(iv) grantsis shallfrom bea applicableSB0856 onlyEngrossed - 2 - LRB095 05592 NHT 25682 b family that has an adjusted gross income not to tuitionexceed and250% necessaryof feethe costs.federal poverty guidelines as published in the Federal Register by the U.S.

TheDepartment Commission shall determine the grant amount for each student, which shall not exceed the smallest of theHealth followingand amounts:Human Services.

(1)(b) $4,968,The orCommission suchshall, lessersubject amountto appropriation, implement and administer a higher education revolving loan program to provide loans to eligible students, as defined in this Act and as determined by the CommissionCommission, findsfor tothe becosts available,of duringattending an academicinstitution year;of higher learning in this State.

orThese (2)loans themust amountbe whichoffered equalsat 2a semesterslow orinterest 3rate quartersto tuitionbe anddetermined otherby necessarythe feesCommission, requiredtaking generallyinto byaccount thein institutionits ofdeliberations allboth full-timeprogram undergraduatesustainability students;and affordability for loan recipients.

or(c) (3)An suchindividual amountmay asnot thereceive Commissionloans findsunder tothis beSection appropriate in viewexcess of $5,000 or the applicant’sstudent’s financialtuition resources.and mandatory fees, whichever is less, per academic year.

"TuitionLoan andfunds othermust necessarybe fees"paid asdirectly usedto in this Section include the customaryinstitution charge for instruction and use of facilitieshigher inlearning. general, and the additional fixed fees charged for specified purposes, which are required generally of nongrant recipients for each academic period for which the grant applicant actually enrolls, but do not include fees payable only once or breakage fees and other contingent deposits which are refundable in whole or in part.

(d) The Commissionrepayment mayperiod prescribe,for bya ruleloan notmade inconsistentunder with this Section,Section detailedmay provisionsnot concerningexceed the15 computationyears. of tuition and other necessary fees.

(d)A Noperson applicant,who includingreceives thosea presentlyloan receiving SB0856 - 3 - LRB095 05592 NHT 25682 b scholarship assistance under this Act,Section isshall eligiblebegin forrepaying monetarythe awardloan programbeginning consideration6 undermonths this Act after receiving a baccalaureate degree or the equivalentperson ofno 135longer semesterattends creditan hoursinstitution of awardhigher payments.learning.

(e) The Commission,loan inrecipient determiningshall therepay numberat ofa grantsminimum to5% beof offered,the shallprincipal takeeach intoyear considerationor past experience with the rateremaining balance of grantthe fundsloan. unclaimed by recipients.

TheAdditionally, Commissionin shalleach notifymonth, applicantsthe thatloan grantrecipient assistanceshall isrepay contingenta uponminimum of $50 or the availabilityremaining balance of appropriatedthe funds.loan.

(f)All Therepayments Commissionof mayloans requestshall appropriationsbe fordeposited deposit into the MonetaryHigher AwardEducation ProgramRevolving ReserveLoan Fund.

MoniesSB0856 depositedEngrossed into- the3 Monetary- AwardLRB095 Program05592 ReserveNHT 25682 b (e) The Higher Education Revolving Loan Fund mayis becreated expendedas exclusivelya forspecial onefund purpose:in the State treasury.

toAll makemoney Monetaryin Awardthe ProgramFund grantsshall be used, subject to eligibleappropriation, students.by the Commission for making loans under this Section.

AmountsThe onFund depositshall inconsist theof Monetaryany Awardmoneys Programtransferred Reserveor Fundappropriated mayinto notthe exceedFund, 2%as ofwell theas currentall annualrepayments Stateof appropriationloans formade under the Monetaryhigher Awardeducation Program.revolving loan program.

The purpose of the Monetary Award Program Reserve Fund isshall tobe enableused for the Commissionpurposes each year to assure as many students as possible of theirthis eligibilitySection for a Monetary Award Program grant and tofor dono soother beforepurpose. commencement of the academic year.

MoneysAll depositedinterest inearned thison Reservemoneys Fundin are intended to enhance the Commission’sFund managementshall ofbe thedeposited Monetaryinto Award Program, minimizing the necessity,Fund. magnitude, and frequency of adjusting award amounts and ensuring that the annual Monetary Award Program appropriation can be fully utilized.

(g)(f) The Commission shall determineadopt theany eligibilityrules ofnecessary and SB0856 - 4 - LRB095 05592 NHT 25682 b make grants to applicantsimplement enrolledand atadminister qualified for-profit institutions in accordance with the criteria set forth in this Section.

TheSection eligibility99. of applicants enrolled at such for-profit institutions shall be limited as follows:

(1)Effective Beginningdate. with the academic year 1997, only to eligible first-time freshmen and first-time transfer students who have attained an associate degree.

(2)This BeginningAct withtakes theeffect academicJuly year1, 1998,2007. only to eligible freshmen students, transfer students who have attained an associate degree, and students who receive a grant under paragraph (1) for the academic year 1997 and whose grants are being renewed for the academic year 1998.

(3) Beginning with the academic year 1999, to all eligible students.