The measure, led by Democratic state Senator Paul Faraci, cleared the Senate State Government Committee in Springfield on Wednesday.
It would end a rule requiring Illinois agencies to fire employees whose student loans stay in default for six months or more and total at least $600.
Supporters say the change would ease hiring and retention, arguing current penalties are outdated as living costs rise and student loan interest rates hit decades-high levels.
Can state-level job protections make a real dent in the national student debt crisis now facing 7.7 million defaulters?
With new 401(k) matches for student loans, is simply protecting jobs the most effective way for states to aid indebted employees?
As states shield employees from student loan defaults, how will the Treasury’s new collection authority impact their paychecks and tax refunds?