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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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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 Public Interest Attorney Loan Repayment
Assistance Program2
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Child Welfare Student Loan Forgiveness Program
Illinois statute 110 ILCS 923/ Went into effect January 1, 2006 Subject to appropriation Has not been funded since its inception ISAC administrative rules available on
College Zone Part 2769
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Child Welfare Student Loan Forgiveness Program
Purpose: to attract capable and promising students
to the child welfare profession increase employment and retention of
individuals who are working towards a degree in the field of social work or human services
provide opportunities for persons making mid‑career decisions to enter the child welfare profession
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Illinois Teachers & Child Care Providers Loan Repayment
Illinois statute 110 ILCS 947/65.56 ISAC administrative rules Part 2767
First became effective July 1, 2003 2009-10 appropriation was $500,000
All funding has been expended 2010-11 appropriation is not finalized
Governor’s initial budget proposal was $500,000
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Illinois Teachers & Child Care Providers Loan Repayment
Purpose: To encourage students to enter and
remain in the teaching profession in Illinois in low income schools
To encourage students to enter and remain in the early child care profession and serve in low income areas in Illinois
Federal Child Care Provider Loan Forgiveness Program is no longer available to new applicants.
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Illinois Teachers & Child Care Providers Loan Repayment
To be eligible, applicants must be: a U.S. citizen or eligible noncitizen a resident of Illinois a borrower who has had an educational loan
forgiven pursuant to Section 428J or 428K of the Higher Education Act
a borrower who has fulfilled the federal requirements in Illinois
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Illinois Teachers & Child Care Providers Loan Repayment
Applicants must: complete an ISAC application provide documentation of teaching service in
Illinois apply within six months after receiving
notification of federal loan forgiveness Eligible applicants can receive up to
$5,000 to repay student loan debt Repayment will be made based upon the
lesser of: The amount forgiven under Section 428J or 428K of
the HEA, or $5,000 9
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Illinois Teachers & Child Care Providers Loan Repayment
Documentation that must be attached to the application: a copy of the Teacher Loan Forgiveness
Application that was used to forgive the applicant’s 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
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Illinois Teachers & Child Care Providers Loan Repayment
Federal Programs 428J: Loan Forgiveness for Teachers
for any new borrower on or after October 1, 1998 a 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 school cancels up to $17,500 for teachers in math, science
or special education borrowers cannot receive benefits under this section
and section 428K school librarians, guidance counselors and other
administrative staff are not considered teachers for the purposes of this program
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Illinois Teachers & Child Care Providers Loan Repayment
Federal Programs 428K: Loan Forgiveness in Areas of National
Need defines Early Childhood Educators as eligible borrowers no appropriation cancels up to $2,000 for each year of full-time
employment in an area of national need maximum benefit that a borrower can receive is
$10,000 borrower cannot receive forgiveness for more than five
years of service borrowers cannot receive benefits under this section
and section 428J
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Illinois Teachers & Child Care Providers Loan Repayment
Federal Resources Information and application available at:
www.FederalStudentAid.ed.gov/tc DCL Gen-08-11
http://ifap.ed.gov/dpcletters/GEN0811.html
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Borrower Identification
Loan Forgiveness
Request
Chief Administrative
Officer’s Certification
Nurse Educator Assistance Act
Illinois statute 110 ILCS 967/ Nurse Educator Scholarship Program
Went into effect July 2006 ISAC Administrative Rules – Part 2759 Authorized to provide scholarships until July 1, 2010;
won’t be available for 2010-11 Nurse Educator Loan Repayment Program
Went into effect July 1, 2007 ISAC Administrative Rules – Part 2758 2009-10 appropriation was $300,000 2010-11 appropriation is not finalized
Governor’s initial budget proposal was $300,00016
Nurse Educator Assistance Act
Purpose: Attract students to the nursing
educator profession in an effort to address the nursing shortage in Illinois
Increase employment and retention of individuals working toward a master’s or doctoral degree in nursing
Encourage longevity and career change opportunities
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Nurse Educator Loan Repayment Program
Provides grants of up to $5,000 per year to nurse educators who have taught at an approved Illinois institution List of approved institutions:
http://www.idfpr.com/dpr/WHO/schools/NurseSchools.pdf
