COLLEGE ILLINOIS! CAPSTONE LOAN PROGRAM (PILOT)

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COLLEGE ILLINOIS! CAPSTONE LOAN PROGRAM (PILOT)

Beginning with the 2007-08 academic year, college seniors who are enrolled at institutions participating in the College Illinois! Capstone Loan pilot program may be eligible to borrow money to help them complete the final semester(s) prior to graduation. The Illinois Student Assistance Commission (ISAC) has designed this new alternative loan program to help the students of Illinois complete their undergraduate degree programs. It provides major benefits for borrowers who pursue crucial but lower-paying jobs (such as teachers or social workers) in Illinois.

Eligibility

To be eligible, you must:

Be a U.S. citizen or an eligible non-citizen
Be an Illinois resident
Be enrolled in a degree program at a participating college on at least a half-time basis (unless you are in your final term of study before graduation, during which time enrollment can be less than half time) as an undergraduate student at the senior class level (as determined by the college)
Be a recipient of the loan for no more than two academic years
Apply for federal student financial aid to determine your expected family contribution (EFC) for Federal Stafford Loan eligibility
Maintain satisfactory academic progress as determined by your college
Loan Limits/Eligibility Formula

The financial aid administrator at your college will determine the amount of loan for which you are eligible, based on this formula:

Cost of attendance
- (MINUS) Maximum Federal Stafford Loan at the
dependent undergraduate student level ($5,500)
- (MINUS) Other financial aid you’re expected to receive
= (EQUALS) College Illinois! Capstone Loan eligibility

There is a $1,000 loan minimum for this program.

How to Apply

The College Illinois! Capstone Loan Program application must be completed and submitted online, utilizing an electronic signature process. Co-signers are not required.

Colleges participating in the pilot program will provide their pre-qualified students with access to the online application (via either e-mail or a link on the college's Web site). If you meet the eligibility requirements, attend a participating college and are interested in applying, contact your college's financial aid office.

Interest Rate

The interest rate for the College Illinois! Capstone Loan is fixed at 8.0%. Interest begins to accrue at the time of disbursement, and can either be paid during the in-school and grace periods or be added to the principal balance of the loan when repayment begins.

Borrowers who qualify for certain borrower benefits may earn interest rate reductions.

Fees and Disbursements

There are no front-end (i.e., origination) or repayment fees associated with this program.

Loan proceeds will be sent directly to the college, on behalf of the borrower.

Once a loan enters repayment, a late fee of up to 5% of the installment payment will be charged if any part of an installment payment is not received within 15 days after it becomes due.

Borrower Benefits

Certain incentives are offered to encourage borrowers to work in Illinois, and especially to assist those pursuing careers in lower-paying jobs (e.g., teachers, social workers) that are crucial to the welfare of the citizens of Illinois.

In order to qualify for any of these College Illinois! Capstone Loan Program borrower benefits, you must reside and be employed in the state of Illinois:

Regardless of income, a 1% interest rate reduction can be earned immediately for obtaining Illinois employment. Eligibility begins once you have graduated, entered repayment and become employed in Illinois. Annual proof of Illinois employment is required.
A rate reduction of 1% will be applied if your income is between $30,001 and $50,000 per year. Annual proof of income is required.
A rate reduction of 2% will be applied if your income is $30,000 or less. Annual proof of income is required.
If you work full time and your annual income is $30,000 or less, the outstanding principal on your loan may be reduced by 2% upon the completion of each series of 12 consecutive, on-time payments.
Repayment Provisions

If you return funds within 30 days of the initial disbursement, you will not be assessed interest and your loan will be cancelled in full.

There is a six-month grace period before the first loan payment becomes due. The grace period begins when you graduate or drop below half-time enrollment status. You may, but are not required to, make payments of interest or principal during the in-school and grace periods. Any interest that you do not pay during those periods will be capitalized (i.e., added to the outstanding principal balance) at the end of the grace period.

The repayment period begins the day after the grace period ends. You will receive an electronic monthly statement during the repayment period. Consecutive monthly payments, in the amounts and on the payment due dates indicated on the electronic statements, must be made until all of the principal, interest and any other charges have been paid in full.

If you enter repayment and then return to college to pursue a degree on at least a half-time basis, you may request a deferment. Interest will continue to accrue and will be capitalized at the end of the deferment period.

If you enter repayment and then experience economic or financial hardship, you may request forbearance for up to three years. All periods of forbearance will extend the term of your loan. Interest will continue to accrue and will be capitalized at the end of the forbearance period.

The maximum repayment term for this program is 20 years, excluding periods of deferment and forbearance. The minimum monthly installment payment is $50. Late fees will be assessed for any installment payments not made on time (see the Fees and Disbursements section of this page for specific details).

For the pilot phase, there is no prepayment penalty associated with the College Illinois! Capstone Loan Program.

The loan is cancelled if the borrower dies. Any borrower who becomes permanently disabled must apply for cancellation, and will be required to demonstrate economic hardship in order for the loan to be cancelled.

Participating Illinois Colleges

The following Illinois colleges are participating in the pilot phase of this program. Additional colleges may be added in the future. To ensure that potential borrowers are taking advantage of all possible state and federal financial aid programs before resorting to loans, all colleges participating in the College Illinois! Capstone Loan Program must also be approved to participate in the Monetary Award Program (MAP).

001634 Aurora University
001666 Concordia University Chicago
001750 Dominican University
001692 Illinois State University
001704 Knox College
001710 Loyola University Chicago
001707 Lewis University
004568 Midstate College
001724 Millikin University
001734 North Central College
001745 Quincy University
001746 Robert Morris College
001768 Saint Xavier University
001776 University of Illinois at Chicago
001780 Western Illinois University