Within the next week, MCU is sending letters to students who did not anticipate the receipt of federal student loans. It is offering the students two discounted repayment options - a 10-year loan at a 20-percent discount and a single cash payment at a 30-percent discount.
If a student receives this letter and believes that he or she applied and qualified for federal student loans to cover any portion or all of the balance, the student should not complete the repayment paperwork. He or she should immediately inform MCU that he or she anticipated federal student loans to cover all or a portion of the MCU balance.
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.
If students have any questions about repayment or their obligations, they may e-mail the Office of the Attorney General at mcu3@ky.gov. They may also leave a message at (502) 696-5395. Students leaving a message should say and spell their full name and provide a telephone number and e-mail address. You may also mail the Office of Consumer Protection, 1024 Capital Center Drive, Frankfort, KY 40601.
Please continue to check the Office of the Attorney General website at www.ag.ky.gov for more information.
