Bill Text: IL SB3397 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Higher Education Student Assistance Act. Removes a for-profit educational organization from the definition of "institution of higher learning", "qualified institution", and "institution". Provides that an applicant is eligible for a Monetary Award Program grant, including renewals of such grant, if the applicant, among other requirements, is not attending a for-profit institution of higher education. Removes a provision allowing Monetary Award Program grants to be made to applicants enrolled at qualified for-profit institutions. Makes conforming changes. Effective July 1, 2025.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-05-03 - Rule 3-9(a) / Re-referred to Assignments [SB3397 Detail]

Download: Illinois-2023-SB3397-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3397 Introduced 2/8/2024, by Sen. Celina Villanueva SYNOPSIS AS INTRODUCED:
110 ILCS 947/10
110 ILCS 947/35
Amends the Higher Education Student Assistance Act. Removes a for-profit educational organization from the definition of "institution of higher learning", "qualified institution", and "institution". Provides that an applicant is eligible for a Monetary Award Program grant, including renewals of such grant, if the applicant, among other requirements, is not attending a for-profit institution of higher education. Removes a provision allowing Monetary Award Program grants to be made to applicants enrolled at qualified for-profit institutions. Makes conforming changes. Effective July 1, 2025.
LRB103 38539 RJT 68675 b
A BILL FOR
SB3397 LRB103 38539 RJT 68675 b
AN ACT concerning education.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Higher Education Student Assistance Act is
amended by changing Sections 10 and 35 as follows:
(110 ILCS 947/10)
Sec. 10. Definitions. In this Act, and except to the
extent that any of the following words or phrases is
specifically qualified by its context:
"Commission" means the Illinois Student Assistance
Commission created by this Act.
"Enrollment" means the establishment and maintenance of an
individual's status as a student in an institution of higher
learning, regardless of the terms used at the institution to
describe that status.
"Approved high school" means any public high school
located in this State; and any high school, located in this
State or elsewhere (whether designated as a high school,
secondary school, academy, preparatory school, or otherwise)
which in the judgment of the State Superintendent of Education
provides a course of instruction at the secondary level and
maintains standards of instruction substantially equivalent to
those of the public high schools located in this State.

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"Institution of higher learning", "qualified institution",
or "institution" means an educational organization located in
this State which
(1) provides at least an organized 2 year program of
collegiate grade in the liberal arts or sciences, or both,
directly applicable toward the attainment of a
baccalaureate degree or a program in health education
directly applicable toward the attainment of a
certificate, diploma, or an associate degree;
(2) either is
(A) operated by this State, or
(B) operated publicly or privately, not for
profit, or
(C) (blank); operated for profit, provided such
for profit organization
(i) offers degree programs which have been
approved by the Board of Higher Education for a
minimum of 3 years under the Academic Degree Act,
and
(ii) enrolls a majority of its students in
such degree programs, and
(iii) maintains an accredited status with the
Commission on Institutions of Higher Education of
the North Central Association of Colleges and
Schools;
(3) in the judgment of the Commission meets standards

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substantially equivalent to those of comparable
institutions operated by this State; and
(4) if so required by the Commission, uses the State
as its primary guarantor of student loans made under the
federal Higher Education Act of 1965.
For otherwise eligible educational organizations which provide
academic programs for incarcerated students, the terms
"institution of higher learning", "qualified institutions",
and "institution" shall specifically exclude academic programs
for incarcerated students.
"Academic year" means a 12 month period of time, normally
but not exclusively, from September 1 of any year through
August 31 of the ensuing year.
"Full-time student" means any undergraduate student
enrolled in 12 or more semester or quarter hours of credit
courses in any given semester or quarter or in the equivalent
number of units of registration as determined by the
Commission.
"Part-time student" means any undergraduate student, other
than a full-time student, enrolled in 6 or more semester or
quarter hours of credit courses in any given semester or
quarter or in the equivalent number of units of registration
as determined by the Commission. Beginning with fiscal year
1999, the Commission may, on a program by program basis,
expand this definition of "part-time student" to include
students who enroll in less than 6 semester or quarter hours of

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credit courses in any given semester or quarter.
"Public university" means any public 4-year university in
this State.
"Public university campus" means any campus under the
governance or supervision of a public university.
(Source: P.A. 100-587, eff. 6-4-18; 100-1015, eff. 8-21-18.)
(110 ILCS 947/35)
Sec. 35. Monetary award program.
(a) The Commission shall, each year, receive and consider
applications for grant assistance under this Section. Subject
to a separate appropriation for such purposes, an applicant is
eligible for a grant under this Section when the Commission
finds that the applicant:
(1) is a resident of this State and a citizen or
permanent resident of the United States;
(2) is enrolled or has been accepted for enrollment in
a qualified institution for the purpose of obtaining a
degree, certificate, or other credential offered by the
institution, as applicable; and
(3) in the absence of grant assistance, will be
deterred by financial considerations from completing an
educational program at the qualified institution of his or
her choice ; and .
(4) is not attending a for-profit institution of
higher education.

