Kentucky’s Attorney General Office is working with the shuttered Mid-Continent University to offer students discounted payment plans for federal loan debt.
The Mayfield-based Christian institution shut down in June last year after months of financial and accreditation issues. The closure left many enrolled students with unpaid federal loan debt owed to the university, prompting the AG’s office to step in to provide guidance to school officials and students.
MCU released a statement Friday saying students who owe the school but didn’t anticipate federal loans are eligible for two discounted repayment options: a zero-interest 10-year loan at a 20% discount or a single cash payment at a 30% discount. Letters to those students who qualify are expected to be sent this week.
A release on the AG's site mirrors the same information, but adds that MCU and the AG’s office are still determining a repayment plan for students who anticipated federal loans:
Once the Kentucky Office of the Attorney General finalizes its agreement with MCU, students who anticipated the receipt of federal student loans will receive a separate packet offering the two discounted repayment options, plus the option of a loan matching the terms of federal student loans. Those terms provide consumer protections for students that include; in-school deferment, forbearance, and flexible repayment options. This packet will also include information about applying for closed school discharges of MCU balances.
The AG's office asks students who have any questions about repayment or their obligations to e-mail the Office of the Attorney General at mcu3@ky.gov. They may also leave a message at (502) 696-5395.
