Frequently Asked Questions (FAQs) and Clarifications

Frequently Asked Questions (FAQs) and Clarifications

Application

Does the district apply on behalf of the educator to be included, or can individuals apply on their own?

Starting this year, the application will require individuals to apply. They will provide relevant personal information and the monthly amounts of their student loan information, uploading matching loan documentation for verification. Districts will use the system to supply employment details necessary to complete the eligibility confirmation. More information on application instructions will be made available to the public on the main page of the Student Loan Repayment Program.
Is there a limit to the number of educators who can apply?

No.
Would it be acceptable to ask my local educator association for assistance in completing my FY25 application?

Yes, it is allowed under statute (MCL 388.1627k). Remember, the Student Loan Repayment Program is available to any school employee who works directly with pre-K to grade 12 students for 50% or more of their working time (per examples listed in MCL 388.1627k). As a reminder, any third party who completes an application on behalf of an individual applicant must be accurate and submitted by the deadline in order to be processed.
Will you provide a list of eligible PSLF loan types?

The list of eligible PSLF loan types is available on the Federal Public Service Loan Forgiveness webpage and our Student Loan Repayment Program webpage, under “Information for Applicants.”
My loans are paid under Public Service Loan Forgiveness (PSLF), but my IDR plan status is "on hold" due to the federal injunction on the SAVE program, and my loans are in a forbearance status that I did not request. Does this mean I cannot apply?
We know there currently is an injunction in place for the SAVE program at the federal level. While our team does not have control or visibility into policies or mechanisms governing federal level loan programs, we do understand that Michigan’s current 27k statute (MCL 388.1627k) requires both PSLF and an income-driven repayment (IDR) plan to be in place at the time of application as part of its eligibility requirements. Here’s what we can say for those in “limbo” for IDR approval under the SAVE program:

applicants can and must have loans still active in PSLF in order to apply, but

they are considered exempt from the IDR requirement in our statute, because, due to the injunction, their loans are not currently “eligible for income-driven repayment” under paragraph 4(d).

This means that if an applicant’s loans were active in PSLF, but their loans have been rejected for IDR or they are in forbearance due to the injunction, they can and should still apply. Remember, in this case, that loans reported in forbearance still have a $0 payment that must be reported on the application; see our Frequently Asked Question (FAQ) that addresses this.

Note also, if at some future time the injunction is lifted or is resolved, the IDR requirement will resume being in effect for those that were affected by the injunction; more communication may follow or be posted to this FAQ page in that case.
How can I confirm that my application was submitted successfully?

When you submit your application, the system will show you a message that is has been submitted. It is recommended that you save a screenshot of this message for your records and download the copy of your application using the link provided on the submission message screen. In addition, you will receive an automated e-mail confirming submission to the e-mail address you provided in your application.

IMPORTANT: To mitigate potential technical issues with the application system, DO NOT WAIT until the end of the application window to apply. We are expecting heavy volumes of applications within the last 48 hours! Please be advised that there are no exceptions allowed for applications that are submitted after the deadline of 5:00 PM, Monday, May 19, 2025.
How can I get updates about the Student Loan Repayment Program?

Updates are available on the Student Loan Repayment Program webpage, which will also feature developments about the Student Loan Repayment Program through our Educationally Speaking newsletter. If you have not already signed up, you can use the MDE newsletter sign-up link. Be sure to select the “Educationally Speaking” newsletter under the listings for the “Educator Excellence” when prompted to select from a list of options. In addition, please follow MDE’s Office of Educator Excellence on Facebook.
I have previously applied for the Income Driven Repayment Plan but I have not been approved. If I receive approval prior to applying for the grant, would I qualify?

The requirements governing participant participation set forth in MCL 388.1627k must be true at the time of submitting your application. You must obtain approval before submitting your application as you would have to ensure that all required documents are uploaded for a successful application. Please review the Student Loan Repayment Program webpage for application details.
If I am in the federal student loan forgiveness program, but do not currently have a payment due (or have a $0 payment), do I still qualify for this program? Should I make an FY25 application if I think my payment may increase later?

