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Montana University System

46 North Last Chance Gulch
P.O. Box 203201
Helena, MT 59620-3201
Phone: (406) 444-6570
Fax: (406) 444-1469
Website: http://www.mus.edu/

There is no separate college loan program run by the state of Montana. State college loans in Montana are the federal loans for college. They are overseen by a Board of Regents appointed by the Governor.

Some Montana schools use the Direct Federal Student Loan Progam- there are no special incentives associated with this program.

The Montana Guaranteed Student Loan Program (MGSLP) is the designated guarantor of the Federal Family Education Loan Program (FFEL). Added benefits are given to borrowers by some of its lenders.

For instance, the Montana Higher Education Student Assistance Corporation (MHESAC) is a company which buys Montana student loans in the secondary market. They offer incentive rewards to their borrowers using their excess funds.

In 2007, MHESAC forgave up to $500 of its borrowers' balance on their loans. They also offer a .25% interest rate reduction for direct payment.

In April 2008, the Montana Higher Education Student Assistance Corporation (MHESAC) announced that it was suspending its federal student loan consolidation program due to the disruptions within the student loan industry.

Montana participates in federal student loan forgiveness programs for jobs in:

Education (Federal Teacher Loan Forgiveness Program)
Health Care (Federal Health Care Worker Loan Forgiveness Programs)
Public Service (Public Service Loan Forgiveness Program)

The state also has its own teacher student loan forgiveness program:

The Quality Educator Loan Assistance Program

for K-12 Montana educators teaching in an impacted school or impacted academic area

an appropriation of $350,000 in 2008 will allow for 100-120 educators to receive repayment

amount is $3,000 per year for up to four years

There is a bill in the Montana legislature (Senate Bill 315) which would repay student loans for Montana workers who are in specified areas of critical worker shortage. It provides up to $3,000 annually for four years.

The federal programs work well in Montana, because of its tight-knit public university system and small student population.

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