Savanna Hoffman
Student debt is a significant hindrance for college graduates who aspire to serve in missions. Mission agencies are increasingly acknowledging the need to accept missionaries with student debt, but this often comes with financial strain. To overcome this, missionaries may choose to pay off their student loans from their standard budget, or they may seek additional support from churches, family, friends, or other organizations. Some mission agencies, such as WEC, allow missionary candidates with student debt to join if they present a letter from a supporter promising to pay down the loans during their service. Other organizations, like The Go Fund, offer student debt repayment programs for long-term missionaries, while MedSend specifically assists healthcare workers serving in missions by making their monthly student loan payments. While becoming a missionary with student debt can be challenging, various options are available to help manage and repay educational loans.
| Characteristics | Values |
|---|---|
| Mission agencies that accept missionaries with student debt | TEAM, WEC, Pioneers, Billy Graham scholarship, MedSend, The Go Fund, Christian colleges and universities, Government programs, NET |
| Student debt limit | $20,000 (Go Fund), $30,000 (TEAM) |
| Monthly repayment management | The Go Fund, NET's Student Debt Assistance |
| Student debt repayment | The Go Fund (after 10 years of service), MedSend (for healthcare workers), Billy Graham scholarship (25% of debt forgiven for each year served), Christian colleges and universities (loan forgiveness programs), NET (up to $300 per month) |
| Strategies for repayment | Sacrifice leisure money, raise extra funds, pay off debt before starting, include loan payments in mission budget, refinance or change loan terms to reduce monthly payment, ask church, family, and friends for contributions |
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What You'll Learn
Mission agencies with student loan repayment programs
Several mission agencies recognize the need to accept missionaries with student debt, as it has become a common issue among American adults. While some missionaries choose to pay off their student loans through their standard budget or by raising extra funds, others opt for student loan repayment programs offered by specific agencies or government initiatives. Here are some mission agencies and programs that provide assistance with student loan repayment:
- The Go Fund: This organization helps eliminate the problem of student debt among missionaries. They pay off the remaining student debt after 10 years of missionary service for cross-cultural, long-term missionaries serving among unreached people groups.
- MedSend: MedSend provides student loan repayment grants for healthcare professionals serving in missions. Their goal is to expedite the deployment of healthcare workers to the field, so they make monthly student loan payments while the missionary serves.
- Christian Colleges and Universities: Some Christian academic institutions offer missionary student loan forgiveness programs, especially for recent graduates. It is advisable to contact the financial aid office of your alma mater to explore these options.
- WEC: WEC is a mission agency that accommodates missionary candidates with student loan debt. They require a letter from a supporter (an individual or a church) committing to pay down the student loans for the duration of the missionary's service with WEC.
- Billy Graham Scholarship: This scholarship program forgives a portion of your school loans for each year you serve with an approved agency overseas.
- Federal Student Loan Repayment Programs: Federal agencies are authorized to implement programs to repay certain types of student loans as a recruitment or retention incentive for highly qualified personnel. These programs aim to attract and retain employees with exceptional qualifications.
It is important to note that each mission agency may have its own student debt limit, typically around $20,000, and they consider the missionary's support levels and reasonable monthly payments. Additionally, some missionaries may prefer to pay off their loans before embarking on their missionary journey to avoid financial stress.
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Christian colleges with missionary loan forgiveness programs
Christian colleges and universities often have missionary student loan forgiveness programs, especially for recent graduates. These institutions recognize the financial burden that students face after graduation and are organizing efforts to help students eliminate their student loan debt through Christian work.
Christian organizations are responding with a promise to pay off student loan debt for those who work as missionaries in foreign or domestic areas where they are needed. For instance, Harding University has a long history of sending missionaries worldwide and offers a loan forgiveness program that eliminates a portion of their graduates' debt as they stay in the mission field and meet the stated criteria.
Additionally, Christian colleges provide various financial aid options, including grants, scholarships, work-study programs, and private or alternative loans. Grants are typically need-based, and many Christian organizations set aside funds for devoted Christian students. Scholarships are merit-based and require a high grade point average in secondary school. Work-study programs allow students to work on campus and get paid a minimum wage or slightly more.
Furthermore, income-driven repayment (IDR) plans are available, where payments are based on income. After a set period and number of payments, loans are forgiven under these plans. Loan consolidation is another option, combining multiple loans into one, often resulting in a lower overall payment. However, this usually extends the repayment term.
Finally, paying off student loans before becoming a missionary is an option, although it requires a solid and targeted plan. Some individuals choose to work and save to pay off their loans before pursuing missionary work. Others may seek support from their church, family, and friends to contribute to their long-term mission and pay off their debt.
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Scholarships that forgive debt for missionary work
Many people who want to become missionaries struggle with student debt. However, there are several options available to help manage and even forgive this debt. Firstly, some mission agencies, such as WEC, accept candidates with student debt, provided they can present a letter from a supporter or church promising to pay it down.
There are also scholarships and forgiveness programs offered by educational institutions and external organisations. For example, Liberty University has a loan forgiveness program that pays up to 20% per year of the balance of federal student loans (up to $30,000 per individual) to qualifying alumni. Similarly, the Billy Graham scholarship forgives a quarter of school loans for each year served with an approved overseas agency.
Project MedSend offers educational loan repayment grants for healthcare missionaries who have demonstrated responsible borrowing and repayment practices. The Go Fund is another organisation that pays off student debt for long-term, cross-cultural missionaries after 10 years of service.
