1. State of Illinois department of financial and professional regulation

2. Higher Education Student Loan Servicing Rights Act
110 ILCS 992
Senate Bill 1351 / Public Act
Became effective December 31, 2018
ctID=3830&ChapterID=18

3. 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

4. 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

5. 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

6. 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

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

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

9. 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.

10. Contact Information
Brad Fletcher
State of Illinois Department of Financial and Professional Regulation
Student Loan Services Manager
Phone # (217)