Michigan Student Loan Forgiveness Programs
Michigan offers some of the largest student loan repayment assistance awards in the country for health care providers. Primary care and behavioral health providers at nonprofit sites can receive up to $300,000 over 10 years through MSLRP and BHLRP, while teachers lost their state repayment program in the fiscal 2026 school budget and future teachers now get help only through the MI Future Educator Fellowship. Everyone else should start with federal forgiveness programs, where the bigger dollars are.
Michigan Programs At A Glance
| Program | Who Qualifies | Maximum Award | Service Required | Status |
|---|---|---|---|---|
| Michigan State Loan Repayment Program (MSLRP) | Primary care medical, dental, and mental health providers at nonprofit sites in shortage areas | Up to $300,000 over up to 10 years | Two-year agreements, 40 hours a week for 45 weeks a year | Annual Cycle |
| Behavioral Health Loan Repayment Program (BHLRP) | Behavioral health providers at community mental health, school-based, and nonprofit outpatient sites | Up to $300,000 over up to 10 years | Two-year agreements, 32 hours a week of outpatient care | Annual Cycle |
| Michigan Opioid Treatment Access Loan Repayment (MIOTA LRP) | Physicians, NPs, PAs, psychologists, SUD counselors, and case managers treating opioid use disorder | Up to $30,000, plus a $5,000 high-need county bonus | 2 years with annual patient targets | Annual Cycle |
| MIDOCs Loan Repayment | Residents in MIDOCs programs at four Michigan medical schools | Up to $150,000 | Practice in an underserved area of Michigan | Annual Cycle |
| MI Future Educator Fellowship | Michigan residents in teacher preparation programs | $10,000/year for up to 3 years ($30,000 total) | Teach 3 to 5 years in Michigan | Annual Cycle |
Programs That Help Repay Loans You Already Have
Michigan borrowers carry roughly $36,300 in federal student debt on average, according to our Michigan student loans and financial aid breakdown. All four of these programs go to health care workers, and most require a nonprofit or underserved practice site. Many of those employers also qualify for Public Service Loan Forgiveness, so check both.
Michigan State Loan Repayment Program (MSLRP)
MSLRP pays up to $300,000 in loan repayment over as many as 10 years to primary care providers working at nonprofit sites in Health Professional Shortage Areas (MDHHS). Awards come in two-year agreements, and employers pay part of each agreement. It's one of the largest state awards anywhere, as our breakdown of student loan forgiveness for doctors shows.
| Administered by | Michigan Department of Health and Human Services |
| Who qualifies | Medical, dental, and mental health primary care providers, including physicians, physician assistants, nurse practitioners, and certified nurse midwives, at eligible nonprofit sites in HPSAs |
| Award | Up to $300,000 over up to 10 years, paid through successive two-year agreements |
| Commitment | At least 40 hours a week for at least 45 weeks a year |
| Employer share | 20% of the agreement for nonprofit employers and 50% for for-profit employers placing providers at nonprofit sites, waived for state psychiatric hospitals and tribal-affiliated primary care clinics |
| Status | The 2026 window ran March 2 through April 30, 2026, for agreements starting October 1, 2026; 2026 priorities were inpatient pediatric psychiatric providers, Genesee County practices, and northern obstetric providers |
| Official source | MDHHS State Loan Repayment Program |
Behavioral Health Loan Repayment Program (BHLRP)
BHLRP, formerly the MI Kids Now Loan Repayment Program, offers up to $300,000 in tax-free funds over up to 10 years to behavioral health providers in outpatient settings (MDHHS). Each two-year agreement equals your eligible debt divided by 10, times two, with a $20,000 minimum. Counselors and social workers with smaller balances can compare it with nonprofit student loan forgiveness through PSLF.
| Administered by | Michigan Department of Health and Human Services |
| Who qualifies | Psychiatrists, psychologists, psychiatric nurse specialists, licensed social workers, counselors, marriage and family therapists, and behavior analysts, plus some unlicensed roles such as case managers with a qualifying bachelor's degree |
| Eligible sites | Community mental health service programs, public schools and school-based sites, nonprofit outpatient behavioral health clinics, and nonprofit community health organizations; for-profit and inpatient settings don't qualify |
| Award | Up to $300,000 over up to 10 years; you need at least $20,000 in qualifying debt |
| Commitment | At least 32 hours a week of direct outpatient behavioral health services for each two-year agreement |
| Employer share | 20% for nonprofit employers and 50% for for-profit employers placing providers at nonprofit sites |
| Status | The 2026 window ran May 11 through May 29, 2026, for agreements from October 1, 2026, through September 30, 2028 |
| Official source | MDHHS BHLRP page |
Michigan Opioid Treatment Access Loan Repayment Program (MIOTA LRP)
MIOTA LRP uses opioid settlement money from the Michigan Opioid Healing and Recovery Fund to repay loans for providers who expand opioid use disorder treatment (MDHHS). Physicians who meet the highest patient targets can receive up to $30,000, and providers who begin treatment in one of the 15 highest-need counties get a $5,000 bonus. Practice sites don't need to be in a shortage area, which sets it apart from the programs in our nursing and health care forgiveness roundup.
