Loan Repayment Programs

There are a variety of programs that provide assistance to Ross graduates who have borrowed student loans while earning their degrees. These programs are made available by the University of Michigan Ross School of Business, and the Federal Government. 

JUMP TO SECTION:
Ross LRAP – Ross Program for all students
Public Service Loan Forgiveness (PSLF) – Federal program
Income-Driven Repayment Plans – Federal program

Ross LRAP

The Ross Loan Repayment Assistance Program provides financial assistance to all Ross graduatesย who are currently pursuing careers in nonprofit and public sector organizations. Qualified applicants will receive financial assistance to help pay for a portion of Ross-related, need-based loan obligations while employed full-time in a position within the nonprofit or public sectors. The calculated Loan Repayment Assistance Program amount for which the applicant is eligible is based on the applicantโ€™s financial position and that of the applicantโ€™s immediate family. Must reapply each year.

Subject to fund availability and restrictions at Ross and the University of Michigan broadly.


The Public Service Loan Forgiveness Program (PSLF)

The Public Service Loan Forgiveness Program (Section 401 of the CCRAA) will forgive most federal Direct loans after 120 qualifying payments while employed full-time in eligible public service employment.

The 10 years do not need to be consecutive, but the borrower must be working in an eligible public service job at the time of forgiveness. Only certain repayment plans qualify for PSLF, including IBR and PAYE.

The following publications offer details about the requirements for forgiveness: Federal Student Aid website, help tool, and Q&A. There is also a form that borrowers can complete to track their progress. 

About the Public Service Loan Forgiveness Program(link is external)  

Federal Student Aid Help Tool

Public Service Loan Forgiveness FAQs

How to Apply for PSLF


Income-Driven Repayment Plans

If your federal student loan payments are high compared to your income, you may want to repay your loans under an income-driven repayment plan.

Income-driven repayments plans allows borrowers to pay back their federal loans on the basis of their income and family size at the time of repayment.

Most federal student loans are eligible for at least one income-driven repayment plan. If your income is low enough, your payment could be as low as $0 per month.

Income-Driven PlanDescriptionRepayment Period
Income-Base Repayment Plan (IBR)Generally 10 percent of your discretionary income if you’re a new borrower on or after July 1, 2014*, but never more than the 10-year Standard Repayment Plan amount20 years *if youโ€™re a new borrower on or after July 1, 2014
Pay As You Earn Plan (PAYE)Generally 10 percent of your discretionary income, but never more than the 10-year Standard Repayment Plan amount20 years
Revised Pay As You Earn Plan (REPAYE)Generally 10 percent of your discretionary income.20 years if all loans youโ€™re repaying under the plan were received for undergraduate study 25 years if any loans youโ€™re repaying under the plan were received for graduate or professional study
Income-Contingent Repayment Plan (ICR)The lesser of the following: 20 percent of your discretionary income or what you would pay on a repayment plan with a fixed payment over the course of 12 years, adjusted according to your income25 years

The Ross School of Business Office of Financial Aid is a satellite office of the University of Michigan Office of Financial Aid.