IL SB3242

Creates the Higher Education Revolving Loan Fund as a special fund in the State treasury to support a new loan program administered by the Illinois Student Assistance Commission.

Establishes a higher education revolving loan program providing loans to undergraduate students with a 3.0 grade point average or equivalent who are Illinois residents, limited to $5,000 or tuition and mandatory fees per academic year, whichever is less.

Requires loans to be offered at low interest rates determined by the Commission, with funds paid directly to institutions of higher learning and a maximum repayment period of 15 years.

Mandates loan repayment begin 6 months after the student stops attending college, with minimum payments of 5% of principal annually and $50 per month.

Designates all loan repayments and interest earnings to be deposited back into the Higher Education Revolving Loan Fund for use in making additional loans under the program.