New Illinois Program Offers Hope to Struggling Student Loan Borrowers

Students in Illinois who don't have access to traditional college loans will now have the opportunity to fund their education without a cosigner.

A New Lifeline for Illinois Students

During a Thursday (4/24) press conference, State Treasurer Michael Frerichs announced the launch of the Funding U Illinois No-Cosigner Loan, part of the Student Empowerment Fund.

This program has been designed to offer private student loans at lower interest rates than national private lenders, specifically for in-state higher education costs.

Helping Students Bridge the Financial Gap

The No-Cosigner Loan is available to Illinois residents attending in-state public or not-for-profit colleges, with fixed APRs between 7.99 and 9.49 percent.

The costs of college continue to rise, and the chaos in Washington is hurting, not helping our families. We are offering a solution to help students bridge the gap. -State Treasurer Michael Frerichs

Unlike traditional private loans, the new option does not require a cosigner or a strong credit score. Funding U, the loan provider, evaluates students based on their academic achievements and persistence.

"Thanks to Treasurer Frerichs’ leadership, Illinois students can now graduate with less expensive debt,” said Funding U CEO Jeannie Tarkenton.

Expanding Access with More Affordable Loans

The Treasurer's Office is also working with ISL Education Lending to offer two additional options:

• The Illinois Partnership Loan
• The Illinois College Family Loan

Both have lower APRs than federal loans and can save Illinois families thousands of dollars.

Nearly 700 loans totaling $10.8 million have been issued since 2023 under the Student Empowerment Fund, with average loans around $21,000.