ISAC’s Loan Repayment/Forgiveness Programs

ISAC’s Loan Repayment/Forgiveness

Programs

May 2010

ISAC Programs Child Welfare Student Loan Forgiveness

Program Illinois Teachers and Child Care Providers

Loan Repayment Program Nurse Educators Loan Repayment

Program Veterans’ Home Nurse Loan Repayment

Program Public Interest Attorney Loan Repayment

Assistance Program2

Child Welfare Student Loan Forgiveness Program

Illinois statute 110 ILCS 923/ Went into effect January 1, 2006 Subject to appropriation Has not been funded since its inception ISAC administrative rules available on

College Zone Part 2769

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Child Welfare Student Loan Forgiveness Program

Purpose: to attract capable and promising students

to the child welfare profession increase employment and retention of

individuals who are working towards a degree in the field of social work or human services

provide opportunities for persons making mid‑career decisions to enter the child welfare profession

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Illinois Teachers & Child Care Providers Loan Repayment

Illinois statute 110 ILCS 947/65.56 ISAC administrative rules Part 2767

First became effective July 1, 2003 2009-10 appropriation was $500,000

All funding has been expended 2010-11 appropriation is not finalized

Governor’s initial budget proposal was $500,000

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Purpose: To encourage students to enter and

remain in the teaching profession in Illinois in low income schools

To encourage students to enter and remain in the early child care profession and serve in low income areas in Illinois

Federal Child Care Provider Loan Forgiveness Program is no longer available to new applicants.

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To be eligible, applicants must be: a U.S. citizen or eligible noncitizen a resident of Illinois a borrower who has had an educational loan

forgiven pursuant to Section 428J or 428K of the Higher Education Act

a borrower who has fulfilled the federal requirements in Illinois

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Applicants must: complete an ISAC application provide documentation of teaching service in

Illinois apply within six months after receiving

notification of federal loan forgiveness Eligible applicants can receive up to

$5,000 to repay student loan debt Repayment will be made based upon the

lesser of: The amount forgiven under Section 428J or 428K of

the HEA, or $5,000 9


Documentation that must be attached to the application: a copy of the Teacher Loan Forgiveness

Application that was used to forgive the applicant’s FFELP or Direct Stafford loan(s)

a copy of documentation from the guarantee agency and/or ED showing the amount of the forgiven loan(s) and the date that the loan(s) was forgiven

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Federal Programs 428J: Loan Forgiveness for Teachers

for any new borrower on or after October 1, 1998 a consolidation loan qualifies only if it was used to repay a

Federal Direct Loan cancels up to $5,000 if the borrower teaches full-time

for five consecutive years in a low-income school cancels up to $17,500 for teachers in math, science

or special education borrowers cannot receive benefits under this section

and section 428K school librarians, guidance counselors and other

administrative staff are not considered teachers for the purposes of this program

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Federal Programs 428K: Loan Forgiveness in Areas of National

Need defines Early Childhood Educators as eligible borrowers no appropriation cancels up to $2,000 for each year of full-time

employment in an area of national need maximum benefit that a borrower can receive is

$10,000 borrower cannot receive forgiveness for more than five

years of service borrowers cannot receive benefits under this section

and section 428J

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Federal Resources Information and application available at:

www.FederalStudentAid.ed.gov/tc DCL Gen-08-11

http://ifap.ed.gov/dpcletters/GEN0811.html

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Borrower Identification

Loan Forgiveness

Request

Chief Administrative

Officer’s Certification

Nurse Educator Assistance Act

Illinois statute 110 ILCS 967/ Nurse Educator Scholarship Program

Went into effect July 2006 ISAC Administrative Rules – Part 2759 Authorized to provide scholarships until July 1, 2010;

won’t be available for 2010-11 Nurse Educator Loan Repayment Program

Went into effect July 1, 2007 ISAC Administrative Rules – Part 2758 2009-10 appropriation was $300,000 2010-11 appropriation is not finalized


Nurse Educator Assistance Act

Purpose: Attract students to the nursing

educator profession in an effort to address the nursing shortage in Illinois

Increase employment and retention of individuals working toward a master’s or doctoral degree in nursing

Encourage longevity and career change opportunities

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Nurse Educator Loan Repayment Program

Provides grants of up to $5,000 per year to nurse educators who have taught at an approved Illinois institution List of approved institutions:

http://www.idfpr.com/dpr/WHO/schools/NurseSchools.pdf

Grant dollars must be used to pay down existing student loan debt

Can receive for a maximum of 4 years Application is available on College Zone

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To qualify, applicants must: be a U.S. citizen or eligible noncitizen be a resident of Illinois be a nurse who meets the licensing requirements

of Illinois Department of Financial and Professional Regulation

have worked as a nurse educator in an approved Illinois institution for at least the past 12 consecutive months prior to the date of application

not be in default on any federal guaranteed loans or owe a refund on any ISAC program 19


Applicants must also have an outstanding balance on an eligible educational loan: Stafford loans Graduate PLUS loans Consolidation loans Nursing student loans Supplemental Loans for Students Alternative loans Other types of government and institutional

loans used for nursing education expenses20


Application must be submitted to ISAC each year with supporting documentation: A letter from employer verifying work status for

prior 12 months A statement from the institution that holds the

loan, showing the outstanding balance If a prior recipient, a copy of the payment

history from the institution to which grant proceeds were paid.

