About ISAC

Making college affordable for Illinois students.

Introduction

In 1957, state lawmakers created the Illinois Student Assistance Commission (ISAC) to ensure that financial considerations did not prevent Illinois students from realizing their postsecondary educational goals. Since then, the number of students we assist and the number of programs we administer have increased steadily, as has the scope of the services provided to support those programs. Our priority, however, has remained constant. Today, as in 1957, that priority continues to be making postsecondary education accessible for the students and families of Illinois.

To better serve its clients, ISAC is a one-stop financial aid center, offering a comprehensive array of programs and services. At every stage of the financial aid process, ISAC is there, acting as a centralized source of information and guidance. In Illinois, we administer most of the key state and federal grant, scholarship, loan and prepaid tuition programs available to postsecondary students, annually awarding in excess of $1 billion to over 250,000 qualified applicants.

As a one-stop center, we strive not only to broaden access to postsecondary education, but to simplify the process of reaching that goal as well. The following highlights the programs and services that define ISAC and how we go about fulfilling our statutory mission.

Programs

Few states offer as comprehensive an array of programs as does Illinois, through ISAC. Among those programs are state and federal grants and scholarships, federal and alternative educational loans, and a prepaid tuition program.

Grants and Scholarships

ISAC offers Illinois residents a variety of grant and scholarship programs, eligibility for which is based on factors such as financial need, academic achievement, chosen field of study, or military service. The cornerstone of these programs is ISAC's need-based Monetary Award Program (MAP).

MAP is the fourth largest program of its kind in the country, annually awarding over $380 million in grants to roughly 146,000 undergraduates who demonstrate financial need for such assistance. Grants awarded through MAP can be used to cover tuition and fees. For some of the neediest MAP applicants, ISAC provides additional aid. Illinois Incentive for Access (IIA) grants are available to freshman students determined to have no financial resources of their own to pay for college.

The remaining gift aid programs offered by ISAC are more targeted in nature. They range in focus from those that recognize academic achievement or chosen field of study/profession to those that reward military service. Collectively, these targeted scholarship and grant programs award nearly $35 million in gift aid to qualified applicants each year.

The number of scholarships and grants made through programs administered by ISAC, as well as the individual dollar amount awarded, are subject to sufficient annual appropriations by the Illinois General Assembly and the Governor.

Educational Loan Programs

ISAC offers an array of low interest educational loan programs with reasonable and manageable repayment terms. Under the Federal Family Education Loan Program (FFELP), individuals can apply for subsidized and unsubsidized Stafford (student) loans, and PLUS (parent) loans. Since 1966, ISAC has guaranteed nearly $22 billion in federally reinsured FFELP loans for qualified students and parents. Today, ISAC consistently ranks among the top ten guaranty agencies in the country in total dollars guaranteed.

ISAC, through its Illinois Designated Account Purchase Program (IDAPP) division, funds and administers a credit-based alternative loan program aimed at college students whose borrowing needs are not sufficiently met through traditional federal educational loan programs. Additionally, during FY2008, ISAC expanded its alternative loan options with the introduction of the College Illinois! Capstone Loan Program. Also funded and operated through IDAPP, the Capstone program is currently in a pilot phase, and serves Illinois college seniors. Eligibility for the loan is not based on credit, and there are repayment incentives for borrowers who live and work in Illinois

Prepaid Tuition Program

Ultimately, the primary responsibility for paying for college rests with the family, and an increasing number of families are beginning to appreciate the importance of planning ahead for such costs. Through College Illinois!, ISAC offers families an affordable, flexible and tax-advantaged method of saving and paying for the college education of their children. This unique investment program allows families to prepay or "lock in" future tuition and fee costs today. Participants can choose from a variety of prepaid contracts that allow for either lump-sum purchases or installment payments over an extended period of time. College Illinois! contracts are backed by the State of Illinois.

A Commitment to Service

ISAC understands that its clients need more than financial aid dollars to access college. To be effective, those dollars must be supported by service. For the students, their families and institutions it serves, ISAC provides an extraordinary array of such support services.

Outreach and Information Services

At the core of such services are ISAC's outreach activities, the primary goal of which is to help families navigate the numerous and often confusing steps of the financial aid delivery process. Each year, ISAC staff offers assistance to over 85,500 students and other clients who call the agency's various telephone support units, and we reach an additional 43,000 families at college fairs, workshops and other outreach events. In response to requests for written materials, ISAC annually distributes approximately 850,000 brochures on a wide range of topics.

