CHICAGO – The Illinois Student Assistance Commission (ISAC) —through its Illinois Designated Account Purchase Program (IDAPP) lending arm—restored the credit of 619 Illinoisans by purchasing their rehabilitated student loans, valued at approximately $7.5 million, from the U.S. Department of Education after closing the sale of $50 million ISAC Student Loan Revenue Bonds, Series 2009 (State Guaranteed) Thursday morning, May 28.
“We are grateful to our partners in government, banking and marketing partners, and legal counsel for making this bond issue a priority and a reality as we give these Illinois student loan borrowers a second chance,” said ISAC Executive Director Andrew Davis in reference to the Department of Education’s loan rehabilitation process that allows defaulted borrowers to have their credit records cleared by making nine straight on-time loan payments before the note is sold to a new lender.
“This unique Illinois solution to a national problem shows that creative financing can be still be done in this crazy credit market. We are pleased to make these borrowers whole again,” Davis continued, saying the Commission expects to be able to purchase another 3,500 rehabilitated Illinois student loans from the Department of Education in the next 18-24 months.
The Illinois Student Assistance Commission provides students of all ages and backgrounds with the resources and support to obtain financial aid for higher education. A state agency, ISAC has paved the path to post-secondary education with innovative programs for more than 50 years. Last year alone, ISAC continued its mission to make college accessible and affordable for Illinois students by issuing over 186,000 grants and scholarships totaling nearly $431 million.
The Commission provides educational funding with student loans, as a loan guarantor and via numerous public programs such as the Monetary Award Program (MAP), the Illinois Veteran Grant and College Illinois!sm the Commission’s groundbreaking 529 prepaid college tuition program. Students and families have free access to a wealth of financial aid and college planning information at ISAC’s family of websites available at www.knowhow2GOIllinois.org.
The Illinois Designated Account Purchase Program (IDAPP) was started in 1977 and is the student loan division of ISAC. Last year, IDAPP originated $177 million in student loans to more than 32,000 borrowers, providing expert loan service and advice to students, schools and financial institutions in Illinois. For more information about student lending in Illinois, visit www.IDAPP.com