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 Program 2

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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

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 5

Illinois Teachers & Child Care Providers Loan Repayment Illinois statute 110 ILCS 947/65.56 ISAC administrative rules Part 2767 First became effective July 1, appropriation was $500,000 All funding has been expended appropriation is not finalized Governor’s initial budget proposal was $500,000 6

Illinois Teachers & Child Care Providers Loan Repayment 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. 7

Illinois Teachers & Child Care Providers Loan Repayment 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 8

Illinois Teachers & Child Care Providers Loan Repayment 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

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Illinois Teachers & Child Care Providers Loan Repayment 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 11

Illinois Teachers & Child Care Providers Loan Repayment 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 12

Illinois Teachers & Child Care Providers Loan Repayment 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 13

Illinois Teachers & Child Care Providers Loan Repayment Federal Resources Information and application available at: DCL Gen

15 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 Nurse Educator Loan Repayment Program Went into effect July 1, 2007 ISAC Administrative Rules – Part appropriation was $300, appropriation is not finalized Governor’s initial budget proposal was $300,000 16

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 17

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: 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 18

Nurse Educator Loan Repayment Program 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

Nurse Educator Loan Repayment Program 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 expenses 20

Nurse Educator Loan Repayment Program 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

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Nurse Educator Loan Repayment Program 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 23

Nurse Educator Loan Repayment Program 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 24

Veterans’ Home Nurse Loan Repayment Program Illinois statute 110 ILCS 972/ ISAC Administrative Rules – Part 2757 First went into effect July1, appropriation is $50, appropriation is not finalized Governor’s initial budget proposal was $50,000 25

Veterans’ Home Nurse Loan Repayment Program 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

Veterans’ Home Nurse Loan Repayment Program 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 27

Veterans’ Home Nurse Loan Repayment Program 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 28

Veterans’ Home Nurse Loan Repayment Program 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 29

Veterans’ Home Nurse Loan Repayment Program 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 30

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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 32

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 33

Illinois Programs 34

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ISAC Reminders 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 36

ISAC Reminders Processing: July 1 is final close out date for 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 becomes available for historical view only 37

ISAC Reminders Processing: June 1 -- Budget packets are due July 15 – Byrd eligibility certification forms are due August 1 – BIG application expected to be available 38

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. 39

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