IL HB4397

Amends the Student Loan Servicing Rights Act to define "federal loan borrower eligible for referral to a repayment specialist" with seven qualifying characteristics, including requesting payment reduction options, experiencing financial hardship, missing payments, or failing to complete a course of study.

Defines "private loan borrower eligible for referral to a repayment specialist" as a borrower requesting payment reduction options or experiencing financial hardship or difficulty making payments.

Adds law firms and licensed attorneys collecting post-default debt to the list of entities exempt from student loan servicer licensing requirements.

Increases the threshold for exemption from licensure for state institutions and nonprofit organizations servicing student loans from fewer than 20,000 accounts to those servicing fewer than 20,000 student loan accounts of Illinois borrowers.

Takes effect December 31, 2018.