Student loan repayments are officially back.
They restarted Oct. 1 for 1.4 million Michigan federal student loan borrowers after being paused for more than three years. Many borrowers are now exploring their repayment options including the new SAVE Plan that rolled out this summer.
Another option: student debt forgiveness.
The federal government offers Public Service Loan Forgiveness for borrowers employed by the government or non-profit organizations and Teacher Loan Forgiveness.
Plus, the Biden administration is rolling out debt cancelation for almost 855,000 borrowers through fixes to the income-driven repayment plan. Another $9 billion of debt was discharged through this program Wednesday, Oct. 4. As of September, nearly 29,000 Michigan borrowers saw $1.3 billion of debt erased.
Related: More than 804,000 student loan borrowers to get debt forgiven
But Michigan has its own student debt relief programs for borrowers who work in certain fields. These programs are not accepting applications right now, but windows will likely open again next year.
Here’s what the state offers:
Michigan State Loan Repayment Program
The Michigan State Loan Repayment Program offers student debt relief for medical, dental and mental health care providers who work in areas with health care shortages. The program provides up to $300,000 of tax-free funds over a period up to 10 years.
Those selected must commit to at least two years at eligible non-profit health clinics.
Out of 136 applicants last year, 80 were awarded loan repayment agreements. The state allocated $2.9 million to the program last year including $1 million in federal funding, $1.3 million of state dollars and $600,000 in employer contributions.
Applications are currently closed, but Michigan will announce the next round in November.
MI Kids Now Loan Repayment Program
The MI Kids Now Loan Repayment Program will pay up to $300,000 in student debt for behavioral health professionals who provide mental health services at nonprofit organizations across the state.
The program is open to psychiatrists, psychologists, social workers, counselors, therapists, case managers and certified behavioral analysts who work at eligible nonprofits or public schools for two years.
Loans will be repaid over a 10-year period.
Applications were open in June this year and July in 2022.
Related: Michigan to repay student loans for behavioral health providers
Michigan Opioid Treatment Access Loan Repayment Program
The Michigan Department of Health and Human Services pays medical providers’ student loans if they offer opioid addiction programs.
Medical and osteopathic medicine doctors, psychiatrists, nurse practitioners, physician assistants and substance use disorder counselors who begin offering or expand opioid addiction treatment can apply for the program. There’s a two-year commitment.
Michigan has offered the MIOTA program for three years. Applications were last accepted in March.
The opioid loan repayment program is being funded by Michigan Opioid Healing and Recovery Fund, which benefits from a nationwide settlement with three pharmaceutical distributors and manufacturer Johnson & Johnson.
Michigan will receive $776 million from the nationwide $26 billion settlement, the result of lawsuits alleging the companies helped fuel the country’s opioid crisis.
Related: Michigan to repay student loans in exchange for opioid addiction programs
What else is the state doing?
To help borrowers plan for repayments, Michigan launched a website this week to be a “one-stop shop” of tips, resources and assistance for student loans.
“Hundreds of thousands of Michiganders, including thousands of seniors, have federal student loans and it is important that they know that their monthly payments will begin again soon,” Michigan Department of Insurance Financial Services Director Anita Fox said in a statement. “Michiganders who are worried about making their student loan payments should remember that repayment plan options may be available to help them lower their monthly payments.”
Michigan borrowers owe a collective $51 billion of federal student loan debt with the average being $36,405 per person.
The website is available at Michigan.gov/studentloanrestart.
More on MLive:
When do student loan payments start again? How you can prepare.
Some Michigan employers paying student loans as a job perk
Why Michigan is repaying student loans for some mental health workers