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ISAC’s Loan Repayment/Forgiveness Programs May 2010

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ISAC’s Loan Repayment/Forgiveness Programs. May 2010. ISAC Programs. Child Welfare Student Loan Forgiveness Program Illinois Teachers and Child Care Providers Loan Repayment Program Nurse Educators Loan Repayment Program Veterans’ Home Nurse Loan Repayment Program - PowerPoint PPT Presentation

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  • ISACs Loan Repayment/Forgiveness Programs

    May 2010

  • ISAC ProgramsChild Welfare Student Loan Forgiveness ProgramIllinois Teachers and Child Care Providers Loan Repayment ProgramNurse Educators Loan Repayment ProgramVeterans Home Nurse Loan Repayment ProgramPublic Interest Attorney Loan Repayment Assistance Program

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  • Child Welfare Student Loan Forgiveness ProgramIllinois statute 110 ILCS 923/Went into effect January 1, 2006Subject to appropriationHas not been funded since its inceptionISAC administrative rules available on College ZonePart 2769

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  • Child Welfare Student Loan Forgiveness ProgramPurpose:to attract capable and promising students to the child welfare professionincrease employment and retention of individuals who are working towards a degree in the field of social work or human servicesprovide opportunities for persons making midcareer decisions to enter the child welfare profession

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  • Illinois Teachers & Child Care Providers Loan RepaymentIllinois statute 110 ILCS 947/65.56ISAC administrative rules Part 2767First became effective July 1, 20032009-10 appropriation was $500,000All funding has been expended2010-11 appropriation is not finalizedGovernors initial budget proposal was $500,000

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  • Illinois Teachers & Child Care Providers Loan RepaymentPurpose:To encourage students to enter and remain in the teaching profession in Illinois in low income schoolsTo encourage students to enter and remain in the early child care profession and serve in low income areas in IllinoisFederal Child Care Provider Loan Forgiveness Program is no longer available to new applicants.

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  • Illinois Teachers & Child Care Providers Loan RepaymentTo be eligible, applicants must be:a U.S. citizen or eligible noncitizena resident of Illinoisa borrower who has had an educational loan forgiven pursuant to Section 428J or 428K of the Higher Education Acta borrower who has fulfilled the federal requirements in Illinois*

  • Illinois Teachers & Child Care Providers Loan RepaymentApplicants must:complete an ISAC applicationprovide documentation of teaching service in Illinoisapply within six months after receiving notification of federal loan forgivenessEligible applicants can receive up to $5,000 to repay student loan debtRepayment will be made based upon the lesser of: The amount forgiven under Section 428J or 428K of the HEA, or$5,000

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  • Illinois Teachers & Child Care Providers Loan RepaymentDocumentation that must be attached to the application:a copy of the Teacher Loan Forgiveness Application that was used to forgive the applicants FFELP or Direct Stafford loan(s)a copy of documentation from the guarantee agency and/or ED showing the amount of the forgiven loan(s) and the date that the loan(s) was forgiven*

  • Illinois Teachers & Child Care Providers Loan RepaymentFederal Programs428J: Loan Forgiveness for Teachersfor any new borrower on or after October 1, 1998a consolidation loan qualifies only if it was used to repay a Federal Direct Loan cancels up to $5,000 if the borrower teaches full-time for five consecutive years in a low-income schoolcancels up to $17,500 for teachers in math, science or special educationborrowers cannot receive benefits under this section and section 428Kschool librarians, guidance counselors and other administrative staff are not considered teachers for the purposes of this program*

  • Illinois Teachers & Child Care Providers Loan RepaymentFederal Programs428K: Loan Forgiveness in Areas of National Needdefines Early Childhood Educators as eligible borrowersno appropriationcancels up to $2,000 for each year of full-time employment in an area of national needmaximum benefit that a borrower can receive is $10,000borrower cannot receive forgiveness for more than five years of serviceborrowers cannot receive benefits under this section and section 428J

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  • Illinois Teachers & Child Care Providers Loan RepaymentFederal ResourcesInformation and application available at: www.FederalStudentAid.ed.gov/tcDCL Gen-08-11http://ifap.ed.gov/dpcletters/GEN0811.html

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    Borrower Identification

    Loan Forgiveness Request

    Chief Administrative Officers Certification

  • Nurse Educator Assistance ActIllinois statute 110 ILCS 967/Nurse Educator Scholarship ProgramWent into effect July 2006ISAC Administrative Rules Part 2759Authorized to provide scholarships until July 1, 2010; wont be available for 2010-11Nurse Educator Loan Repayment ProgramWent into effect July 1, 2007ISAC Administrative Rules Part 27582009-10 appropriation was $300,0002010-11 appropriation is not finalizedGovernors initial budget proposal was $300,000

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  • Nurse Educator Assistance ActPurpose:Attract students to the nursing educator profession in an effort to address the nursing shortage in IllinoisIncrease employment and retention of individuals working toward a masters or doctoral degree in nursingEncourage longevity and career change opportunities

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  • Nurse Educator Loan Repayment ProgramProvides grants of up to $5,000 per year to nurse educators who have taught at an approved Illinois institutionList of approved institutions: http://www.idfpr.com/dpr/WHO/schools/NurseSchools.pdfGrant dollars must be used to pay down existing student loan debtCan receive for a maximum of 4 yearsApplication is available on College Zone

