HB 148

Abstract

Creates the Scholars of Service Act. Defines terms. Creates the public service student loan forgiveness grant program, and provides that the Illinois Student Assistance Commission must, each year, receive and consider applications for grant assistance under the program. Specifies grant eligibility requirements, including requiring an applicant to have been enrolled in the federal Public Service Loan Forgiveness Program and been denied federal student loan forgiveness. Provides that after receiving an application from an eligible applicant, the Commission must evaluate if the applicant is eligible to receive financial assistance through any loan forgiveness program of this State and, if eligible, must assist the applicant in applying for that financial assistance, to be used toward his or her federal student loan debt. Provides that after all eligible financial assistance has been awarded to the applicant, the Commission must award the applicant a grant to be used toward any remaining federal student loan debt. Provides that if the Commission finds that a student loan servicer (i) has negligently or intentionally misinformed or misrepresented certain information to an applicant and (ii) the misinformation or misrepresentation led to the applicant's denial of federal student loan forgiveness under the federal Public Service Loan Forgiveness Program, then the Commission must report this finding to the Office of the Attorney General, who may pursue legal action against the student loan servicer. Requires the Commission to adopt rules. Amends the State Finance Act to create the Scholars of Service Fund as a special fund in the State treasury.