110 ILCS 992/1-5
2021 Illinois Compiled Statutes|Chapter 110 - HIGHER EDUCATION|110 ILCS 992/ - Student Loan Servicing Rights Act.|Article 1 - General Provisions

(110 ILCS 992/1-5)Sec. 1-5. Definitions. As used in this Act:"Applicant" means a person applying for a license pursuant to this Act."Borrower" or "student loan borrower" means a person who has received or agreed to pay a student loan for his or her own educational expenses."Cosigner" means a person who has agreed to share responsibility for repaying a student loan with a borrower."Department" means the Department of Financial and Professional Regulation."Division of Banking" means the Division of Banking of the Department of Financial and Professional Regulation."Federal loan borrower eligible for referral to a repayment specialist" means a borrower who possesses any of the following characteristics:(1) requests information related to options to reduce     or suspend his or her monthly payment;(2) indicates that he or she is experiencing or     anticipates experiencing financial hardship, distress, or difficulty making his or her payments;(3) has missed 2 consecutive monthly payments;(4) is at least 75 days delinquent;(5) is enrolled in a discretionary forbearance for     more than 9 of the previous 12 months;(6) has rehabilitated or consolidated one or more     loans out of default within the past 12 months; or(7) has not completed a course of study, as reflected     in the servicer's records, or the borrower identifies himself or herself as not having completed a program of study."Federal education loan" means any loan made, guaranteed, or insured under Title IV of the federal Higher Education Act of 1965."Income-driven payment plan certification" means the documentation related to a federal student loan borrower's income or financial status the borrower must submit to renew an income-driven repayment plan."Income-driven repayment options" includes the Income-Contingent Repayment Plan, the Income-Based Repayment Plan, the Income-Sensitive Repayment Plan, the Pay As You Earn Plan, the Revised Pay As You Earn Plan, and any other federal student loan repayment plan that is calculated based on a borrower's income."Licensee" means a person licensed pursuant to this Act."Other repayment plans" means the Standard Repayment Plan, the Graduated Repayment Plan, the Extended Repayment Plan, or any other federal student loan repayment plan not based on a borrower's income."Private loan borrower eligible for referral to a repayment specialist" means a borrower who possesses any of the following characteristics:(1) requests information related to options to reduce     or suspend his or her monthly payments; or(2) indicates that he or she is experiencing or     anticipates experiencing financial hardship, distress, or difficulty making his or her payments."Requester" means any borrower or cosigner that submits a request for assistance."Request for assistance" means all inquiries, complaints, account disputes, and requests for documentation a servicer receives from borrowers or cosigners."Secretary" means the Secretary of Financial and Professional Regulation, or his or her designee, including the Director of the Division of Banking of the Department of Financial and Professional Regulation."Servicing" means: (1) receiving any scheduled periodic payments from a student loan borrower or cosigner pursuant to the terms of a student loan; (2) applying the payments of principal and interest and such other payments with respect to the amounts received from a student loan borrower or cosigner, as may be required pursuant to the terms of a student loan; and (3) performing other administrative services with respect to a student loan."Student loan" or "loan" means any federal education loan or other loan primarily for use to finance a postsecondary education and costs of attendance at a postsecondary institution, including, but not limited to, tuition, fees, books and supplies, room and board, transportation, and miscellaneous personal expenses.  "Student loan" includes a loan made to refinance a student loan."Student loan" shall not include an extension of credit under an open-end consumer credit plan, a reverse mortgage transaction, a residential mortgage transaction, or any other loan that is secured by real property or a dwelling."Student loan" shall not include an extension of credit made by a postsecondary educational institution to a borrower if one of the following apply:(1) The term of the extension of credit is no longer     than the borrower's education program.(2) The remaining, unpaid principal balance of the     extension of credit is less than $1,500 at the time of the borrower's graduation or completion of the program.(3) The borrower fails to graduate or successfully     complete his or her education program and has a balance due at the time of his or her disenrollment from the postsecondary institution."Student loan servicer" or "servicer" means any person engaged in the business of servicing student loans. "Student loan servicer" or "servicer" includes persons or entities acting on behalf of the State Treasurer."Student loan servicer" shall not include:(1) a bank, savings bank, savings association, or     credit union organized under the laws of the State or any other state or under the laws of the United States;(2) a wholly owned subsidiary of any bank, savings     bank, savings association, or credit union organized under the laws of the State or any other state or under the laws of the United States;(3) an operating subsidiary where each owner of the     operating subsidiary is wholly owned by the same bank, savings bank, savings association, or credit union organized under the laws of the State or any other state or under the laws of the United States;(4) the Illinois Student Assistance Commission and     its agents when the agents are acting on the Illinois Student Assistance Commission's behalf;(5) a public postsecondary educational institution or         a private nonprofit postsecondary educational institution     servicing a student loan it extended to the borrower;(6) a licensed debt management service under the Debt         Management Service Act, except to the extent that the     organization acts as a subcontractor, affiliate, or     service provider for an entity that is otherwise subject to    licensure under this Act;(7) any collection agency licensed under the         Collection Agency Act that is collecting post-default debt;(8)  in connection with its responsibilities as a     guaranty agency engaged in default aversion, a State or nonprofit private institution or organization having an agreement with the U.S. Secretary of Education under Section 428(b) of the Higher Education Act (20 U.S.C. 1078(B));(9)  a State institution or a nonprofit private     organization designated by a governmental entity to make or service student loans, provided in each case that the institution or organization services fewer than 20,000 student loan accounts of borrowers who reside in Illinois;(10) a law firm or licensed attorney that is     collecting post-default debt; or(11)       the State Treasurer. (Source: P.A. 100-540, eff. 12-31-18; 100-635, eff. 12-31-18; 101-586, eff. 8-26-19.)