| Administered by | Michigan Department of Health and Human Services |
| Who qualifies | Physicians, nurse practitioners, physician assistants, psychologists, licensed substance use disorder counselors, and case managers with an unencumbered Michigan license where required |
| Award | Maximums of $15,000 to $30,000 for physicians, $15,000 to $25,000 for NPs and PAs, and $15,000 for SUD counselors and case managers, based on patient targets, paid in two installments after annual data checks |
| Commitment | Two years, from June 1, 2026, through May 31, 2028, for the 2026 cohort |
| Eligible loans | Government and private student loans; consolidations that include non-qualifying debt don't count |
| Status | The 2026 window ran April 1 through April 30, 2026 |
| Official source | MDHHS MIOTA LRP page |
MIDOCs Loan Repayment
MIDOCs is a state- and federally funded residency program that offers up to $150,000 in loan repayment to residents beginning in the 2025 academic year who go on to practice in an underserved area of Michigan (MIDOCs). The program says these funds are exempt from gross income, employment, state, and local taxes. Medical students comparing it with other routes can start with our list of student loan forgiveness options for doctors.
| Administered by | MIDOCs, a partnership of Central Michigan University, Michigan State University, Wayne State University, and Western Michigan University medical schools |
| Who qualifies | Physicians who enter a MIDOCs residency; listed specialties include family medicine, general OB-GYN, psychiatry, general internal medicine, pediatrics, and general surgery |
| Award | Up to $150,000, paid in three installments: when you sign a practice contract, when you start work, and after one year of employment |
| Eligible loans | Federal, state, local, and private student loans taken before residency; Parent PLUS loans don't qualify |
| Status | Tied to the annual residency match; MIDOCs doesn't publish the length of the practice commitment on its site |
| Official source | MIDOCs loan repayment |
Service-Based Funding For Students In Training
This program pays for school up front and cancels the debt through teaching after graduation. Recipients who don't teach repay the award as a loan, so compare it with a private student loan before you sign.
MI Future Educator Fellowship
The fellowship pays up to $10,000 a year in tuition and required fees, for up to three years, to Michigan residents in an approved educator preparation program (MI Student Aid). Recipients sign a commitment to teach in Michigan for three to five years, based on how many years of funding they receive. Once in the classroom, teachers can add the federal options in our teacher forgiveness breakdown.
| Administered by | MI Student Aid |
| Who qualifies | Michigan residents admitted to a Michigan-approved educator preparation program for initial certification, enrolled full time at junior standing or higher, with a 3.0 cumulative GPA |
| Award | Up to $10,000 a year for up to three years ($30,000 total) |
| Service | Three years of teaching for one year of funding, four years for two, and five years for three; teaching in a critical needs district cuts the requirement to three years |
| Penalty | The award converts to a 0% interest loan repaid over 10 years if you don't finish certification or don't start teaching within 12 months of graduating (MI Student Aid) |
| Status | 2026–27 applications are due June 15, 2027 |
| Official source | MI Future Educator Fellowship |
Federal Forgiveness Options For Michigan Borrowers
Federal programs reach far more Michigan borrowers than the five state programs, and each one sets its own rules for combining with a state award. Our full list of forgiveness programs covers every federal option.
Public Service Loan Forgiveness (PSLF). Borrowers who make 120 qualifying payments while working full time for a government agency or qualifying nonprofit get their remaining Direct Loan balance forgiven tax-free (StudentAid.gov). Michigan public school teachers, state and local government workers, public university staff, and employees of nonprofit health systems all work for qualifying employers, and our PSLF breakdown covers the 2026 employer rule litigation.
Teacher Loan Forgiveness. Teachers with five consecutive years at a low-income school can receive up to $17,500 if they teach secondary math, science, or special education, or up to $5,000 in other subjects (StudentAid.gov). The same years can't count toward both Teacher Loan Forgiveness and PSLF, which our teacher forgiveness breakdown walks through.
Repayment Assistance Plan (RAP) and IBR. RAP launched July 1, 2026, and forgives any remaining balance after 360 qualifying payments (How RAP Works). Borrowers deciding between plans can run the numbers in our RAP vs. IBR comparison.
