SPRINGFIELD, Ill. (WAND) — A plan to create a student investment program in the Illinois treasurer's office has arrived on Gov. JB Pritzker's desk.
Sponsors said this program can help Illinoisans refinance their private student loans, as student debt now totals over $62 billion in Illinois. Student loan debt impacts 13% of Illinoisans, with the average debt per borrower at roughly $40,000.
This bill could allow the treasurer to work with financial institutions to expand loan options and lower interest rates.
"This bill is about making sure we have the ability to offer another option to Illinois borrowers so that at the end of the day they'll be able to have more money in their pockets and be able to afford the loans that they're currently on the hook for," said Sen. Omar Aquino (D-Chicago).
Some Republican lawmakers criticized the plan and argued the state is in a financial crisis due to similar programs.
House Bill 1430 passed out of the Senate on a 46-12 vote and received a 67-38 vote in the House with one member voting present.
"I would like all of us to remember back to the days when we were paying student loans," said Rep. Eva-Dina Delgado (D-Chicago). "Some of us are still paying student loans. Having the opportunity to refinance a very high interest rate loan by going through a program like this is a great opportunity for us to be offering to Illinoisans."
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