State offers student loan help during COVID-19 crisis

Michigan

Lansing, MI (WLNS) – If you’re struggling to repay a student loan guaranteed by the state you are in line for some relief.

The Michigan Department of Treasury today announced collection activities on delinquent Federal Family Education Loan Program student loans, made by a financial institution and serviced by the Michigan Guaranty Agency, will be stopped until Sept. 30, 2020.

“College students should not have to worry about defaulting on their monthly loan payments during the continuing, unprecedented public health crisis,” Gov. Gretchen Whitmer said.

According to a news release, the state Treasury Department has stopped all wage garnishments and offsets to pay outstanding FFELP student loans serviced by the Michigan Guaranty Agency.

Borrowers who are currently in repayment agreements will not be penalized if a payment is missed through Sept. 30, 2020.

Individuals who have FFELP loans serviced by the Michigan Guaranty Agency and are encountering repayment issues are encouraged to call 1-800-642-5626. Service representatives can discuss payment options with borrowers.

Copyright 2021 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Michigan Headlines

More Michigan