We MTG saves estimated $158million in student loan interest payments

The Michigan Tuition Grant (MTG) not only helps students pay for college but because it reduces the need for student loans, it has a long-term payoff.

For the 17,000 currently able to receive the tuition grant, the MTG will offset an estimated $158 million in loan interest payments for these students after college. The typical student loan has a 5 percent interest rate and most students take 30 years to pay it all off.

$158 million in loan interest savings means that students are able to put that money back into the economy once college is over and they are working. They can purchase a home, a car, and spend or save their earnings rather than paying off loans.