SPRINGFIELD – Illinoisans who are on default on their student loan repayments may soon see increased opportunities for employment and retention at state agencies, thanks to a measure led by State Senator Paul Faraci that passed the Senate Thursday.
“Putting too much focus on student loan repayment status in hiring and procurement may very well be deterring Illinoisans from applying for jobs with the state,” said Faraci (D-Champaign). “These processes are already difficult for both agencies and residents, so we shouldn’t be inadvertently following red-tape policies that keep otherwise qualified residents from our state workforce.”
Under current Illinois law, any state agency employee whose student loans are in default for a period of six or more months, and in an amount of $600 or more, is required to make a satisfactory loan repayment arrangement with the loan’s cosigner or guarantor. If the employee fails to establish a satisfactory repayment arrangement prior to their sixth month of employment, the agency is required to terminate the individual’s employment.
Acknowledging these restrictions as outdated, Faraci’s measure would provide more employment opportunities and financial relief to residents by ending the requirement to terminate agency employees who fall into default.
“This is about ensuring Illinoisans who fall behind on their student loan repayment aren’t punished into a lifetime of debt, especially at a time when cost of living and student loan interest rates are reaching record highs,” Faraci said.
House Bill 4687 passed the Senate Thursday and heads to the governor for further consideration.
