Illinois lawmakers have advanced new support for those grappling with student loans. State Senator Omar Aquino’s proposal, House Bill 1430, cleared the Senate on Thursday. The measure allows the state treasurer to invest in refinanced student loans and collaborate with financial institutions to offer lower interest rates. With more than 1.6 million Illinois residents holding a total of $62 billion in student debt, averaging nearly $40,000 per borrower, this initiative aims to lower monthly payments and boost local economies. Senator Aquino stresses that reducing debt burdens gives families more flexibility to save, spend, and invest in their futures.
As the cost of living continues to rise, it is critical that we provide students with an economic relief tool to help alleviate the often overwhelming burden of student loan debt,” said Aquino (D-Chicago). “Providing borrowers with additional loan options and lower interest rates will help keep money in their pockets to put toward other needs.”
“Student loan debt prevents families from achieving their financial goals and strains local economies by suppressing spending and investments,” said Aquino. “Providing borrowers with more flexibility through lower interest rates will free up spending money they can put toward something other than debt.”
