The MI-LOAN Program provides a practical means for securing financial assistance to pursue your educational goals. It was designed exclusively to assist Michigan students and their families, and strives to provide the best interest rates and loan terms possible.

Eligible Schools
There are over 100 eligible schools that participate in the MI-LOAN Program.

Eligible Applicants
The applicant may be either the student, or the student's parent (biological or adoptive parent) or legal guardian. Applicants who cannot meet the credit standards may apply with a cosigner(s).

Eligibility Requirements
The student must meet the following eligibility requirements:

• Be accepted for enrollment or attending a Michigan degree-granting college or university and, if applicable, be making satisfactory academic progress toward obtaining a degree or certificate, as determined by the school, and
• Not currently be in default on any education loans.

The loan applicant and cosigner(s), if applicable, must meet the following eligibility requirements:

• Be at least 18 years of age, or an emancipated minor, on the date the application is signed;
• Be a United States citizen or permanent legal resident of the United States; and
• Not currently be in default on any education loans.

The loan applicant and/or cosigner(s), if applicable, must meet the following eligibility requirement:

• Meet all credit standards.

Credit Standards
Loan eligibility is based partly on credit standards that must be met. They include:

• A debt-to-income ratio that does not exceed 45.0%.
• Two years of continuous employment, with the exception of retired individuals who are exempt from this standard.
• A credit history review involving factors, such as previous credit, current account status, level of debt and derogatory public record (tax liens, etc.).

The credit standards must be met by:

• The applicant, if there is no cosigner.
• Either the cosigner alone or the applicant and the cosigner together (applicant's option), if there is only one cosigner with whom the applicant resides and shares household income and debt.
• The cosigner(s), if (1) the applicant does not reside and share household income and debt with the cosigner, (2) the applicant opts that only the cosigner meet the credit standards, or (3) there are two cosigners. Two cosigners are permitted if they reside together and share household income and debt.

Loan Limits
There are minimum and maximum annual loan limits, as well as a maximum cumulative amount that may be borrowed through the program.

• The minimum loan amount is $500.
• The maximum loan amount is the cost of school attendance, minus the amount of estimated financial aid received, as certified by the school.
• The cumulative program maximum is $125,000.

Interest Rates and Reserve Fee
Applicants may choose either a fixed or a variable interest rate when they apply.

• The fixed interest rate is currently 6.95% and remains the same for the life of the loan.
• The variable interest rate is currently 5.70%, effective 07/01/2008 through 06/30/2009. The variable interest rate is adjusted annually on July 1st and is equal to the annual average of the London Interbank Offered Rate (LIBOR) as of the preceding June 1st, plus 1.5%.
• A reserve fee of 3.5% will be deducted from the loan proceeds at disbursement. This fee covers administrative and operational costs.

Loan Disbursement
Loans may be disbursed no earlier then one month prior to the beginning date of the loan period, and may be multiply disbursed, if requested by the school. Disbursement is usually by electronic funds transfer (EFT) to the school, but may be by check payable jointly to the borrower and the school and mailed to the school.

Cancellation
A loan disbursement may be cancelled if:

• The disbursed funds are returned within 30 days of the disbursement date, or
• Within 30 days of the date of the Truth In Lending Disclosure, the school is requested, in writing, with a copy to Firstmark Services or MHESLA, to return the disbursed funds.

A loan, or the remaining balance, may be cancelled if:

• The student dies, or
• The student becomes totally and permanently disabled.

Repayment
The MI-LOAN Program provides a maximum repayment period of 25 years. The repayment period begins when the loan is disbursed and the first loan payment is due within 60 days of the first disbursement. The monthly payment due date and amount is identified in the Truth In Lending Disclosure, which is provided when the loan is disbursed. With the MI-LOAN Program, there is no penalty for prepaying your loan.

Forbearance Options
If you encounter difficulties making your loan payments, the MI-LOAN Program includes a forbearance option that provides for up to five years of forbearance. Forbearance permits borrowers to forbear or postpone making regular loan payments during approved forbearance periods. Forbearance includes making smaller (interest only) payments or no payments, and can be requested for periods up to 12 months at a time. Forbearance months are included in the 25-year maximum repayment period.

Release of Cosigner Option and Forbearance
If the first twenty-four (24) regular payments of principal and interest are paid consecutively and on time, and the borrower meets the required credit standards, the cosigner(s) may be released from all obligations on the loan. Forbearance results in interest only, or the postponement of, payments. Therefore, the release of cosigner option is not available if the first twenty-four (24) regular payments are broken up (not consecutive) due to the use of forbearance. However, forbearance may be used prior to beginning the first regular payment or after the 24 consecutive payments have been completed.

Electronic Payment Savings
The interest rate on your loan will be reduced by one-quarter of one percent (0.25%) when your regular monthly payments (of principal and interest) are automatically deducted directly from your checking or savings account. In addition, this affords you with safe, reliable and convenient payment services.

For more information or to request electronic payment (KwikPay®), contact Firstmark Services toll-free at 888 295-0902, or visit their Web site at www.firstmarkservices.com.

Loan Servicing
MI-LOAN Program loans are originated and serviced for the Michigan Higher Education Student Loan Authority by a student loan servicer, Firstmark Services (Firstmark). Firstmark handles all aspects of the loan process from initial receipt of an application until the loan is paid in full. Borrowers may contact Firstmark with any MI-LOAN Program questions or concerns.

Firstmark Services
P O Box 25410
Woodbury, MN 55125-0410
Fax: 800-451-2528

Web Site
http://www.firstmarkservices.com/students.aspx
Access to update your address and phone information, make payments on-line, and access general loan information on disbursed loans; 24 hours a day, 7 days a week.

Borrower Origination/New Loan Hotline
New Application Processing/Application Denial Appeals: 800-935-2275 (toll-free)
Hours: 8:00 a.m. to 4:30 p.m. CST (9:00 a.m. to 5:30 p.m. EST)
For Origination calls after 4:30 p.m. CST, call Customer Service at the number listed below.

Customer Service
Repayment/Forbearance Requests: 888-295-0902 (toll-free)
Hours: 7:00 a.m. to 8:00 p.m. CST (8:00 a.m. to 9:00 p.m. EST)

Payment Address
Firstmark Services
P O Box 2977
Omaha, NE 68103-2977