2008 Woodie Awards
MI-LOAN suspension may affect thousands
By: Laura Brian
Issue date: 2/18/08 Section: News
More than 500 CMU students receiving financial aid through Michigan Alternative Student Loans will have to look elsewhere for funds.
The MI-LOAN program posted a decision on its Web site Friday to temporarily suspend its loan program because of "current and unpredictable capital markets disruption."
Rep. Bill Caul, R-Mount Pleasant, said he was disappointed to hear about the decision, which he said will affect about 8,500 students statewide.
"It's discouraging when everything you hear about is to improve education and work skills, and then the state gets rid of a program that helps students with financial aid," Caul said.
More than 100 Michigan colleges and universities participated in the MI-LOAN program, which gave out $68 million in loans.
According to the MI-LOAN Web site, the suspension will not affect students who had signed up with the program before last Friday.
"It's not going to affect students so much right now," said Diane Fleming, associate director of the Office of Scholarships and Financial Aid.
"They already have their fall and spring loans."
Fleming said MI-LOANs is the third largest loan lender in Michigan and the decision will affect 540 CMU students who currently are enrolled in the program.
"It puts a burden on students to find another lender for the remainder of school," she said.
Lansing junior Robert Tostevin said he used the program for his financial aid.
"If I had taken it out at a bank, the interest rate would've been higher," he said. "I think this will negatively impact students because having the fixed interest rates was beneficial."
Chesterfield junior T. J. Thomas said the suspension of the program will force students to seek out alternative financial aid services.
"I would go to a bank or credit union," he said. "My friends go through services they found online."
Although the Web site states "when conditions warrant and funds become available, the MI-LOANs program will be reinstated," Fleming said it will be doubtful the program will be back for the fall. She said students should look elsewhere for financial aid.
"We encourage students to explore other options and to only borrow what they need and not what they want," she said.
Caul said he is going to do more research on the reasoning behind the suspension of the MI-LOANs program.
To seek out student loan alternatives, visit the alternative funding Web site at www.profed.cmich.edu.
news@cm-life.com
The MI-LOAN program posted a decision on its Web site Friday to temporarily suspend its loan program because of "current and unpredictable capital markets disruption."
Rep. Bill Caul, R-Mount Pleasant, said he was disappointed to hear about the decision, which he said will affect about 8,500 students statewide.
"It's discouraging when everything you hear about is to improve education and work skills, and then the state gets rid of a program that helps students with financial aid," Caul said.
More than 100 Michigan colleges and universities participated in the MI-LOAN program, which gave out $68 million in loans.
According to the MI-LOAN Web site, the suspension will not affect students who had signed up with the program before last Friday.
"It's not going to affect students so much right now," said Diane Fleming, associate director of the Office of Scholarships and Financial Aid.
"They already have their fall and spring loans."
Fleming said MI-LOANs is the third largest loan lender in Michigan and the decision will affect 540 CMU students who currently are enrolled in the program.
"It puts a burden on students to find another lender for the remainder of school," she said.
Lansing junior Robert Tostevin said he used the program for his financial aid.
"If I had taken it out at a bank, the interest rate would've been higher," he said. "I think this will negatively impact students because having the fixed interest rates was beneficial."
Chesterfield junior T. J. Thomas said the suspension of the program will force students to seek out alternative financial aid services.
"I would go to a bank or credit union," he said. "My friends go through services they found online."
Although the Web site states "when conditions warrant and funds become available, the MI-LOANs program will be reinstated," Fleming said it will be doubtful the program will be back for the fall. She said students should look elsewhere for financial aid.
"We encourage students to explore other options and to only borrow what they need and not what they want," she said.
Caul said he is going to do more research on the reasoning behind the suspension of the MI-LOANs program.
To seek out student loan alternatives, visit the alternative funding Web site at www.profed.cmich.edu.
news@cm-life.com
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Student Finance Options
posted 7/25/08 @ 12:26 AM EST
What happened to Rep. Caul's research? I hope these colleges will help the students with the alternative financial aid services to help them with this problem. (Continued…)
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