Any institution of higher education that enters into an agreement to market credit cards to students pursuing an undergraduate education, or that allows its student groups, alumni associations, or affiliates to enter into such agreements must make a financial education program available to all students. Additionally, an institution of higher education shall make available to all its students, via posting in a conspicuous location on its web pages, the financial education information required by this Section. The financial education program shall include, at a minimum:
         (1) an explanation of the consequences of not paying
    
credit card balances in full within the time specified by the billing statement, including an explanation of the methods employed by credit card issuers to compute interest on unpaid balances;
        (2) an explanation of common industry practices that
    
have a negative impact to consumer credit card holders; current examples include low introductory rates, a description of acts on the part of cardholder that would cause an immediate shift to a higher interest rate, and complex timing calculations which can trigger higher rates;
        (3) examples illustrating the length of time it will
    
take to pay off various balance amounts if only the minimum monthly payment required under the agreement is paid;
        (4) an explanation of credit related terms, including
    
but not limited to fixed rates, variable rates, introductory rates, balance transfers, grace periods, and annual fees;
        (5) information concerning the federal government’s
    
opt-out program to limit credit card solicitations, and how students may participate in it; and
        (6) an explanation of the impact of and potential
    
consequences that could result from using a debit card for purchases that exceed the deposits in the account tied to the debit card.
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Terms Used In Illinois Compiled Statutes 110 ILCS 26/10

  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
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