Student Loans in Michigan

Average debt, state-specific forgiveness programs, and repayment strategies for Michigan borrowers in 2026.

Average Debt

$33,000

Monthly Payment (Std)

$375

State Tax Deduction

Yes

vs. National Avg

+$1,000

Student Loan Overview for Michigan

Michigan borrowers carry an average student loan debt of $33,000, which is above the national average of approximately $32,000. Under the Standard 10-year repayment plan at the current federal interest rate of 6.53%, Michigan graduates would pay $375 per month and a total of $12,000 in interest over the life of the loan.

For borrowers seeking lower monthly payments, income-driven repayment plans like SAVE (formerly REPAYE) cap payments at 5-10% of discretionary income. Michigan residents working in public service should explore PSLF for potential forgiveness after 10 years of qualifying payments.

Michigan Student Loan Forgiveness Programs

Michigan offers the State Loan Repayment Program for healthcare providers and the MI Future Educator Fellowship.

In addition to state programs, Michigan borrowers have access to all federal forgiveness programs including PSLF, Teacher Loan Forgiveness ($17,500 for STEM and special education teachers), and income-driven repayment forgiveness after 20-25 years.

State Tax Deduction for Student Loan Interest

Michigan conforms to the federal student loan interest deduction. Borrowers can deduct up to $2,500 in student loan interest paid during the tax year on both their federal and Michigan state income tax returns. This deduction phases out for single filers earning $75,000-$90,000.

Top Michigan Colleges & Average Debt

Institution	Avg. Graduate Debt
University of Michigan	$29,000
Michigan State University	$27,000

* Debt figures are approximate averages for graduating students who borrowed.

Frequently Asked Questions

What is the average student loan debt in Michigan?

The average student loan borrower in Michigan graduates with approximately $33,000 in student loan debt. This is above the national average of $32,000.

Does Michigan offer student loan forgiveness?

Michigan offers the State Loan Repayment Program for healthcare providers and the MI Future Educator Fellowship.

Can I deduct student loan interest on Michigan state taxes?

Yes, Michigan conforms to the federal student loan interest deduction. You can deduct up to $2,500 in student loan interest paid on your Michigan state income tax return, subject to income limits.

What are the best colleges in Michigan for low student debt?

Among Michigan institutions, University of Michigan has an average graduate debt of $29,000. In-state tuition at public universities is significantly lower than out-of-state rates.

What repayment plan should I use for student loans in Michigan?

Your best plan depends on your income and career. Michigan residents earning under $50,000 should consider the SAVE plan for the lowest payments. Those in public service should pursue PSLF. Higher earners may benefit from the Standard plan or refinancing.

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