About SEF

Overview

Established by Illinois Treasurer Michael W. Frerichs, the Student Empowerment Fund (SEF) is a $1.5 billion impact investment fund that will provide Illinois Borrowers accessible, low-interest student loans. Coupled with Illinois’ 529 College Savings plans, Bright Start and Bright Directions, the State Treasurer’s Office provides a full spectrum of programs to support the educational endeavors and talent development of Illinois residents.

Vision

The Student Empowerment Fund aims to invest more than $1.5 billion on a continuing and recurring basis creating greater access to higher education at a lower borrowing cost for Illinois Communities. The SEF does not seek to compete with or replace the Federal Direct student loan program, rather, it seeks to provide competitively priced private student loan options for students seeking to fill a financing gap or to refinance existing student loans at a lower rate. 

Mission

Educate and empower low- and middle-income collegians and graduates to make confident decisions about student loans and debt so they can thrive.

How SEF Works

The SEF is not a direct lending program. Instead, the Treasurer will loan capital to existing trusted firms that are already providing competitively priced student loans and other financing solutions. Approved lenders then make loans to Illinois residents while proceeds received by the Treasurer are re-invested to provide more loans for Illinois residents.

Policy 

SEF Investment Policy:
The SEF Investment Policy is designed to ensure that the Illinois Treasurer, as well as any contractors the Treasurer retains to provide services related to SEF, take lawful, prudent, and effective actions while supporting SEF. The Investment Policy is designed to allow for sufficient flexibility in the management oversight process to take advantage of investment opportunities as they arise while setting forth reasonable parameters to ensure prudence and care in the execution of SEF.

How SEF Works Illustration

Please click here to access the SEF Investment Policy

Partnerships to Date

S L Capital Strategies

S L Capital Strategies (SLCS) is an independent strategic and financial advisory services firm with expertise in student loans and municipal sectors. As the strategic investment advisors to the Student Investment Account, SLCS provides product and program design recommendations, financial modelling, and financial markets advisory services, amongst other functions. 

Student Borrower Protection Center

The Student Borrower Protection Center (SBPC) is a nonprofit organization solely focused on alleviating the burden of student debt for millions of Americans. The SBPC engages in advocacy, policymaking, and litigation strategy to rein in industry abuses, protect borrowers’ rights, and advance economic opportunity for the next generation of students. As a partner with the Illinois State Treasurer, the SBPC provides insights on borrower-friendly program design, consumer protections, and current events that impact the student lending market. 

Hinshaw & Culbertson, LLP

Hinshaw & Culbertson LLP (Hinshaw) is a national law firm with over 400 lawyers. Among their areas of expertise, Hinshaw focuses on consumer financial services for non-profit and for-profit clients. As advisors to the Student Investment Account, Hinshaw serves as expert outside legal counsel, providing recommendations on program design, risk management, and program oversight.

Chapman and Cutler, LLP

The State of Illinois is represented by Chapman and Cutler LLP in connection with the Student Investment Account.