How to Apply for Student Loan Forgiveness in Michigan | Review

Michigan student loan borrowers may qualify for the Loan Forgiveness Program, which can significantly reduce their outstanding repayments. 

The average student loan debt in Michigan is $36,345; more than 7% of its borrowers have more than their $100,000 state student loan debt. 

You can reduce your out-of-pocket costs by participating in the Loan Forgiveness Program. 

Fortunately for Michigan residents, there are state and federal programs for tracking student loan forgiveness.

Federal student loan borrowers have been clamoring for debt relief since President Joe Biden announced a $10,000 relief plan in late August.   

However, after a month of preparation, the application is expected to open in early October.   “Look, this is unheard of. 

There was no textbook anywhere on [how to cancel student loans], just like there was no textbook on how to reopen schools. 

We’re going to do better than expected,” Education Secretary Miguel Cardona told NPR last week.    

According to the latest White House estimates, more than 1.3 million people in Michigan have received at least $10,000 in student debt relief, including 849,300 Pell Scholars who are eligible for scholarships of up to $20,000. eligible to receive. 

See how many people are eligible for debt relief by state: See some relief About 30.3% of all borrowers in Michigan have student loans under $10,000. 

Student loan debt for Michigan residents is:  People can use these savings to buy a home, start a business, get married, or start a family,” Gov. Gretchen Whitmer said in a statement last month. Here’s what Michigan borrowers need to know when rolling out student debt relief programs: 

See Also: How is a Student Loan Different from a Scholarship?

Student Loan Forgiveness in Michigan in 2024

Only a few student loan forgiveness and repayment help options are available to citizens of Michigan. Here are some of the student loan forgiveness and repayment options.

Michigan State Loan Repayment Program

The Michigan Loan Repayment Program (MSLRP) provides student loan assistance to eligible Michigan-based medical, dental, and mental health providers.

 To be eligible, the participant must commit to her two-year service contract and work a minimum of 40 hours a week (45 weeks or more per year).   

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You must also work in a qualified non-profit medical facility located in a designated area where medical professionals are in short supply. The MSLRP provides tax-free loan repayments of up to $200,000 over up to eight years. 

University of Michigan Law School Loan Repayment Assistance Program

Graduates of the University of Michigan Law School seeking low-paying legal positions can apply for the school’s Loan Repayment Assistance Program (LRAP). 

Graduates must first enroll in an eligible IDR plan. You can then apply for LRAP each year and receive benefits the following year.   

Depending on your income, you may be eligible to cover all or part of her eligible annual IDR payments. If the IDR payment is too low to cover the annual interest, the Michigan law school will pay that amount if she has been in the program for at least two consecutive years.

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Federal Student Loan Forgiveness Programs for Michigan Residents

Borrowers from Michigan may be eligible for financial aid through one of the federal student debt forgiveness programs offered by the U.S. Department of Education in addition to state-specific programs.

Public Service Loan Forgiveness

Public Service Loan Forgiveness (PSLF) is a federal student loan forgiveness program for public sector employees. 

To qualify for the PSLF, she must complete 10 years of full-time employment with an eligible employer while making 120 eligible loan payments. Eligible employers include governments and select non-profit organizations.   

Monthly payments do not have to be continuous. So even if you change employers or discontinue your eligible employment, you can still qualify.   

To qualify for the PSLF, you must submit an Employment Verification Form for Government Loan Forgiveness each year. This form also serves as an application to be submitted after 10 years of qualified work.   

Perhaps the biggest advantage of the PSLF is that your loan balance is not considered taxable income by the IRS. If you qualify, your federal student loan debt will be tax-exempt and forgiven.

Income-Driven Repayment

A lesser-known option for loan forgiveness is income-related repayment (IDR) forgiveness. It is not a formal program to apply directly. 

Instead, you can apply for federal loan payments through one of four income-related repayments (IDR) plans:  

Revised Pay As You Earn (REPAYE) allows these repayment plans. Borrowers can pay 10% to 20% of their discretionary income over 20 to 25 years. 

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Depending on the plan, the loan balance will be exempted with fixed monthly repayments over 20 to 25 years.   Unlike the PSLF, all forgiven loans are considered taxable income by the IRS. 

