Her first baby slept in a drawer because they could not afford a crib. Today, they live in a lovely suburban home and drive an SUV. What led to this dramatic change? A college education, made possible through student loans.
Maria used to work at a factory folding boxes. One day she was invited to a co-worker’s retirement party. That’s when it hit her. “I don’t want to be here thirty years from now celebrating my retirement.” Maria decided to develop her marketable skills through higher education, so she embarked on a journey that would allow her to graduate from MichiganStateUniversity. Maria and her husband were young parents and could not afford college, but with the help of student loans, Maria’s dream was realized. Today, her entire family enjoys the benefits of higher education.
For the last 32 years the Michigan Higher Education Student Loan Authority (MHESLA) has been fulfilling its mission of providing access and choice to higher education for the people of Michigan. This year MHESLA celebrates reaching the $5 Billion Mark in student loans, financed for the people of Michigan. That means more than 1.5 million loans have benefited hundreds of thousands of Michigan families. Behind every loan there is a story.
The State of Michigan has a long and proud tradition of assisting Michigan families in reaching their higher education goals. “Today, more than ever, we need to prepare our youth for the challenges of a highly competitive global economy, where new technologies demand postsecondary education,” said Gary Harvey, MHESLA’s Director. “Our institutions of higher education are recognized among the best in the nation, and MHESLA is dedicated to providing access for all Michigan families. MHESLA is in its fourth decade of being a catalyst in transforming Michigan’s economy, helping Michigan students take their place as well trained professionals in the marketplace.”
Cognizant of the importance of its role for the future of Michigan, MHESLA has made it a top priority to develop a strategic alliance with Michigan colleges and universities, as well as more than 200 Michigan financial institutions that share the same objectives and values. This public-private partnership is known as The Michigan Solution.
As a result of this collaboration, MHESLA was able to implement what has been recognized as the most generous borrower benefit program in the nation, Michigan Students First (MSF). “While educational loans always should be used conservatively, they promise a remarkable return on investment,” said Patricia W. Scott, Director of the Student Financial Services Bureau. “Michigan Students First improves upon this already positive outcome by offering educational loans with zero fees and zero interest in the final seven years of repayment. Participating borrowers have already saved more than $45 million on educational loans since the programs inception in 2003. More importantly, MSF borrowers can collectively save over $250 million as a result of the MSF 0% interest benefit available to them. MSF addresses affordability by significantly lowering the cost of borrowing for students and parents.”
Dr. Lou Anna Simon, President of Michigan State University, stated, “MichiganStateUniversity has a longstanding tradition of access and affordability, ensuring that students with academic potential will not be denied an MSU education because of financial hardship. We continually seek ways to keep costs down and provide financial assistance for those with need. The Michigan Students First program addresses affordability by significantly lowering the cost of borrowing for students and parents. We are confident that this is the best available program and are proud to partner with a lender coalition, led by MHESLA.”
Dr. Robert Ubbelohde, former President of Finlandia University added, “Seventy-two percent of our students are the first in their families to attend an institution of higher education and the majority of our students come from families of low to moderate incomes. To supplement the scholarships and grants they receive, the majority of our students work at least one job - many work two. The ability to obtain educational loans to supplement work and scholarship aid is critical to our students’ ability to enter and remain in school. Incentives provided by Michigan Students First are a positive and much appreciated feature.”
According to State Treasurer Robert J. Kleine, who chairs MHESLA, the public-private partnership of state government, Michigan colleges and universities, and major financial institutions, understands today’s challenges. “In an era of globalization, Michigan must continue to encourage innovation and diversify economically by preparing our young people for the 21st Century economy. Collaborative programs, like Michigan Students First, will help ensure that the dream of higher education becomes reality for Michigan students and that they are fully prepared for the challenges ahead.”