KOTOWSKI INVESTIGATES STUDENT LOANS

FOR IMMEDIATE RELEASE: FOR MORE INFORMATION:

KOTOWSKI INVESTIGATES STUDENT LOANS

SPRINGFIELD-State Senator Dan Kotowski (D-Park Ridge) is sponsoring legislation that creates a task force to investigate the effects of private student loans.

Over the past five years, public universities have raised their tuition rates by 57%. To pay for college, more and more students are being forced to take out student loans. Ten years ago, private loans only accounted for five percent of all student loans. Today, they account for 20%. Senator Kotowski believes that we need a better understanding of this change.

"Getting a college education is incredibly important," said Kotowski. "Skyrocketing tuition costs are driving students to take out more private loans than ever before. I believe my colleagues and I need a better understanding of this crisis to be able to craft well-thought-out legislation to address student loans."

Senate Bill 1698 creates the Task Force on Higher Education Private Student Loans to study the impact of private loans. The task force is bipartisan, with representatives appointed by the State Treasurer, House and Senate Democrats, House and Senate Republicans, the Governor, the Illinois Student Assistance Commission, and a variety of other education-related agencies.

The task force will prepare a report for the General Assembly. This report will include basic information about rates and fees, but it will also address deeper issues. It will detail if loans affect school choice, debt after graduation, defaults, and whether race or ethnicity are factors in loan approval.

"We need to do everything we can to get Illinois students to college," said Kotowski. "Private loans have become a key part of university financing. We need to work with banks and other financial institutions to make sure students can get an affordable and accessible education."

Senate Bill 1698 has passed the House Higher Education Committee and awaits consideration of the full House.

###