Through Michigan Students First (MSF) borrowers can lower the cost of their student loans

Through Michigan Students First (MSF) borrowers can lower the cost of their student loans with:

Payment or reimbursement in an amount equal to the loan origination fee
Reduced PLUS Loan interest rate to 7.9%
Zero percent (0%) interest rate (after the first 36 monthly on-time payments)
Payment or Reimbursement of the Federal 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.

Zero Percent (0%) Interest Rate

After the first 36 monthly on-time payments are received, the interest rate on your loan will be reduced to 0%.

The 0% interest rate will continue as long as your loan remains current. You can keep your loan current by payment, or if eligible, by deferment and/or forbearance.

Federal PLUS Loan 7.9% Reduced Interest Rate

The Federal PLUS Loan interest rate is fixed at 8.5% for loans disbursed on or after July 1, 2006. With Michigan Students First, these Federal PLUS Loan borrowers receive a reduced interest rate of 7.9% on their loans. PLUS loans were originally for parent borrowers. Effective July 1, 2006, graduate and professional students may also apply for a PLUS loan, often referred to as a GRAD PLUS loan. Before applying, a graduate or professional student must first complete the Free Application for Federal Student Aid and must be eligible for his or her maximum loan amount under the Federal Subsidized and Unsubsidized Stafford Loan Program.

Enrollment

Eligible loans are Federal Stafford and Federal PLUS loans first disbursed and purchased between January 1, 2003 and April 17, 2008. Eligible Federal PLUS Loans include loans to both parents and graduate or professional students.

Michigan Students First Savings

Your savings depend on the amount of eligible student loans you have and the length of repayment.

Sign up for Electronic Payment Savings (EPS) and receive a one-quarter of one percent (.25%) interest rate reduction while making your first 36 monthly payments. Through EPS the amount of your monthly payment is automatically deducted each month from your checking or savings account. Once your interest rate has been reduced to zero, the .25% interest rate reduction no longer applies, but EPS still provides you with the convenience of automatic payments.

Consolidation Loans

Federal Consolidation Loans do not qualify for the Michigan Students First program. Therefore, if you consolidate loans in the Michigan Students First program, you will lose the zero percent interest benefit. Please be aware that the current statutory interest rate, and not the zero interest rate, will be used to calculate the consolidation loan interest rate. Please see the Borrower Interest Savings Comparison Chart.

Participating Lenders

Due to the ongoing turmoil in the capital markets MHESLA is forced to suspend its participation in the Federal Family Education Loan Program (FFELP) beginning April 21, 2008. Further information can be found at the links provided below.

- Notice
- Student and Parent Question and Answers
- Governor Granholm Asks for Federal Assistance
Eligible Schools

Obtain a list of the eligible schools that may participate in the Michigan Students First program. Please check with the school's financial aid office for their guidance.

Successful Repayment

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

Additional Questions

Borrowers with additional questions should visit the MSF Frequently Asked Questions document.

For additional information, or if we can assist you in any way, please contact our office:

Lansing: (517) 373-3662
Toll Free: 888-MHESLA1 (888-643-7521)

TDD callers may access our office through the Michigan Relay Center at 800-649-3777

Michigan Higher Education
Student Loan Authority
P.O. Box 30051
Lansing, MI 48909

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