Skip Navigation
Michigan Student Financial Aid: Paying for, Official Website for the State of Michigan Home
close print view

Michigan Engineering Incentive*

The Michigan Engineering Incentive (MEI) is for students receiving Federal Family Education Loan Program (FFELP) Federal Stafford Loans and is exclusively for students who obtained a Federal Stafford Loan from MHESLA or any of the Michigan lenders that have sold this loan to MHESLA. Eligible loans are federal Stafford Loans first disbursed and purchased between August 1, 2005 and April 17, 2008. Effective June 30, 2010, MEI eligible student loans with MHESLA will no longer become eligible for an interest rate subsidy from MHESLA.


  • Zero Percent (0%) Interest Rate - The interest rate on your Federal Stafford Loan will be reduced to 0% at the start of repayment and will continue at 0% as long as you meet the continuing eligibility requirements.
  • Reimbursement of the Federal Loan Origination Fee - The federal loan origination fee will either be paid on your behalf by your lender or your loan will be credited with an amount equal to the origination fee after it has been fully disbursed.


Once you have begun repayment of your loan, you must:

  • Live and work in Michigan, and
  • Keep your loan current throughout repayment by making monthly payments. If eligible, deferment and/or forbearance may also be used.


  • You are either a Michigan resident attending school anywhere in the United States or a non-Michigan resident attending a Michigan school.
  • You must be enrolled in an approved engineering or technology major at a participating FFELP school.
  • Your must receive a Federal Stafford Loan for your junior (third-year undergraduate), senior (fourth-year undergraduate), or fifth-year undergraduate school years.


Federal Consolidation Loans do not qualify for the Michigan Engineering Incentive. Therefore, if you consolidate loans in the Michigan Engineering Incentive program, you lose the 0% interest benefit. Please be aware that the current statutory interest rate, and not the 0% interest rate, will be used to calculate the Federal Consolidation Loan interest rate.


If you run into financial difficulties while paying back your student loans, the worst thing you can do is miss payments or habitually be late in making them. There are several repayment options including deferments and forbearance that borrowers should not miss out on.


Borrowers with additional questions should review the Michigan Engineering Incentive Frequently Asked Questions document.

If your question was not answered, or if we can assist you in any way, please contact our office at:


888-MHESLA1 (888-643-7521)

P. O. Box 30051
Lansing, MI 48909

TTY callers may access our office through the Michigan Relay Service at 800-649-3777.

* MHESLA reserves the right to revise or discontinue offering borrower benefit options at any time.

QR code Home
Michigan Survey

Copyright © 2001-2014 State of Michigan