Yes, because a current $0 payment does not ensure that it will not increase at some later point. You can be included as long as current loans fall within an eligible loan type and are enrolled in the federal Public Service Loan Forgiveness Program (see www.studentaid.gov/pslf), in anticipation that your monthly loan payment may be greater that $0 at a later date. On the application, you would enter a loan payment amount of $0 for any month(s) in deferment or forbearance status.

Please note that a monthly loan payment of $0 would result in a participant receiving $0 a month under this program, because the amount of the payment to the participant cannot exceed their current payment. If and when the payment increases, the participant is responsible for reporting this to their district and MDE.
Will receiving money through this Student Loan Repayment Program impact my ability to receive student loans in the future?

No. MCL 388.1627k states that eligible district staff members will remain eligible for other student loans when receiving funds under this program.
How far back can I request loan payments on the application?

The application will allow an individual to report the exact amount of their loan payments as far back as October 1, 2024. Applicants must ensure that all documentation uploaded with the application will verify that these payments have been made. Note they will also include the expected amounts of monthly payments between the time of application and September 30, 2025.
What should I do to prepare for making an application?
At the time of application, please plan on the following:

Besides providing your name and date of birth, you will also need to provide your Personnel Identification Code (PIC). We need your correct PIC for verification purposes. See instructions on the Student Loan Repayment Program webpage for how to find your PIC.

You will need to provide at least one valid and working e-mail account that is spelled correctly on the application. We recommend that your e-mail account is not your school e-mail account; it should be an account that is not provided by your employer and one that you check frequently.

The application will ask for the name of your employer, which must be an intermediate school district, traditional school district, or public school academy. It is recommended that you know the exact name of your employer and the official district code so that there is no error in associating your application with your employer. You can use the CEPI Educational Entity Master tool to look up these details.

Make sure you have current screenshots or scanned documents showing the amounts of your loans, for both your current payments and the back payments you are claiming. You will enter these amounts on the application and upload those documents—but if you cannot provide documents that match what you claim on the application, your application will not be processed.

Remember to include no personally identifiable information (PII) on your uploaded documentation besides what is necessary for loan verification. Use the FY25 Student Loan Repayment Program Loan Documentation Guidance found on the Student Loan Repayment Program webpage to assist you with preparing screenshots or scanned documents for the application.
If I find out later that I have made an error to my application, can I go back and change it?

No—individuals only have one attempt to make an application for the Student Loan Repayment Program. Please be aware that there is only a “Submit” button and no button to save the application to return to it later. This is why it is important to follow the instructional document that will be posted to the Student Loan Repayment Program webpage and also to follow the preparation steps outlined above. It is important to understand that an application submitted with incorrect or incomplete information will not be processed. In addition, multiple submissions may result in no application being processed.
Can I send my intended loan verification screenshots or documentation to the e-mail listed on the website to get them reviewed ahead of time? I want to make sure I am including the correct information!

We understand, but please do NOT send any participant loan documentation to the Michigan Department of Education via e-mail. Sending participant loan documentation introduces a potential security risk, especially if there is personally identifiable information (PII) included.

Our staff do not open e-mailed attachments that may include PII. Please only use the secure application link provided on the Student Loan Repayment Program website to send us your attachments at the time of application. We must delete all attachments sent via e-mail. Please follow the examples provided in the loan documentation resource to provide sufficient screenshots or documentation.
Will I receive payments from MDE if my application is accepted?

No—funds will be distributed to districts, who will provide payments to eligible participants.
How and when will an individual know if their application is approved or denied?

If an application is approved through both the loan verification and employment verification steps, the applicant’s employing district will be notified via an official Grant Award Notification (GAN) process that will take place by August 2025. Please note that employing districts will not know the status of your application until then. Once MDE sends GANs to employing district, MDE will announce this on the Student Loan Repayment Program website.

Eligibility

Who qualifies for the Student Loan Repayment Program?
Eligibility of participants is determined using the following criteria:

participating in a federal student loan forgiveness program as described in subsection (3) and (4) of MCL 388.1627k, also found on the Student Loan Repayment Program webpage;

meeting federal loan and payment plan requirements as described in subsection (3) and (4) of MCL 388.1627k;

working 32 hours or more per week at a district or intermediate district; and

at least 50% of that working time is spent in direct contact with pre-K to grade 12 students.
Are there examples of definitions of “working directly with pre-K to grade 12 students?”

