With the rising cost of a college education, it is imperative that the cost of student loans remains low and under the premise of not for-profit organization.

As college students, we are deeply concerned about the Higher Education portion of the Governor’s proposed budget. It has come to our attention that Governor Blagojevich has proposed to sell the Illinois Student Assistance Commission's (ISAC) loan portfolio to a private organization. As it stands right now, ISAC has saved students over $23 million annually by subsidizing the fees up front; whereas profit driven organizations charge students roughly 3% of the amount borrowed on origination fees and an additional 1% for the guarantee fee.

If that occurs the currently low interest rates could rise as well as the Monetary Award Program (MAP) funding could be greatly reduced if not eliminated.

ISAC not only concerns itself with students but it also greatly affects you, the taxpayers. By operating as a performance-based agency and competing in the market place, ISAC is able to generate revenues that are returned to the residents of the state. These earnings are used to reduce the cost of student loan borrowing, administer state and federally funded programs at no cost to the taxpayers, and to improve the health, welfare, and economic development of the state by increasing educational opportunities. The use of these revenues enriches the State by reducing the taxpayer burden and facilitating access to higher education for thousands of students.

Whether you are a student, a parent, or a taxpayer, your future could greatly change do to the privatization of these loans. Please contact your local legislators, to stop the rising cost of an education. The immediate benefit of this one time revenue gain does not justify the tremendous long term loss of aid and consequential higher burden that students will face.

Arielle Wolf

Lake Land College Student Government Association

This Week's Circulars

Recommended for you