SPRINGFIELD, IL (Chambana Today) – Illinois students who struggle to secure traditional college loans now have a new financial lifeline. Treasurer Michael Frerichs announced today the launch of the Funding U Illinois No-Cosigner Loan, a part of his Student Empowerment Fund initiative. This new option is designed to help students cover in-state higher education costs without needing a credit-worthy cosigner.
Frerichs emphasized the growing financial burden of college and the need for accessible funding alternatives. “Financial aid often doesn’t cover all of the costs, and we are offering a solution to help students bridge the gap,” he said.
Offered in collaboration with Funding U, the No-Cosigner Loan is open to Illinois residents attending in-state public or private not-for-profit institutions. Interest rates for the fixed-rate loan range from 7.99% to 9.49%. The loan is aimed at students who may be first-generation or low-income, lacking access to a cosigner or traditional credit history.
This new loan joins existing programs offered through ISL Education Lending, including the Illinois Partnership Loan and the Illinois College Family Loan. These options allow for even lower APRs, ranging from 3.45% to 6.77%, provided the borrower or co-signer has a credit score of at least 660.
According to the Treasurer’s Office, the Student Empowerment Fund has already issued nearly 700 loans totaling $10.8 million since its launch in 2023. The average loan is around $21,000, with top borrowing schools including Illinois State University, Augustana College, the University of Illinois, Lewis University, and Southern Illinois University.