REPEAL-LOAN DEFAULT ACT

104th Regular Session Introduced by Carol Ammons and 5 co-sponsors

HB 4687 repeals the Educational Loan Default Act, removing Illinois’ statutory framework for default-related education loan matters effective immediately.

Sent to the Governor

Summary of HB 4687 (104th Session, Illinois)

Purpose and intent

HB 4687 repeals the Educational Loan Default Act. The bill states that the Educational Loan Default Act is repealed and provides that the act takes effect upon becoming law. In short, it would eliminate the existing statute governing default-related provisions for educational loans in Illinois.

Key provisions and changes

Repeal: The Act repeals the Educational Loan Default Act (the law currently codified as part of the Illinois Compiled Statutes, referenced as 5 ILCS 385/Act rep.).

Effective date: The repeal takes effect immediately upon the bill becoming law.

Who or what is affected

Primary effect on Illinois educational loan programs and any regulations, remedies, or administrative processes that were previously dictated by the Educational Loan Default Act.

State government agencies, colleges, and financial aid offices that administered or relied on the provisions of the Educational Loan Default Act would need to adjust to the absence of those requirements.

Borrowers and lenders involved in Illinois-held educational loan programs could experience changes in governance of default-related matters, depending on any remaining federal law obligations and any other state provisions that may govern default processes (not specified in the text of the bill itself).

Procedural and timeline aspects

Legislative history indicates a standard committee process in both chambers, with passage in May 2026 and subsequent steps leading to enactment and transmission to the Governor.

Key milestones:

March–April 2026: Referred to the Higher Education Committee in the House; passed the committee on March 25, 2026.
April 2026: Assigned to State Government in the House and later moved to Senate; hearings and readings occur in April.
May 2026: Passed the House (May 21, 2026) and moved to the Senate; Chief Senate Sponsor listed; further readings and potential final actions occurred in May.
June 2026: Sent to the Governor (June 18, 2026) for consideration.

The act as drafted would become law once signed by the Governor or otherwise acted upon per Illinois constitutional procedures.

Sponsors and support

Sponsors and co-sponsors include:

Chief Sponsor: Rep. La Shawn Ford (initial filing)
Chief Senate Sponsor: Sen. Paul Faraci
Co-sponsors: Rep. Carol Ammons; Rep. Mary Edly-Allen; Rep. Mattie Hunter; Rep. Paul Faraci (listed as sponsor in both chambers), Rep. Dave Koehler

Alternate co-sponsors noted in the Senate: Sen. Mary Edly-Allen, Sen. Mattie Hunter, Sen. Dave Koehler

Practical impact and considerations

The immediate practical effect is the removal of the statutory framework for handling default-related issues tied to the Educational Loan Default Act.

Depending on other Illinois statutes and federal regulations, there may be a gap that needs to be addressed by subsequent legislation or administrative policy to govern default-related matters for educational loans.

Stakeholders affected include students and borrowers with Illinois education loan obligations, lenders, higher education institutions, and state agencies involved in higher education administration and financial aid.

Note: The bill text provided is focused on repeal and immediate effective date. It does not specify alternative mechanisms or remedies to replace the repealed provisions.