 "As the picture for college grants and scholarships in the state of
Illinois remains cloudy with the ongoing budget negotiations, our
message to Illinois' college-bound students and their families is
that we have plenty of money to lend you to go to school," said
Andrew Davis, executive director of the Illinois Student Assistance
Commission. "Our partner credit unions and the Illinois Credit Union
League have really stepped up to make sure Illinois students have
access to federally backed, low-rate student loans."
The Illinois
Credit Union League played a critical role in building credit union
support, securing partnerships with Alliant Credit Union in Chicago;
Baxter Credit Union, Vernon Hills; Citizens Equity First Credit
Union, known as CEFCU, Peoria; CommonWealth Credit Union, Kankakee;
Corporate America Family Credit Union, Elgin; Credit Union 1, the
state employees' credit union, based in Rantoul; Kane County
Teacher's Credit Union, Elgin; I.H. Mississippi Valley Credit Union,
Moline; ISU Credit Union, Normal; Motorola Employees Credit Union,
Schaumburg; Sangamon Schools Credit Union, Springfield; Scott Credit
Union, Collinsville; SIU Credit Union, Carbondale; and University of
Illinois Employees Credit Union, Champaign.
"With many lenders pulling out of student loan programs, it can
be very difficult for students to find the funding essential for a
college education," said Mark Spenny, CEFCU president and CEO. "This
investment provides the opportunity for CEFCU and other Illinois
credit unions to ensure that a college education continues to be
available to students throughout the state. Education is extremely
important to CEFCU, and the credit union is proud to be able to
invest in this program."
"Receiving a quality education, earning a college diploma is
crucial for today's students," said Dan Plauda, president and CEO of
the Illinois Credit Union League, the state association of credit
unions. "Credit unions are proud to partner with ISAC and invest in
our state's future work force."
A lack of liquidity, steadily increasing tuition costs and
changes in federal policy that cut lender profits created a
disruption in student lending in some states, and a number of banks
have exited the student-lending arena in the past two years,
including U.S. Bank, the sixth-largest lender in Federal Family
Education Loan Program, with $2.3 billion in loan volume in 2008. On
July 8, U.S. Bank contacted financial aid offices to notify them
that the bank would suspend its lending operations in the program.
"Thanks to the credit unions' support of ISAC's FFELP
participation, we can continue to provide student loans to those in
need while serving our mission by offering Illinois students and
parents services such as college access programs, financial literacy
education, and loan delinquency and default prevention," said Davis,
the ISAC director. "We invite students and parents to explore all
their options on our Web site, IDAPP.com."
The new IDAPP.com site
reflects that investment in Illinois students, allowing users to
quickly and easily access information on various types of loans,
apply for loans online, check loan status and even make payments on
a one-time or automated basis with just a few mouse clicks.
[to top of second column] |
Through the Illinois Designated Account Purchase Program, which is
ISAC's student lending arm, Stafford and PLUS loans are available to
students and their families, offering the advantages of lower
interest rates and more favorable terms than private loans, in
addition to the excellent customer service provided by IDAPP.
Interest on federal student loans ranges from 5.6 percent to 8.5
percent, while interest on a private loan can be as high as 18
percent.
Financing for this agreement is subject to approval by the ISAC
commissioners and by the boards of directors of the credit unions at
their respective meetings.
About the entities involved
A credit union is a not-for-profit financial cooperative that is
owned by the members it serves. There are about 8,500 credit unions
nationwide, counting more than 90 million consumers as members, and
they collectively hold about $800 billion in assets. There are 423
credit unions in Illinois, with more than 2.7 million members.
The Illinois Credit Union League is the primary trade association
for credit unions in Illinois, which provides members with
information, legislation and education. Membership is open to any
credit union operating in accordance with the Illinois Credit Union
Act or the Federal Credit Union Act.
The Illinois Designated Account Purchase Program was started in
1977 and is the student loan division of ISAC. Last year, the
program originated $177 million in student loans to more than 32,000
borrowers, providing expert loan service and advice to students,
schools and financial institutions in Illinois.
The Illinois Student Assistance Commission provides students of
all ages and backgrounds with the resources and support to obtain
financial aid for higher education. A state agency, ISAC has paved
the path to postsecondary education with innovative programs for
more than 50 years. Last year alone, ISAC continued its mission to
make college affordable for Illinois students by issuing over
186,000 grants and scholarships totaling nearly $431 million. The
commission provides educational funding with student loans, as a
loan guarantor and via numerous public programs such as the
successful Monetary Award Program, the Illinois Veteran Grant and
College Illinois, the commission's groundbreaking 529 prepaid
college tuition program. Students and families have free access to a
wealth of financial aid and college planning information at ISAC's
family of Web sites, available at
www.knowhow2goillinois.org.
[Text from Illinois Student
Assistance Commission file received from
the
Illinois Office of
Communication and Information]
 |
