State-Based Loan Programs
State-based loan programs are unique to each state. You'll want to check with your state agency to determine what programs are available. Usually, state-based loans are connected to a shortage or critical need career area and are structured as loan-for-service programs. For many states, these programs include teaching in a designated subject area and/or school district, or working in various health professions.

In general, the student borrower makes a commitment to work a certain number of years in the career area and the loan will be forgiven. If the student borrower does not fulfill the commitment, the loan is repaid with interest. Sometimes the interest rate is considerably higher than the Federal Loan Programs' interest rates. It is important to have a clear understanding of the terms and conditions of a loan-for-service program, especially if you are unable to fulfill your service commitment.

State of Illinois Information