How a ‘millionaire’s loan’ changed the lives of millions
A “millionaire credit card” can now be used to pay off thousands of dollars in student loans.
The “millionaires credit card,” as it’s known, was launched last month by the Maryland Housing and Community Development Agency (MCHA) to help students pay for the basics of living in Baltimore.
It allows students to pay for housing through their card balance, which can be deposited in an online savings account.
MCHA’s new credit card, which is available to students from public and private schools and for students enrolled in non-credit-bearing classes, has been credited with helping more than 300,000 students with more than $6 million in student loan payments.
The program is part of a broader initiative that also includes a $25 million loan forgiveness program for low-income students.
“This program allows Marylanders with outstanding student loans to be able to pay their debt off in an affordable and streamlined way,” MCHA director of student financial services Mark Smith said in a statement.
“The program is helping to address the urgent need for more loans for low and moderate income students in Maryland and throughout the country.
It also provides Marylanders access to financial services that will allow them to get on the path toward a more secure and prosperous future.”
The new credit cards were launched by the MCHA to help Marylanders pay for tuition and fees at local, state, and national universities and colleges.
MCA also launched a “credit cards to save” program, which allows students and their families to use their credit cards to pay the balance on a loan from a financial aid agency.
The “millionares credit card is designed to help more than 30,000 Marylanders afford tuition, fees, and living expenses,” said MCHA president John Bowers.
“We are also working with other lenders to make the ‘millionares’ credit card available to low- and moderate-income families and students in the state of Maryland.”
Students who have a mortgage or a credit card will be able use the “millionare” credit card to pay back their loans with interest.
The $25,000 “credit card forgiveness program” is part, but not the only part, of a nationwide effort to make credit cards more affordable for students and families.
For example, students can get a “free credit check” with a credit-card balance of $2,000 if they meet certain criteria.
The check will be issued on the date the student makes payments on a $1,000 or $2.5,000 loan.
Students with a mortgage can use a “magnum” credit-cards-only account, which includes a balance of up to $250,000.
There are also “credit-card forgiveness” programs that offer borrowers a refund of up, 15 percent, or 25 percent of the balance owed on a new or existing credit card.
While the Maryland program is free, the program offers a monthly payment of $50 for the first year, $50 after that, and $200 after the second year.
The fee will be $5 for the next two years.