Make informed decisions about student loans with help from the Paying for College website. Information regarding debt minimization strategies, your rights and responsibilities, interest, avoiding default, and repayment options are just a sprinkling of topics that we address to ensure you understand the distinctive features of student loans.
Student Loan Program DetailsThe terms for different student loan programs, including amount, interest rate and repayment terms can vary greatly from program to program. It is important to be an educated borrower and review the terms of each program prior to accepting any loan funds. Federal student loans are administered through one of two federal loan programs - the Federal Direct Loan Program or the Federal Family Education Loan Program (FFELP). As of July 1, 2010, no new loans are available through FFELP.
Michigan Guaranty AgencyThe Michigan Guaranty Agency (MGA) works in partnership with commercial lenders which provided loans to borrowers through the Federal Family Education Loan Program. As the guarantor for your FFELP lender, MGA provides assistance to the lender when the lender has difficulty collecting the student loan debt. If no payments are received and the loan defaults, MGA becomes the loan holder and collection attempts continue, with payments due to MGA.
Michigan Finance Authority–Student Loan ProgramsThe Michigan Finance Authority-Student Loan Programs (formerly known as the Michigan Higher Education Student Loan Authority – MHESLA) participated as a lender through the Federal Family Education Loan Program and the Michigan Alternative Student Loan (MI-LOAN) Program. MFA-Student Loan Programs ceased making new loans in 2008. If you have questions regarding repayment of your debt for these programs, please contact their office at 888-643-7521.
Federal Government Loan Types and TermsNew federal student loans must come from the William D. Ford Direct Loan Program. Direct Loans are funded directly by the federal government, which means a student enrolled at that school receives their federal student loans (including Stafford, PLUS and GradPLUS loans) directly from the school instead of from a lender. The following describes terms for new Direct Loans.
Private Education LoansYou may have heard or seen advertisements that suggest you can borrow thousands of dollars to pay college expenses. These advertisements generally are promoting private student loans, also known as alternative loans. Although many students must borrow private loans to meet all of their college costs, there are more cost-effective ways of paying for college. As a result, you should use private loans only as a last resort, if all of your other sources of financing fail to cover your college costs.