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  • Nurse Educator Loan Repayment ProgramTo qualify, applicants must:be a U.S. citizen or eligible noncitizenbe a resident of Illinoisbe a nurse who meets the licensing requirements of Illinois Department of Financial and Professional Regulation have worked as a nurse educator in an approved Illinois institution for at least the past 12 consecutive months prior to the date of applicationnot be in default on any federal guaranteed loans or owe a refund on any ISAC program

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  • Nurse Educator Loan Repayment ProgramApplicants must also have an outstanding balance on an eligible educational loan:Stafford loansGraduate PLUS loansConsolidation loansNursing student loansSupplemental Loans for StudentsAlternative loansOther types of government and institutional loans used for nursing education expenses*

  • Nurse Educator Loan Repayment ProgramApplication must be submitted to ISAC each year with supporting documentation:A letter from employer verifying work status for prior 12 monthsA statement from the institution that holds the loan, showing the outstanding balanceIf a prior recipient, a copy of the payment history from the institution to which grant proceeds were paid. If application is incomplete, a letter will be sent to the applicant asking for missing information

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  • Nurse Educator Loan Repayment ProgramAward DeterminationPriority order is based on date that a complete application is received at ISACPreference may be given to renewal applicantsAward amount is based on applicants remaining loan balance and cannot exceed $5,000 per year

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  • Nurse Educator Loan Repayment ProgramPaymentProceeds are sent directly to the institution holding the loanThe loan holder must return any overages to ISACIf multiple loans are held, the institution must distribute the payment to one loan until paid in full.A supplemental request can be made to submit funds to another holderWhen possible, each loan shall be paid in full before distributing funds to another loan holder

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  • Veterans Home Nurse Loan Repayment ProgramIllinois statute 110 ILCS 972/ISAC Administrative Rules Part 2757First went into effect July1, 20072009-10 appropriation is $50,0002010-11 appropriation is not finalizedGovernors initial budget proposal was $50,000

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  • Veterans Home Nurse Loan Repayment ProgramPurpose:To encourage nurses to pursue and continue their careers at a State of Illinois veterans homeProvides grants of up to $5,000 per year to nurses who have worked in veterans homes in IllinoisGrant dollars must be used to pay down existing student loan debtCan receive for a maximum of 4 yearsApplication is available on College Zone

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  • Veterans Home Nurse Loan Repayment ProgramTo qualify, applicants must:be a U.S. citizen or eligible noncitizenbe a resident of Illinoisnot be in default on any federal guaranteed loans or owe a refund on any ISAC programbe a nurse who meets the licensing requirements of Illinois Department of Financial and Professional Regulation have completed their probationary period and employment must be in good standing with the Illinois Department of Veterans Affairs

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  • Veterans Home Nurse Loan Repayment ProgramApplicants must work for 12 consecutive months at one of the approved Illinois veterans home locations for each year that the grant is received AnnaLaSalleMantenoQuincy*

  • Veterans Home Nurse Loan Repayment ProgramApplicants must also have an outstanding balance due on an eligible educational loan: Stafford loansGraduate PLUS loansConsolidation loansNursing student loansSupplemental Loans for StudentsAlternative loansOther types of government and institutional loans used for nursing education expenses

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  • Veterans Home Nurse Loan Repayment ProgramApplication process: Submit a complete Veterans Home Nurse Loan Repayment application to ISAC each year with supporting documentation:A statement from the institution that holds the loan, showing the outstanding balanceIf a prior recipient, a copy of the payment history from the institution to which the grant proceeds were paid. Veterans home representative must complete certification section on the application to verify employment

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  • Public Interest Attorney Loan Repayment Assistance ProgramIllinois statute 110 ILCS 916/Went into effect January 1, 2010No appropriationProposed rules will go into effect July 1, 2010Part 2756Purpose:to encourage practicing attorneys to pursue careers as public interest attorneys in Illinois to protect the rights of the States most vulnerable citizens

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  • Public Interest Attorney Loan Repayment Assistance ProgramProposed rules definition of public interest attorney:An attorney practicing in Illinois who is an assistant States Attorney, assistant Public Defender, civil legal aid attorney, assistant Attorney General, assistant public guardian, Illinois Guardianship and Advocacy Commission attorney, or legislative attorney

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  • Illinois Programs*

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  • ISAC Reminders2009-10 Processing:June 1 MAP payment claims due for third quarter/second semester that started after Feb. 15June 15 Student to Student payment claims due for second semester/third quarterJune 18 Police/Fire/Correctional Officer payment claims due for summer termJune 25 last day to submit FFELP initial guarantee requests

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  • ISAC Reminders2009-10 Processing:July 1 is final close out date for 2009-10 ISAC gift assistance programsJuly 28 is the last day to submit cancellations and adjustments to previously-paid MAP and IIA awards that decrease an award July 30 MAPnet data for 2009-10 becomes available for historical view only*

  • ISAC Reminders2010-11 Processing:June 1 -- Budget packets are dueJuly 15 Byrd eligibility certification forms are dueAugust 1 BIG application expected to be available

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  • ISAC RemindersCommission MeetingJune 18, James R. Thompson Center, ChicagoTraining OpportunitiesFinancial Aid 101 June 15 at Prairie State College and June 22 in SpringfieldFinancial Aid 201 June 22 at Prairie State College and June 23 in SpringfieldGeneral ISAC Update Webinar June 29 at 2 p.m.*

  • Questions/Comments?Thank you for participating today!

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