Wayne State University

Aim Higher

Repaying Your Student Loans

Make a plan to repay your loans, know your options and don't be afraid to ask your loan servicer about deferment or forbearance options if you can't make your loan payments.

Loan Repayment Assistance

Other Resources

Visit our Loan Consolidation page for information on student loan consolidation.

Loan Repayment Assistance and Forgiveness Programs

Income-Based Repayment (IBR) Plan

This repayment plan limits your loan payments based on your income, family size and total loan debt. 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

Public sector employees may be eligible to have Federal Direct Loans forgiven after 120 monthly payments.

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.  

Perkins Loan Cancelation 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 cancelation after a period of service. Forms may be obtained the WSU Student Accounts Receivable Office, (313) 577-3656.  CAUTION: If you consolidate your Perkins loans, you will not be eligible for this program.

The borrower of a Perkins Loan is eligible to have up to 100% of the loan canceled for full-time service as a qualifying law enforcement or corrections officer or public defender.

Cancelation rate per completed year of employment:
  • 15% of the principal for each of the first and second years.
  • 20% of the principal for each of the third and fourth years.
  • 30% of the principal for the fifth year.
A cancelation period consists of a full year of employment. Contact the loan servicer for more information on cancelation eligibility.

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 service 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 Graduate PLUS loans will qualify.

Employer Programs

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