 "As other players in the student loan industry exit, we remain
committed to the students and families of Illinois. In fact, we've
already committed to $44 million in student loans this academic
year," said Andrew Davis, executive director of the Illinois Student
Assistance Commission. "We are familiar with the needs of Illinois
families and financial aid procedures of Illinois colleges and
universities because we've been at it for so long."
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 and
Bank of America, which will cease loan originations Dec. 5.
The Illinois Credit Union League played a critical role in
securing $110 million for student loans, ensuring continued lending
through the Federal Family Education Loan Program. Commitments were
obtained from Alliant Credit Union, 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.
"Thanks to the credit unions' support, we continue to provide
student loans to those in need at FFELP-participating schools while
serving our mission by offering Illinois students and parents
college access programs, financial literacy education, and loan
delinquency and default prevention," Davis concluded. "We invite
students and parents to explore all their college finance options
with their financial aid office or to visit our Web site."
The IDAPP Web site is the
perfect place for Illinois students to begin, 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, 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. 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.
IDAPP was started in 1977 and is the student loan division of
ISAC. Last year, IDAPP 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
the College Illinois 529 prepaid tuition program. Students and
families have free access to a wealth of financial aid and college
planning information at ISAC's family of online sites, available at
www.knowhow2goillinois.org.
[Text from
Illinois Student
Assistance Commission file received from
the
Illinois Office of
Communication and Information] |
