SPRINGFIELD – To protect first-generation college students from predatory business practices, State Senator Celina Villanueva (D-Chicago) passed legislation in the Illinois Senate that would create transparency and fairer guidelines for educational planning services.
“Companies that prey on first-generation and low-income students must be held accountable,” Villanueva said. “I am committed to empowering our state agencies to reel in these bad actors.”
The legislation would require educational planning service providers to disclose that similar services may be available at no charge from the state, allow consumers to choose which services they wish to receive and allow consumers to cancel services at any time. Consumers would also receive a full refund for services not yet provided under the proposed legislation.
First-generation college students and students from families with limited English proficiency are often targeted by educational planning service providers. These providers use high-pressure sales tactics to lock parents into expensive, long-term contracts only to find that the assistance provided is inadequate or could have been received at no charge through the state or other entities.
The Attorney General and State’s Attorneys would enforce this legislation by bringing civil action in accordance with the Consumer Fraud and Deceptive Business Practices Act and by voiding contracts that violate the proposed legislation. The Illinois Student Assistance Commission (ISAC) would also be empowered to seek additional penalties for violators.
Reliable educational planning services are offered by ISAC free of cost at www.isac.org.
Senate Bill 1085 passed the Illinois Senate and awaits consideration in the Illinois House.