Lori Meadows
With the ever-increasing cost of education, many students are burdened by student loan debt. In the US, student loan debt has reached a staggering $1.7 trillion, affecting millions of students and graduates. Thankfully, there are grants available to help alleviate this financial burden. These grants can be provided by the federal government, state governments, or private organizations, and they can be used to pay off both private and federal loans. Some grants are career-based, providing funds to qualified individuals in specific fields such as medicine, law, education, and the military. Other grants may be provided by employers as part of a benefits package. Additionally, there are loan forgiveness programs that can help eliminate student debt. These programs may have service or employment requirements. This paragraph provides an introduction to the topic of using grants to pay off student loans, highlighting the prevalence of student loan debt and the availability of grants and loan forgiveness programs as potential solutions.
| Characteristics | Values |
|---|---|
| Can grants be used to pay off student loans? | Yes |
| Total student loan debt in the US | $1.7 trillion to $1.8 trillion |
| Number of borrowers in the US | 45 million |
| Example of a grant for lawyers | John R. Justice Repayment Program |
| Maximum amount paid by the John R. Justice Repayment Program | $60,000 |
| Example of a grant for medical professionals | National Health Services Corps |
| Maximum amount paid by the National Health Services Corps | $120,000 |
| Example of a grant for teachers | Teacher Loan Forgiveness Program |
| Maximum amount paid by the Teacher Loan Forgiveness Program | $17,500 |
| Example of a grant for military personnel | Army Reserve College Loan Repayment Program |
| Maximum amount paid by the Army Reserve College Loan Repayment Program | $20,000 |
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What You'll Learn
Federal grants and state grants
Federal grants are available to help repay student loans, but they are often tied to specific professions, such as teaching, nursing, public service, law, or healthcare. For example, the Public Service Loan Forgiveness (PSLF) program offers loan forgiveness after ten years of qualifying payments for those working in public service. Similarly, the John R. Justice (JRJ) Student Grant Program offers up to $10,000 per year, with a maximum benefit of $60,000, for state public defenders or prosecutors. The National Health Service Corps (NHSC) provides grants of up to $50,000 for healthcare professionals working in underserved areas.
Federal grants may also be available for those with disabilities, military service members, or veterans. For instance, 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. Additionally, the Army, Navy, Air Force, and National Guard offer up to $65,000 towards federal student loans for eligible active-duty members.
State grants are also available to help repay student loans, and they are often tied to specific jobs or industries. For example, the Veterinarian Medical Loan Repayment Program offers up to $40,000 per year for those working in an area with a shortage of veterinarians. The Allied Healthcare Loan Repayment program offers up to $16,000 for a one-year service commitment in an underserved area. Additionally, many states have teacher loan forgiveness programs, especially for high-need areas.
It's important to note that most grants come with service or employment requirements, and eligibility criteria may vary, so it's essential to carefully review the requirements before applying.
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Grants for specific professions
Grants can be used to pay off student loans, and there are various organizations that offer grants and student loan forgiveness options. These grants are often need-based and can be awarded by the government, colleges and universities, hospitals, and businesses. Here are some examples of grants for specific professions:
Teachers
The Teacher Loan Forgiveness Program (TLF) can offer student loan forgiveness of up to $17,500 off of Direct Subsidized and Unsubsidized loans and Subsidized and Unsubsidized Federal Stafford Loans. To qualify, teachers must teach full time for five consecutive academic years in a low-income school or within an educational service agency, among other qualifications. Additionally, the Public Service Loan Forgiveness (PSLF) program offers forgiveness after ten years of qualifying payments for teachers who work in public service.
Lawyers
The John R. Justice Student Loan Repayment Program will pay up to $60,000 in student loans for lawyers who go into the public sector. These payments can be up to $10,000 per year and require a three-year commitment as either a state prosecutor or a state public defender. The US Department of Justice offers a similar program, with a slightly lower yearly benefit of $6,000 per year.
Medical Professionals
The National Health Services Corps (NHSC) has several grant programs to help medical professionals repay their student loans. The Nurse Corps Loan Repayment Program will pay off 60% of student loan debt for nurses who work for at least two years in critical shortage areas. For a third year, eligible nurses may get another 25% of their student loans paid off. The IHS Loan Repayment Program offers grants of up to $50,000 for those who serve for two years in American Indian and Alaska Native areas. The Health Professions Loan Repayment Program supports medical professionals in the military with up to $40,000 per year towards student loan debt for those serving in underserved areas in Pennsylvania.
Military
The Army Reserve College Loan Repayment Program can pay for 15% of the student loan balance up to $20,000 for those who enlist in the army for at least six years and have student loans before active duty. 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. Additionally, various branches of the military, including the Army, Navy, Air Force, and National Guard, offer up to $65,000 towards federal student loans for eligible active-duty members.
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Grants for military personnel
Military personnel can take advantage of various grants and loan repayment programs to help manage their student loan debt. These programs are offered by the military, government agencies, and other organizations. Here are some of the key grants and programs available for military personnel:
Student Loan Repayment Program (SLRP)
The SLRP is a well-known program offered by the military for active-duty members. To be eligible, individuals must agree to serve in specific roles or occupations and enlist for at least three years. The Army, for example, may pay up to 33.33% of the principal balance each year for three years, with a maximum of $65,000 in loan assistance.
