WIUM Tristates Public Radio

Altering Student Loan Repayment Schedules

Mar 13, 2014

The Illinois General Assembly is considering a plan for alternative student debt repayment programs.

Many student loans require payment to begin six months after graduation, regardless of whether the graduate is employed. 

Credit Huffington Post

Representative Jack Franks (D-Marengo) said this model is unfair to those having a tough time finding a good job.  

He’s sponsoring legislation to determine how other states are setting up repayment schedules based on the ability to pay.

“I think it'd be much more humane, it'll allow people to go and get higher education without shackling them to this incredible debt that many people just could never dig themselves out of,” said Franks.

Franks said under this "Pay it Forward" program, a repayment schedule would take into account a graduate's employment status and income level.