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Stadelman proposal to educate students on college debt signed into law

stadelman 041918SPRINGFIELD – College students would be able to make more informed financial decisions about their education under a measure passed this spring by State Senator Steve Stadelman (D-Rockford) and signed into law today.

Stadelman’s proposal, Senate Bill 2559, creates a three-year pilot program that requires each public university and community college to send an annual letter detailing the current loan and annual repayment amounts to all students with college loans.

“Thousands of Illinois students graduate from college each year and face the reality that they owe tens-of-thousands of dollars in student loans. For many of these students, it’s the first time they fully realize the expense of their education,” Stadelman said. “This new law will ensure students know up-front about the cost of their education and can make better financial decisions to save them money later on.”

Student loan debt in the United States skyrocketed from $833 billion to an all-time high of $1.4 trillion according to recent students. On average, college students graduate with over $34,000 in debt, up 62 percent in the last decade.

In 2012, Indiana University began sending new and returning students a letter projecting the amount of debt they were expected to graduate with, along with what their monthly payments would be. After implementing this system, the university saw a decline in the amount of education loans taken out by students. The state of Indiana passed a similar law to cover all state universities and community colleges in 2015.

Senate Bill 2559 will take effect Jan 1, 2019.

Sen. Steve Stadelman

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34th Legislative District

Years served: 2013 - Present

Committee assignments: Financial Institutions; Higher Education; Public Health; Revenue; Telecommunications & InfoTechnology (Chairperson); Transportation.

Biography: Earned a bachelor's degree in journalism from the University of Wisconsin-Madison. Worked as a news anchor/reporter for WTVO-Channel 17 for 25 years, In 2003, his coverage of the state's death penalty earned him an Associated Press award for Best Documentary.

Associated Representatives:
John M. Cabello
Maurice A. West II