Michigan pulls out of federal student loan program

LANSING, Mich. (AP) -- State government has temporarily pulled out of a federal student loan program because of the credit crunch, ending some benefits for the tens of thousands of students who use the program.
Michigan officially suspended its participation in the Federal Family Education Loan Program on Monday, according to a notice posted on the state Treasury Department's Web site. It already had suspended offering new loans through the Michigan Alternative Student Loan Program, or MI-LOAN.
Seventy-five Michigan colleges and universities offer Federal Family Education Loan Program loans through the Michigan Higher Education Student Loan Authority. They include all but four of the state's community colleges; Eastern Michigan, Michigan State and Wayne State universities; several law schools; a variety of trade schools; and private colleges such as Adrian, Albion, Concordia, Finlandia, Marygrove, Northwood, Olivet and Spring Arbor.

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