Illinois SB1537 establishes rules for educational income share agreements, including payment limits, income thresholds, and consumer protections.
Illinois SB1537 introduces an Article on educational income share agreements (EISA) within the Student Loan Servicing Rights Act. It mandates that EISAs specify the income definition, payment calculation method, and maximum number of payments. EISAs must not require payments exceeding 8% of the consumer's income and must not commit consumers to paying more than 15% of their income at any time. The bill also sets a maximum effective annual percentage rate for EISAs and prohibits EISA providers from accelerating payments or taking security interests.
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- Core Provisions
- Implementation
- Impact
- Legal Framework
- Critical Issues
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