School & Education
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You can take out a student loan from the federal government or a private institution. This article gives some background information on student loans and describes loan options available for Illinois residents.
Federal student loans
Federal student loans come from the federal government. Once you fill out your FAFSA form, you may be offered several different types of loans.
These include:
- Direct Subsidized Loans,
- Direct Unsubsidized Loans, and
- Direct PLUS Loans for graduate and professional students or for parents.
Federal student loans usually have a lower interest rate than private loans. You don’t have to have a cosigner or credit to get most federal student loans.
There are many options for paying back federal loans. You don’t have to pay these loans back until you are done with school. Certain jobs may qualify for student loan forgiveness. This means you may not have to pay back the full amount of the loans you have taken out. For more information, visit the Federal Student Aid website.
Private student loans
You can take out loans through a private institution to cover the cost of attending college. These loans might require a cosigner or a certain credit score. The interest rates vary depending on the institution.
Keep in mind that you might have to start paying these loans back while you are still in school. Also, these loans do not usually qualify for student loan forgiveness. This means you will have to pay back the full amount plus interest, even if you get a low-paying job in the public sector.
Illinois student loans
Illinois Partnership Loan
The Illinois Partnership Loan is for Illinois students who have not received enough aid to cover their college expenses through other private or federal loans.
If you are an Illinois resident and you will be attending an Illinois not-for-profit university or college, you may qualify for an Illinois Partnership Loan.
ISL Education Lending (ISL) offers loans to borrowers with a credit score of at least 660. If your credit score is not at least 660, you may still qualify for this loan with a cosigner.
The fixed interest rate is 3.45% to 6.77% a year. Visit the ISL website to see if you qualify or to apply for this loan.
Illinois College Family Loan
The Illinois College Family Loan is for parents who are helping their children pay for college or graduate school.
ISL Education Lending (ISL) offers these private loans to parents of Illinois students who will be attending an Illinois not-for-profit college or university.
Parents must have a credit score of at least 660. The fixed interest rate is 3.45% to 6.77% a year. Visit the ISL website to get your rate and apply for this loan.
Illinois No-Cosigner Loan
The Illinois No-Cosigner Loan is for high-achieving Illinois students who have trouble qualifying for other loans. If you are an Illinois resident and you will be attending an Illinois public or private not-for-profit university or college, you may qualify for a No-Cosigner Loan.
Funding U and the State Treasurer’s Office are offering this private loan as part of the Student Empowerment Fund. The goal is to provide loans to Illinois residents at lower rates than other private lenders.
The fixed annual interest rate is 7.49% to 9.49% a year. This loan does not require a cosigner or a credit score. You must fill out an application to see if you qualify for a No-Cosigner loan.
Learn more
You can learn more about student loans generally from:
