How One Illinois Program Helped Pay Off $40K in Student Loans
When Josue Villalpando graduated from the University of Illinois Chicago, he had nearly $49,000 in student loans—and buying a home felt like a dream he’d have to delay.
That changed when he found out about SmartBuy, a unique option under Illinois’ Student Loan Forgiveness Programs. In addition to providing $5,000 toward closing costs for homebuyers, it assisted in the repayment of up to $40,000 in student loans. With that help, Josue finally closed on his first house in Lansing, Illinois.
But Here’s the Problem: It Keeps Shutting Down
SmartBuy sounds like a great deal—and it is. But there’s a catch. The program isn’t funded year-round. It launched, closed, then reopened after three years, only to shut down again in early 2025.
With so many people relying on help, an unstable timeline like that makes it really hard to plan for the future.
Student Loans Are Holding People Back—Big Time
One of the states with the greatest student loan debt is Illinois. We’re talking about $63 billion owed across the board. That debt isn’t just numbers—it’s stopping people from buying homes, having kids, or even choosing certain careers.
A lot of students are skipping fields like medicine or law just because the debt is so huge. Bob Glaves, from the Chicago Bar Foundation, says rising tuition has scared off a lot of smart, capable people—especially those from working-class backgrounds.
One Woman, Four Degrees, and $200K in Debt
Nicole Johnson, 35, is pursuing her fourth master’s degree after earning three. She used education as a way out—but now she’s carrying over $200,000 in loans. When she bought a house, those loans affected the interest rate she could get.
In Illinois, around 1.6 million people are in a similar situation. Most of them owe more than $30,000.
Federal Programs Are Shaky, Too
Programs like SAVE and Public Service Loan Forgiveness (PSLF) offer help, but even those aren’t stable. SAVE has been paused by the courts, and PSLF requires 120 monthly payments before it wipes away your balance.
Nicole is 93 payments in—just 27 to go. If she finishes, her entire debt will be forgiven. But millions don’t even know these options exist.
Only 18% of People Apply for Forgiveness—Why?
Chicago attorney Rae Kaplan says about 30% of Illinois borrowers qualify for relief, but fewer than 1 in 5 apply. Why? A mix of confusion, lack of information, and plain old hopelessness.
“People think it won’t work for them,” she said. “But for most, there’s a path to lower payments or even full forgiveness.”
Illinois Is Trying More Solutions
In addition to SmartBuy, low-interest private loans are now available through the state’s Student Empowerment Fund. Plus, Illinois gave out nearly $4 million in loan relief through seven programs in 2024, with even more money added for 2025.
Still, many who qualify don’t apply.
Bottom Line: You Have Options—But Act Fast
If you live in Illinois and you’re buried in loans, don’t give up. State and federal Student Loan Forgiveness Programs might just help—but only if you act while they’re still open.
And if no one’s talking about them? That needs to change.
