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SB 3802

EDUC-QLFD COMMUNITY FOUNDATION

104th Regular Session Introduced by Celina Villanueva

Defines qualified foundations by national standards accreditation, ISAC approval, and phased timelines to fund loan repayment for workers in targeted Illinois areas and industries.

Rule 3-9(a) / Re-referred to Assignments
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Bill Summary · SB 3802

Summary of SB 3802 (104th General Assembly, Illinois)

Overview

  • Bill: SB3802
  • Session: 104th General Assembly
  • Jurisdiction: Illinois
  • Title: EDUC-QLFD COMMUNITY FOUNDATION
  • Sponsor: Sen. Celina Villanueva (co-sponsor listed)
  • Introduced: February 6, 2026
  • Primary aim: Amend the Workforce Development through Charitable Loan Repayment Act to redefine “qualified community foundation” and adjust program participation criteria for贷款偿还资助 (student loan repayment assistance) allocated via community foundations.

Purpose and Intent

  • To modify how qualified community foundations participate in the Workforce Development Through Charitable Loan Repayment Program (the Program).
  • To align the definition of “qualified community foundation” with Community Foundations National Standards accreditation timelines and status.
  • To broaden or clarify eligibility criteria for “qualified workers” and the types of employers and locations that qualify for loan repayment support.

Key Provisions and Changes

Definition Updates

  • Qualified community foundation (new/updated criteria):
    • Must be a community foundation or similar publicly supported organization organized or operating in Illinois.
    • Must meet one of the following:
    • For applications submitted before July 1, 2025: substantially complies with the Community Foundations National Standards (the standards used by U.S. community foundations).
    • For applications or renewals submitted on or after July 1, 2025 and before July 1, 2026: has received or applied for the Community Foundations National Standards accreditation seal.
    • For applications or renewals submitted on or after July 1, 2026: has received the Community Foundations National Standards accreditation seal.
    • Must be approved by the Illinois Student Assistance Commission (ISAC) for participation in the Program (as per Section 10-17).

Definitions for Program Terms

  • Qualified worker: A full-time employee meeting all of the following:
    1. Employed by a qualifying business (see criteria below).
    2. Works at a job site located in an Enterprise Zone, an Opportunity Zone, an underserved area, or an area with below-average bachelor’s degree attainment (as determined by the U.S. Census Bureau).
    3. Has either:
      • An associate degree or higher with an outstanding balance on a qualified education loan, or
      • Accrued educational debt while pursuing skilled trades/related schooling.
  • Qualifying employer (within the “qualified worker” criteria) includes:
    • A qualified new business venture registered with the Department of Commerce and Economic Opportunity under Section 220 of the Illinois Income Tax Act.
    • A business primarily engaged in a targeted growth industry.
    • A minority-owned, women-owned, or disability-owned business (per the Business Enterprise for Minorities, Women, and Persons with Disabilities Act).
    • A not-for-profit corporation (as defined in the General Not For Profit Corporation Act of 1986).

Targeted Growth Industries

  • Targeted growth industries include:
    • Advanced manufacturing
    • Agribusiness and food processing
    • Transportation, distribution, and logistics
    • Life sciences and biotechnology
    • Business and professional services
    • Energy

Other Definitions

  • Student loan repayment assistance: Grants or post-graduation scholarships provided by a community foundation directly to a student loan servicer on behalf of a qualified worker.

Effective Date

  • The act takes effect upon becoming law (immediate effect stated in the introduction).

Who/What Is Affected

  • Applicants and Participating Foundations: Community foundations or similar publicly supported organizations in Illinois seeking to participate in the Program. They must meet the National Standards accreditation requirements by the relevant dates and obtain ISAC approval.
  • Qualified Workers: Illinois employees who meet the defined criteria (employment status, location, and educational debt status) and work for qualifying employers.
  • Employers/Businesses: Entities that fit the defined categories (new qualified ventures, targeted growth industries, minority/women/disability-owned businesses, or not-for-profits) in specified Illinois locations (Enterprise Zones, Opportunity Zones, underserved areas, or areas with below-average bachelor’s degree attainment).
  • Geographic Areas: Enterprise Zones, Opportunity Zones, underserved areas, and areas with lower-than-average bachelor’s degree attainment as per U.S. Census Bureau data.

Procedural and Timeline Aspects

  • The redefinition of “qualified community foundation” is effective immediately.
  • Accreditation and application timelines for the Community Foundations National Standards are phased:
    • Before July 1, 2025: substantial compliance with standards.
    • On/after July 1, 2025 through July 1, 2026: foundation must have received or applied for the accreditation seal.
    • On/after July 1, 2026: foundation must have received the accreditation seal.
  • ISAC (Illinois Student Assistance Commission) must approve qualified foundations for participation in the Program.
  • The act is labeled as “education” and references Pennsylvania-like structure but applies to Illinois’ Workforce Development through Charitable Loan Repayment Act (110 ILCS 998/10-10).

Summary

SB 3802 updates the eligibility framework for the Workforce Development Through Charitable Loan Repayment Program by tightening the definition of “qualified community foundation” around national standards accreditation status and ISAC approval. It sets phased accreditation milestones and ties eligibility to specific employer types, growth industries, and geographic areas to support loan repayment assistance for workers pursuing education debt relief in Illinois. The changes are designed to ensure participating foundations meet established national standards and that loan repayment support targets workers in economically or educationally underserved areas and in targeted sectors.

Compiled from official sources — confirm details with the bill’s official record.

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