Student Empowerment Fund (“SEF”) provides capital for low-rate loans to make education more accessible for Illinois residents who are attending a non-profit or not-for-profit Illinois University. The SEF aims to alleviate student debt burdens in Illinois and make it possible for more students to pursue higher education. The Treasurer’s Office – which also stewards a nationally-recognized 529 College Savings Account program – views SEF as an investment in the future of Illinois residents and part of a comprehensive approach to improve higher education.

About the Student Empowerment Fund

The SEF program was created to educate and empower Illinois collegians and graduates to make confident decisions about student loans and debt. SEF loans are here to support residents seeking to attend college who have exhausted all federal financial aid by providing loans at lower rates than other private competitors.

Through partnerships with reputable lenders, we will make low-rate student loans and refinancing accessible, so Illinois collegians and graduates can learn today and thrive tomorrow.

We are excited to announce our first partnership with ISL Education Lending. Through ISL, Illinois residents can access the low-rate student loans made possible by SEF.  We look forward to building additional partnerships in the future to expand loan accessibility for all Illinoisians.

Why Was SEF Created?

For the 2021-2022 academic year, annual costs (adjusted to 2021 dollars) for tuition, fees, room, and board were estimated to be $21,800 at public four-year institutions and $51,100 at private four-year nonprofit institutions1. During those same years, the Federal Direct loan limits for first-year dependent and independent undergraduates were $5,500 and $9,500, respectively2. Increasingly, private student loans fill the gaps that federal loans, grants, and scholarship aid fail to cover. Students can and have found themselves choosing between taking on expensive private debt or dropping out of school. The cost of higher education can cause graduates to delay home purchases, retirement savings, business ventures, and other major economic decisions3.

Student Loan Debt Growth Relative to Student Borrowers

Source: U. S. Federal Reserve & U. S. Department of Education

Student Debt in Illinois by the Numbers

13% Illinois Residents with student loan debt

$37,757 Average student loan balance per borrower

$61 billion Approximate amount of student loan debt held in Illinois

7th Highest on the list of average debt in the United States

55% Student Loan Borrowers under 35

For more information on how student loans work, and how to successfully pay off student loans, visit the Illinois Treasurer financial literacy page! 

The Illinois Partnership Loan is the product empowered by the partnership between the STO and ISL Education Lending (ISL). ISL is a nonprofit education lending organization with a spotless record and strong student borrower protections. The STO will provide low-cost capital to ISL to provide low-interest rate loans to Illinois residents attending Illinois institutions of higher education.  

The Illinois Partnership Loan program offers loans with no fees, flexible in-school payment options, and an interest rate cap at 7%. The Illinois Partnership Loan will be offered to all Illinois residents attending a not-for-profit Illinois institution.

We would like to encourage borrowers to max out federal loans before pursuing any of ours. Learn More

Illinois Partnership Program (ISL): 3.60% - 6.77%

* The lowest annual percentage rate includes a 0.25% interest rate reduction for enrolling in and maintaining auto-debit once the loan is in full interest and the principal payments. Without enrolling in auto-debit, the rate will range from 3.85%–6.77% APR. Note: Not all borrowers receive the lowest rate. If you are approved for a loan, the rate offered will depend on your credit profile and the term you select and will be within the ranges shown above assuming the auto-debit interest rate reduction applies.