Michigan treasury halting collection activities on delinquent student loans until Sept. 30

LANSING, Mich. — The Michigan Department of Treasury announced today that collection activities on delinquent Federal Family Education Loan Program (FFELP) student loans, made by a financial institution and serviced by the Michigan Guaranty Agency, will be halted until Sept. 30, 2020.

 The state Treasury Department has stopped all wage garnishments and offsets to pay outstanding FFELP student loans serviced by the Michigan Guaranty Agency. Borrowers who are currently in repayment agreements will not be penalized if a payment is missed through Sept. 30, 2020.

Michiganders who have FFELP loans serviced by the Michigan Guaranty Agency and are encountering repayment issues are encouraged to call 1-800-642-5626. Service representatives can discuss payment options with borrowers.

 Some FFELP loans were made by private lenders, and guaranty agencies insured these funds. Since 2010, no new FFELP loans have been issued by the federal government.

 To learn more about state student finance programs, go to www.michigan.gov/mistudentaid. More information about the Michigan Guaranty Agency is available at www.michigan.gov/mgaloan.