Michigan Student Loans: Debt Statistics
Michigan borrowers have an average federal and private student debt balance of $ 33,487, 9% lower than the US average of $ 36,689. However, Great Lakes State borrowers still face a hefty average monthly payment of $ 250.
In September, the state announced the Futures for Frontliners program, which offers a tuition-free community college to frontline workers who served between April and June on stay-at-home orders due to the crisis in coronavirus.
Michigan also offers a handful of scholarship and grant programs, as well as a state-sponsored student loan repayment program, to help make the cost of education manageable. Here is what else you need to know about student loans in Michigan.
|Michigan Student Debt Overview|
|The equilibrium mean||$ 33,487|
|Total outstanding debt||$ 51.4 billion|
|Number of borrowers||1.4 million|
|Average total monthly payment||$ 250|
|Note: Averages include federal and private student debt.|
To help keep post-secondary costs low, Michigan students have the option of attending one of the nearly 30 campuses in the state’s community college system. The state is also home to important four-year public universities, including:
- University of Michigan
- University of Michigan
- Western Michigan University
Students can also consider Michigan’s private colleges and universities, with over 30 campuses to choose from, including:
- Concordia University
- Rochester College
- Kalamazoo College
As briefly stated, eligible Michigan residents without a high school or college diploma who were frontline workers between April and June 2020 can apply for the Futures for frontliners program. This is open to a range of essential workers, from health care and public works personnel to grocery store clerks and laundromat workers. Recipients will receive free classes at a state community college to earn an associate’s degree or certificate.
The University of Michigan also offers a tuition-free program through its Go Blue Guarantee. It is available to residents of the state with family income of up to $ 65,000 and assets valued at less than $ 50,000. All you need to do is apply to university and submit a free application for Federal Student Aid to be considered. Admitted students who qualify will be automatically rewarded.
Students who do not qualify for these free tuition programs or need additional funding for the school may decide to borrow federal funds or private student loans as an alternative.
|Student loan debt in Michigan’s most populous counties|
|county||Average student loan balance||Average monthly student loan payment|
|Genesee||$ 38,082||$ 271|
|Kent||$ 34,710||$ 248|
|Macomb||$ 31,679||$ 241|
|Oakland||$ 36,205||$ 275|
|Wash||$ 33,954||$ 333|
|Wayne||$ 35,809||$ 223|
|Note: Limited to counties with a population of at least 300,000; averages include federal and private student loan debt.|
Loan repayment programs available to Michigan residents can help reduce the overall costs of education after graduation. Here are some state and federal programs available to Michigan borrowers.
the MSLRP is available to Michigan medical, dental and mental health professionals. It offers up to $ 200,000 in loan repayment over a period of up to eight years. Workers must commit to consecutive two-year service contracts at a nonprofit clinic located in an area of shortage of healthcare professionals. Qualified site health workers are required to work at least 40 hours per week for at least 45 weeks per year.
PSLF is a federal program that is available to eligible Michigan borrowers who are employed in the public sector. To be eligible, borrowers must:
- Be employed full-time with an eligible employer, such as a government agency or non-profit organization
- Have federal direct loans
- Join an Income Based Repayment Plan (IDR)
- Make 120 eligible payments
After at least 10 years of eligible payments have been made, the remaining direct loan balance is canceled.
Through the federal government Teacher loan waiver program, Michigan educators can receive up to $ 17,500 in loan forgiveness for Direct and Stafford loans. To be eligible, state teachers must commit to five years of consecutive full-time service with a low-income school or educational services agency, in addition to other requirements. The maximum of $ 17,500 is only available to teachers qualified in math, science or special education.
Graduates of the University of Michigan Law School can apply for his loan repayment assistance program. It requires borrowers with federal direct loans to sign up for an income-based repayment plan (IBR), which could be as low as $ 0 per month. Graduates, who would receive IBR stipends, must enroll in the loan repayment assistance program each year.
Michigan federal student loan borrowers under 25 owe more than national average – and more comparisons
Seven percent of Michigan borrowers owe $ 100,000 or more in federal student loans. Residents struggling with six-figure debt may consider refinancing their student loans to ease this burden.
Student loan refinancing takes a borrower’s existing loans – which can include federal or private loans, or a mixture of both – and combines them into a new loan. The refinancing lender pays off the original loan (s) and offers borrowers a loan with new terms and, ideally, a lower fixed interest rate.
Banks, credit unions, online institutions, and private lenders offer refinanced loans. For example, Michigan First Credit Union offers its members a student loan refinance of up to $ 30,000.
Think twice before refinancing your federal loans, however. When you refinance federal student loans to a private loan, you lose access to useful government benefits (loan cancellation) and protections (income-based repayment). You will also usually lose the options for forbearance, although some private lenders do offer it.
- US Department of Education data as of June 30, 2020
- Anonymized credit reports My LendingTree June 2020
- Federal Reserve Bank of New York / Equifax Consumer Credit Panel as of June 2020
Since this latest data is from 2015, the researchers estimated the increase in student loan debt per borrower in the state using state-wide data from anonymized credit reports.
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