SPRINGFIELD, Ill. – The state commission in charge of student loans on Friday approved a $100 million deal by eight credit union to keep offering loans to students in Illinois.
The Illinois Student Assistance Commission approved an offer to sell bonds to credit unions to finance low-rate federally guaranteed student loans under the Stafford program. The credit unions stepped in after several area banks balked at financing the program.
The credit union funding is expected to cover tuition for as many as 20,000 students.
The participating credit unions are: Scott CU, Alliant CU, Baxter CU, Citizens Equity First CU, Corporate America Family CU, Credit Union 1, I.H. Mississippi Valley CU and Motorola CU.
The loans are 97% guaranteed by the federal government. Illinois agreed to cover the remaining 3% for the credit unions, which has been approved by the Illinois Department of Professional and Financial Regulation.
