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DOJ Closes Illinois DEI Loan Repayment Program Review After State Removes Criteria

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Summary

The DOJ announced closure of a compliance review of the Illinois Student Assistance Commission (ISAC) under Title VI of the Civil Rights Act of 1964. The review examined ISAC's Community Behavioral Health Care Professional Loan Repayment Program, which required setting aside at least 30% of funding for applicants of specific racial or ethnic origins. After receiving notice of the compliance review, Illinois voluntarily removed the DEI criteria from this program and other ISAC-administered programs. No penalties or enforcement actions were imposed.

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What changed

The DOJ Civil Rights Division closed its compliance review of ISAC after Illinois removed race-based funding criteria from its loan repayment programs. The original program provision required ISAC to set aside at least 30% of Community Behavioral Health Care Professional Loan Repayment Program funding for applicants who are African American, Black, Hispanic, Latinx, Asian, or Native American.\n\nState educational agencies and other recipients of federal financial assistance should note that Title VI prohibits using race, color, or national origin in determining program beneficiaries. The DOJ's closure of this review without imposing penalties demonstrates that voluntary removal of unlawful criteria can resolve compliance concerns, but entities should ensure their funding criteria comply with civil rights requirements to avoid federal review.

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Apr 16, 2026

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Press Release

Justice Department Announces Completion of Compliance Review After Illinois Removes Unlawful DEI Criteria from Loan Repayment Program

Thursday, April 16, 2026

Share For Immediate Release Office of Public Affairs Today, the Justice Department announced that it has closed a compliance review of the Illinois Student Assistance Commission (ISAC) under Title VI of the Civil Rights Act of 1964 (Title VI). The Department opened this review based on a provision of the Community Behavioral Health Care Professional Loan Repayment Program that required ISAC to set aside at least 30% of funding for applicants who are of “African American or Black, Hispanic or Latinx, Asian, or Native American origin.” After the Department notified ISAC of the compliance review, Illinois removed this DEI criteria from the Program as well as a number of other programs administered by ISAC.

“State agencies may not accept funds from the Department of Justice and then use race, color, or national origin to decide who benefits from them,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “The Department appreciates that the State of Illinois has recognized that ISAC cannot lawfully base its funding decisions on unlawful criteria and has removed them from this program and others administered by ISAC.”

Title VI prohibits race, color, or national origin discrimination by recipients of Federal financial assistance, including the Illinois Student Assistance Commission. Additional information about the Civil Rights Divisions is available on its website at www.justice.gov/crt.

Updated April 16, 2026 Topic Civil Rights Component Civil Rights Division Press Release Number: 26-366

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Named provisions

Title VI of the Civil Rights Act of 1964

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Last updated

Classification

Agency
DOJ
Published
April 16th, 2026
Instrument
Notice
Legal weight
Non-binding
Stage
Final
Change scope
Minor

Who this affects

Applies to
Educational institutions Government agencies
Industry sector
6111 Higher Education
Activity scope
Federal financial assistance Loan repayment programs
Geographic scope
Illinois US-IL

Taxonomy

Primary area
Civil Rights
Operational domain
Compliance
Topics
Education Consumer Finance

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