Latest news with #IllinoisBoardofHigherEducation
Yahoo
30-04-2025
- Business
- Yahoo
Editorial: New state loan program for college students misses the real crisis
Illinois Treasurer Mike Frerichs just announced a new program to provide loans to college kids. No cosigner is required. The loans, funded by the state, are aimed at kids in school who are tapped out on financial aid and don't have parents or others who can provide backing for a loan. Without access to private credit, these kids risk having to drop out of school, being already indebted but without the degree to get the kind of job needed to pay off their loans. So Frerichs' product is designed to be a cheaper — and safer — alternative for Illinois college students in this kind of situation than trying to find a private lender on their own. Fair enough. This alternative may be helpful for some students. The option is the latest in a program Frerichs launched two years ago to tap taxpayer money he manages as treasurer for loans to Illinoisans to attend schools in-state, whether private or public. The treasurer's office tells us they collaborate with outside lenders, who underwrite the loans and take all the risk of defaults with no cost to the state. They pay an interest rate, currently 3%, to the treasurer's office, providing a fixed return to the state just below the state's typical return on its bond and fixed-income securities. For the no-cosigner loan, Frerichs' office is partnering with Funding U, a for-profit fintech company based in Atlanta. Interest rates range from 7.99% to 9.49% (hefty numbers but not inordinately high at the moment, unfortunately). If students default, our understanding is that Funding U manages the collection process and, potentially, takes the loss. But this is still a state-sanctioned program and, if only for the sake of optics and trust, Frerichs' office must guarantee that students are not becoming saddled with (or pressured into) loans of a size they cannot possibly pay back. The state has a moral obligation to do so, given that borrowers will see the treasurer's name on this program. Student interests have to be protected, as do taxpayers. Which brings us to the problem of high tuition costs, especially here in Illinois. The state has tried to address this by providing free tuition at the University of Illinois Urbana-Champaign for families at a certain income threshold. Starting next fall, free tuition will be available to households earning $75,000 or less. We've written before about out-of-control college costs. Frerichs' new program isn't a solution to unaffordability. It's a symptom thereof. In Illinois in particular, college is becoming unaffordable for too many kids who'd like to pursue degrees, and cost is driving our young people out of state. Nearly half of the Illinois high school graduates who go on to college are pursuing degrees out of state, according to research from the Illinois Board of Higher Education. Their top six destinations are all in the Midwest: Indiana, Wisconsin, Iowa, Missouri, Michigan and Ohio. By comparison, IBHE notes that in 2002, just 29% of four-year, college-going high school graduates enrolled outside of Illinois. Every student who chooses Indiana, Wisconsin or Missouri over Illinois represents not just a lost tuition dollar, but often a long-term economic loss. Many students stay where they study, taking their talents, energy and tax contributions elsewhere. In the long run, Illinois' refusal to address college affordability is helping to export its future workforce. A lot of other people are trying to fix the problem, including Gov. JB Pritzker who championed legislation allowing community colleges to offer four-year degrees. That innovation has stalled, leaving students fewer affordable choices. As we've said before, increasing the supply of high-quality, four-year degree options is good for everyone except the existing four-year public universities, which is no insignificant caveat. Still, we like options. More choices for students means schools have to compete for applicants. Competition means providing good programming and keeping costs low for would-be attendees. But the governor's legislation didn't advance. At private schools such as Northwestern University and the University of Chicago, tuition can be as much as the down payment on a home. Illinois' flagship public university — Illinois at Urbana Champaign — is inordinately expensive for Illinoisans themselves, particularly compared with the in-state charges for other Big Ten schools. In-state tuition at the University of Wisconsin in Madison last year was just $10,006. At Champaign-Urbana, tuition ranged from $18,046 to $23,426 depending on what degree program a student pursued. In-state tuition at Illinois' flagship university is four times what it was in 2000. When you factor in housing and food costs, plus books, supplies and other expenses, the total cost is over $40,000 a year. For an in-state student. All of this often leads to students graduating with tens of thousands in debt. Now imagine one of those students took out loans and majored in communications. The average salary for a class of 2025 communications major is $60,353, according to the National Association of Colleges and Employers. When you factor in rent, car payments, utilities, food and other basic living expenses, you can see how that money doesn't go especially far in a city such as Chicago. It's no wonder many young people are starting to question the value of a college degree. Another loan program provides greater access to college financing, but it isn't going to do anything to tackle the high — and growing — cost of attending college in Illinois. And these high costs are leading to a new generation of students saddled with decades of high-interest debt. So more financing options are fine. But we need state leaders to focus on making public colleges truly affordable — not forcing vulnerable young people deeper into debt. Submit a letter, of no more than 400 words, to the editor here or email letters@
