SPRINGFIELD, Ill. – Illinois State Treasurer Michael Frerichs says far too many students are graduating from college with too much debt.
It’s a nationwide issue Frerichs hopes to address. The treasurer’s office is partnering with the nonprofit ISL Education Lending to offer what they call “transparent and affordable private student loans.” Qualifying Illinois students and families can use the loans to attend nonprofit colleges or universities in the state of Illinois.
“What we’re trying to do is partner with the private sector to offer lower interest rates. We’re not looking to compete with federally-guaranteed loans, but to supplement when there’s a funding gap,” Frerichs said.
This loan program was born from the Student Investment Account Act. Passed in 2019, this legislation allows the treasurer to invest up to 5% of the state investment portfolio to provide affordable and responsible educational loan products to Illinois residents.
“If we have a whole generation of young people who can’t make these major life purchases, it’s not just bad for them, it’s bad for all of us, because it’s a break on our economy without those big purchases and spending,” Frerichs said.
For now, ISL Education Lending is the treasurer’s lone partner in this program, but Frerichs tells us he hopes to expand in the future.
“We know that a higher education unlocks higher earning potential for families here in the state and a better trained workforce will help our businesses as well,” Frerichs said.
You can apply now for fall 2023 enrollment.