SPRINGFIELD, Ill. (WAND) — A new Illinois law will create a student investment program within the state treasurer's office.
Student loan debt impacts 13% of Illinoisans, and the average debt per borrower is just under $40,000.Â
Sponsors said this law can help Illinoisans refinance their private student loans, as student debt now totals over $62 billion in Illinois.
The new law will allow Treasurer Michael Frerichs to work with financial institutions to expand loan options and lower interest rates.
"This bill is about making sure people 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 idea and argued that the state is in a financial crisis due to similar programs.
This plan passed out of the Senate on a 46-12 vote and received a 67-38 vote in the House with one member voting present. House Bill 1430 took effect Friday.
"Some of us are still paying student loans," said Rep. Eva-Dina Delgado (D-Chicago). "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."Â
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