Your Guide to Student Loan Forgiveness and Repayment Options in Illinois

Student loan debt can be a hefty financial burden holding you back from your goals. As you build your life, you may look for ways to eliminate Illinois student loans from your finances.

That’s when student loan forgiveness can be a useful option. Luckily, several programs are specifically offered to Illinois borrowers. Whether you live in Chicago or the suburbs, you can enjoy the benefits of student loan forgiveness and get debt relief from the federal government and other debt forgiveness programs.

Illinois is home to many borrowers with student debt

In Illinois, the average student loan debt balance was $28,552 for students that graduated in the 2020 school year, according to The Institute for College Access and Success. These numbers include students that graduated from a four-year degree program or longer.

Data from the New York Fed indicates that the total number of borrowers in Illinois was 1.7 million as of June 2020. At that point, the borrowers in the study had an average student loan balance of $37,300, which included federal and private loans that came from a private lender.

It’s clear to see that Illinois borrowers can benefit from student loan forgiveness. Here’s a guide to help you find the options that will work for you.

Illinois student loan forgiveness and repayment programs

As a resident of Illinois, you have access to several student loan forgiveness and repayment assistance programs. These are exclusively designed to help you lower your student loan debt burden.

Let’s take a closer look at the student loan forgiveness and repayment programs available in Illinois.

John R. Justice Student Loan Repayment Program

The John R. Justice Student Loan Repayment Program is available to state and federal public defenders and state prosecutors that agree to remain public defenders and prosecutors for at least three years. You’ll need Federal Family Education Loans (FFEL) or Federal Direct Loans to qualify.

The program offers awards of up to $4,000 per year. Plus, you can receive the award more than once. But the aggregate total cannot exceed $60,000. Keep in mind that any employment commitment you don’t uphold will require you to make a repayment.

Illinois Teachers Loan Repayment Program

As a teacher in the state of Illinois with Federal Stafford Loans, you can qualify for the Illinois Teachers Loan Repayment Program by working in a low-income area. You can determine which low-income areas qualify for this program through the U.S. Department of Education's Teacher Cancellation Low Income Directory.

As a teacher that meets the federal loan forgiveness program, the state of Illinois can provide matching forgiveness funds of up to $5,000.

Veterans’ Home Nurse Loan Repayment Program

As a medical provider actively working in veterans’ homes, you can receive an award of $5,000 per year to repay your student loans through the Veterans’ Home Nurse Loan Repayment Program. You’ll need to be a physician, certified nurse practitioner, registered professional nurse, certified nursing assistant or licensed practical nurse.

Each time you receive the award, you’ll need to complete a 12-month commitment as a medical professional in a veterans’ home. The program will allow you to receive the award up to four times.

Nurse Educator Loan Repayment Program

The Nurse Educator Loan Repayment Program is targeted to help nurses maintain their careers for the long term. You can qualify for the award if you are a nurse educator that’s currently instructing practical or professional nurses for at least 12 months at an approved institution.

As a qualified nurse education, you can receive an annual award of up to $5,000 to repay your student loan debt. You won’t be able to receive the award for more than four years.

Federal loan forgiveness programs available to Illinois borrowers

Beyond state-sponsored or state-administered programs, take advantage of federal student loan forgiveness programs available to Illinois residents.

Public Service Loan Forgiveness

The Public Service Loan Forgiveness Program is available to student loan borrowers with Direct Loans that participate in an income-driven repayment plan. You’ll need to make 120 qualifying on-time monthly payments to be eligible.

If you meet the loan requirements, you must also meet employment requirements. PSLF requires participants to work full-time for a nonprofit or government organization. The duration of your employment with this specific type of employer will need to continue throughout the process of making qualified payments.

Closed School Discharge

If you have federal student loans obtained while attending a school that has since closed, you might be eligible for a closed school discharge. The eligible loans include Federal Direct Loans, FFEL and Perkins Loans.

The requirements differ based on your unique school situation. But it’s possible that you’re eligible for a full discharge of your federal student loans.

Teacher Loan Forgiveness Program

If you are a teacher, you can qualify for the Teacher Loan Forgiveness program. As an educator that completes five consecutive years of teaching in a low-income public school, you might be eligible for forgiveness.

Although the student loan forgiveness amount may differ, the maximum award is $17,500. The type of teaching you commit to will determine the amount of loan forgiveness available. The maximum award for most subjects is $5,000. But if you teach math, science or special education, the maximum award amount is $17,500.

Disability or death discharge

If you are totally and permanently disabled, you may qualify for a discharge of your federal loans. The documentation requirements for this option are very strict. But it could be worth the effort in a difficult situation.

Additionally, the borrower's death will make the loans eligible for discharge. Although this is not helpful for the borrower, it can be important for their loved ones.

Considerations for student loan forgiveness in Illinois

If you have Illinois student loans, your finances might feel pinched. As you explore your options, don’t disregard the opportunities available through federal student loan forgiveness programs. Although you might be drawn to state-specific options, you can save money with federal student loan forgiveness programs.

As you make headway on your student loan repayments, look at all the opportunities. For professional guidance, reach out to our student loan consultants for a clear repayment plan that maximizes your savings.