Health care programs. The National Health Service Corps pays full-time primary care providers up to $75,000 for a two-year commitment, plus a $5,000 Spanish-language bonus, and pays behavioral health and dental providers up to $50,000 (HRSA). Nurse Corps pays 60% of nursing debt for two years of service and another 25% for a third year (HRSA), and the STAR program pays up to $250,000 for six years in substance use disorder treatment (HRSA). MSLRP is Michigan's HRSA-supported State Loan Repayment Program, and our nursing and health care forgiveness roundup covers eligibility for each federal option.
Lawyers. Michigan has no state-funded loan repayment program for attorneys. The federal John R. Justice program sends money to agencies each governor designates, and recipients must stay employed as prosecutors or public defenders for at least three years (Bureau of Justice Assistance), so most Michigan attorneys in public service should plan around PSLF.
Is Student Loan Forgiveness Taxed In Michigan?
Michigan uses federal adjusted gross income as the starting point for its income tax, so student loan forgiveness excluded from federal income is also excluded in Michigan (Michigan Treasury). Our state taxes on student loan forgiveness tracker lists Michigan among the states that tie their rules to federal law. PSLF, Teacher Loan Forgiveness, and death and disability discharges stay tax-free at both levels.
Forgiveness under income-driven plans became federally taxable again on January 1, 2026, when the American Rescue Plan exclusion expired, and that income flows into the federal AGI Michigan starts from (Taxes And Student Loan Forgiveness). Borrowers expecting IBR or RAP forgiveness can estimate the bill with our student loan tax bomb calculator.
MDHHS describes BHLRP awards as tax-free funds (MDHHS), and MIDOCs says its payments are exempt from state and local taxes (MIDOCs). Ask the administering agency how any other award will be reported, and read our explainer on the 1099-C and student loan forgiveness before filing.
If Your Job Isn't Covered
Borrowers outside health care and teacher training won't find a Michigan program, but three options remain. Employers can pay up to $5,250 a year toward your student loans tax-free, and our list of companies that offer student loan repayment assistance shows who offers it.
Borrowers with private loans or high-rate federal loans they don't plan to have forgiven can lower their rate through student loan refinancing. Refinancing federal loans into a private loan ends eligibility for PSLF, RAP, and IBR, so don't refinance a balance you expect to have forgiven.
Families with leftover 529 money can put up to $10,000 per beneficiary toward student loans, which our 529 plan for student loan repayment explainer covers. Michigan savers should also review the Michigan Education Savings Program.
Frequently Asked Questions
Does Michigan Have A Student Loan Forgiveness Program?
Michigan offers student loan repayment assistance programs rather than broad loan forgiveness. It runs five service-based programs for primary care, behavioral health, and addiction treatment providers, new doctors, and future teachers. Borrowers outside those fields rely on federal programs like PSLF and income-driven plan forgiveness.
What Happened To Michigan's Student Loan Repayment Program For Teachers?
The fiscal 2026 State School Aid Act, signed October 7, 2025, moved the money for MDE's Student Loan Repayment Program into more than $350 million in educator compensation grants to districts (Michigan Department of Education). Districts can choose to use that money to help staff with student loans, so ask your district, and see our teacher forgiveness breakdown for federal options.
Can Michigan Nurses Get Help Repaying Student Loans?
Michigan's Nurse Loan Repayment Program made 396 awards in 2025, and MDHHS says it doesn't expect more cycles (MDHHS). Nurse practitioners and nurse midwives can still apply to MSLRP, and registered nurses can look at federal Nurse Corps funding in our nursing forgiveness roundup.
How Much Can Michigan Mental Health Providers Get?
BHLRP pays up to $300,000 over 10 years (MDHHS), and MIOTA LRP adds up to $30,000 for physicians who expand opioid use disorder treatment (MDHHS). Providers at nonprofit clinics can also count that work toward PSLF.
Is Student Loan Forgiveness Taxable In Michigan?
Michigan follows federal treatment, so PSLF and Teacher Loan Forgiveness are tax-free while income-driven plan forgiveness granted after 2025 is taxable (The College Investor). Use our tax bomb calculator to estimate what you'd owe.
Related Michigan Resources
How We Sourced This Data
Program details on this page come from the administering agencies: the Michigan Department of Health and Human Services (MSLRP, BHLRP, and MIOTA program documents and Health Care Workforce Division newsletters), MI Student Aid, the Michigan Department of Education, MIDOCs, and Michigan Treasury. Federal program details come from StudentAid.gov, HRSA, and the Bureau of Justice Assistance, and 2026 application windows were cross-checked against Michigan Health and Hospital Association announcements. Read more about how we fact-check and update content.
Page refreshed annually in August, after Michigan's legislative session and agency rule approvals, and reviewed in January for tax season. Last full refresh: September 23, 2026.
Editor: Clint Proctor Reviewed by: Claire Tak