In 1992, he completed 268 passes on 415 attempts for 3,610 yards, 31 touchdowns, and 12 interceptions. He was awarded the Walter Payton Award for that year and was a consensus first-team All-American. Payton again led Marshall to the I-AA title contest, where they defeated Youngstown State in the 1992 NCAA Division I-AA Football Championship Game, giving Marshall their first I-AA title. He was again named Southern Conference Player of the Year, West Virginia Athlete of the Year and Man of the Year. Payton finished his college tenure as the Southern Conference's all-time career passing leader, and received the Walter Payton Award, which is given annually to the best player in Division I-AA football. Payton is Marshall's fourth highest ever passer with 9.411 career yards-gained (exceeding the previous record by more than 2,300 yards) and their fifth highest all-time scorer with 69 career touchdowns. At Marshall, he played frequently with future New England Patriots receiver Troy Brown.