LANSING, Mich. — The Michigan Department of Treasury announced on April 28 that Michiganders who have student loans guaranteed by the state will receive assistance during the pandemic.
Collection activities on delinquent Federal Family Education Loan Program (FFELP) student loans, made by a financial institution and serviced by the Michigan Guaranty Agency, will be halted until Sept. 30, 2020.
“College students should not have to worry about defaulting on their monthly loan payments during the continuing, unprecedented public health crisis,” Gov. Gretchen Whitmer said.
Whitmer also said, “This program will help alleviate a tremendous amount of stress from students with financial hardships as they determine the next steps in completing their education and competing for jobs in the 21st century workforce.”
The state Treasury Department has stopped wage garnishments and offsets to pay outstanding FFELP loans serviced by the Michigan Guaranty Agency.
Borrowers in repayment will not be penalized if a payment is missed through Sept. 30, 2020.
“The COVID-19 pandemic is both a public health emergency and an economic emergency,” State Treasurer Rachael Eubanks said.
Eubanks also said, “If you are encountering financial hardship and cannot pay your state-backed student loans, please contact us so we can walk through your options for assistance.”
Individuals who have FFELP loans serviced by the Michigan Guaranty Agency and are encountering repayment issues are encouraged to call 1-800-642-5626. Service representatives can discuss payment options with borrowers.
Some FFELP loans were made by private lenders, and guaranty agencies insured these funds. Since 2010, no new FFELP loans have been issued by the federal government.
To learn more about state student finance programs, visit the state's student aid page.
For more information about the Michigan Guaranty Agency, visit the state's loan page.
RELATED VIDEO:
MORE on 13 ON YOUR SIDE:
►Make it easy to keep up to date with more stories like this. Download the 13 ON YOUR SIDE app now.
Have a news tip? Email news@13onyourside.com, visit our Facebook page or Twitter. Subscribe to our YouTube channel.
