Illinois Student Loan Bill of Rights Becomes Law

Yesterday, the Illinois House of Representatives voted 98-16 to override Governor Bruce Rauner's veto of the Illinois Student Loan Bill of Rights. The IL student loan bill provides for the licensing of student loan servicers and imposes numerous, detailed requirements concerning the servicing of student loans. Among other things, the bill sets forth certain information that must be provided to borrowers, some of which must be provided through a trained repayment specialist. Non-exempt servicers have until December, 2018 to become compliant. Illinois is the 4th jurisdiction to create such a law, following Connecticut, California and the District of Columbia.

SB 1351 previously passed both chambers, but the Governor vetoed the bill. Governor Rauner described the intent of the bill as laudable, but claimed that the bill encroached on the federal government's responsibilities and would make an already complex student loan process more confusing. In the first week of IL's veto legislative session, the IL Senate voted to send the bill back to the House. The bill needed 71 votes, a supermajority, to override the veto in the House. By the numbers, the override overwhelmingly passed, drawing wide support from Republicans and Democrats alike.

California and Washington, D.C. are currently undergoing rulemaking with respect to their respective statutes, which impose similar (though not the same) requirements as Illinois. Details concerning many of the requirements in the soon-to-be Illinois law can be found in Hinshaw's 50 State Guide on Student Loan Servicing Laws & Legislation.