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Applications for Reduced Repayment

Before completing and returning the required application to the Michigan Guaranty Agency (MGA):

Michigan Guaranty Agency
P.O. Box 30047
Lansing, MI 48909
Fax: 517-335-7449

  1. Contact MGA at 800-642-5626 to verify for which reduced repayment plan you are eligible.  Eligibility criteria will determine which application you must complete.
  2. MGA REQUIRES supporting documentation for all household income and expenses.  Failure to provide proof of all income and all expenses will delay the processing of your request and may result in denial of your request.  The correct form must be completed in its entirety, signed, and dated to be acceptable.
  3. Required documentation includes:

    A minimum of one current month’s income from any/all sources including, but not limited to, wages, unemployment, Social Security, disability, state assistance, food stamps, child support, etc, for you, your spouse, and/or any other adults who reside with you.

    The full monthly billing statement must be received as proof of each expense claimed.  You do not need to send proof of grocery/personal needs expenses.

    A copy of pages 1 and 2 of your most recently filed federal tax return (1040, 1040A, 1040EZ) to verify allowable exemptions and adjusted gross income (AGI).

    • Proof of Monthly Income
    • Proof of Monthly Expenses
    • Tax Return
  4. Mail, fax or email the completed, signed form and all documentation to the address, fax number, or e-mail address at the top of this page.
  5. After submitting the correct form and all necessary documentation, contact MGA to verify that it was received. 
    • If submitted by mail, allow ten business days before inquiring. 
    • If submitted by fax or email, allow 3 business days before inquiring.

  6. Forms and documentation are reviewed in the order in which they are received.  Reviews take 30-90 days, depending on complexity and the documentation provided.
  7. Failure to maintain an approved monthly payment arrangement may result in your account being assigned to an outside collection agency, administrative wage garnishment proceedings, offset of your state and federal income tax refund(s), or other collection activities.
  8. Borrowers whose loans received Rehabilitation funding after August 14, 2008, are ineligible to rehabilitate again but may still apply for reduced payments through MGA’s Reasonable and Affordable repayment option.  (Note that payments made under this option will not remove your loans from default.)
  9. Borrowers who never rehabilitated or rehabilitated prior to August 14, 2008, are eligible to apply for a reduced payment plan through the Rehabilitation program. (Successful completion of the Rehabilitation program will result in your loans being removed from default status.)