Illinois introduces state-backed student loans with competitive rates

ROCKFORD, Ill. (WTVO) — Illinois State Treasurer Michael Frerichs has announced a new, state-sponsored student loan option aimed at providing Illinois students with lower financing rates than traditional programs.

The Funding U Illinois No-Cosigner Loan is part of the Student Empowerment Fund.

“Some children, maybe their parents don’t have much money at all. Their parents are unable or unwilling to sign as cosigners to the loan. In the past, those students have been unable to get those loans to stay in school and they frequently drop out. That’s a problem for those kids, it’s a problem for us as a society,” Frerichs said.

According to a press release, “The Illinois No Co-Signer Loan is open to Illinois residents attending an Illinois public or private not-for-profit university or college and is an attractive option for students who have maxed their grants, scholarships, and financial aid and have no access to a co-signer. The fixed annual percentage rate ranges from 7.99% to 9.49%. A no-cosigner student loan option at a competitive rate has not been available to Illinois students until now.”