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 would remove current state rules meant to punish delinquent borrowers.
“State hiring and procurement can already be complicated processes, both for individuals seeking employment and for our agencies,” said Faraci (D-Champaign). “By removing focus from student loan repayment statuses, we can streamline the hiring process and ensure we aren’t unintentionally deterring qualified residents from applying for good jobs.”
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Acknowledging these restrictions as outdated, Faraci’s measure would provide more employment opportunities and financial relief to residents by ending the requirement to terminate agency employees who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.
“At a time when cost of living is causing significant hardship and student loan interest rates are reaching their highest levels in decades, removing the job security of someone in default on a loan is not only cruel, it’s also a bit convoluted,” added Faraci. “We must ensure our state’s employees are supported so they can get back on track.”
House Bill 4687 passed the Senate State Government Committee Wednesday and heads to the full Senate for further consideration.
