HB 4687 cleared the Illinois Senate on Thursday and now goes to the governor after targeting a rule that can cost state workers their jobs over student loan defaults.
Current Illinois law requires agencies to fire employees who remain in default for six months or more on at least $600 in student debt if they fail to arrange repayment by their sixth month.
Backers say the mandate deters qualified applicants from state jobs and traps struggling borrowers in deeper debt as living costs and student loan interest rates stay high.
The bill, led by State Senator Paul Faraci, would remove the termination requirement and widen hiring and retention opportunities across state agencies.
As federal loan forgiveness is curtailed, will state job protections become the new key to public sector recruitment?
Will employer repayment benefits become more crucial than government programs for indebted workers?