Chicago Tribune
30-04-2025
- Business
- Chicago Tribune
Editorial: New state loan program for college students misses the real crisis
Illinois Treasurer Mike Frerichs just announced a new program to provide loans to college kids. No cosigner is required. The loans, funded by the state, are aimed at kids in school who are tapped out on financial aid and don't have parents or others who can provide backing for a loan. Without access to private credit, these kids risk having to drop out of school, being already indebted but without the degree to get the kind of job needed to pay off their loans. So Frerichs' product is designed to be a cheaper — and safer — alternative for Illinois college students in this kind of situation than trying to find a private lender on their own. Fair enough. This alternative may be helpful for some students. The option is the latest in a program Frerichs launched two years ago to tap taxpayer money he manages as treasurer for loans to Illinoisans to attend schools in-state, whether private or public. The treasurer's office tells us they collaborate with outside lenders, who underwrite the loans and take all the risk of defaults with no cost to the state. They pay an interest rate, currently 3%, to the treasurer's office, providing a fixed return to the state just below the state's typical return on its bond and fixed-income securities. For the no-cosigner loan, Frerichs' office is partnering with Funding U, a for-profit fintech company based in Atlanta. Interest rates range from 7.99% to 9.49% (hefty numbers but not inordinately high at the moment, unfortunately). If students default, our understanding is that Funding U manages the collection process and, potentially, takes the loss. But this is still a state-sanctioned program and, if only for the sake of optics and trust, Frerichs' office must guarantee that students are not becoming saddled with (or pressured into) loans of a size they cannot possibly pay back. The state has a moral obligation to do so, given that borrowers will see the treasurer's name on this program. Student interests have to be protected, as do taxpayers. Which brings us to the problem of high tuition costs, especially here in Illinois. The state has tried to address this by providing free tuition at the University of Illinois Urbana-Champaign for families at a certain income threshold. Starting next fall, free tuition will be available to households earning $75,000 or less. We've written before about out-of-control college costs. Frerichs' new program isn't a solution to unaffordability. It's a symptom thereof. In Illinois in particular, college is becoming unaffordable for too many kids who'd like to pursue degrees, and cost is driving our young people out of state. Nearly half of the Illinois high school graduates who go on to college are pursuing degrees out of state, according to research from the Illinois Board of Higher Education. Their top six destinations are all in the Midwest: Indiana, Wisconsin, Iowa, Missouri, Michigan and Ohio. By comparison, IBHE notes that in 2002, just 29% of four-year, college-going high school graduates enrolled outside of Illinois. Every student who chooses Indiana, Wisconsin or Missouri over Illinois represents not just a lost tuition dollar, but often a long-term economic loss. Many students stay where they study, taking their talents, energy and tax contributions elsewhere. In the long run, Illinois' refusal to address college affordability is helping to export its future workforce. A lot of other people are trying to fix the problem, including Gov. JB Pritzker who championed legislation allowing community colleges to offer four-year degrees. That innovation has stalled, leaving students fewer affordable choices. As we've said before, increasing the supply of high-quality, four-year degree options is good for everyone except the existing four-year public universities, which is no insignificant caveat. Still, we like options. More choices for students means schools have to compete for applicants. Competition means providing good programming and keeping costs low for would-be attendees. But the governor's legislation didn't advance. At private schools such as Northwestern University and the University of Chicago, tuition can be as much as the down payment on a home. Illinois' flagship public university — Illinois at Urbana Champaign — is inordinately expensive for Illinoisans themselves, particularly compared with the in-state charges for other Big Ten schools. In-state tuition at the University of Wisconsin in Madison last year was just $10,006. At Champaign-Urbana, tuition ranged from $18,046 to $23,426 depending on what degree program a student pursued. In-state tuition at Illinois' flagship university is four times what it was in 2000. When you factor in housing and food costs, plus books, supplies and other expenses, the total cost is over $40,000 a year. For an in-state student. All of this often leads to students graduating with tens of thousands in debt. Now imagine one of those students took out loans and majored in communications. The average salary for a class of 2025 communications major is $60,353, according to the National Association of Colleges and Employers. When you factor in rent, car payments, utilities, food and other basic living expenses, you can see how that money doesn't go especially far in a city such as Chicago. It's no wonder many young people are starting to question the value of a college degree. Another loan program provides greater access to college financing, but it isn't going to do anything to tackle the high — and growing — cost of attending college in Illinois. And these high costs are leading to a new generation of students saddled with decades of high-interest debt. So more financing options are fine. But we need state leaders to focus on making public colleges truly affordable — not forcing vulnerable young people deeper into debt.
