What is the MI-LOAN Program?
The MI-LOAN Program is a loan program that provides creditworthy students and their parents an alternate source of loan funds to assist in meeting the costs of a postsecondary education. It is offered by the Michigan Higher Education Student Loan Authority (MHESLA) for the exclusive use of students attending Michigan degree-granting colleges and universities, and is intended to help bridge the gap between the traditional federal financial aid resources and college costs.

Do I have to be attending school at least half-time?
No. There is no set number of credit hours for which you must be enrolled.

What is the loan period?
The loan period to which a MI-LOAN Program loan will be applied is defined as "the period of time the student expects to be enrolled and for which loan assistance is being requested, and shall not be more than 12 months".

What are the MI-LOAN Program loan application deadlines?
Loan applications may be submitted up to three months prior to the loan period beginning date, and must be received by our servicer no later then the last day of the last month of the loan period.

The MI-LOAN Program will be temporarily suspended at the close of business on Friday, February 15, 2008. When conditions warrant and funds become available, the MI-LOAN Program will be reinstated.

Who is the borrower?
The applicant (borrower) can be either the student, or their parent (biological or adoptive) or legal guardian. This gives students who are not yet eighteen years of age access to MI-LOAN Program loans through their parent(s). The applicant is always the borrower even if there is a cosigner(s).

What are the eligibility requirements?
The student must meet the following eligibility requirements:

• Be accepted for enrollment, or be attending, a Michigan degree-granting college or university and, if applicable, be making satisfactory academic progress toward obtaining a degree or certification, as determined by the eligible school, and
• Not currently be in default on any education loans.

The applicant and cosigner(s), if applicable, must meet the following eligibility requirements:

• Be at least 18 years of age, or an emancipated minor, on the date the application is signed,
• Be a United States citizen or a permanent legal resident of the United States, and
• Not currently be in default on any education loans.

The applicant and/or cosigner(s), if applicable, must meet the following eligibility requirement:

• Meet all credit standards.

What are the MI-LOAN Program credit standards?
The credit standards are criteria that must be met to qualify for a loan. They include:

• A debt-to-income ratio,
• Two years of continuous employment, with the exception of retired individuals who are exempt from this standard, and
• A credit history review involving factors, such as previous credit, current account status, level of debt and derogatory public record (tax liens, etc.).

Who must meet the credit standards?
The credit standards must be met by:

• The applicant, if there is no cosigner.
• Either the cosigner alone, or the applicant and the cosigner together (applicant's option), if there is only one cosigner with whom the applicant resides and shares household income and debt.
• The cosigner(s), if (1) the applicant does not reside and share household income and debt with the cosigner, (2) the applicant opts that only the cosigner meet the credit standards, or (3) there are two cosigners. Two cosigners are permitted if they reside together and share household income and debt.

Is a cosigner always required?
No. If an applicant can meet the credit standards, a cosigner is not required.

Can there be more than one cosigner?
Yes. Two cosigners are permissible if they reside together and share household income and debt (e.g., father and mother).

Are there minimum or maximum income requirements?
No. However, all credit standards must be met, including a debt-to-income ratio.

How much can I borrow?
The minimum loan amount is $500. The maximum annual loan amount is the cost of school attendance minus the amount of estimated financial aid received. The MI-LOAN Program cumulative program maximum is $125,000.

What determines the loan amount that I receive?
The maximum loan amount you can receive is the lesser of the following (not to exceed the cumulative program maximum identified above): the cost of school attendance minus the amount of estimated financial aid received OR the amount you requested.

What is the interest rate?
The MI-LOAN Program provides the option of choosing between a fixed or variable interest rate at the time of application. Refer to the "Program Overview and Interest Rates" section for the current interest rates.

Are there fees that will need to be paid?
A reserve fee will be deducted from the proceeds of each loan disbursement. The reserve fee establishes a fund to cover administrative and operational costs.

How will the loan be disbursed?
There will be from one to four disbursements, depending upon the recommendation of the school. Disbursement may be by check payable jointly to the borrower and the school, by check payable only to the borrower or by electronically transmitting the funds (EFT) directly to the school.

What are the MI-LOAN Program repayment terms?
MI-LOAN Program repayment terms are as follows:

• The repayment period begins when the loan is disbursed and the first monthly payment is due within 60 days after the first disbursement.
• The monthly payment will be at least $50 per borrower, depending upon the amount owed.
• The loan must be repaid within 25 years from the date of the first disbursement.
• Forbearance is possible for a maximum of five years, which is included in the 25-year payoff requirement.

What is forbearance?
Forbearance assists borrowers who are having difficulties making their loan payments. Forbearance permits borrowers to forbear or postpone making regular loan payments during approved forbearance periods. Forbearance includes making smaller (interest only) payments or no payments, and can be requested for periods up to 12 months at a time. Forbearance months are included in the 25-year maximum repayment period. See the "Forbearance Options" section for more information.

Are there any cancellation provisions?
Yes. A loan disbursement will be canceled if:

• The disbursed funds are returned to MHESLA or our servicer within 30 days of the date of the disbursement, or
• Within 30 days of the date of the Truth In Lending Disclosure, the borrower requests the school, in writing, with a copy to MHESLA or our servicer, to return the disbursed funds.

A loan, or the remaining loan balance, will be cancelled if:

• The student dies, or
• The student becomes totally and permanently disabled.

Note: The loan or remaining loan balance will not be canceled if the cosigner(s) dies or becomes totally and permanently disabled.

Are MI-LOAN Program loans reported to the credit bureaus?
Yes. MI-LOAN Program loans are reported to the national credit bureaus and can be used to assist in establishing a good credit record. Delinquencies, however, can negatively affect a borrower's/cosigner's ability to obtain credit in the future.

What is the definition of default for a MI-LOAN Program loan?
If a MI-LOAN Program loan becomes 120 days delinquent, it is in default. The credit bureaus will be notified of the defaulted loan, which could adversely affect future credit requests. Defaulted loans do not qualify for forbearance.

Who should I contact if I have additional questions?
Borrowers may contact our loan servicer, Firstmark Services, with any MI-LOAN Program questions or concerns.

Firstmark Services
P O Box 25410
Woodbury, MN 55125-0410
Fax: 800-451-2528

Web Site
http://www.firstmarkservices.com/students.aspx
Access to update your address and phone information, make payments on-line, and access general loan information on disbursed loans; 24 hours a day, 7 days a week.

Borrower Origination/New Loan Hotline
New Application Processing/Application Denial Appeals: 800-935-2275 (toll-free)
Hours: 8:00 a.m. to 4:30 p.m. CST (9:00 a.m. to 5:30 p.m. EST)
For Origination calls after 4:30 p.m. CST, call Customer Service at the number listed below.

Customer Service
Repayment/Forbearance Requests: 888-295-0902 (toll-free)
Hours: 7:00 a.m. to 8:00 p.m. CST (8:00 a.m. to 9:00 p.m. EST)

Payment Address
Firstmark Services
P O Box 2977
Omaha, NE 68103-2977