To encourage Illinois students to work, and to continue to work, as social workers in public school districts and Illinois municipalities, the School and Municipal Social Work Shortage Loan Repayment Program provides assistance toward the repayment of student loans.

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110 ILCS 947/65.115 and 20(f)

23 ILLINOIS ADMINISTRATIVE CODE CH. XIX, SEC. 2748

The program is intended to assist in paying eligible loans as an incentive to participate in the social work field, particularly by minority applicants, who are underrepresented as school and municipal social workers. A one-time award of up to $6,500 is available.

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Individuals;

A qualified applicant must be: a) United States Citizen or eligible noncitizen; b) a resident of Illinois; c) a borrower with an outstanding balance due on an eligible educational loan related to obtaining a degree in social work; d) an individual who is not in default on a federally guaranteed educational loan and does not owe a refund on a grant or scholarship program administered by ISAC; an individual who, on the date of application submission, is currently employed and was employed as a social worker for least 12 consecutive months by: 1) an Illinois public elementary school; 2) an Illinois public secondary school; or 3) an Illinois municipality where the social worker did not report directly to a police department.

Individuals

Direct Payments for Specific Use

Education

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All applicants annually must complete the School and Municipal Social Work Shortage Loan Repayment Program application (https://www.isac.org/students/during-college/documents/2425-SMSWSLRP-App.pdf)

ISAC shall annually select the recipients from among those who have submitted complete applications and have supplied required information.

The total number of grants awarded in a given fiscal year and the amount of each award is contingent upon available funding. If funding is insufficient to pay all eligible applicants, awarding will be determined on the basis of the dates that the completed applications were received and in the following order: 1) first to new qualified minority applicants; then 2) to other new, qualified applicants. The amount repaid by ISAC to the grantee shall be no more than the borrower’s remaining balance on all eligible educational loans and shall not exceed $6,500. Benefits under this program are limited to a one-time award. Proceeds will be remitted directly to the holder of the loan(s) to be repaid when the beneficiary designates ISAC as the disbursing agent for this purpose.

The recipient and loan holder shall submit information for eligible educational loans in sufficient time for ISAC to make payments for each year in which the funds are awarded.

Within 30 days of receipt of application.

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Eligible educational loans include: 1) Stafford Loans; 2) Perkins Loans; 3) Graduate PLUS Loans; 4) consolidation loans; 5) Supplemental Loans for Students; 6) alternative loans; and 7) other types of government and institutional loans used for education expenses. Non-eligible loans include: 1) credit card payments; 2) Parent PLUS Loans; 3) loans that have been paid in full; 4) loans from lending institutions that are not governed by State or federal regulations or loans from individuals or family members; 5) any portion of a consolidated loan that cannot be directly attributed to the applicant; and 6) non-education loans, such as home equity loans. If the recipient’s loan holder receives an overpayment, the loan holder shall return the amount of the overage to ISAC. A supplemental request must be made by the recipient and processed by ISAC for any funds to be paid to another holder. When multiple loans are held by a single lending institution, the loan holder shall distribute the payment to one loan until paid in full. When possible, all loans held at a single lending institution shall be paid in full before monies are distributed to another loan holder.

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A one-time award of up to $6,500.

The program is intended to pay eligible loans to add an incentive to minority applicants who are underrepresented as school social workers in maintaining their careers within the State of Illinois.

https://www.isac.org/e-library/documents/administrative-rules/2022-23-ISAC-Rules/2748-Social-Work-LRP.pdf This program is exempt from the Uniform Guidance (2 CFR 200) and the Grant Accountability and Transparency Act (30 ILCS 708) because loans are repaid on behalf of an individual beneficiary.

500 West Monroe, 3rd Floor Springfield, IL 62704

1755 Lake Cook Road Deerfield, IL 60015-5209

https://www.isac.org/students/after-college/forgiveness-programs/SMSWSLRP.html

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FY 2023 : $3,000,000
FY 2024 : $3,000,000
FY 2025 : $3,000,000