An employer is responsible for categorizing whether an employee’s position or work assignment has at least 50% of its assigned time spent in direct contact with pre-K to grade 12 students. All applicants for FY25 will be referred to their own employers for those definitions.
My loans were paid off in early 2025, but I made payments between October 2024 and January 2025. Can I apply for FY25 payments even with my loan being paid off in February?

Yes, you can still apply for “back payments” from October 1, 2024, and going forward, even if your loans are newly paid off as of February. You will simply put $0 in for the months the application shows, from February onward.
I’m an employee of a Michigan public school and I spend at least 50% of my working time in direct contact with preK-12 learners. However, I’m not allowed to enroll in one of the federal forgiveness plans listed on the website since my school is not identified as a Qualifying Employer for Public Service Loan Forgiveness. Can I participate?

No. A clear requirement of the program is that the participant is currently enrolled in one of the federal loan forgiveness programs listed on the Student Loan Repayment Program webpage, and educators who are not able to join these loan forgiveness programs are simply not eligible to be participants.
Is a participant hired from a third-party company like EduStaff eligible for the program if they meet all other eligibility requirements?

According to the wording provided by MCL 388.1627k, the law restricts individuals from participating because “the department shall make payments to the district or intermediate district that employs each eligible participant”. Since staff members hired by third-party companies or organizations are by definition not employed by a Michigan intermediate school district, traditional public school district, or public school academy, they are not eligible to receive funds under the Student Loan Repayment Program.
Would educators working with students ages 18-26, or ages 0-3, be eligible?

Per section 27k, the statute does not specify the age of the students. The statute requires that, for a teacher to be eligible, they must have at least 50% of their working time spent in direct contact with students in a PreK-12 program. This includes Early On programs.

For students between the ages of 18-26, if the district records these students as Grade 12 students, following special education and Pupil Accounting policies, then educators working directly with these students would meet the description found in MCL 388.1627k. Residential- and institutional-based programs do not qualify.
Who makes the final determination on whether an educator’s application is accepted (based on the listed requirements)?

Final determinations are a two-step process. MDE staff are responsible for verifying loan documentation submitted by individual applicants. The individual’s employing district is responsible for verifying all employment data submitted with the application.
I’m a school employee who works an hourly rate, and I work at least 32 hours during the school year with 50% or more of my working time in direct contact with students. However, from June through August I do not work. Would I still be eligible?

Yes. There is no expectation within the 32-hour minimum per week requirement that it include summer vacation or summer school programming, unless the district is year-round or balanced calendar in nature. For those districts that are not on these calendars, those school staff members should only use the regular school year as a gauge in determining the 32-hour per week minimum.
I meet all of the requirements and I am currently working full-time, with over 50% of my working time in direct contact with students. However, later this school year, I will be reduced to part-time work in order to pursue another degree. Should I apply?

Yes. At the time of application, if a staff member is working 32 hours or more with 50% or more of their time spent in direct contact with students, this would meet the eligibility requirements in MCL 388.1627k. However, once this staff member is no longer working 32 hours a week or more, the participant is no longer eligible for the Student Loan Repayment Program.
What if a participant in the Student Loan Repayment Program leaves employment in the district, or their work hours are reduced to less than 32 hours per week, or if their assignments change so that they are working less than 50% of their time in direct contact with students?

If the employment status of a program participant changes in such a way that the participant is no longer working at least 32 hours per week at their district, then the Student Loan Repayment Program monthly payments that are made to the educator must immediately stop. If this happens, the staff member must immediately inform MDE at MDE-EdWorkforceGrants@Michigan.gov.
What happens if I am receiving payments from the Student Loan Repayment Program, but I have a leave of absence that I have to take?

Most leaves of absence would have no impact on an applicant’s student loan repayment program. However, an interruption of employment would impact eligibility. To determine if an applicant is on a type of leave that is not considered an interruption to employment, please work with your HR department. A policy should be in place to determine if there is an interruption to employment versus an eligible leave of absence.

