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Student credit debt has been found to delay home purchases, business creation, and other significant economic investments. Reducing borrower debt in Illinois will lead to increased personal investment and boost our state`s economic growth. Seventeen percent of Illinois` population — more than 2 million people — bear student credit debt with an average value of 29,855 $US.3 12 percent of these borrowers have student loan debts in collection. In addition, traditionally under-represented college students, such as low-income students, first-generation students, and African-American students, have rather above-average balances, often under predatory or unfavorable private credit terms. As private study credits increasingly fill the void, it is important that students have access to cheap and consumer-friendly products. Social: It will improve access to affordable education by improving financing opportunities for middle- and low-income families in Illinois, people of color, and other communities that are currently not served by the private credit market. Under the law, the Illinois State Treasurer can provide approximately $1.5 billion to “enter into profit-making agreements with participants [and] facilitate such agreements between participants and providers of profitable profit-making agreements.” Insider Post, Revenue Participation Agreements Post, ISA Post, Regulation Post ISA have set themselves a modest goal: to disrupt the $1.6 trillion student credit market that has devastated the finances of a generation by balancing the interests of students and providers. In the case of an ISA transaction, the student does not owe a certain amount of money and no interest is charged on a credit. Instead, the student commits to paying a portion of their future income above a certain threshold for a certain number of years. The ISA provider has an interest in the student constantly earning high income during the term of the contract, as the ISA provider is usually not paid if the student does not earn enough income. In order to recover an ISA owned (or serviced by the Treasurer), the law authorizes the Treasurer to make deductions from the “salary, wages, commissions, and bonuses” of an Illinois employee and, to the extent that federal law or the law of a state of a state in which the worker resides, to make deductions outside of Illinois by sending the employer a communication on the seizure of administrative wages. .

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