Borrower Benefits Notification

Effective June 30, 2010, the Michigan Finance Authority (as successor to the Michigan Higher Education Student Loan Authority) discontinued interest rate subsidies in the form of the below borrower benefit programs:

Prompt Pay Savings (loans made in 1997-2002)

Michigan Students First (loans made in 2003-2008)

Michigan Engineering Incentive (loans made in 2005-2008)

Michigan Advantage Consolidation (loans made in 2005-2008)

Borrowers that qualified for one of the above borrower benefit programs by making the requisite on-time payments before June 30, 2010, can maintain their borrower benefits subject to the relevant program terms.  Borrowers that did not qualify by June 30, 2010, were not able to become eligible for a borrower benefit due to the discontinuation of the above programs.

Automated Electronic Payment
Borrowers can receive a 0.25% interest rate reduction if they elect to make monthly loan payments through the automated Electronic Payment Savings (EPS) option.  Borrowers who receive three non-sufficient funds (NSF) notices within a 12-month period will become ineligible for this option.  If the loan loses eligibility, the interest rate will be increased to the current statutory rate.   Borrowers may sign up for an automated EPS through his or her student loan servicer.

All borrower options and benefits are subject to change.