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 passed the Senate.
“With the Trump administration placing caps on federal lending for student borrowers, we need to keep track of where the Illinois student loan market is at,” said Halpin (D-Rock Island). “Monitoring student loan default rates and loans with cosigners will give us a clearer picture of how students are doing with their debt and what actions Illinois can make to assist them.”
Halpin’s measure would provide that the annual report to the 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.
“Student loan debt places a massive burden on the shoulders of students and their families,” said Halpin. “With the federal government putting more pressure on borrowers, students may have to turn to more private loans in the marketplace. If this happens we have to be knowledgeable of the health of the debt market and if Illinois students are receiving fair loans.”
House Bill 4754 has passed the Senate and heads to the governor’s desk for further consideration.
