CHAMPAIGN – Two area credit unions are among 12 statewide that have collectively pledged to invest nearly $100 million in securities to support student loans.

The University of Illinois Employees Credit Union and Rantoul-based Credit Union 1 plan to buy securities issued by the Illinois Student Assistance Commission.

Those securities will finance low-interest, federally secured loans through the Federal Family Education Loan Program, making college more affordable for college students and their families.

"Making college affordable for thousands of Illinois students is something the U of I Employees Credit Union feels strongly about," said Greg Anderson, the credit union's executive vice president.

Andrew Davis, executive director of the Illinois Student Assistance Commission, said that as a result, the commission should have plenty of money to lend for college education.

Last year, student loan agencies in several states, including Minnesota, Massachusetts and Pennsylvania, ceased lending operations. But Illinois was able to continue, in part as a result of credit union backing.

Those interested in student loans can find out more about them at the Illinois Designated Account Purchase Program's Web site, www.idapp.com.

Through that program, students and families can get Stafford and PLUS loans that have lower interest rates and more favorable terms than private loans.

Interest rates on a government-guaranteed loan are between 6 percent and 6.8 percent, while interest on a private loan can be as high as 18 percent.

Last year, the Illinois Student Assistance Commission issued more than 186,000 grants and scholarships totaling nearly $431 million.