Class Action Settlement Checks Arrive for Michigan Student Loan Borrowers

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Student loan borrowers are receiving payments in the mail this week from a class action settlement over the former Michigan Students First Borrower Benefit Program, which was cancelled in 2010 by the Michigan Finance Authority (MFA).

The checks are being sent from CPT Group, a class action claims administrator hired to handle the distribution of funds from the Michigan Students First class action settlement.

Payments were automatically mailed to eligible borrowers who, as of June 30, 2010, owed a balance on a student loan that was owned by MFA and were eligible for benefits under the Michigan Students First Borrower Benefit Program.

The class action settlement resolves allegations MFA illegally terminated the Michigan Students First interest-free loan program in 2010, forcing borrowers to pay higher interest rates than originally promised. Under the program, the MFA reduced the interest rates on student loans to zero percent after the borrower made 36 on-time monthly payments.

MFA denied the any wrongdoing but agreed to settle the class action lawsuit in April 2014. Under the settlement, Class Members were eligible to receive between $50 and $1,200. This amount is based on whether their loan is still held by MFA and the original amount of the loan initially borrowed.

TopClassActions.com alerted viewers about the Michigan Students First class action settlement in July. Viewers started reporting this week that they received checks worth an average payout of $100.

Some viewers have expressed concern that the checks are fake, but this is a legitimate class action lawsuit and settlement. Those with questions about the Michigan Students First class action settlement can contact the Settlement Administrator at 1 (844) 761-4088.

Further details on the case, including court documents, can be found at www.MichiganStudentLoanSettlement.com.

The case is Michigan Finance Authority v. Kiebler, et al., Case No. 13-000166-MZ, in the Michigan Court of Claims.