Student Debt Assistance Act

HIGHER EDUCATION
(110 ILCS 66/) Student Debt Assistance Act.

(110 ILCS 66/1)
Sec. 1. Short title. This Act may be cited as the Student Debt Assistance Act.
(Source: P.A. 102-998, eff. 5-27-22.)

(110 ILCS 66/5)
Sec. 5. Definitions. In this Act:
"Debt" means any money, obligation, claim, or sum due or owing or alleged to be due or owing from a student to an institution of higher education. "Debt" does not include the fee, if any, that is charged to students by an applicable provider for the actual cost of providing an academic transcript to a student.
"Institution of higher education" includes, but is not limited to, an institution to which the Private Business and Vocational Schools Act of 2012 or the Private College Act applies and a public institution of higher education included in the definition of "public institutions of higher education" under the Board of Higher Education Act. "Institution of higher education" also includes a person engaged in the business of providing postsecondary education, via correspondence or online or in this State, to an individual located in this State, regardless of whether the person has obtained authorization from the Board of Higher Education to operate in this State or is accredited.
"Official transcript" means the academic transcript or a similar academic record of each current or former student of an institution of higher education that is deemed official, authenticated, certified, or bona fide and that contains information customarily provided on an official academic transcript, including, but not limited to, courses taken, terms, grades, degrees or credentials conferred, and any other similar information.
"Unofficial transcript" means the academic transcript or a similar academic record of each current or former student of an institution of higher education that contains information customarily provided on an official transcript, but cannot be used to transfer academic credits to another institution of higher education.
(Source: P.A. 102-998, eff. 5-27-22.)

(110 ILCS 66/10)
Sec. 10. Withholding of unofficial transcripts prohibited. An institution of higher education may not do any of the following:
(1) Refuse to provide an unofficial transcript to a

current or former student on the grounds that the student owes a debt.

(2) Condition the provision of an unofficial

transcript on the payment of a debt, other than a fee charged to provide the transcript.

(3) Charge a higher fee for obtaining an unofficial

transcript or provide less favorable treatment of a request for an unofficial transcript because a current or former student owes a debt.

(Source: P.A. 102-998, eff. 5-27-22.)

(110 ILCS 66/15)
Sec. 15. Withholding of official transcripts.
(a) An institution of higher education:
(1) must provide an official transcript of a current

or former student even if the current or former student owes a debt if the student requests the official transcript to:

(A) complete a job application;
(B) transfer from one institution of higher

education to another;

financial aid;

(D) join the United States Armed Forces or

Illinois National Guard; or

(E) pursue other postsecondary opportunities;
(2) may not condition the provision of an official

transcript to a current or potential employer on the payment of a debt, other than a fee charged to provide the transcript; and

(3) may not charge a higher fee for providing an

official transcript or provide less favorable treatment for such a request because a current or former student owes a debt.

(b) Nothing in this Section prohibits an institution of higher education from adopting a more lenient policy on providing an official transcript to a current or former student who owes a debt.
(Source: P.A. 102-998, eff. 5-27-22; 103-54, eff. 6-9-23.)

(110 ILCS 66/20)
Sec. 20. Physical or financial hardship policy.
(a) Beginning with the 2022-2023 school year, every institution of higher education must have a policy instituting a financial or physical hardship withdrawal process. The process must work to limit debt owed by students who have to withdraw from the institution due to a significant financial or physical hardship and to assist those students if and when they choose to re-enroll. Types of hardship shall include, but are not limited to:
(1) serious injury or illness;
(2) chronic illness;
(3) a medical issue of a family member in which the

student has to become a part-time or full-time caretaker of that family member;

(4) a mental health condition;
(5) a sudden or consistent lack of transportation

issue; and

(6) a significant cost of living increase.
(b) Information regarding the existence of the financial or physical hardship withdrawal process shall be publicized on the institution of higher education's website, and information must be given to students as part of any school orientation process.
(Source: P.A. 102-998, eff. 5-27-22.)

(110 ILCS 66/25)
Sec. 25. Student debt and credit report. If an institution of higher education chooses to send a current or former student's past due debt to a debt collection agency, the past due debt may not be reported to any credit reporting agencies, except as provided by federal law.
(Source: P.A. 102-998, eff. 5-27-22.)

(110 ILCS 66/30)
Sec. 30. Past-due debt policy.
(a) Beginning with the 2023-2024 academic year, each institution of higher education shall adopt a policy that outlines the process by which a current or former student may obtain a transcript or diploma that has been withheld from the student because the student owes a debt. At a minimum, the policy must include:
(1) a reasonable process for the verification of

conditions a current or former student may demonstrate to receive an exemption pursuant to Section 15 of this Act; and

(2) identification of the point at which a student

may be subject to a transcript, diploma, or registration hold, including the time frames and amounts for which the holds are to be used and the lowest amount of debt at which the institution will assign debt to a third-party collection agency.

(b) The institution of higher education shall post the policy described in subsection (a) of this Section and the procedures for filing a complaint with the Attorney General's student loan ombudsperson and an administrator of the institution of higher education on the institution of higher education's website and shall provide the policy and the procedures to students as part of the information the institution of higher education shares relating to the cost of attendance that includes any additional fees, financial aid, scholarships, or other information.
(c) The institution of higher education does not need to institute a new policy under this amendatory Act of the 103rd General Assembly if the institution's current policy meets the minimum requirements of this Section.
(Source: P.A. 103-54, eff. 6-9-23.)

(110 ILCS 66/35)
Sec. 35. Reporting. On or before July 1, 2024 and on or before each July 1 thereafter, each institution of higher education shall report to either the Board of Higher Education or the Illinois Community College Board, whichever is appropriate, information regarding financial-based transcript and registration holds, which must include:
(1) reporting the institution of higher education's

policy developed pursuant to Section 30 of this Act; and

(2) reporting the number of students for whom the

institution of higher education has withheld official transcripts, diplomas, or registration privileges, using data from the previous academic year.

(Source: P.A. 103-54, eff. 6-9-23.)

(110 ILCS 66/99)
Sec. 99. Effective date. This Act takes effect upon becoming law.
(Source: P.A. 102-998, eff. 5-27-22.)