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(b) The Commission shall award renewals only upon the
student's application and upon the Commission's finding that
the applicant:
(1) has remained a student in good standing;
(2) remains a resident of this State; and
(3) is in a financial situation that continues to
warrant assistance ; and .
(4) is not attending a for-profit institution of
higher education.
(c) All grants shall be applicable only to tuition and
necessary fee costs. The Commission shall determine the grant
amount for each student, which shall not exceed the smallest
of the following amounts:
(1) subject to appropriation, $5,468 for fiscal year
2009, $5,968 for fiscal year 2010, $6,468 for fiscal year
2011 and each fiscal year thereafter through fiscal year
2022, $8,508 for fiscal year 2023, and $10,896 for fiscal
year 2024 and each fiscal year thereafter, or such lesser
amount as the Commission finds to be available, during an
academic year;
(2) the amount which equals 2 semesters or 3 quarters
tuition and other necessary fees required generally by the
institution of all full-time undergraduate students; or
(3) such amount as the Commission finds to be
appropriate in view of the applicant's financial
resources.

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Subject to appropriation, the maximum grant amount for
students not subject to subdivision (1) of this subsection (c)
must be increased by the same percentage as any increase made
by law to the maximum grant amount under subdivision (1) of
this subsection (c).
"Tuition and other necessary fees" as used in this Section
include the customary charge for instruction and use of
facilities in general, and the additional fixed fees charged
for specified purposes, which are required generally of
nongrant recipients for each academic period for which the
grant applicant actually enrolls, but do not include fees
payable only once or breakage fees and other contingent
deposits which are refundable in whole or in part. The
Commission may prescribe, by rule not inconsistent with this
Section, detailed provisions concerning the computation of
tuition and other necessary fees.
(d) No applicant, including those presently receiving
scholarship assistance under this Act, is eligible for
monetary award program consideration under this Act after
receiving a baccalaureate degree or the equivalent of 135
semester credit hours of award payments.
(d-5) In this subsection (d-5), "renewing applicant" means
a student attending an institution of higher learning who
received a Monetary Award Program grant during the prior
academic year. Beginning with the processing of applications
for the 2020-2021 academic year, the Commission shall annually

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publish a priority deadline date for renewing applicants.
Subject to appropriation, a renewing applicant who files by
the published priority deadline date shall receive a grant if
he or she continues to meet the eligibility requirements under
this Section. A renewing applicant's failure to apply by the
priority deadline date established under this subsection (d-5)
shall not disqualify him or her from receiving a grant if
sufficient funding is available to provide awards after that
date.
(e) The Commission, in determining the number of grants to
be offered, shall take into consideration past experience with
the rate of grant funds unclaimed by recipients. The
Commission shall notify applicants that grant assistance is
contingent upon the availability of appropriated funds.
(e-5) The General Assembly finds and declares that it is
an important purpose of the Monetary Award Program to
facilitate access to college both for students who pursue
postsecondary education immediately following high school and
for those who pursue postsecondary education later in life,
particularly Illinoisans who are dislocated workers with
financial need and who are seeking to improve their economic
position through education. For the 2015-2016 and 2016-2017
academic years, the Commission shall give additional and
specific consideration to the needs of dislocated workers with
the intent of allowing applicants who are dislocated workers
an opportunity to secure financial assistance even if applying

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later than the general pool of applicants. The Commission's
consideration shall include, in determining the number of
grants to be offered, an estimate of the resources needed to
serve dislocated workers who apply after the Commission
initially suspends award announcements for the upcoming
regular academic year, but prior to the beginning of that
academic year. For the purposes of this subsection (e-5), a
dislocated worker is defined as in the federal Workforce
Innovation and Opportunity Act.
(f) (Blank).
(g) (Blank). The Commission shall determine the
eligibility of and make grants to applicants enrolled at
qualified for-profit institutions in accordance with the
criteria set forth in this Section. The eligibility of
applicants enrolled at such for-profit institutions shall be
limited as follows:
(1) Beginning with the academic year 1997, only to
eligible first-time freshmen and first-time transfer
students who have attained an associate degree.
(2) Beginning with the academic year 1998, only to
eligible freshmen students, transfer students who have
attained an associate degree, and students who receive a
grant under paragraph (1) for the academic year 1997 and
whose grants are being renewed for the academic year 1998.
(3) Beginning with the academic year 1999, to all
eligible students.

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(h) The Commission may award a grant to an eligible
applicant enrolled at an Illinois public institution of higher
learning in a program that will culminate in the award of an
occupational or career and technical certificate as that term
is defined in 23 Ill. Adm. Code 1501.301.
(i) The Commission may adopt rules to implement this
Section.
(Source: P.A. 102-699, eff. 4-19-22; 103-8, eff. 6-7-23.)