Increasingly, however, families are turning to the Internet to obtain the information they need. Through our Web site, collegezone.com, ISAC advises families of what financial aid programs are available and how to apply for them. Users can access information on individual Illinois colleges and universities, and use a State and Federal Aid Estimator that will project how much aid they are potentially eligible to receive based on the college in which they enroll. For certain ISAC programs, our clients can make personal status inquiries. Borrowers have access to debt counseling, and can use a repayment calculator that projects future monthly payments. Families with younger children can also obtain information on college costs, and guidance on how much they should be saving to meet those costs. There are approximately 1.7 million visitors to the College Zone Web site each year.

On and off the Internet, ISAC is continually revising its outreach products in response to client input. Through surveys and focus groups, the Commission periodically seeks feedback from its student and institutional clients regarding their preferred method of receiving information, their technological capabilities, and any new products and services they would like to see offered.

Electronic Processing and Delivery

Technology is vital to ISAC's efforts to simplify the financial aid delivery process. Under the Commission's two largest sources of financial aid, Monetary Award Program grants and FFELP loans, institutions can opt for electronic processing and delivery. Software products developed by the Commission allow for the electronic exchange of student applications and other data, and the electronic transmission of program funds. For students, the benefits are clear - the process is less confusing and the financial aid they need to finance their education is made available on a more timely basis.

From its software products to its evolving Web site, ISAC is utilizing technology to better serve students. The astonishing progress that has been made is the result of a collaborative effort among ISAC, financial aid professionals, bursars, admissions staff, high school counselors and lending institutions.

Default Prevention

Collaboration is also key to the Commission's default prevention efforts. ISAC staff counsel students and parents, as well as work closely with schools and lenders, to ensure that borrowers are aware of their rights and responsibilities and the potential consequences of defaulting on their loans. These efforts have paid off. ISAC's default rate consistently ranks below the national average.

Among the options ISAC extends to borrowers who are having difficulty managing their student loan debt is loan consolidation. Through ISAC's unILoan program, eligible borrowers are allowed to consolidate multiple loans into a single, more manageable debt with extended repayment terms.

Secondary Market Services

ISAC's secondary market, the Illinois Designated Account Purchase Program, was created to ensure the continued availability of educational loan capital. Through its purchase activity, IDAPP provides lenders with the liquidity they need to make additional loans. Through its Community Educational Loan Partnership activity, IDAPP also acts as a lender referral service, ensuring that access to educational loans exists in all communities and areas of the state.

As a secondary market, IDAPP supports its educational loan purchase activity through the sale of tax-exempt and taxable debt. Loans purchased by IDAPP are serviced by trained loan specialists whose work has been central to the Commission's default prevention efforts. Borrowers have an incentive to keep their accounts in good standing; those who consistently make timely payments or live and work in Illinois may qualify for a reduced interest rate on their loan through IDAPP's Borrower Benefits Program. The program is funded with the savings derived from the reduced costs of servicing such accounts. These savings are passed back to the borrower, thus rewarding and reinforcing responsible repayment practices.

Training and Technical Assistance

The Commission's institutional partners in the delivery of financial aid include postsecondary institutions, high schools, community-based organizations, lenders and servicers. To support them ISAC provides on-site technical assistance; periodic training and informational seminars; program information, guidelines and procedures; and a variety brochures and electronic newsletters. Our institutional clients rely heavily upon us for the most current information on programs and operations, and we rely just as heavily upon them for suggestions and guidance regarding how the delivery of financial aid can be improved.

Oversight and Compliance

At both the state and federal level, ISAC has an obligation to help preserve the integrity of the programs it administers. The training and informational sessions we conduct are aimed at facilitating client compliance with all applicable state and federal laws and regulations, as are the brochures, newsletters and other written materials we disseminate. To ensure such compliance, ISAC's institutional audit staff conducts periodic program reviews of schools and lenders. The information shared during these reviews benefits both ISAC and the client. Ultimately, however, it is the student who benefits most, through the improved management and delivery of available financial aid dollars.

Our Commitment to Students

For over fifty years, students have been the number one priority at ISAC. Time has not altered or obscured our focus, but sharpened it. Our evolution into a one-stop, comprehensive financial aid center reflects our ongoing commitment to making postsecondary education accessible for Illinois students and parents.