Special Statement from ISAC Chairman McNeil Regarding Opinion from Illinois Attorney General

Statement by Don McNeil - Chairman, Illinois Student Assistance Commission (ISAC) - Regarding Opinion Issued by Illinois Attorney General Lisa Madigan Concerning Sale of Student Loan Portfolio.

“The Illinois Student Assistance Commission (ISAC) appreciates the opinion rendered on October 20, 2006, by Attorney General Lisa Madigan which allows us to go forward with our plans to make ISAC more responsive to Illinois students, families and postsecondary institutions.

“The opinion says ISAC may not sell its entire $3.5 billion student loan portfolio and discontinue its secondary student loan market program without approval of the Illinois General Assembly. We agree. This was never our intent. 

“The opinion, however, does not say ISAC cannot sell the current assets in the loan portfolio and replace them with different loan products that are more responsive to the needs of Illinois students. The opinion does not suggest ISAC may not sell a portion of the portfolio or restructure it in ways that do not result in the discontinuance of the secondary loan program, which we are free to reshape as we deem prudent.

“Further, we are gratified by Atty. General Madigan’s contention that the funds generated by the sale of these student loan assets should go to making college more affordable for Illinois students and their families. Last spring, the General Assembly authorized $34.4 million more for the successful Monetary Award Program (MAP), and another $34.4 million for the new, much-needed MAP Plus grant, which helps sophomores, juniors and seniors from middle-income families who do not qualify for a MAP grant.

“Any sale of the student loan portfolio will go first and foremost to fund these programs. Other proceeds will go to the Student Loan Operating Fund (SLOF) to promote access to higher education.

“With college tuition soaring nationwide, working families face a real struggle to provide their children with a college education. Here in Illinois, though, we are seeking forward-minded solutions to this crisis. This year’s increase for MAP is the highest in a decade and MAP Plus is designed provide relief to 70,000 students from hard-pressed middle-income Illinois families. 

“At ISAC, we are committed to generate funds on behalf of Illinois students and families. We will not sacrifice the core functions or jeopardize the mission of this agency, which has been proudly serving Illinois college students for 50 years.”

Don McNeil, Chairman
Illinois Student Assistance Commission

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.