ILLINOIS (WAND) — Illinois State Treasurer Michael Frerichs announced the new Funding U Illinois No Cosigner Loan, a part of the Student Empowerment Fund.
Frerichs and his team worked together with lawmakers to invest in loan providers that serve Illinois residents. These lenders will offer private loans at affordable rates and will make interest payments to the state. The state will then reinvest these funds to create additional loans for residents of Illinois.
The Student Empowerment Fund was created to provide private college loans for Illinois residents at lower rates than private competitors, helping to bridge the gap with federal financial aid.
"We cannot solve all of the problems in our state or all the problems with high financing higher education. But that doesn't mean we won't be part of the solution." Frerichs said.
The No Cosign Loan allows students who have low credit scores or are unable to get an eligible co-signer on their loan application, to get access to financial aid.
Frerichs explained, "The Loans program's aim is to focus on the dedication and achievements of students, rather than their lack of a credit score or cosigners financial status."
The No Cosign Loan has a lower APR than Parent PLUS Loans. Jeannie Tarkenton, CEO of Funding U, stated that this loan provides more students with the opportunity to advance their education and careers.
"The no cosigner loan really underlines the accessibility and the belief that young people should be invested in -- those who can most benefit from the economic mobility that comes from completing a secondary degree, a post-secondary degree or training," said Tarkenton.
The Illinois No-Cosigner Loan joins the Illinois Partnership Loan and Illinois College Family Loan option under the Student Empowerment Fund.
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