Frequently Asked Questions: Loan Repayment
The College Cost Reduction and Access Act (CCRAA) of 2007 established, among other things, two new programs that will be of particular interest to graduates going into low-paying and public interest jobs. Income Based Repayment (Section 203 of the Act) allows borrowers to pay back their federal loans on the basis of their income at the time of repayment. Loan Forgiveness (Section 401 of the Act) will forgive federal Direct loans after 120 payments and 10 years of full-time employment in the public service sector. It is possible to take advantage of both these programs at the same time, or to elect one or the other option. One option does not either preclude nor exclude another.
This program is for the entering classes of 1984–2010. If you are from the entering class of 2011 and later, you must review the Income-Based Debt Management Program FAQ (see next section).
The University of Michigan's traditional Debt Management Program is a complicated program, because of our concern for fairness for all participants. That means there are a lot of details and subtleties in the program that can best be explored by discussing your particular situation with a financial aid counselor. This FAQ hopes to address general questions about the program for you. Please let us know how else we can be of assistance.
The University of Michigan Law School has an LRAP (loan repayment assistance program) that supports our graduates so they can pursue the area of employment that they truly love, without the debt they may have incurred in Law School directing their choice. This FAQ addresses general questions, but there are a lot of details and subtleties in the program that can best be explored by discussing your particular situation with a financial aid counselor. Please contact us at firstname.lastname@example.org if your particular questions are not answered here.