# Illinois SB1537: STUDENT LOAN SERVICING RIGHTS Illinois SB1537, STUDENT LOAN SERVICING RIGHTS, is a 104th General Assembly (2025–2026) Senate bill sponsored by Elgie R. Sims, Jr. (Democratic); status signed, last action 2025-08-15 (Public Act . . . . . . . . . 104-0383); PRIA reads it as touching household money (as of 2026-11-01). - Canonical: https://policyrisk.com/state-bill/IL-SB1537-2025-2026 - As of: 2026-11-01 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Illinois SB1537 - State: Illinois - Session: 104th General Assembly (2025–2026) - Title: STUDENT LOAN SERVICING RIGHTS - Status: signed - Chamber: Senate - Introduced: 2025-02-04 - Last action: 2025-08-15, Public Act . . . . . . . . . 104-0383 - Sponsor: Elgie R. Sims, Jr. (Democratic) - Cosponsors: 6 - Subjects: assignments, executive, financial institutions and licensing - Touches household money: yes - Roll calls: 5 (204 yes, 0 no in all) - Economic provisions PRIA read: 13 ## Summary Amends the Student Loan Servicing Rights Act. Creates within the Act an Article concerning educational income share agreements. Contains provisions concerning: monthly payment affordability; maximum annual percentage rates; limits on the duration of income share agreements; risk sharing; limits on covered income; fees; restrictions on security interests; discharge of obligations; prohibitions on cosigners; limits on acceleration; assignment of wages; limitations on garnishment; use of multiple agreements; required disclosures; early completion of the agreement; assumption of increases in future income; receipts; and adjustment of dollar amounts. Provides that the Attorney General may enforce a violation of the Educational Income Share Agreements Article of the Student Loan Servicing Rights Act as an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. Makes other changes. Amends the Consumer Installment Loan Act and the Interest Act to make conforming changes. Provides that the provisions of the amendatory Act are severable. Effective immediately. ## Bill overview: provisions PRIA read - Death or disability ends education agreements: benefit, high. Your education income-share obligations end if the applicable government agency finds you totally and permanently disabled. They also end when you die. Your estate does not remain responsible for those obligations. - Education financing customers gain collection protections: benefit, medium. Education income-share providers cannot take collateral or require or accept cosigners. They cannot demand future payments early, but can collect overdue amounts and use projected income when required records are missing. Any optional early-termination method must remain under your control. Provide… - State oversight expands for education financing: benefit, medium. Covered education income-share providers fall within Illinois student loan servicing rules. Agreements and providers must also follow applicable private education loan, predatory lending, and Department rules. These cross-references alone do not change the agreement's credit status or when it creat… - Family income and benefits stay protected: benefit, medium. Education income-share agreements must explain which income counts toward payments. Providers cannot count income belonging to your spouse, civil-union partner, child, or dependent. They also cannot count Social Security, IRA distributions, pensions, annuities, or income excluded from federal taxab… - Lower earners get zero-payment income protection: benefit, medium. Your education income-share payment is $0 when your income is at or below the agreement's threshold. That threshold must be at least $47,000. Beginning January 1, 2026, the minimum rises every other January 1 when the specified annual inflation increase is positive. You can request a higher thresho… - Payment limits protect education financing customers: benefit, medium. An educational income share agreement funds education or training in return for payments tied to income. Each required payment cannot exceed 8% of your income for that payment period. Providers cannot sign agreements