Lori Meadows
The rising cost of education has resulted in a student loan debt crisis, with millions of individuals and families affected. As of the 2020-2021 school year, student loan debt in the United States surpassed $1.7 trillion, with the average borrower owing more than $37,000. This has led to an increased need for scholarships and grants to help students and graduates pay off their loans. While scholarships are usually merit-based, grants are typically need-based and can be used to help pay down student loans. Various organizations and government programs offer grants and loan forgiveness options, with certain industries, such as health, education, and the public sector, providing loan repayment assistance.
| Characteristics | Values |
|---|---|
| Number of Americans affected by student loan debt | 40 million |
| Total student loan debt in the United States | $1.7 trillion |
| Average amount owed by borrowers | $37,000 |
| Types of aid | Scholarships, grants, work-study opportunities, federal student loans, private student loans |
| Example of a scholarship provider | Sallie Mae |
| Example of a scholarship opportunity | $2,000 no-essay college scholarship |
| Example of a grant provider | National Institutes of Health (NIH) |
| Maximum amount provided by the NIH | $50,000 per year |
| Example of a loan forgiveness program | Public Service Loan Forgiveness |
| Example of a state-based grant | Veterinary Medicine Loan Repayment Program |
| Maximum amount provided by the Veterinary Medicine Loan Repayment Program | $25,000 per year |
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What You'll Learn
Grants for student loan repayment
The cost of education has skyrocketed in the past few decades, far outpacing the rate of inflation. This has resulted in a student loan debt crisis, with millions of individuals and families affected. As of the 2020-2021 school year, total student loan debt in the United States was over $1.7 trillion. This has led to an urgent need for grants and scholarships to pay off student loans.
There are various organizations that offer grants and student loan forgiveness options. Bold.org, for example, offers grants and scholarships to reduce financial barriers to education and empower individuals to pursue their academic and professional goals without the burden of overwhelming debt. The National Institutes of Health (NIH) offers Loan Repayment Programs (LRPs) that provide up to $50,000 per year to doctoral-level researchers in various fields, including clinical, pediatric, health disparities, contraception and infertility, and research for individuals from disadvantaged backgrounds.
Several branches of the military also offer loan repayment programs. For instance, the Army, Navy, Air Force, and National Guard offer up to $65,000 towards federal student loans for eligible active-duty members. The Health Professions Loan Repayment Program supports medical professionals in the military with up to $40,000 per year towards student loan debt. Additionally, the Iraq and Afghanistan Service Grant provides up to the maximum Pell Grant amount for students whose military parent died as a result of service after September 11, 2001.
Some companies, such as Aetna, Google, SoFi, and PwC, offer student loan repayment programs as part of their employee benefits. These programs match employee payments up to a certain amount annually, helping to reduce student loan debt. Federal grants are also available, and certain careers, such as teaching and medicine, often come with loan forgiveness options.
While scholarships typically need to be applied for before or during a student's time at college, grants can be used to pay off student loans after graduation. It is important to note that grants and scholarships are not the only options for repaying student loans. Income-driven repayment plans, for example, alter monthly payments based on income, and loan forgiveness programs may also be available depending on the area of work.
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Scholarships for student loan repayment
There are various grants and scholarships offered by organizations to help students pay off their student loans. These include career-based grants for specific industries, such as teachers, medical personnel, veterinarians, lawyers, and researchers. For instance, the Veterinary Medicine Loan Repayment Program offers up to $25,000 per year in loan repayment for veterinarians working in critical shortage areas. Similarly, the National Institutes of Health (NIH) offers Loan Repayment Programs (LRPs) that provide up to $50,000 per year to doctoral-level researchers in various fields.
Additionally, certain post-graduate schools like law school or medical school may forgive your student loan debt in exchange for your service in underserved communities. The government also has loan forgiveness programs for those working in the public sector, such as the Public Service Loan Forgiveness program. Specific sectors like the legal sector may also have incentive programs, such as the Attorney Student Loan Repayment Program.
To find scholarships and grants for student loan repayment, you can use scholarship search engines like Going Merry, federal websites like studentaid.gov, or lists of private companies with employee assistance programs. You can also search for your career plus terms like "loan repayment" or "student loan grant." Remember to keep track of application opening and closing dates, and always explore other repayment options if you're struggling to make payments.
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Student loan forgiveness programs
Public Service Loan Forgiveness (PSLF): This program is designed for people working in public service sectors such as healthcare, education, or nonprofit work. By enrolling in PSLF, borrowers may have part or all of their debt forgiven after meeting specific criteria, such as making a certain number of qualifying payments or working in a designated field for a specified period. The Public Service Loan Forgiveness program is also available to military members, who can benefit from additional benefits through programs like the Servicemembers Civil Relief Act (SCRA) and the military's repayment assistance program.
