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Can you summarize 38 ILAC Chapter II, Part 1010?
DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION > STUDENT LOAN SERVICING RIGHTS ACT
Short Summary
The Student Loan Servicing Rights Act outlines the requirements and obligations for licensees who service student loans. Licensees are required to maintain electronic records in a commonly used format that is accessible, readable, and printable by the Director and Division staff. These records must be maintained for a minimum of 3 years after a serviced loan has been paid in full or assigned to collection, or the servicing rights have been sold, assigned, or transferred. Licensees are also required to provide borrowers with complete information about alternative repayment and loan forgiveness options, as well as the application processes and consequences of those options. The Act establishes an examination process for licensees, with periodic examinations conducted by the Director. Licensees are rated based on uniform rating factors, ranging from 1 to 5, indicating the level of compliance management and prevention of violations and consumer harm. Licensees must also have their books and accounts audited annually by a certified public accountant. The Act further requires licensees to maintain detailed account information for each borrower and cosigner, promptly and accurately credit payments, and maintain a secured-access website and toll-free telephone service for efficient communication with borrowers. Licensees must also maintain various records, including loan applications, disclosure statements, promissory notes, loan history, and statements of account. Amendments to license applications must be filed within 10 business days of any changes. The Act also establishes fees for licensees, including application fees, background investigation fees, annual renewal fees, and fees for various notices and returned payments. Examination fees are billed based on the time expended, and out-of-state travel expenses are reimbursed by the licensee. The Act does not mention any specific exemptions or penalties for non-compliance.
Whom does it apply to?
The Act applies to licensees who service student loans.
What does it govern?
The Student Loan Servicing Rights Act governs the rights and responsibilities of licensees who service student loans.
What are exemptions?
No exemptions are mentioned in the provided document content.
What are the Penalties?
No specific penalties for non-compliance or violation of the Act are mentioned in the provided document content.
Jurisdiction
Illinois