IL SB0086

Expands definitions of "cosigner" and "private education loan" in the Know Before You Owe Private Education Loan Act to include income share agreements and student financing companies.

Requires private educational lenders to send quarterly loan statements to both borrowers and cosigners during enrollment, with specific disclosure requirements for income share agreements including percentage of income payable, maximum payments, and annual percentage rates at various income levels.

Mandates that institutions of higher education inform borrowers and cosigners about available federal financial assistance and advantages of federal loans before certifying a private education loan application.

Requires private educational lenders to disclose to cosigners how loans appear on credit reports, delinquency notification procedures, and eligibility criteria for cosigner release before extending loans.

Establishes comprehensive cosigner protections including: annual written notices about release eligibility, prohibition on permanent bars to cosigner release, limits on consecutive on-time payment requirements (12 months maximum for new loans), appeal rights, and automatic release upon borrower's total and permanent disability with prohibitions on collecting from the cosigner's estate or changing loan terms.