Illinois to Start Paying Interest on Loan from Federal Government

by Wesley Fox According to the Rockford Register Star, Illinois will soon have to pay interest charges on the $2.2 billion it borrowed from the federal government.  Illinois took out the loan to help pay out unemployment benefits after the state unemployment fund ran dry. Beginning on January 1st, the federal government will begin charging interest...

by Wesley Fox

According to the Rockford Register Star, Illinois will soon have to pay interest charges on the $2.2 billion it borrowed from the federal government.  Illinois took out the loan to help pay out unemployment benefits after the state unemployment fund ran dry.

Beginning on January 1st, the federal government will begin charging interest at about 4 percent, which means Illinois will pay roughly $90 million in interest charges next year if it does not pay down the principal.  This will be on top of the billions in unpaid bills to vendors and the enormous budget shortfall next year.