Yahoo
04-04-2025
- Politics
- Yahoo
Senate Democrats champion program to streamline Illinois college applications
Program is a Pritzker initiative, aimed at making Illinois colleges more affordable By JADE AUBREYCapitol News Illinoisjaubrey@ SPRINGFIELD — Illinois Senate Democrats voiced their support Thursday for a bill that would create a program to streamline high school students' college application processes, reducing fees and making higher education more affordable. An initiative of Gov. JB Pritzker, the direct admission program is described as a 'one-stop shop' for students that would bypass all college application fees. Sen. Christopher Belt, D-Swansea, spoke at a news conference in the Statehouse, calling the bill 'a critical step we're taking to make higher education more accessible to students across Illinois.' 'The college admissions process can be a daunting experience, high school seniors and community college transfer students already have enough on their plates,' he said. 'The last thing that they need is a complicated application process filled with extra fees, paperwork and delays.' Senate Bill 2448 would allow all high school juniors and seniors and community college students to enroll in the program. The bill would allow the Illinois Board of Higher Education to send students a single notification containing all of their admission offers. And students would be able to accept an offer and enroll at the Illinois university they choose through the direct admission program. The bill is still awaiting passage in the Senate. Students would have to 'opt-in' to take part in the program and provide their contact information and GPAs to the Illinois Student Assistance Commission. The commission would then apply admission criteria from each university to find out which universities the student qualifies for admission at. Belt praised the program's time- and cost-saving efficiencies, as students who use the direct admission program wouldn't have to individually apply to every Illinois college, and they wouldn't be subject to the standard college application fees at each. 'This means that they won't have to go through the repeated application process and pay application fees,' he said. 'Instead, they'll be able to focus on what matters most, their education and their future.' All public universities would take part in this program except the University of Illinois Chicago and the University of Illinois Urbana-Champaign. Those universities would offer a 'pre-screened outreach,' where they would directly invite students to apply. 'We have so many bright, talented young people right here in Illinois, and we want them to stay here,' Belt said. 'We want them to pursue their education in our state, to get jobs here, raise their families here, and contribute to the growth and prosperity of our communities.' Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
18-03-2025
- Business
- Yahoo
Quad Cities Business Journal: How the QCA is developing tomorrow's workforce
The Quad Cities region is working to develop tomorrow's workforce through a program from the Illinois Board of Higher Education. Jennifer DeWitt from the Quad Cities Business Journal joined Our Quad Cities News to talk about the Thrive Quad Cities program. For more information, click here. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
09-03-2025
- Business
- Yahoo
Editorial: To keep more college students in state, Illinois must keep tuition affordable
Illinois is home to some of the finest universities in the country. But it's losing students to out-of-state colleges, and many of these young people are choosing not to come home after graduation. What's driving students to head for out-of-state options? It's pretty simple: tuition costs, financial aid and perceived 'quality.' Nearly half of the Illinois high school graduates who go on to college are pursuing degrees out of state, according to research from the Illinois Board of Higher Education. Their top six destinations are all in the Midwest: Indiana, Wisconsin, Iowa, Missouri, Michigan and Ohio. By comparison, IBHE notes that in 2002, just 29% of four-year, college-going high school graduates enrolled outside of Illinois. To his credit, Gov. JB Pritzker is taking this issue seriously. 'There is a 70% likelihood that when they get to whatever that university is outside of Illinois, they're not coming back,' said Pritzker at a news conference earlier this month. 'That's a real problem, so we want to keep our best and brightest in the state.' To fix it, he supports legislation to allow community colleges to offer four-year degrees. Increasing the supply of four-year degree options is good for everyone except the existing four-year public universities — we like options, not least of all because more choices for students means schools have to compete for applicants. Competition means providing good programming and keeping costs low for would-be attendees. And while many of our more prominent higher education institutions have the programming bit down, tuition is pricing out Illinois students and their families. Forget about private institutions such as Northwestern University and the University of Chicago, where annual tuition costs the same as the down payment for a new home. Look at our state institutions. In 2000, in-state tuition at the University of Illinois Urbana-Champaign for an in-state student was $4,526. Today, tuition is about four times as much, ranging from $18,046 to $23,426 depending on what degree program a student pursues. When you factor in housing and food costs, plus books, supplies and other expenses, the total cost is over $40,000 a year. For an in-state student. This price tag induces anxiety in the hearts of parents the state over, who are socking away money in the hopes of being able to help their kids get a good degree. For kids whose parents can't afford to help out, the prospect of taking on $160,000 in student loans is not appealing. In the 1990s and early 2000s, many college students took out loans to be able to afford a college degree, a decision that left them with five-figure or six-figure debt to pay off. After witnessing the resultant financial stress Gen X and millennials have experienced, it's not hard to understand why the next generation is much more risk-averse. Community college is less expensive — tuition and fees at Harper College in the northwest suburbs are just $4,839 per year. That's why many students opt to begin their college careers by getting required credits out of the way for less at community colleges. It's just far more affordable. Yes, expanding community college degree offerings is a good thing. It won't, in our opinion, go far enough to keep college kids in-state. Only competitive tuition pricing at our major four-year institutions can do that. Like everything in Illinois, it all comes back to the money. It's no coincidence that the cost of funding the State Universities Retirement System is consuming a much larger share of the higher education budget. With more state higher education money going toward SURS pension costs, students and their families have to make up the difference. In 2002, the state paid for about 72% of public university costs on average, while students covered 28% through tuition and fees. By 2020, this had nearly reversed, with the state covering only 35.6% on average and students paying 64.4%, according to IBHE. If this trend continues, our public institutions will remain uncompetitive — and so will our workforce. The rising cost of college tuition is an example of how everyday people feel the burden of increasing state government debt and expenses. Brain drain is the painful result. Submit a letter, of no more than 400 words, to the editor here or email letters@
