Ill. commission says millions left in student loans

CHICAGO -- The Illinois Student Assistance Commission said it still has $66 million for low-interest, federally secured loans to students for the 2009-2010 academic year.

Rising tuition costs and changes in federal policy that cut lender profits have made it harder to secure student loans. Some banks have dropped out of the student-loan business completely.

The commission said the loans available to students and their families offer more favorable terms than private institutions can. It said interest on federal student loans range from 5.6 to 8.5 percent. It claims interest on equivalent private loan can run as high as 18 percent.

Last year, the commission's student loan division helped provide more than $170 million in loans to more than 32,000 borrowers.