State Treasury Department to help residents with state-backed student loans

Tuesday, April 28, 2020 - 12:31pm

On Tuesday morning, the Michigan Department of Treasury announced it will provide Michigan residents who have state-backed student loans with assistance during the COVID-19 pandemic.

On Tuesday morning, the Michigan Department of Treasury announced it will provide Michigan residents who have state-backed student loans with assistance during the COVID-19 pandemic. Buy this photo
Alexis Rankin/Daily

On Tuesday morning, the Michigan Department of Treasury announced it will provide Michigan residents who have state-backed student loans with assistance during the COVID-19 pandemic. The state will halt collection activities on delinquent student loans until Sept. 30.

Residents with Federal Family Education Loan Program student loans from a financial institution serviced by the state will not be penalized for missing a payment through the end of September. 

Michigan State Treasurer Rachael Eubanks encouraged students in economic hardship who are unable to pay state-backed student loans to contact the Michigan Guaranty Agency.

“The COVID-19 pandemic is both a public health emergency and an economic emergency,” Eubanks said. “If you are encountering financial hardship and cannot pay your state-backed student loans, please contact us so we can walk through your options for assistance.”

In the Treasury Department’s press release, Gov. Gretchen Whitmer said the program will help decrease the stress on students with financial hardships when finishing their education and finding a job.

“College students should not have to worry about defaulting on their monthly loan payments during the continuing, unprecedented public health crisis,” Whitmer said. “This program will help alleviate a tremendous amount of stress from students with financial hardships as they determine the next steps in completing their education and competing for jobs in the 21st century workforce.”

Daily Staff Reporter Varsha Vedapudi can be reached at varshakv@umich.edu.