State of Illinois Compiled Statutes (110 ILCS 66)

 Illinois General Assembly SB3032 – Student Debt Assistance Act 

 The Student Debt Assistance Act. prohibits an institution of higher learning or a public or private entity that provides academic transcripts from (i) withholding academic transcripts from a current or former student because the student owes a debt to the institution, (ii) conditioning the provision of an academic transcript on the payment of a debt, other than a fee charged to provide the transcript, (iii) charging a higher fee to obtain an academic transcript or providing less favorable treatment of a request for an academic transcript because a current or former student owes a debt, or (iv) using academic transcript issuance as a tool for debt collection. Beginning with the 2022-2023 academic year, requires an institution of higher learning to make a good faith effort to offer a debt repayment plan to any student who owes a debt of $250 or more to the institution. Sets forth provisions concerning the debt repayment plan and enrollment procedures. 

Beginning with the 2022-2023 school year, requires every institution of higher education to have a policy instituting a financial or physical hardship withdrawal process; sets forth requirements concerning the process. Provides that if an institution of higher education chooses to send a current or former student’s past due debt to a debt collection agency, the past due debt may not be reported to any credit reporting agencies or used against that student in a credit report or credit score. Effective June 8, 2022. 

 Student Debt Assistance Act Past Due Debt Policy Requirements 

 Beginning with the 2023-2024 academic year, each institution of higher education shall adopt a policy that outlines the process by which a current or former student may obtain a transcript or diploma that has been withheld from the student because the student owes a debt. At a minimum, the policy must include: 

(1) a reasonable process for the verification of conditions a current or former student may demonstrate to receive an exemption pursuant to Section 15 of this Act; and 

(2) identification of the point at which a student may be subject to a transcript, diploma, or registration hold, including the time frames and amounts for which the holds are to be used and the lowest amount of debt at which the institution will assign debt to a third-party collection agency. 

(b) The institution of higher education shall post the policy described in subsection (a) of this Section and the procedures for filing a complaint with the Attorney General’s student loan ombudsperson and an administrator of the institution of higher education on the institution of higher education’s website and shall provide the policy and the procedures to students as part of the information the institution of higher education shares relating to the cost of attendance that includes any additional fees, financial aid, scholarships, or other information. 

(c) The institution of higher education does not need to institute a new policy under this amendatory Act of the 103rd General Assembly if the institution’s current policy meets the minimum requirements of this Section. 

(Source: P.A. 103-54, eff. 6-9-23.) 

Student Accounts Transcript Release Procedure 

Past Due Balance Service Indicator 

The Past Due Balance Service Indicator (BPD) should not be removed for automatic transcript processing. 

The student is required to work with the Student Accounts Office to review their acceptance of full financial responsibility for payment of the term tuition and fees, as well as associated costs related to registration and/or other SWIC services, by the applicable deadlines. 

Verification of Student Conditions 

Southwestern Illinois College has the responsibility to verify the student’s conditions during the past due term set forth by the Student Debt Assistance Act. 

The Student Accounts Office will review the student’s enrollment records for withdrawn courses. 

If the past due debt is related to withdrawn classes, Student Accounts will offer the opportunity to complete the Physical & Financial Hardship form. This appeal limits debt owed by students who have to withdraw from the institution due to a significant financial or physical hardship and to assist those students if and when they choose to re-enroll. 

SWIC Physical & Financial Hardship Appeal: https://www.swic.edu/students/services/student-accounts/physical-financial-hardship-appeal-request/ 

Past due debt related to completed courses with official letter grades are not eligible for the Physical & Financial Hardship Appeal. 

Debt Acknowledgement 

After Verification of Student Conditions is complete, students are required to complete the Debt Acknowledgement Form reconfirming their financial responsibility to pay their tuition and fee balance. The form can be found at the bottom of this page as a downloadable PDF. 

The form details payment options and optional Physical & Financial Hardship Appeal. 

If completed in-person, students are required to show state issued Photo ID or SWIC student ID. 

If the form is completed off-campus, they are required to provided a photo copy of their ID to ensure they are the person completing the Debt Acknowledgement Form. 

Transcript Processing Procedure 

Once the Debt Acknowledgement Form is submitted to the Student Accounts Office, the transcript order will be released. 

The Student Accounts Office maintains record of all transcripts released under the Past Due Debt Transcript Policy. 

Records can be found under the Data Sharing Library on the Student Accounts InfoShare Department page and will include the following information: 

• Date of Transcript Order 

• NSC Transcript Purpose 

• Debt Acknowledgment Completion Date 

• Transcript Release Date 

Reporting of Transcript Release 

On or before July 1, 2024 and on or before each July 1 thereafter, Southwestern Illinois College shall report to the Illinois Community College Board information regarding financial-based transcript and registration holds, which must include: 

(1) reporting the institution of higher education’s policy developed pursuant to Section 30 of this Act; and 

(2) reporting the number of students for whom the institution of higher education has withheld official transcripts, diplomas, or registration privileges, using data from the previous academic year. 

ICCB will create an informational survey that will be sent out to the Student Services listserv for reporting requirements. 

SWIC’s Past Due Debt Transcript Policy 

File A Compliant with the Illinois Attorney General: https://www.illinoisattorneygeneral.gov/File-A-Complaint/ 

Past Due Debt Transcript Policy Administrator 

Myki Rhodes 
Director of Student Finance 
Myki.Rhodes@swic.edu
Office: 618-235-2700 x5299 
Fax: 618-235-3827