State of Illinois department of financial and professional regulation

Higher Education Student Loan Servicing Rights Act 110 ILCS 992 Senate Bill 1351 / Public Act 100-0540 Became effective December 31, 2018 http://www.ilga.gov/legislation/ilcs/ilcs5.asp?A ctID=3830&ChapterID=18

Servicing Per Illinois Act 110 ILCS 992, servicing means: Receiving any scheduled periodic payments from a student loan borrower or cosigner pursuant to the terms of a student loan Applying the payments of principal and interest and such other payments with respect to the amounts received from a student loan borrower or co-signer Performing other administrative services with respect to a student loan

Current Issues with student loans Bad Communication between borrower and servicer Struggling to repay loans Difficulty enrolling and staying in an Income-Driven Repayment Plans Public Service Forgiveness Loans Problems with Credit Reports Military Borrowers protections Payment allocation Student Loan Debt Relief Companies

Protections for Illinois borrowers Illinois’s law contains new protections for borrowers: Payment application and processing protections Repayment specialists required for at risk borrowers, including delinquent borrowers and non-completers Prohibition on presenting forbearance as sole repayment option Creation of Student Loan Ombudsman

Exempted entities Bank, savings bank, savings association, or credit union Wholly owned subsidiary of any bank, savings bank, savings association, or credit union An operating subsidiary where each owner of the operation subsidiary is wholly owned by the same bank, savings bank, etc.. Illinois Student Assistance Commission Public postsecondary education institution or private non-profit postsecondary education institution Licensed debt management service under the Debt Management Service Act Any collection agency licensed that is collecting post-default debt only Guaranty Agency engaged in default aversion State institution or non-profit private organization that services fewer than 20,000 student loan accounts of borrowers who reside in Illinois Law firm or licensed attorney that is collecting post-default debt

Costs of Illinois license Initial Application Fee -- $1,000 Initial Application Background Investigation Fee -- $800 Renewal Fees -- $1,000

Examinations Examinations start date is TBD In the process of hiring examiners Subject to examination under the Act Other investigations may arise

Complaints Complaints are received by the Illinois Attorney General’s Ombudsman office and forwarded to the Illinois Division of Financial and Professional Regulation. Consumer complaints may result in the Department conducting an investigation and/or an examination.

Contact Information Brad Fletcher State of Illinois Department of Financial and Professional Regulation Student Loan Services Manager E-Mail: Bradley.N.Fletcher@Illinois.gov Phone # (217) 524-9188