State Helps Teachers Pay Student Loans

SPRINGFIELD – The State of Illinois has initiated a new program to help teachers who have served in low-income schools repay their student loans.  Through the new Illinois Teacher and Child Care Provider Loan Repayment Program, administered by the Illinois Student Assistance Commission (ISAC), eligible teachers can receive up to $5,000 after teaching in an Illinois low-income school for five consecutive years.

“Not only are we rewarding the well-deserving teachers who dedicate their careers to helping students in schools that so desperately need them, but we are also encouraging new teachers to consider serving in these hard-to-staff schools by providing them with an extra incentive,” explained Larry Matejka, ISAC’s Executive Director.

To be eligible for the new state program, teachers must first qualify for the federal government’s teacher loan cancellation program.  The federal government’s program, known as the Stafford Loan Cancellation for Teachers program, will cancel up to $5,000 of a borrower’s federal Stafford student loans, borrowed after October 1, 1998, if he/she teaches on a full-time basis for five consecutive years in an elementary or secondary school that has been designated a “low-income” school by the U.S. Department of Education.

If a teacher qualifies for the Stafford Loan Cancellation for Teachers program and completes the required five years of teaching in an Illinois school designated as a “low-income” school, he or she may also apply for the Illinois Teacher Loan Repayment program.  Illinois will provide an additional $5,000 matching grant to the qualifying teacher and will encourage the teacher to repay any debt still owed on his/her student loans.

Childcare providers are also eligible to receive help in paying their student loans through the federal and state programs.  The State of Illinois will provide a matching grant for childcare providers who qualify for the federal loan cancellation program by working full-time in a childcare facility that serves a low-income community in Illinois for at least two consecutive years. 

More information about these teacher incentive programs or any financial aid programs is available online at www.collegezone.com or by calling 800-899-ISAC (4722).  Bilingual telephone representatives are available.

About ISAC
The Illinois Student Assistance Commission is the State’s centralized provider of financial assistance aimed at helping students and families access postsecondary education and/or training. Each year, the Commission awards an estimated $400 million in scholarship and grant aid to nearly 185,000 qualified students, and also provides an additional $740 million to borrowers through its student loan programs. The agency offers credit-based alternative loans, a 529 prepaid tuition program known as College Illinois!, and a broad array of outreach and informational services to ensure that families have access to the information they need to pay for a college education. More information is available by calling toll-free 800.899.ISAC (4722) or visiting the agency’s Web site at www.collegezone.com.