SPRINGFIELD – In the face of higher student debt for many in Illinois and across the country, State Senator Mike Halpin’s measure to keep track of the private student loan borrowing market has been signed into law.
“Student loans present a critical burden to students, graduates and their families,” said Halpin (D-Rock Island). “We need to keep track of the private student loan market in Illinois to get a sense of exactly how large that burden is and what the state needs to do to mitigate those effects.”
Halpin’s measure provides that the annual report to the Illinois Department of Financial and Professional Regulation should include the total number and dollar amount – instead of the volume – of private education loans made annually by a private educational lender. It should also include the total number and dollar amount of private education loans made annually at institutions of higher education, the total number and dollar amount of private education loans made annually with a cosigner, and the default rate for the private education loans reported by the private educational lender.
According to The Education Initiative, Illinois residents hold $63.4 billion in student loan debt. The average borrower owes $39,042, with over one and a half million people in student loan debt. Over half of these borrowers are under the age of 35.
“The federal government is placing more pressure on borrowers than ever before,” said Halpin. “If students turn to private debt markets the state needs to ensure they are getting a good deal.”
House Bill 4754 has been signed into law and goes into effect immediately.
