SPRINGFIELD – Illinoisans who have defaulted on their student loan repayments will soon see increased opportunities for employment and retention at state agencies, thanks to a new law spearheaded by State Senator Paul Faraci.
“At a time when so many residents are struggling just to make ends meet and student loan interest rates are skyrocketing, we have an obligation to ensure our state agencies aren’t unintentionally following red-tape policies that turn qualified Illinoisans away from the state’s workforce,” said Faraci (D-Champaign). “Updating the law so residents who fall behind on their student loan repayment aren’t punished into a lifetime of debt isn’t just a smart business decision; it’s a moral declaration to Illinoisans across the state that we will support and uplift them in their times of need, the way government is intended to work for its people.”
Under previous Illinois law, any state agency employee whose student loans were in default for a period of six or more months, and in an amount of $600 or more, was required to make a satisfactory loan repayment arrangement with the loan’s cosigner or guarantor. If the employee failed to establish a satisfactory repayment arrangement prior to their sixth month of employment, the agency was required to terminate the individual’s employment.
Acknowledging these restrictions as outdated, the new law provides more employment opportunities and financial relief to residents by ending the requirement to terminate agency employees who fall into default.
House Bill 4687 was signed into law Friday and goes into effect immediately.
