Educational Loan Default Bill

Illinois law requires that the university collect certification, effective January 1, 1988, from a new employee regarding his or her default status on repayment of educational loans.

In September, 1987, the Illinois legislature passed the Educational Loan Default Bill (HB 2248) which bars State agencies, including the University of Illinois, from employing persons who are in default on the repayment of educational loans.

Public employers must obtain individual certification from a new employee hired after January 1, 1988 regarding his or her default status. The legislation requires the dismissal of an employee in default for a period of six months or more and in the amount of $600 or more on the repayment of any educational loan 1) guaranteed by the Illinois State Student Assistance Commission, 2) made by an Illinois institution of higher education, or 3) any other loan made from public funds for the purposes of financing higher education.

The Educational Loan Default Statement is used to satisfy the legal requirements of HB 2248. For academic employees (faculty, academic professionals, and graduate assistants) the Statement appears on the Personal History and Professional Experience form. For "One-Time Payments" and for Civil Service staff, the attached form must be used. Copy the form as needed.

The Statement must be completed by each new employee and submitted with the new employee's appointment papers. Graduate assistants who change to a staff appointment in the academic employee group must submit a new Personal History and Professional Experience form, and the Educational Loan Default Statement on that form must be completed.

For academic appointments, contact the Academic Personnel Office with any questions about this bill or implementation procedures, 333-6747. For Civil Service appointments, any questions should be directed to the Staff Human Resources Office, 333-2137.

See Attachment I, Educational Loan Default Statement. (PDF)