If application is incomplete, a letter will be sent to the applicant asking for missing information 21


Award Determination Priority order is based on date that a

complete application is received at ISAC Preference may be given to renewal

applicants Award amount is based on applicant’s

remaining loan balance and cannot exceed $5,000 per year

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Payment Proceeds are sent directly to the institution

holding the loan The loan holder must return any overages to ISAC If multiple loans are held, the institution must

distribute the payment to one loan until paid in full.

A supplemental request can be made to submit funds to another holder

When possible, each loan shall be paid in full before distributing funds to another loan holder

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Veterans’ Home Nurse Loan Repayment Program

Illinois statute 110 ILCS 972/ ISAC Administrative Rules – Part 2757

First went into effect July1, 2007 2009-10 appropriation is $50,000 2010-11 appropriation is not finalized


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Purpose: To encourage nurses to pursue and continue

their careers at a State of Illinois veterans’ home

Provides grants of up to $5,000 per year to nurses who have worked in veterans’ homes in Illinois

Grant dollars must be used to pay down existing student loan debt

Can receive for a maximum of 4 years Application is available on College Zone 26


To qualify, applicants must: be a U.S. citizen or eligible noncitizen be a resident of Illinois not be in default on any federal guaranteed

loans or owe a refund on any ISAC program be a nurse who meets the licensing

requirements of Illinois Department of Financial and Professional Regulation

have completed their probationary period and employment must be in good standing with the Illinois Department of Veterans’ Affairs

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Applicants must work for 12 consecutive months at one of the approved Illinois veterans’ home locations for each year that the grant is received

Anna LaSalle Manteno Quincy

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Applicants must also have an outstanding balance due on an eligible educational loan: Stafford loans Graduate PLUS loans Consolidation loans Nursing student loans Supplemental Loans for Students Alternative loans Other types of government and institutional

loans used for nursing education expenses

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Application process: Submit a complete Veterans’ Home Nurse Loan

Repayment application to ISAC each year with supporting documentation:

A statement from the institution that holds the loan, showing the outstanding balance

If a prior recipient, a copy of the payment history from the institution to which the grant proceeds were paid.

Veterans’ home representative must complete certification section on the application to verify employment

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Public Interest Attorney Loan Repayment Assistance Program

Illinois statute 110 ILCS 916/ Went into effect January 1, 2010 No appropriation Proposed rules will go into effect July 1, 2010

Part 2756

Purpose: to encourage practicing attorneys to pursue

careers as public interest attorneys in Illinois to protect the rights of the State’s most vulnerable citizens

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Public Interest Attorney Loan Repayment Assistance Program

Proposed rules definition of public interest attorney: An attorney practicing in Illinois who is

an assistant State’s Attorney, assistant Public Defender, civil legal aid attorney, assistant Attorney General, assistant public guardian, Illinois Guardianship and Advocacy Commission attorney, or legislative attorney

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Illinois Programs

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ISAC Reminders 2009-10 Processing:

June 1 – MAP payment claims due for third quarter/second semester that started after Feb. 15

June 15 – Student to Student payment claims due for second semester/third quarter

June 18 – Police/Fire/Correctional Officer payment claims due for summer term

June 25 – last day to submit FFELP initial guarantee requests

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ISAC Reminders

2009-10 Processing: July 1 is final close out date for 2009-10

ISAC gift assistance programs July 28 is the last day to submit

cancellations and adjustments to previously-paid MAP and IIA awards that decrease an award

July 30 – MAPnet data for 2009-10 becomes available for historical view only

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ISAC Reminders

2010-11 Processing: June 1 -- Budget packets are due July 15 – Byrd eligibility certification

forms are due August 1 – BIG application expected to

be available

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ISAC Reminders

Commission Meeting June 18, James R. Thompson Center,

Chicago Training Opportunities

Financial Aid 101 – June 15 at Prairie State College and June 22 in Springfield

Financial Aid 201 – June 22 at Prairie State College and June 23 in Springfield

General ISAC Update Webinar – June 29 at 2 p.m.

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ISAC’s Loan Repayment/Forgiveness Programs

Documents

Transcript of ISAC’s Loan Repayment/Forgiveness Programs