Attorney General Kwame Raoul applauded the General Assembly’s bipartisan passage of his “Know Before You Owe” legislation to ensure that student loan borrowers select a loan option that best meets their financial needs. Raoul’s Know Before You Owe legislation, House Bill 2746, will ensure that student borrowers have information about their federal aid eligibility before they turn to more costly private loans. Additionally, private lenders will be required to provide Illinois’ Student Loan Ombudsman, housed in the Attorney General’s office, and state banking regulators with basic information on private student loans. The measure, which was sponsored by Rep. Katie Stuart and Sen. Scott Bennett, passed unanimously and will now be sent to the governor for final approval.

The legislation requires private lenders to obtain certification from schools, confirming whether borrowers have expenses that have not been covered by other sources. Additionally, schools’ financial aid offices must notify borrowers if they still have federal student loan aid eligibility and provide more information. Schools will be required to certify annually with the Illinois Board of Higher Education that they are in compliance with the law. Finally, the legislation requires private student lenders to report basic loan information to Illinois’ Student Loan Ombudsman, housed in the Attorney General’s office, and the Illinois Department of Financial and Professional Regulation. Student borrowers who have questions or are in need of assistance can call the Attorney General’s Student Loan Helpline at 1-800-455-2456.