LANSING, Mich. (WLNS) — Student loan relief just got a lot easier following an announcement today by the Lieutenant Governor that Public Service Loans will now be tax-free.
Lt. Governor Garlin Gilchrist made this announcement at Lansing Community College this morning.
“We’re really working hard to provide relief and to make sure no person in Michigan has to give up on their education, has to give up on their skills training, has to give up on their dream and their future,” said Gilchrist.
Many on Wednesday’s panel were from different backgrounds.
Parents, public service workers and recent grads like Jack Falensky, who is more hopeful when it comes to continuing his education.
“I am in the process right now of deciding if I want to enter the workforce deeper, or if I want to further my education,” said Falensky. “But stuff like this helps me along the way with that decision-making.”
You may be wondering, what does this mean for me if I have student loans?
If you have a public service school student loan taken out from 2021 to 2025, you won’t have to pay taxes on it.
“These folks tend to struggle to plug into the systems and structures that society has set up for a variety of reasons,” Ryan Fewlins-Bliss, the executive director of the Michigan College Access Network. “Which makes that loan even more poisonous to them as they age and try to find a career and pay that off.”
Governor Gretchen Whitmer released a statement saying about $1.4 million Michiganders are eligible for forgiveness loans.
Those in public service, including the military, certain non-profits, or federal, state, local, or tribal governments qualify.
Bliss says this will keep working Michiganders right here at home.
“This will move our economic impact as a state forward, we’ll stop importing talent from other states in other countries and start empowering Michigan and Michigan workers to stay here, thrive here, and really be successful and hopefully retire here,” continued Fewlins-Bliss.
Click here to know more about when it comes to who qualifies for this tax incentive and who does not.