Some Christian colleges and universities also have missionary student loan forgiveness programs for recent graduates. It is recommended that graduates of Christian schools enquire with their alma mater about potential options for loan forgiveness.
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Managing debt while serving as a missionary
Understanding Your Financial Situation: Begin by assessing your financial situation and creating a budget. Calculate your income, expenses, and the amount of debt you need to repay. Be honest and realistic about your finances, and consider seeking advice from a financial counsellor or advisor.
Communication with Agencies: Most mission agencies understand that qualified individuals may have student debt. Communicate openly with your agency about your financial situation. Ask about their debt limit policies and whether they provide any financial assistance or loan repayment programs. Be transparent throughout the application process and work together to find a solution.
Repayment Plans: Develop a strategy to manage your debt effectively. You can choose to include loan payments in your mission budget, sacrificing leisure money to make repayments. Alternatively, you can commit to finding additional supporters to raise extra funds and cover your loan payments. Some missionaries opt for a combination of both approaches, paying when they can and seeking support when needed.
Explore Assistance Programs: Several organizations offer assistance specifically for missionaries with student debt. Explore options such as The Go Fund, which helps pay off student debt for long-term missionaries serving cross-culturally. MedSend provides loan repayment grants for healthcare professionals serving in missions. Christian colleges and universities may also have missionary student loan forgiveness programs for recent graduates.
Short-Term Solutions: If you are considering a short-term missionary assignment, you may need to refinance or change the terms of your loans to reduce your monthly payments. An Income-Based Repayment plan can be an option, as it ties your monthly payment to your income, which is typically low for short-term missionaries. However, be cautious, as reducing your monthly payment may result in a longer repayment period and increased overall debt.
Support from Community: Don't hesitate to involve your community in your financial journey. You can ask your church, family, and friends to contribute to your long-term mission and help alleviate your student debt. If you are connected to a local church, they may be willing to provide financial support or connect you with members who can assist.
Remember, managing debt as a missionary requires discipline and commitment. Be proactive in seeking solutions, and don't be afraid to ask for help when needed. With careful planning and support, you can serve as a missionary while effectively managing your student debt.
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Fundraising for student loan repayment
Many young people are encouraged to do a short-term overseas mission before committing to a longer-term one. However, this can be devastating for some, as they may return home with thousands of dollars more debt than when they left. This is because they have a low income while serving, and the monthly payment is often much lower than their standard minimum loan payment.
Some missionaries choose to pay off their student loans out of their standard budget, sacrificing leisure money to make it possible. Others choose to raise extra funds to cover the payments. Some mission agencies set a student debt limit, usually around $20,000, and look at the average missionary's support levels and what kind of monthly payments they could reasonably make.
There are several options for fundraising for student loan repayment:
- Ask your church, family, and friends to contribute to your long-term mission: If you can pay off your debt in 18 months or less, get a job (or several) and pay it off.
- Apply for a student debt repayment program: The Go Fund, for example, promises to pay off 100% of the student debt for long-term missionaries to unreached people groups. They manage the monthly repayment of student loans for their partners, including making payments, tracking changes in interest rates, and corresponding with loan providers. They also secure notarized power of attorney documentation, giving them the legal right to make payments toward their partners' student debt. MedSend is another program that provides student loan repayment grants for professionals serving in healthcare mission service.
- Look into loan forgiveness programs: Some Christian colleges and universities have missionary student loan forgiveness programs, especially for recent graduates. The Billy Graham scholarship is another example, which forgives one quarter of your school loans for each year you serve with an approved agency overseas.
- Include loan payments in your mission budget: Some missionaries include loan payments in their mission budget and go straight away. NET's Student Debt Assistance, for example, offers monetary assistance of up to $300 per month toward student loan debt during the months that missionaries serve.
- Refinance or change the terms on your loans: If you are going on a mid-term mission, you may be encouraged to refinance or change the terms on your loans to reduce the monthly payment. This could involve switching to an Income-Based Repayment term, where the monthly payment is based on your income, which is generally very low for mid-term workers.
It is important to carefully evaluate your financial situation and choose the option that is best for you.
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Frequently asked questions
Many mission agencies understand that well-trained, qualified people often come with student debt. Some agencies set a student debt limit, usually around $20,000, and evaluate each applicant's situation individually. You can also consider applying for a scholarship, such as the Billy Graham scholarship, which forgives a quarter of your school loans for each year you serve with an approved overseas agency.
You can choose to pay off your student loans out of your missionary budget, or you can raise extra funds to cover the payments. Some organizations, like NET, offer Student Debt Assistance, providing monetary assistance of up to $300 per month toward student loan payments while serving as a missionary. The Go Fund is another option; they manage the monthly repayment of student loans, including making payments, tracking interest rate changes, and corresponding with loan providers.
Consider asking your church, family, and friends to contribute to your long-term mission. If possible, get a job and pay off your student debt before committing to missionary work. You can also apply for loan repayment grants, such as those offered by Project MedSend for qualified healthcare professionals serving in missions.
It is essential to be proactive in managing your finances. Evaluate your loan terms and consider refinancing or changing to an Income-Based Repayment plan to reduce your monthly payments. Take advantage of grace periods or deferments offered by loan providers. Additionally, be transparent about your financial situation with your mission agency and supporters, as they may be able to provide guidance or assistance.
