Michigan College Student Loans
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The Michigan Higher Education Student Loan Authority is the state-sanctioned provider for the alternative student loans as well as a guarantor agency for the Federal Family Education Loan Program (FFELP). Students and parents will also find Michigan scholarships and grants, and information on the state’s 529 college savings plan.
About MHESLA Loans
It’s nice when a state government names a student loan exactly for what it is. The MI-Loan, formally known as the Michigan Alternative Student Loan, is the state agency’s flagship supplemental loan designed to fill in the blanks once federal funding has taken shape. Almost every student carries some form of federal loan, the Stafford family of loans being the most widely dispensed of all. But federal loans only support one small chunk of college tuition. And very few students can simply survive on those minimal funds.
**Since early 2008 yo-yoing credit and lending markets have put the financial viability of Michigan’s MI-Loan in jeopardy. Suspension of this loan program is possible at any time. Current loans will continue to be serviced.
**Always apply for federal loans before alternative loans.
MI-Loan Programs
There are two slightly different MI-Loans established to provide Michigan students with a low-interest alternative to expensive bank loans:
- Creditworthy Loans are suitable for most students and allow borrowers to choose between fixed or variable interest rates. Students may apply on their own merit or choose a co-borrower.
- Credit Ready Loans are not available to students requiring a co-borrower.
Loan Criteria
In the case of either the Creditworthy or Credit Ready MI-Loans students or borrowers must agree to a credit check. Applicants may take up to 25 years to repay loans depending on details of loan. In order to qualify applicants must be applying for a degree program at a college or university within the state.
Payment Terms and Consolidation
Borrowers on the MI-Loan program may opt to repay the loan in one of three ways: defer all payments until after graduation, pay only on the interest until after graduation, or start paying on the loan as soon as it’s disbursed. When you may have difficulties making multiple loan payments, it’s time to consider a consolidation loan. The Michigan Advantage Consolidation loan makes repaying your student loans a much more comfortable monthly prospect. When you consolidate you allow all your student loans to be refinanced into one longer term, lower interest, lower cost monthly payment that can make your present and your future much less stressful financially.
