SB3844 Summary: Know Before You Owe Private Education Loan Act

• Private educational lenders must obtain certification from institutions of higher education before disbursing funds, including the borrower's enrollment status, cost of attendance, and the difference between cost of attendance and estimated financial assistance.

• Lenders may disburse funds without certification if the institution fails to respond within 15 business days or notifies the lender it needs additional time or refuses to certify.

• Private educational lenders must send loan statements to borrowers at least quarterly while enrolled, showing total remaining debt, debt increases since last statement, and current interest rates for each loan.

• Institutions must inform borrowers within 15 days whether they have exhausted federal student loan assistance and provide disclosures about federal loan advantages, including income-driven repayment options, fixed rates, loan forgiveness programs, and borrower rights to select their lender and cancel within 3 days.

• Institutions must annually certify to the Board of Higher Education and Illinois Community College Board that they have made all required certifications, with compliance required for maintaining operational approval.