Information for Districts

How do I find out if our district is in Band 6 of the Opportunity Index?
We recommend the following procedure:

Information related to districts’ Opportunity Index Score is publicly available on the Department’s State Aid Payment Information page.

Download the spreadsheet with the “2024-25 At Risk Estimates” link.

Opportunity Index (OI) Scores are determined based on districts’ prior year fall ED count.

The spreadsheet includes each district’s OI Score in Column H.

Districts with OI Scores of 85 or higher are in Band 6.
How will we know that our employees are eligible since they are applying individually this year?
The system will notify a district that the employment verification step is ready. At that time, the system will show the authorized district user the names of individuals who are claiming employment with the district. The district will then verify:

they are employees of the district and are employed for 32 hours or more per week; and

their regular work assignments include at least 50% of the individual's weekly scheduled hours in a role in which the individual works directly with pre-K to grade 12 students (per MCL 388.1627k).

When accessing the employment verification screens, the PIC number entered by each individual will be provided. At its discretion, a district can reject the employment verification of any individual reporting an incorrect or missing PIC number, which will result in the individual’s application going no further in the process.
Is an indirect cost available on this grant to cover the expenses of administration?

No, due to the restrictions in MCL 388.1627k.
Are payments made under the Student Loan Repayment Program considered taxable income?

While the MDE cannot provide tax-related advice, it recommends that school districts stay in touch with qualified professionals to get the final word on tax implications arising from grant reimbursements. This includes understanding how publicly available sources such as IRS Publication 970 relate to their local fiscal policies.
What if my district is designated as a band 6 district or intermediate district in the opportunity index, as described in section 31a, during the time I completed the application, but its status changed the following year?

After award amounts are determined and distributed based on the criteria listed in the grant application, the award amount will remain the same for the duration of the program. This calculation can change from year to year, and more information is available from the Office of State Aid and School Finance.
Whose responsibility is it to verify the accuracy of employment of the participant? What would the district do if they find the participant is not an employee?

Each district will verify the employment of the participant, using instructions found on the Student Loan Repayment Program webpage. At the time of application, individuals will be required to enter a PIC number, which verifies their employed status.
Who is responsible for reporting and reconciliation?

Each district that has an eligible participant in the student loan report program shall report distributions to the Michigan Department of Education (MDE) annually. That report and or reconciliation shall include but is not limited to the amount disbursed to eligible participants.
Who is responsible for the accuracy of the submitted data?

Ultimately, the participant is responsible for submitting accurate, appropriate, and factual data utilizing the application system. If it is found that inaccurate or incomplete data was provided, the participant will be denied during the application process.
Will these payments be reportable to the Office of Retirement Services (ORS) and count towards their Final Average Compensation (FAC)?

No. These payments are considered reimbursements for student loan debt and are not reported to ORS. Accordingly, they are not eligible to be included in an FAC, and the employer should not report it on DTL2 Wage and Service or DTL4 Defined Contributions records. Please contact ORS with questions.

Please see the ORS Public School Reporting webpage for more information regarding the reportability of additional educational funding.
What happens if a participant is granted total loan forgiveness at some point when the district is providing payments?

In this case, the participant would report this to their employer, and the district would notify MDE that it intended to cease payments starting with the month after the payoff.
Are Parent Plus loans eligible?

No. If they are the traditional Parent Plus loans and are not otherwise consolidated into the Direct Consolidation Loans (which do qualify, according to the Student Loan Repayment Program webpage under “Information for Applicants”). This is because unconsolidated Parent Plus loans represent the assistance that was given to another member of the household and are thus not eligible for federal loan forgiveness programs. Accordingly, they would not fit under the requirements of this program.
We understand that all employees working in schools need a Personnel Identification Code (PIC) for MDE reporting purposes, but how do we request one? We have employees who are requesting them because they need them for the application.

For school staff that may not yet be assigned a PIC (for example, newly hired personnel whose names have not yet been entered into the Registry for Educational Personnel, or REP), a PIC may be requested from the Center for Educational Performance and Information (CEPI), found on page 7 of the REP PIC Search User Guide.