SPRINGFIELD –An initiative sponsored by State Senator Omar Aquino to expand loan options for student loan borrowers passed the Senate Thursday.

“As the cost of living continues to rise, it is critical that we provide students with an economic relief tool to help alleviate the often overwhelming burden of student loan debt,” said Aquino (D-Chicago). “Providing borrowers with additional loan options and lower interest rates will help keep money in their pockets to put toward other needs.”

House Bill 1430 would allow the Illinois State Treasurer to invest in refinanced student loans and work with financial institutions that provide refinancing for student loans. Refinanced loans at lower rates will result in lower payments for borrowers, freeing up spending power and supporting the local economy.

Student debt now totals over $62 billion in Illinois according to the Education Data Initiative. This impacts 13% of Illinoisans – around 1.6 million people. The average debt per borrower in Illinois is just under $40,000.

“Student loan debt prevents families from achieving their financial goals and strains local economies by suppressing spending and investments,” said Aquino. “Providing borrowers with more flexibility through lower interest rates will free up spending money they can put toward something other than debt.”

House Bill 1430 passed the Senate Thursday.