Skip to Content JB Pritzker, Governor, State of Illinois

Education Loan Information Pilot Program

01/25/2019

Attention Public Universities and Public Community Colleges

Overview

Effective January 1, 2019, legislation from the Illinois General Assembly (SB 2559) was signed into law as Public Act 100-0926, creating a three-year pilot program aimed at increasing awareness of student debt levels. The Education Loan Information Pilot Program requires public universities and public community colleges to provide students enrolled at their institution, or the students’ parents or guardians, with information about outstanding education loans each year. For purposes of this requirement, “education loans” means any state or federal education loan or other loan that is used primarily to finance a postsecondary education and cost of attendance.

As copied from the law, the information provided is to include:

  • an estimate of the total amount of education loans taken out by the student or the parent or guardian;
  • an estimate of the potential payoff amount of the incurred education loans or a range of the total payoff amount and monthly repayment amounts that a similarly situated student may incur for the amount of loans the student or the parent or guardian has taken out at the time the information is provided, including principal and interest amounts;
  • the percentage of the borrowing limit the student or the parent or guardian has reached at the time the information is provided; and
  • any financial resources available to the student or the parent or guardian.

The legislation also specifies that the notification requirements begin with the 2019-20 academic year. In adhering to this timeline, institutions may determine a schedule that could result in initial notifications occurring as late as the end of that academic year (i.e., May or June of 2020). Notifications must continue each year until the pilot program expires on June 1, 2023, unless it is extended.

ISAC’s Role

As we work to implement the program, we have defined our role in these areas:

  • to provide general guidance to assist institutions in putting the program in place, including a future FAQ document
  • development of administrative rules
  • oversight to ensure compliance
  • development of a template for institutions’ use (expected to be available later this spring)

ISAC does not plan to develop an electronic tool or system component for institutions’ use in fulfilling the requirements. However, we are aware of an available resource through the College Cost Meter from Attigo/Ascendium Education Group (formerly Great Lakes). It is our understanding that many Illinois colleges have been invited to a February 5, 2019 webinar – College Cost Meter®: Introducing a Student Debt Letter for Illinois Schools – which will overview their tool that produces correspondence to meet the requirements. Information and registration are available at the provided link.

It should be noted that ISAC is not endorsing or recommending any available tool or product, rather making you aware of options you may consider to meet your requirements for providing education loan information.

Looking Ahead

During the month of February, we will publish proposed rules amendments for the pilot program, incorporating the notification requirements into the General Provisions (Part 2700) of the agency administrative rules. Publication of the proposed rules amendments will initiate a 45-day public comment period; we will inform you when publication takes place.

As part of the oversight of the program, we are discussing the framework by which future data reporting requirements will be established and implemented, and anticipate making that information available to you at a later date.

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