IL SB2291

Creates the Know Before You Owe Private Education Loan Act requiring private educational lenders to obtain certifications from institutions of higher education regarding borrower enrollment status, cost of attendance, and available financial assistance before disbursing loan funds.

Allows private educational lenders to disburse funds without certification if the institution fails to respond within 15 business days or refuses to certify, but requires reporting of such disbursements to the Student Loan Ombudsman.

Requires private educational lenders to submit annual reports to the Department of Financial and Professional Regulation and Student Loan Ombudsman containing information about loan volume, default rates, institutions served, and loan agreement templates.

Mandates that private educational lenders provide borrowers with quarterly loan statements showing total remaining debt, debt increases, and current interest rates while the borrower is enrolled.

Requires institutions of higher education to certify annually to the Board of Higher Education and Illinois Community College Board that they have complied with certification requirements as a condition to maintain approval to operate; takes effect immediately.