Public Service Loan Forgiveness (PSLF)
The PSLF program is available for service members working in qualifying public service positions. It can save individuals tens of thousands of dollars in student loan debt. To qualify, borrowers must make 120 monthly payments on their federal student loans, repay their loans on an income-driven plan, and be employed by a qualifying employer for 120 months.
Army Reserve College Loan Repayment Program
This program is designed for those with a Military Occupational Specialty (MOS) who enlist in the Army for at least six years and have student loans before active duty. The program offers to pay 15% of the loan balance, up to a maximum of $20,000.
Health Professions Loan Repayment Program
This program assists doctors, dentists, and other healthcare professionals who are on active duty or in the Army Reserve. They may receive up to $120,000 in loan assistance, which is $40,000 per year for up to three years.
Navy Scholarship Program
The U.S. Navy offers a scholarship program that covers full tuition and required book fees. Additionally, it provides a monthly living expense stipend.
Iraq-Afghanistan Service Grant
This grant is for individuals who have lost a parent or guardian serving in the U.S. armed forces in Iraq or Afghanistan. The grant amount matches the maximum Pell Grant available for that award year, which was $7,395 for the 2025-26 year.
It is important to note that the guidelines and eligibility requirements may vary for each grant and program. Military personnel should carefully review the details and terms before applying.
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Grants for students with disabilities
Grants are a great way to alleviate the burden of student loan debt. They can be used during or after school to help pay down student loans. Grants are available from a number of varied sources, including federal grants, university scholarships, and private education loans.
Students with disabilities face financial challenges and additional obstacles in their pursuit of higher education. The Individuals with Disabilities Education Act (IDEA), passed in 1975 and amended in 2004, has pushed for better access for disabled students at colleges and universities across the country. Many organizations, both public and private, sponsor grants for disabled students who lack the financial resources to pursue their college education. Foundations and associations throughout the country are dedicated to funding grants and scholarships that address nearly every form of mental or physical disability.
Some colleges and universities are known for their robust programs for students with disabilities, including extensive academic opportunities and support services. For example, the University of Illinois at Urbana-Champaign has offered educational services for students with disabilities since the founding of the Division of Disability Resources & Educational Services in 1948. The University of California, Berkeley, has a world-class Disabled Students Program that teaches even the most severely disabled students the skills they need to live independently. Wayne State University has long been dedicated to making its campus wheelchair-accessible and offers financial assistance to help disabled students with tuition costs.
In addition to grants and scholarships, some employers offer benefits to help employees pay off student loans. For instance, the bank Ally offered employees an additional $100 per month in 2023. Military grants are another option for members of the military, veterans, and their relatives. These grants are need-based and often funded by the government, but some may be offered by colleges and universities.
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Grants for lawyers
The cost of obtaining a college degree has skyrocketed in recent decades, far outpacing the rate of inflation. This has resulted in a student loan debt crisis, with millions of individuals and families affected. The good news is that there are grants available to help pay off student loans. These grants are a form of financial aid that can be used to pay off both private and federal loans. While some grants are only available to current students, there are plenty of grant opportunities for graduates with loan debt.
Lawyers working in the public sector or in public interest law can benefit from several grant and loan forgiveness programs. Here are some options specifically for lawyers to pay off their student loans:
- John R. Justice Student Loan Repayment Program: This program provides up to $60,000 in student loan repayment assistance for lawyers who work in the public sector. Lawyers must commit to working as state prosecutors or state public defenders for at least three years and can receive up to $10,000 per year.
- Attorney Student Loan Repayment Program: Offered by the US Department of Justice, this program provides similar benefits to the John R. Justice Repayment Program. Attorneys working in the Department of Justice with at least $10,000 in federal student loan debt can apply to have their loan payments matched up to $6,000 per year, with a lifetime limit of $60,000.
- Legal Services Corporation (LSC) Forgivable Loans: The LSC offers forgivable loans of up to $10,000 to help attorneys repay their law school debt. To qualify, attorneys must have at least $75,000 in student debt and work full-time with an LSC-approved grantee.
- Loan Forgiveness for Public-Service Lawyers: Many law schools, including top programs like Yale Law School, offer loan forgiveness grants to alumni who pursue careers in public interest law. It is worth checking with your law school about these types of repayment grants.
- Military and Veteran Student Loan Forgiveness: There are also forgiveness programs for lawyers who have served in the military or are veterans. These programs are often based on the branch of military service and can result in partial or total loan forgiveness.
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Frequently asked questions
Yes, grants can be used to pay off student loans. There are various organizations that offer grants and student loan forgiveness options.
Here are some examples of student loan forgiveness programs:
- Public Service Loan Forgiveness (PSLF)
- Teacher Loan Forgiveness (TLF)
- National Health Service Corps (NHSC)
- Legal Services Corporation (LSC) loan forgiveness
- Iraq-Afghanistan Service Grant
Here are some examples of grants to pay off student loans:
- Bold.org offers grants for individuals burdened with student loan debt
- National Institute of Food and Agriculture (NIFA) loan repayment assistance program for veterinarians
- National Institutes of Health (NIH) loan repayment programs (LRPs) for medical professionals
- Navy personnel can receive up to $65,000 toward federally guaranteed student loans
Here are some tips for finding grants to pay off student loans:
- Research your state's education department website for post-graduation scholarships
- Reach out to professional organizations and companies in your industry to inquire about grants
- Check your benefits handbook to see if your employer offers student loan assistance
