SPRINGFIELD – Illinoisans will soon have access to additional refinancing options for their student loans thanks to a new law championed by State Senator Omar Aquino.

"As the cost of living continues to soar, student loan borrowers need access to meaningful economic relief tools in order to build a secure future,” said Aquino (D-Chicago). “Offering more loan options and reducing interest rates will help borrowers hold on to more of their income for other important expenses."

The new law allows the Illinois State Treasurer to invest in refinanced student loans and work with financial institutions that provide refinancing for student loans. Refinanced loans at lower rates will result in lower payments for borrowers, freeing up spending power and supporting the local economy.

According to the Education Data Initiative, student debt now totals over $62 billion in Illinois, impacting 13% of Illinoisans – around 1.6 million people. The average debt per borrower in Illinois is just under $40,000.

"Student loan debt stands in the way of families reaching their financial goals and holds back local economies by limiting spending and investment,” said Aquino. “By offering borrowers greater flexibility through lower interest rates, we can unlock dollars that would otherwise go toward debt – money that can instead fuel economic growth and support stronger, more resilient communities."

House Bill 1430 was signed into law Friday and is effective immediately.

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