Bill Text: IL HB1430 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Student Investment Account Act. Allows the State Treasurer to originate, guarantee, acquire, and service refinance loans; invest in, and enter into contracts with, institutions that provide refinance loans; deposit funds with financial institutions that provide refinance loans; establish specific criteria governing the eligibility of entities to participate in the making of refinance loans; charge and collect premiums for insurance on refinance loans; and deduct from a State employee's salary, wages, commissions, and bonuses the recovery of a refinance loan debt. Removes language allowing the State Treasurer to: enter into income share agreements with participants, facilitate income share agreements between participants and eligible income share agreement providers, and perform other acts as may be necessary or desirable in connection with income share agreements; enter into contracts and guarantee agreements as necessary to operate the Student Investment Account with income share agreement providers or qualified income share agreement organizations; establish specific criteria governing the eligibility of entities to participate in the making of income share agreements; pay income share agreement providers or qualified income share agreement organizations an administrative fee in connection with services provided pursuant to the Student Investment Account; charge and collect premiums for insurance on income share agreements; and deduct from a State employee's salary, wages, commissions, and bonuses the recovery of an income share agreement. Allows (rather than requires) the State Treasurer to establish fees to cover the costs of administration, recordkeeping, marketing, and investment management related to the Student Investment Account. Removes language allowing moneys in the Student Investment Account Assistance Fund to be used to provide assistance to income share agreement participants. Makes conforming changes.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-01-16 - Filed with the Clerk by Rep. Eva-Dina Delgado [HB1430 Detail]

Download: Illinois-2025-HB1430-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1430 Introduced , by Rep. Eva-Dina Delgado SYNOPSIS AS INTRODUCED:
See Index
Amends the Student Investment Account Act. Allows the State Treasurer to originate, guarantee, acquire, and service refinance loans; invest in, and enter into contracts with, institutions that provide refinance loans; deposit funds with financial institutions that provide refinance loans; establish specific criteria governing the eligibility of entities to participate in the making of refinance loans; charge and collect premiums for insurance on refinance loans; and deduct from a State employee's salary, wages, commissions, and bonuses the recovery of a refinance loan debt. Removes language allowing the State Treasurer to: enter into income share agreements with participants, facilitate income share agreements between participants and eligible income share agreement providers, and perform other acts as may be necessary or desirable in connection with income share agreements; enter into contracts and guarantee agreements as necessary to operate the Student Investment Account with income share agreement providers or qualified income share agreement organizations; establish specific criteria governing the eligibility of entities to participate in the making of income share agreements; pay income share agreement providers or qualified income share agreement organizations an administrative fee in connection with services provided pursuant to the Student Investment Account; charge and collect premiums for insurance on income share agreements; and deduct from a State employee's salary, wages, commissions, and bonuses the recovery of an income share agreement. Allows (rather than requires) the State Treasurer to establish fees to cover the costs of administration, recordkeeping, marketing, and investment management related to the Student Investment Account. Removes language allowing moneys in the Student Investment Account Assistance Fund to be used to provide assistance to income share agreement participants. Makes conforming changes.
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A BILL FOR
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AN ACT concerning education.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Student Investment Account Act is amended
by changing Sections 5, 10, 25, 30, 35, 40, 45, and 65 as
follows:
(110 ILCS 991/5)
Sec. 5. Findings and purpose. The General Assembly finds
that it is vital for the State to combat the college-debt
crisis and increase access to post-secondary education for all
residents of this State. The purpose of this Act is to assist
qualified residents to attend and pay for post-secondary
education through a system of investment programs, which may
include income-sharing agreements, linked deposits, and
student loans, and refinance loans.
(Source: P.A. 101-586, eff. 8-26-19.)
(110 ILCS 991/10)
Sec. 10. Definitions. As used in this Act:
"Borrower" means an Illinois resident student who has
received an education loan or an Illinois resident parent who
has received or agreed to pay an education loan, subject to
approval by the State Treasurer.

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"Education loan" means a loan made to a borrower in
accordance with this Act to finance an Illinois resident
student's attendance at an institution of higher education.
"Income share agreement" means an agreement between a
participant and an eligible institution of higher education or
an income share agreement provider approved by the State
Treasurer in which the participant agrees to pay a percentage
of the participant's future earnings for a fixed period in
exchange for funds to pay for their post-secondary education.
"Income share agreement provider" means an organization
that allows income share agreement participants to fund their
education by means of an income share agreement.
"Institution of higher education" means a post-secondary
educational institution located in Illinois and approved by
the State Treasurer.
"Participant" means a resident student who enters into an
income share agreement for the purpose of funding the
participant's attendance at an institution of higher
education.
"Refinance loan" means a loan made to an Illinois resident
in accordance with this Act to refinance an existing loan used
to finance post-secondary education.
"Student Investment Account" means that portion of the
Treasurer's State Investment Portfolio described in Section
15.
(Source: P.A. 101-586, eff. 8-26-19.)

