* You’ve probably already heard about this…
* Sophie Rodgers digs into the numbers for Crain’s…
On average, Illinois student loan borrowers owe $38,526, the seventh-highest average debt in the United States. This statistic is not alarming to Constantine Yannelis, associate professor of finance at the University of Chicago Booth School of Business. “Illinois, like New York, is an area which is dominated by one metro area where you disproportionately see a lot of young, educated people living. This is why you have high student loan debt.” […]
Recent graduates in Illinois age 25 to 34 … owe an average of $36,806. […]
But younger borrowers in Illinois are not among those hit hardest by student loan debt. On average, of Illinois student loan borrowers, those age 50 to 61 owe the most: $50,757. Those age 62 and up owe an average of $46,959. […]
And this outstanding debt will almost certainly negatively impact their retirement. “They can’t even get out of that debt by defaulting because, due to court rulings, Social Security income can be garnished,” Yannelis said. As a result, older Illinois borrowers still deeply in student loan debt might delay retirement and will consume less in retirement, which will affect the overall economy.
Discuss.
…Adding… LG Stratton…
Today, millions of people are receiving news about long-awaited financial relief. With President Joe Biden’s announcement to forgive thousands of dollars in student loan debt for most borrowers, a burden is being eased.
As part of my office’s initiative to build a strong, diverse teacher pipeline, I traveled across Illinois to hear from leaders and students at our state colleges and universities.
On these campuses, I heard and felt the deep concern people in all fields had about the looming presence of student loan debt and how it would not only impact their careers, but also their quality of life.
This student loan plan takes major steps to address that. Up to $20,000 in debt relief for Pell Grant recipients ensures that forgiveness intentionally uplifts those from lower-income backgrounds. Additionally, restructuring the repayment system will provide increased borrower support after the freeze on payments ends. More needs to be done, but this is a historic move forward that will change the lives of millions.
I commend the administration for these tremendous efforts. May this drive us to continue the work for equitable, affordable education in Illinois and across the nation.
* Sen. Durbin…
U.S. Senate Majority Whip Dick Durbin (D-IL) today released the following statement after President Joe Biden announced his Administration’s plan to eliminate $10,000 in federal student loan debt for borrowers making less than $125,000 a year and to extend the student loan payment freeze until December 31:
“Tens of millions of Americans are plagued by student loan debt in pursuit of a quality education. Today’s announcement by President Biden is a crucial step to enable low- and middle-income borrowers—especially communities of color—to eliminate their debt so they can buy a home, start a business, save for emergencies, and fully participate in our economy. President Biden and Congressional Democrats are delivering on our promises and focused on lifting up working families and the economy.”
Today’s announcement also allocates up to $20,000 of debt cancellation for Pell Grant recipients. On average, Illinois students owe $38,526 in debt after graduation.
Durbin has long been an advocate for widespread student debt relief. In August 2021, Durbin introduced the bipartisan FRESH START Through Bankruptcy Act, which would restore the ability for struggling borrowers to seek a bankruptcy discharge for federal student loans after a waiting period of ten years. Unlike most other types of debt, student loans are not dischargeable in bankruptcy except in rare circumstances.
* AG Raoul…
Attorney General Kwame Raoul today issued the following statement regarding the announcement from President Joe Biden’s administration that it plans to cancel $10,000 in debt for borrowers who earn less than $125,000 per year and $20,000 in debt for Pell grant recipients.
“Higher education should be within reach for all Illinoisans without the fear that they will be saddled with lifelong debt. The administration’s announcement today is a clear acknowledgment of the burden student loan debt imposes, and a response to repayment and forgiveness programs that have been historically and systemically flawed.
“While long-term reforms to the student loan system in this country are desperately needed, I commend the Biden administration for offering some immediate relief to millions of student loan borrowers.”
Attorney General Raoul has long advocated for protections for student loan borrowers. In May, Raoul called upon President Biden to cancel federal student loan debt, and he was joined by other attorneys general. Earlier this month, Raoul led a coalition of attorneys general calling on the U.S. Department of Education to give public servants more opportunities for loan forgiveness.
The Illinois Attorney General’s office continues to be a national leader in investigating and enforcing consumer protection violations in the higher education field. In 2022, Raoul’s office led a nationwide settlement against Navient, the country’s largest student loan servicer, that resulted in $5 million in restitution, and more than $133 million in debt cancelation, for Illinois borrowers. In 2021, Raoul’s Know Before You Owe legislation was enacted, ensuring that Illinois student borrowers have information about their federal aid eligibility before they turn to more costly private loans. And along with overseeing the rollout of the state’s first Student Loan Ombudsman, a position created by the Student Loan Servicing Rights Act to provide resources for borrowers who are struggling to make payments, Raoul’s office has recently provided $14 million in relief to private student loan borrowers who attended ITT.
Student borrowers who have questions or are in need of assistance can call the Attorney General’s Student Loan Helpline at 1-800-455-2456. Borrowers can also file complaints on the Attorney General’s website.
* US Rep. Mary Miller…
CONGRESSWOMAN MARY MILLER (R-IL) released the following statement on President Biden’s announcement on student loan “forgiveness”:
“Today, Joe Biden announced a $300 billion taxpayer-funded bailout for leftist colleges and universities that prey upon young people by selling them worthless “humanities” degrees so they can become foot soldiers in the Marxist revolution destroying America,” Miller said. “In the midst of the Biden Recession, Joe Biden is using working class taxpayers to pay off his donors and voters at a time of historic debt, and record inflation.”
“The blue-collar working class is now saddled with the cost of paying off “elite” institutions with billion dollar endowments. They defrauded young people by exaggerating their future earning power that would enable them to pay back those loans.”
“Parents sacrificed for years to save for their children’s college expenses and many students forfeited going to the school of their choice and instead choose community college or instate tuition. Some didn’t go to college because it was unaffordable and didn’t want to pay back loans. Many people worked full time and lived at home to pay for college and lots of graduates have been making college loan payments for YEARS! President Biden’s decision to bailout colleges and universities adds insult to injury and is completely irresponsible.”
“A new majority in Congress must investigate the staggering increase in costs for college degrees, the disconnect between those rising costs and the job prospects of graduates who cannot pay back these loans, and the corrupt endowment system! The U.S. Department of Education’s role is to protect and defend the TAXPAYERS, not the leftist colleges and universities with billion dollar endowments that prey upon borrowers! It’s time to defund and eliminate the U.S. Dept. of Education.”
