By Peter Hancock
Residents in Illinois who still owe money on private, nonfederal student loans can now qualify for temporary relief while the COVID-19 pandemic continues. Meanwhile, families with school-age children who receive food assistance will qualify for additional benefits.
Governor JB Pritzker announced those new relief efforts Tuesday as the State reported 1,551 new confirmed cases of COVID-19 and 119 new virus-related deaths over the previous 24 hours. That brought the statewide total for the pandemic to 33,059 confirmed cases and 1,468 fatalities.
Pritzker said the recently-passed federal CARES Act provided relief for those 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 now will 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.
The agreement is part of a multistate effort that involves financial regulators and student loan servicers in California, Connecticut, Massachusetts, New Jersey, Vermont, Virginia and Washington state.
Pritzker announced the State has received federal approval to provide expanded benefits to approximately 300,000 Illinois families with school-age children who receive aid through the Supplemental Nutrition Assistance Program, or SNAP, providing about $112 Million in additional food assistance to those families.
He said his administration is working to expand eligibility for that program to families who qualify for free or reduced price meals in school, but who do not currently receive SNAP.
“No child should ever have to worry about where its next meal is coming from,” Pritzker said.
— Capital News Illinois