Teacher Loan Forgiveness (TLF): Teachers can benefit from loan forgiveness programs specifically designed for them. For example, the Teacher Education Assistance for College and Higher Education (TEACH) Grant service obligation can be waived if a teacher has a disability that severely limits their ability to work. Additionally, under the TLF Program, teachers may be eligible for forgiveness of up to $17,500 if they teach full time for five consecutive academic years in certain low-income schools or educational service agencies.
National Institutes of Health (NIH) Loan Repayment Programs (LRPs): The NIH offers LRPs that provide up to $50,000 per year to doctoral-level researchers in various fields, including clinical, pediatric, health disparities, contraception and infertility, and research for individuals from disadvantaged backgrounds.
State-Specific Loan Forgiveness Programs: Many states offer their own loan forgiveness programs to attract workers to specific high-need professions, including healthcare, teaching, and public service. Each state has its own criteria and benefits, so it's worth researching what your state may offer.
AmeriCorps Segal Education Award: Participants who complete a term of national service in an approved AmeriCorps program are eligible to receive the Segal AmeriCorps Education Award, which can be used to repay qualified student loans.
It's important to note that student loan forgiveness is different from repayment plans, and some forgiveness plans may require simultaneous repayment. Additionally, federal student loans are the most common type of loan eligible for forgiveness, while private loans are usually not covered. Finally, it is recommended to stay informed about pending legislation that could impact student loan forgiveness and repayment plans in the future.
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Federal student loan forgiveness
There are several scholarships, grants, and programs that can help pay off student loans.
The US government offers several federal student loan forgiveness programs. These include:
- Public Service Loan Forgiveness (PSLF): This program is for those working in the public sector. Borrowers must repay their federal student loans under an IDR (income-driven repayment) plan or a standard 10-year plan.
- Loan forgiveness for teachers: Teachers who work full time for five complete and consecutive academic years in certain low-income elementary or secondary schools or educational service agencies may be eligible for forgiveness of up to $17,500.
- Total and Permanent Disability (TPD) Discharge: Borrowers with a physical or mental disability that severely limits their ability to work may qualify for a TPD discharge, meaning they don't have to repay their federal student loans.
- Closed School Discharge: If a school closes while a student is enrolled or soon after they withdraw, they may be eligible for a discharge of their federal student loan if they meet certain requirements.
- IDR plan: An IDR plan bases monthly payments on income and family size. After 20 or 25 years of payments, the remaining balance on student loans may be forgiven.
- Loan forgiveness for government or not-for-profit workers: Those who work full time for a government or not-for-profit organization may qualify for forgiveness of the entire remaining balance of their Direct Loans.
It's important to note that the eligibility criteria and requirements for each of these programs vary, and interested individuals should carefully review the specifics of each program to determine their eligibility.
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State-based student loan repayment grants
While I could not find specific information on state-based student loan repayment grants, I did find information on other student loan repayment grants and scholarships.
Scholarships and Grants to Pay Off Student Loans
There are scholarships and grants available to help pay off student loans. For example, Bold.org offers Top Grants to help pay off student loans. These include grants for teachers in STEM fields, women in the skate community, and aspiring or current nurses. Scholarships360 also offers grants and scholarships to help with student loan debt. Additionally, the National Institutes of Health (NIH) offers Loan Repayment Programs (LRPs) that provide up to $50,000 per year to doctoral-level researchers in various fields. These grants aim to attract health professionals to careers in research.
Public Service Loan Forgiveness
The US government also offers loan forgiveness programs for those who work in the public sector. The Public Service Loan Forgiveness program helps those who work in the public sector to get their loans forgiven. Similarly, the Attorney Student Loan Repayment Program is an incentive program from the Department of Justice that offers loan repayment for those who work in the public legal sector.
Federal Student Loan Repayment Options
The US Department of Education offers federal student loan repayment options, such as Income-Driven Repayment (IDR) plans and the Income-Based Repayment Plan. However, some of these programs have been subject to legal challenges and changes, such as the Saving on a Valuable Education (SAVE) Plan, which was ruled illegal by the Supreme Court.
Other Options
In addition to grants and scholarships, there are other options to help with student loan debt. For example, Pell Grants can be obtained while enrolled in an accredited undergraduate program to reduce future student debt. Additionally, private student loans, changing repayment plans, and federal financial aid through the FAFSA (Free Application for Federal Student Aid) can help provide additional financial support for college expenses.
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Frequently asked questions
Yes, there are scholarships and grants available to help pay off student loans. These are often career-based and can be awarded by the government, colleges and universities, hospitals, and businesses.
Here is a non-exhaustive list of scholarships and grants that can help pay off student loans:
- The Breanden Beneschott Fire Memes Scholarship
- Bold.org's $10,000 No-Essay Scholarship
- Pell Grants
- The National Institutes of Health (NIH) Loan Repayment Programs (LRPs)
- Sallie Mae's scholarships
- The Veterinary Medicine Loan Repayment Program
You can use scholarship search engines like Going Merry, federal websites like studentaid.gov, and lists of private companies with employee assistance. You can also search for your career plus “loan repayment” or “student loan grant”.
