By JERRY NOWICKI
Capitol News Illinois
jnowicki@capitolnewsillinois.com
Pritzker announced that people in Illinois who still owe money on private student loans can now qualify for temporary relief while the COVID-19 pandemic continues.
He also announced families with school-age children who receive food assistance will qualify for additional benefits.
Pritzker said the recently-passed federal CARES Act provided relief for people struggling with federal student debt due to the pandemic, including automatic suspension of monthly payments and interest and halting involuntary collection activity until Sept. 30.
But he said that left out millions of people nationwide, including about 140,000 Illinoisans, who owe money on private and nonfederal student loans.
Pritzker said those former students will now qualify for similar relief through agreements reached by the Illinois Department of Financial and Professional Regulation with 20 student loan servicers.
The agreement allows borrowers to request a 90-day forbearance on payments with no negative credit reporting during that period. Other relief options include waived late payment fees, ceased debt collection lawsuits for 90 days and borrower assistance programs, such as income-based repayment.
Pritzker said borrowers having issues with their lenders can call the IDPFR Division of Banking at 217-785-2900 or file a complaint at https://www.idfpr.com/admin/banks/DoBcomplaints.asp.
The agreement is part of a multistate effort that involves financial regulators and student loan servicers in California, Colorado, Connecticut, Massachusetts, New Jersey, Vermont, Virginia and Washington.
Pritzker also announced the state has received federal approval to provide expanded benefits to about 300,000 Illinois families with school-age children through the Supplemental Nutrition Assistance Program or SNAP, providing about $112 million in additional food assistance to those families.
“For families already receiving SNAP benefits, this increased assistance will be automatically added to families’ link cards,” he said. “There’s no need for you to call or visit.”
He said households with children who are eligible for free or reduced meals when school is in session, but who do not receive SNAP benefits, will be able to submit a simplified application for benefits as early as next week at ABE.Illinois.gov.
“No child should ever have to worry about where their next meal is coming from,” Pritzker said.