when projected payments, including other known education loans and income-share ag… - Rate caps protect education financing customers: benefit, medium. Education income-share agreements face an effective annual percentage rate cap: the higher of 9% or the specified Treasury yield plus 6 percentage points. Providers must refund any payment amount above this cap within 20 calendar days. A separate pricing limit applies when income stays at or below… - Students gain payment pauses and exit options: benefit, medium. Education income-share agreements cannot require more than 180 monthly payments or run beyond 240 counted months. They must offer at least 3 months of voluntary payment pauses for every 30 required income-based payments. Requested and granted pause months do not count toward the 240-month limit. Yo… - Students get clearer financing and refinancing notices: benefit, low. At signing, education income-share providers must give clear, separately grouped disclosures you can keep. They must explain funding, payment calculations, income thresholds, fees, verification, payment schedules, maximum payments and duration, provider contact, and bankruptcy treatment. Tables mus… - Students get payment and payoff records: benefit, low. Education income-share providers must send a written receipt for every payment without waiting for a request. You can request a free payment history, due within 21 calendar days. Providers must advertise payoff-statement requests on their websites and supply the statement within 10 days after a req… - Licensed education providers receive loan-law exemption: cost, low. Licensed education income-share providers are exempt from the Consumer Installment Loan Act for operations covered by the new income-share rules. The exemption does not extend to their unrelated operations. It removes that law's requirements from covered operations without directly changing your pa… - Education financing fees allowed but capped: mixed, low. Education income-share providers may charge up to $25 when required income documents remain missing 30 days after the written-notice due date. A late fee is capped at the lesser of $15 or 5%, once per payment more than 15 days overdue. Returned checks or drafts can cost up to $25 plus actual expens… - Missing income records trigger limited estimates: mixed, low. If required income records are missing, education income-share providers can estimate income using a method disclosed in the agreement. Allowed sources include reliable outside data, credit reports, tax-agency records, and reasonable estimates based on comparable program attendees. A prior-income e… ## Sponsors and cosponsors - Sponsor: Elgie R. Sims, Jr. (Democratic), Senate - Cosponsor: Bill Cunningham (Democratic), Senate - Cosponsor: Katie Stuart (Democratic), House - Cosponsor: Kevin Schmidt (Republican), House - Cosponsor: Kimberly A. Lightford (Democratic), Senate - Cosponsor: Mattie Hunter (Democratic), Senate - Cosponsor: Maurice A. West, II (Democratic), House ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2025-05-22 | House | Third Reading - Short Debate - Passed | pass | 114 | 0 | | | 2025-04-29 | House | Do Pass / Short Debate Financial Institutions and Licensing Committee; | pass | 12 | 0 | | | 2025-04-09 | Senate | Third Reading - Passed; | pass | 55 | 0 | | | 2025-04-03 | Senate | Senate Floor Amendment No. 2 Recommend Do Adopt Executive; | pass | 12 | 0 | | | 2025-03-19 | Senate | Do Pass as Amended Executive; | pass | 11 | 0 | | ## Actions (40) - 2025-08-15: Public Act . . . . . . . . . 