Ahead of a Supreme Court decision on President Biden’s student loan forgiveness, Gov. Whitmer signed an executive order aimed at lowering costs and loan burdens for Michigan students. The order directs several state departments to look at cost-cutting measures.
It instructs the Michigan Department of Treasury to look into whether offering state loans would lower interest rates and help underserved communities. The department will also look into the effects of allowing Michiganders to refinance their current loans with the state.
In addition, the department will also work with the Michigan Department of Education and higher education institutions in Michigan to find ways to better educate students on their options as borrowers.
“Paying for a college education often requires students and families to take out loans to cover tuition, books and housing,” said State Treasurer Rachael Eubanks. “Finding innovative and responsible ways to make student loans more affordable can help students achieve their dreams while minimizing the amount of debt needed.”
The Michigan Department of Agriculture and Rural Development, including the Office of Rural Development, the Office of the State Employer, and the Department of Labor and Economic Opportunity, are instructed to look at any way they can lower costs for borrowers.
The Department of Insurance and Financial Services will also conduct a study to see if improving regulations could make loans more affordable and increase transparency.