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(110 ILCS 991/25)
Sec. 25. Operation of the Student Investment Account. The
State Treasurer may: originate, guarantee, acquire, and
service education loans or refinance loans; facilitate such
arrangements between borrowers and eligible lenders; and
perform such other acts as may be necessary or desirable in
connection with the education loans or refinance loans. The
State Treasurer may receive, hold, and invest moneys paid into
the Student Investment Account and take such other actions as
are necessary to operate the Student Investment Account. The
State Treasurer may invest in, and enter into contracts with,
institutions that provide education loans or refinance loans.
The State Treasurer may also: enter into income share
agreements with participants; facilitate such arrangements
between participants and eligible income share agreement
providers; and perform such other acts as may be necessary or
desirable in connection with such income share agreements. The
State Treasurer may also deposit funds with financial
institutions that provide education loans or refinance loans.
(Source: P.A. 101-586, eff. 8-26-19.)
(110 ILCS 991/30)
Sec. 30. Administration of the Student Investment Account.
The State Treasurer may enter into such contracts and
guarantee agreements as are necessary to operate the Student

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Investment Account with eligible lenders, financial
institutions, institutions of higher education, income share
agreement providers, individuals, corporations, and qualified
income share agreement or loan origination and servicing
organizations and with any governmental entity, including the
Illinois Student Assistance Commission, and with any agency or
instrumentality of the United States. The State Treasurer is
authorized to establish specific criteria governing the
eligibility of entities to participate in its programs, the
making of income share agreements or education loans or
refinance loans, provisions for default, the establishment of
default reserve funds, the purchase of default insurance, the
provision of prudent debt service reserves, and the furnishing
by participating entities of such additional guarantees of the
income share agreements or education loans or refinance loans
as the State Treasurer shall determine.
(Source: P.A. 101-586, eff. 8-26-19.)
(110 ILCS 991/35)
Sec. 35. Fees. The State Treasurer may shall establish
fees to cover the costs of administration, recordkeeping,
marketing, and investment management related to the Student
Investment Account. The State Treasurer may pay eligible
lenders, income share agreement providers, financial
institutions, institutions of higher education, individuals,
corporations, qualified income share agreement or loan

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origination and servicing organizations, governmental
entities, and any agencies or instrumentalities of the United
States an administrative fee in connection with services
provided pursuant to the Student Investment Account in such
amounts, at such times, and in such manner as may be prescribed
by the State Treasurer.
(Source: P.A. 101-586, eff. 8-26-19.)
(110 ILCS 991/40)
Sec. 40. Insurance. The State Treasurer or his or her
designee may charge and collect premiums for insurance on
income share agreements or education loans or refinance loans
and other related charges and pay such insurance premiums or a
portion thereof and other charges as are prudent.
(Source: P.A. 101-586, eff. 8-26-19.)
(110 ILCS 991/45)
Sec. 45. Wage deductions. The State Treasurer may deduct
from the salary, wages, commissions, and bonuses of any
employee in this State and, to the extent permitted by the laws
of the United States and individual states in which an
employee might reside, any employee outside the State of
Illinois by serving a notice of administrative wage
garnishment on an employer, in accordance with rules adopted
by the State Treasurer, for the recovery of an education loan
or refinance loan debt or income share agreement owned or

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serviced by the State Treasurer. Levy must not be made until
the State Treasurer has caused a demand to be made on the
employee, in a manner consistent with rules adopted by the
State Treasurer, such that the employee is provided an
opportunity to contest the existence or amount of the income
share agreement or education loan or refinance loan
obligation.
(Source: P.A. 101-586, eff. 8-26-19.)
(110 ILCS 991/65)
Sec. 65. Student Investment Account Assistance Fund. The
Student Investment Account Assistance Fund may be created as a
non-appropriated separate and apart trust fund in the State
Treasury. Moneys in the Student Investment Account Assistance
Fund may be used by the State Treasurer to provide assistance
to qualifying borrowers or income share agreement
participants. The State Treasurer may deposit a portion of the
earnings of the investments in the Student Investment Account
and a portion of any administrative fees, and the proceeds
thereof, collected pursuant to Section 35 into the Student
Investment Account Assistance Fund.
(Source: P.A. 101-586, eff. 8-26-19.)
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INDEX
Statutes amended in order of appearance