Wayne State University

AIM HIGHER

Student Loan Repayment

Understanding the student loan repayment process and your options is a crucial part of borrowing.

Required Loan Exit Counseling

Loan exit counseling is a requirement before you graduate, leave school, or drop below half-time enrollment. You will receive important information about your rights, responsibilities, and obligations.

Federal Stafford and Graduate PLUS Loan exit counseling may be completed online at

Federal Perkins Loans also have loan exit requirements:

How much do you owe?

You can review your federal loan listing online through the National Student Loan Data System at

Alternative Loans are not listed on this federal database and you should contact your lender for your alternative loan debt and required monthly payments.

Lender Websites:

When do you begin repayment?

Repayment begins after you graduate, leave school, drop below half time or when your grace period expires.

 How much will your payments be?

Should you consolidate?

Consolidation may reduce your monthly payments and make you eligible for certain loan forgiveness programs. You will also be paying more interest in the end and may lose valuable repayment or loan cancellation benefits on certain loans.

It is not recommended you consolidate Michigan Students First Loans that revert to 0% interest after 36 on-time payments and your Perkins loans may be eligible for Public Service or Law Enforcement cancellation.

More information, including repayment calculators, can be found at:

What if you have trouble making payments?

If you have problems making your loan payments, you should immediately contact the servicer of your loan for more information. You may qualify for a deferment or financial hardship forbearance. See studentaid.ed.gov . 

HELP for Borrowers Who are Having Trouble Repaying Education Loans

Do you qualify for loan forgiveness or cancellation?

If you are considering work in a public service organization, you may qualify for Loan Forgiveness & Repayment Assistance Programs. You may need to consolidate your loans into the Federal Direct Loan Program. See www.IBRinfo.org for more information and additional requirements.  

Loan Repayment Assistance

Loan repayment assistance can come in the form of scholarships or loan forgiveness programs from a variety of sources.

Loan Repayment Assistance and Forgiveness Programs          

Student Debt Relief Webinar Series from Equal Justice Works - New!

Income-Based Repayment (IBR) Plan - New!
 
This plan limits your loan payments to 15 percent of your (and your spouse's) income that exceeds 150 percent of the poverty line for your family size. After 25 years of qualifying payments, all remaining debt will be forgiven. More information and a calculator to estimate your eligibility is available at www.IBRinfo.org.
The Federal Public Service Loan Forgiveness Program New!

This program is intended to encourage individuals to enter and continue in full-time public service employment. Public sector employees may be eligible to have the interest and principal of Federal Direct Loans forgiven after 120 monthly payments on loans made after 10/1/2007. You must be employed full-time in public service during the 120-month period and at the time of forgiveness. Borrowers with Federal loans from a private lender must consolidate into the Federal Direct Loan program to be considered for this benefit. Eligible employers include the federal, state, local government and those that are tax-exempt under section 501(c)(3) of the IRS code. Qualifying payments must be made under the Income-Contingent, Standard or Income-based Repayment Plans. The US Dept of Education will be developing a form for borrowers to use to collect certification from the employer. Lower income borrowers are expected to benefit the most. 

Perkins Loan Cancellation for Public Service or Law Enforcement
 
Full-time employees of an eligible public or private nonprofit service agency may be eligible for partial or full Perkins loan cancellation after a period of service. Public defenders have recently been added as eligible for this benefit, which also includes prosecutors. Forms may be obtained the WSU Student Accounts Receivables Office, (313) 577-3656. CAUTION: If you consolidate your Perkins loans, you will not be eligible for this program.
 
Loan Forgiveness for Service in Areas of National Need
 
For each year of full-time employment in an area of national need, that you complete on or after August 14, 2008, up to $2,000 of your outstanding student loan balance may be forgiven. No more than $10,000 total will be forgiven up to a maximum of 5 years. This includes work in public interest legal services such as prosecution, public defense, and legal advocacy in low-income communities at a nonprofit organization. Note: This program is subject to annual appropriations approved by the US Congress. Details are subject to final regulations to be published by the US Dept of Education. Federal Stafford, Direct, and GradPLUS loans will qualify.

John R. Justice Prosecutors & Defenders Incentive Act of 2008 (JRJ)

Full-time prosecutors and public defenders who agree to remain employed for at least three years may qualify for loan payments of $10,000 per year up to $60,000. The Attorney General will set up a program through the U.S. Department of Justice that will make direct payments to the holder of the loans on behalf of the borrower.
 
Loan Repayment for Civil Legal Assistance Attorneys
 
Full-time civil legal assistance lawyers and those who work with certain disability cases, who agree to remain employed for at least three years, may be eligible for loan repayment of $6,000 per year up to $40,000. Details are subject to final regulations to be published by the US Dept of Education. You cannot benefit under this program and the National Need or Public Service Program. Federal Stafford, Direct, and GradPLUS loans will qualify. Funds have not currently been appropriated for this program.

Other Programs

Some federal agencies and private employers may also offer loan repayment programs as a recruiting tool. See the US Office of Personnel Management Web site (opm.gov) or check with your employer. 

More Resources

Visit our Financial Tools page for more information and strategies for managing your finances. 

Visit our Loan Consolidation page for information on consolidating your federal loans.