The Michigan Department of Treasury announced a new partnership Wednesday afternoon with Inceptia, a division of the National Student Loan Program, to provide free individual tutoring for Michigan residents who are overdue on their federal student loans.
The Student Loan Delinquency Management Pilot Program will run until next January and is open to Michigan residents who are currently delinquent on their student loans from a public or private non-profit Michigan higher education institute. Participants of the program must be willing to release their credit score two times during the year.
Anne Wohlfert, Treasury Department state bureau administrator, said in a press release addressing student loan delinquency is a state priority.
“This program provides the assistance and guidance needed so Michiganders can follow a path toward financial success,” she said.
As of 2015, Michigan students leave school with an average of $30,045 of debt, according to a report by the Institute for College Access and Success. According to this study, the national average is $30,100.
Participants in the program will work one-on-one with counselors to go over their credit score and household budget management. Participants will also work to develop a repayment plan so they can return to good financial standing.
Inceptia works with schools to educate students on finances through college to create a plan to prevent financial delinquency.
“At Inceptia, our mission is simple: to support schools as they arm students with the knowledge needed to become financially responsible citizens – moving boldly into the future without accumulating the burden of debt and default,” the organization’s website reads.
Program leaders are looking forward to the launch of the Student Loan Delinquency Management Pilot Program will reduce financial delinquency for Michigan residents. NSLP President Randy Heesacker is optimistic about the partnership, according to a University Business article.
“We are proud to work with the state of Michigan to offer our default prevention services to delinquent borrowers,” he said.