Michigan spends millions in taxpayer dollars to forgive teachers’ student loans
(The Center Square) – Michigan’s Department of Education announced it is awarding its first round of grants from the state’s Student Loan Repayment Program to 9,500 educators across the state.
The $19.2 million, sourced from Michigan’s School Aid fund, was awarded to 546 districts and intermediate districts for eligible teachers.
“The loan repayment program is helping our schools retain teachers, including educators in critical shortage areas, which aligns with Goal 7 of Michigan’s Top 10 Strategic Education Plan,” State Superintendent Michael F. Rice said in a statement, referring to the goal of increasing the number of certified teachers in areas of shortage.
More than 72% of the Michigan School Aid fund is paid for by state taxpayers, according to an analysis from the State Budget Office. Michigan residents contribute to the fund via property taxes, sales and use taxes, and income taxes, while the rest of the money comes from federal revenue, state lottery funds, and a few other sources.
Public schools across the state celebrated the move. Dearborn received $222,000 in financial assistance for 185 eligible teachers.
“We are excited to see that almost 200 teachers will be able to take advantage of the Student Loan Repayment program,” Dearborn Public Schools Superintendent Dr. Glenn Maleyko said. “This program not only provides teachers with much-needed and appreciated financial relief, it goes a long way in helping us to recruit and retain quality teachers in our classrooms.”
In July, Gov. Gretchen Whitmer signed a $23 billion education budget for the 2025 fiscal year, one of the most expensive education budgets in the state’s history.