Depending on your loan balance, you could be hit with a sizeable tax bill. The good news is that you have plenty of time to prepare financially for the tax hit.

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Teacher Loan Forgiveness

Qualified teachers can have up to $17,500 in student loan forgiveness through the Teacher Loan Forgiveness program. 

To be eligible for the program, she must have been employed as a full-time “highly qualified” teacher for five consecutive years. 

Your employment must have been at an elementary school, high school, or educational service institution serving low-income students. Another loan forgiveness eligibility varies by grade level and subject taught.   

Highly qualified math, science, and special education teachers are eligible for full funding of up to $17,500, and other subject teachers are eligible for up to $5,000.   

You may apply for teacher loan forgiveness after completing five years of eligible employment at a qualifying low-income school. 

Perkins Loan Cancellation

Eligible teachers are eligible for 100% loan forgiveness through Perkins Loan Foreclosure. 

To qualify, you must be or have taught special education, math, science, or other specified subjects at a qualified low-income school.   

Qualified teachers are eligible for loan forgiveness for 5 years and are given a percentage each year.  

30 Fifth-Year Cancellations  Perkins loan cancellations may, in some cases, extend to other professions and volunteer services, such as law enforcement officers, firefighters, public defenders, and military personnel. 

Cancellation of a Perkins Loan can be requested through the school or her Perkins Loan Officer at the school.   

Personal Loans does not offer a loan forgiveness program. Instead, consider refinancing your student loans to potentially save money at lower interest rates.

Also Read: How to Apply for Student Loan Forgiveness in Michigan | Review

Who is Eligible?

Debt forgiveness is available to federal student loan borrowers who earn less than $125,000 per person or $250,000 per married couple in 2021 or 2020. 

A person is eligible for up to $20,000 in debt relief if they match the income requirements and have ever received a Pell Grant (of any size, at any time). People can visit to learn if they are eligible for a Pell Grant.

When Can People Apply?

The U.S. Department of Education has announced that online applications will be available in early October. 

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The application deadline for qualified borrowers is December 31, 2023. 

Eight million Americans will automatically receive debt relief. The education department will send them a text message and an email.

When will the Debt be Forgiven?

Within six to eight weeks after filing their applications, people might anticipate debt relief. 

“We want to ensure that the process is straightforward and uncomplicated and that individuals who qualify receive the loan relief to which they are entitled.” 

Early October, and we anticipate the procedure to be straightforward, quick, and without hiccups, Cardona said.

Which Loans Qualify?

Only federal and state student loans taken out before June 30, 2022, are acceptable, such as:

  • William D. Ford Federal Direct Loan (Direct Loan) Program loans
  • Subsidized loans
  • Unsubsidized loans
  • Parent PLUS loans
  • Graduate PLUS loans
  • Federal Family Education Loan (FFEL) Program loans held by the education department or in default at a guaranty agency
  • Federal Perkins Loan Program loans held by the education department
  • Defaulted loans (includes federally-held or commercially serviced Subsidized Stafford, Unsubsidized Stafford, parent PLUS, and Graduate PLUS; and Perkins loans held by ED)
  • Consolidation loans


How can I submit an application for Michigan student loan forgiveness? 

Debt forgiveness is available to federal student loan borrowers who earn less than $125,000 per person or $250,000 per married couple in 2021 or 2020. A person is eligible for up to $20,000 in debt relief if they match the income requirements and have ever received a Pell Grant (of any size, at any time).

Does Michigan provide a program to cancel student loans? 

You might be qualified to have your full student loan balance erased after 10 years of working in public service and 120 timely loan payments. 7,000 Michiganders have $406 million in debts erased as of July 2022 thanks to the PSLF.


Completing the student loan forgiveness program takes time. Use the information above to determine if you are eligible for loan forgiveness and how to apply. 

It’s never too early to start thinking about how to save money and pay off student loans.   

If you don’t know what to do, we can help. Consider booking a consultation with one of our student loan planner advisors. 

We have helped thousands of borrowers create customized student loan repayment plans based on their unique needs. They can do the same for you.

People should check that their contact information is current at and with service providers like Nelnet, Mohela, or Navient while they are waiting. 

When debt relief has been applied to borrowers’ balances, loan servicers will notify them. 

When applications are available, the U.S. Department of Education will send email and text message updates.


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