Grant dollars must be used to pay down existing student loan debt
Can receive for a maximum of 4 years Application is available on College Zone
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Nurse Educator Loan Repayment Program
To qualify, applicants must: be a U.S. citizen or eligible noncitizen be a resident of Illinois be 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 application
not be in default on any federal guaranteed loans or owe a refund on any ISAC program 19
Nurse Educator Loan Repayment Program
Applicants must also have an outstanding balance on an eligible educational loan: Stafford loans Graduate PLUS loans Consolidation loans Nursing student loans Supplemental Loans for Students Alternative loans Other types of government and institutional
loans used for nursing education expenses20
Nurse Educator Loan Repayment Program
Application must be submitted to ISAC each year with supporting documentation: A letter from employer verifying work status for
prior 12 months A statement from the institution that holds the
loan, showing the outstanding balance If 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 21
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Nurse Educator Loan Repayment Program
Award Determination Priority order is based on date that a
complete application is received at ISAC Preference may be given to renewal
applicants Award amount is based on applicant’s
remaining loan balance and cannot exceed $5,000 per year
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Nurse Educator Loan Repayment Program
Payment Proceeds are sent directly to the institution
holding the loan The loan holder must return any overages to ISAC If 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 holder
When possible, each loan shall be paid in full before distributing funds to another loan holder
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Veterans’ Home Nurse Loan Repayment Program
Illinois statute 110 ILCS 972/ ISAC Administrative Rules – Part 2757
First went into effect July1, 2007 2009-10 appropriation is $50,000 2010-11 appropriation is not finalized
Governor’s initial budget proposal was $50,000
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Veterans’ Home Nurse Loan Repayment Program
Purpose: To encourage nurses to pursue and continue
their careers at a State of Illinois veterans’ home
Provides grants of up to $5,000 per year to nurses who have worked in veterans’ homes in Illinois
Grant dollars must be used to pay down existing student loan debt
Can receive for a maximum of 4 years Application is available on College Zone 26
Veterans’ Home Nurse Loan Repayment Program
To qualify, applicants must: be a U.S. citizen or eligible noncitizen be a resident of Illinois not be in default on any federal guaranteed
loans or owe a refund on any ISAC program be 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 Program
Applicants must work for 12 consecutive months at one of the approved Illinois veterans’ home locations for each year that the grant is received
Anna LaSalle Manteno Quincy
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Veterans’ Home Nurse Loan Repayment Program
Applicants must also have an outstanding balance due on an eligible educational loan: Stafford loans Graduate PLUS loans Consolidation loans Nursing student loans Supplemental Loans for Students Alternative loans Other types of government and institutional
loans used for nursing education expenses
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Veterans’ Home Nurse Loan Repayment Program
Application 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 balance
If 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 Program
Illinois statute 110 ILCS 916/ Went into effect January 1, 2010 No appropriation Proposed rules will go into effect July 1, 2010
Part 2756
Purpose: to encourage practicing attorneys to pursue
careers as public interest attorneys in Illinois to protect the rights of the State’s most vulnerable citizens
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Public Interest Attorney Loan Repayment Assistance Program
Proposed rules definition of public interest attorney: An attorney practicing in Illinois who is
an assistant State’s 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 Reminders 2009-10 Processing:
June 1 – MAP payment claims due for third quarter/second semester that started after Feb. 15
June 15 – Student to Student payment claims due for second semester/third quarter
June 18 – Police/Fire/Correctional Officer payment claims due for summer term
June 25 – last day to submit FFELP initial guarantee requests
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ISAC Reminders
2009-10 Processing: July 1 is final close out date for 2009-10
ISAC gift assistance programs July 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
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ISAC Reminders
2010-11 Processing: June 1 -- Budget packets are due July 15 – Byrd eligibility certification
forms are due August 1 – BIG application expected to
be available
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ISAC Reminders
Commission Meeting June 18, James R. Thompson Center,
Chicago Training Opportunities
Financial Aid 101 – June 15 at Prairie State College and June 22 in Springfield
Financial Aid 201 – June 22 at Prairie State College and June 23 in Springfield
General ISAC Update Webinar – June 29 at 2 p.m.
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