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Illinois Student Loan Bill of Rights to Become Law

November 9, 2017
 
 

A student loan bill of rights will be going into effect in Illinois after the state’s House of Representatives voted Tuesday night to override a veto by Governor Bruce Rauner.

The Illinois Student Loan Bill of Rights, which was drafted by the state’s attorney general, is an attempt to prevent borrowers from being misled or ignored by the companies that service their loans. It will require loan servicers to properly process payments. It will also require servicers to inform borrowers that loans can be forgiven because of disabilities or problems with the college they attended, and to provide specialists who explain to borrowers all of their repayment options, like income-driven repayment plans.

Lawmakers voted 98-16 to overturn the governor’s veto. The bill will go into effect at the end of December 2018, according to the state’s attorney general, Democrat Lisa Madigan.

Madigan’s office drafted the bill after receiving complaints that loan servicers did not tell borrowers about affordable repayment plans and that they did not follow payment instructions. She has also investigated and sued student loan servicer Navient.

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