104-0383 (Senate) - 2025-08-15: Effective Date August 15, 2025 (Senate) - 2025-08-15: Governor Approved (Senate) - 2025-06-20: Sent to the Governor (Senate) - 2025-05-22: Passed Both Houses (Senate) - 2025-05-22: Third Reading - Short Debate - Passed 114-000-000 (House) - 2025-05-22: Added Alternate Co-Sponsor Rep. Kevin Schmidt (House) - 2025-05-16: Placed on Calendar Order of 3rd Reading - Short Debate (House) - 2025-05-16: Second Reading - Short Debate (House) - 2025-04-30: Placed on Calendar 2nd Reading - Short Debate (House) - 2025-04-29: Do Pass / Short Debate Financial Institutions and Licensing Committee; 012-000-000 (House) - 2025-04-17: Assigned to Financial Institutions and Licensing Committee (House) - 2025-04-17: Added Alternate Co-Sponsor Rep. Katie Stuart (House) - 2025-04-09: Referred to Rules Committee (House) - 2025-04-09: First Reading (House) - 2025-04-09: Added as Co-Sponsor Sen. Kimberly A. Lightford (Senate) - 2025-04-09: Chief House Sponsor Rep. Maurice A. West, II (House) - 2025-04-09: Arrived in House (House) - 2025-04-09: Third Reading - Passed; 055-000-000 (Senate) - 2025-04-04: Placed on Calendar Order of 3rd Reading (Senate) - 2025-04-04: Senate Floor Amendment No. 2 Adopted; Sims (Senate) - 2025-04-04: Recalled to Second Reading (Senate) - 2025-04-03: Senate Floor Amendment No. 2 Recommend Do Adopt Executive; 012-000-000 (Senate) - 2025-04-02: Senate Floor Amendment No. 2 Assignments Refers to Executive (Senate) - 2025-04-01: Senate Floor Amendment No. 2 Referred to Assignments (Senate) - 2025-04-01: Senate Floor Amendment No. 2 Filed with Secretary by Sen. Elgie R. Sims, Jr. (Senate) - 2025-03-20: Placed on Calendar Order of 3rd Reading April 1, 2025 (Senate) - 2025-03-20: Second Reading (Senate) - 2025-03-19: Placed on Calendar Order of 2nd Reading March 20, 2025 (Senate) - 2025-03-19: Do Pass as Amended Executive; 011-000-000 (Senate) - 2025-03-19: Senate Committee Amendment No. 1 Adopted (Senate) - 2025-03-17: Added as Co-Sponsor Sen. Mattie Hunter (Senate) - 2025-03-17: Added as Co-Sponsor Sen. Bill Cunningham (Senate) - 2025-03-12: Senate Committee Amendment No. 1 Assignments Refers to Executive (Senate) - 2025-03-05: Senate Committee Amendment No. 1 Referred to Assignments (Senate) - 2025-03-05: Senate Committee Amendment No. 1 Filed with Secretary by Sen. Elgie R. Sims, Jr. (Senate) - 2025-02-18: Assigned to Executive (Senate) - 2025-02-04: Referred to Assignments (Senate) - 2025-02-04: First Reading (Senate) - 2025-02-04: Filed with Secretary by Sen. Elgie R. Sims, Jr. (Senate) ## Bill text - Engrossed: [PDF](https://www.ilga.gov/documents/legislation/104/SB/PDF/10400SB1537eng.pdf) - Enrolled: [PDF](https://www.ilga.gov/documents/legislation/104/SB/PDF/10400SB1537enr.pdf) - Introduced: [PDF](https://www.ilga.gov/documents/legislation/104/SB/PDF/10400SB1537.pdf) - Senate Amendment 1: [PDF](https://www.ilga.gov/documents/legislation/104/SB/PDF/10400SB1537sam001.pdf) - Senate Amendment 2: [PDF](https://www.ilga.gov/documents/legislation/104/SB/PDF/10400SB1537sam002.pdf) ## Related bills - HB5198: AFFORDABLE HOUSING-CILAS (passed house) - SB1937: PENSION CODE-VARIOUS (passed senate) - HB2563: CONDO-RESERVE STUDY (in committee) - HB4701: LIMITATIONS FACILITY FEES ACT (in committee) - SB3008: DHS-ABLE PROGRAM INFO MATERIAL (passed senate) - SB3484: VEH CD-PLATES-REGISTRATION (signed) ## Sources - [Engrossed (PDF)](https://www.ilga.gov/documents/legislation/104/SB/PDF/10400SB1537eng.pdf) - [Enrolled (PDF)](https://www.ilga.gov/documents/legislation/104/SB/PDF/10400SB1537enr.pdf) - [Introduced (PDF)](https://www.ilga.gov/documents/legislation/104/SB/PDF/10400SB1537.pdf) - [Senate Amendment 1 (PDF)](https://www.ilga.gov/documents/legislation/104/SB/PDF/10400SB1537sam001.pdf) - [Senate Amendment 2 (PDF)](https://www.ilga.gov/documents/legislation/104/SB/PDF/10400SB1537sam002.pdf) ## Related - [HB5198: AFFORDABLE HOUSING-CILAS](https://policyrisk.com/state-bill/IL-HB5198-2025-2026) - [SB1937: PENSION CODE-VARIOUS](https://policyrisk.com/state-bill/IL-SB1937-2025-2026) - [HB2563: CONDO-RESERVE STUDY](https://policyrisk.com/state-bill/IL-HB2563-2025-2026) - [HB4701: LIMITATIONS FACILITY FEES ACT](https://policyrisk.com/state-bill/IL-HB4701-2025-2026) - [SB3008: DHS-ABLE PROGRAM INFO MATERIAL](https://policyrisk.com/state-bill/IL-SB3008-2025-2026) - [SB3484: VEH CD-PLATES-REGISTRATION](https://policyrisk.com/state-bill/IL-SB3484-2025-2026) - [Illinois bills](https://policyrisk.com/states/illinois/bills) - [Illinois state hub](https://policyrisk.com/states/illinois) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/IL-SB1537-2025-2026 (as of 2026-11-01).