Lori Meadows
Student loan debt is a massive problem for many students, with the total student loan debt in the United States soaring past $1.7 trillion. Fortunately, there are grants and scholarships to help pay off student loans. Grants are free money for school that you don't have to pay back, while scholarships are usually merit-based. Many scholarships and grants are created to help current students pay tuition, but there are also plenty of grants for students and graduates with loan debt. Additionally, some employers offer benefits to help employees pay off student loans, and the government also pays back some student loans through specialized programs.
| Characteristics | Values |
|---|---|
| Grants | Free money for school that you don't have to pay back |
| Available from the government, colleges and universities, hospitals, and businesses | |
| Need-based | |
| Scholarships | Merit-based |
| Available from employers | |
| Available for everyone, not just A-students and athletes | |
| Can be easy to apply for | |
| Can be used during or after school to help pay down student loans | |
| Student loan forgiveness | Available for teachers |
| Available for those with disabilities | |
| Available for military service members | |
| Available for those working for the government or not-for-profit organizations | |
| Available for those in the public legal sector | |
| Available for nurses | |
| Available for state prosecutors and public defenders | |
| Available for veterinarians |
Explore related products
What You'll Learn
Grants for student loan debt
The ever-increasing cost of education has resulted in student loan debt becoming a massive problem for students. In the 2020-2021 school year, the total student loan debt in the United States was over $1.7 trillion. This has led to an urgent need to address this financial burden. Fortunately, there are grants available to help pay off student loans.
There are various grants and student loan forgiveness options offered by organizations to assist those who need them. These include:
- Career-based grants: These are national grants that provide funding to qualified individuals in specific careers, such as teachers and medical personnel. The National Health Services Corps (NHSC), for instance, has several grant programs to help medical professionals repay their student loans.
- Military grants: These grants are available for members of the military, veterans, and relatives of active military members and veterans. The Army Loan Repayment Program, for instance, can cover up to $65,000 in student loan debt for active-duty soldiers.
- Public Service Loan Forgiveness: This program offers loan forgiveness for those working in the public sector.
- Nurse Corps Loan Repayment Program: This program provides funds to pay off up to 85% of nursing-related student loans.
- Teacher Loan Forgiveness Program (TLF): This program offers loan forgiveness of up to $17,500 for teachers who work full time for five consecutive academic years in low-income schools.
- IHS Loan Repayment Program: This program provides grants of up to $50,000 to repay eligible student loans for those who serve for two years in American Indian and Alaska Native areas.
Scholarships for Student Loan Debt
In addition to grants, there are scholarships available specifically for individuals burdened with student loan debt. Bold.org, for example, offers scholarships for college students or adults in a career who have student debt and are first-generation African American or Hispanic/Latino students.
It is important to note that eligibility requirements and application processes may vary for each grant and scholarship, so be sure to review the guidelines carefully.
Stafford Loans: Funding Your Student Teaching
You may want to see also
Explore related products
Student loan forgiveness programs
Public Service Loan Forgiveness (PSLF)
The PSLF program is available to government and qualifying nonprofit employees with federal student loans. Eligible borrowers can have their remaining loan balance forgiven tax-free after making 120 qualifying loan payments on an IDR plan and 10 years of full-time public service work. Teachers employed full-time in low-income public schools can also qualify for PSLF after working for five consecutive years.
Income-Driven Repayment (IDR) Plans
IDR plans are offered by the federal government and allow borrowers to cap their loan payments at a percentage of their monthly discretionary income. Payments can be as low as $0 per month, and any remaining loan balance may be eligible for forgiveness after 20 or 25 years, depending on the plan.
Teacher Loan Forgiveness
Teachers who teach full-time for five complete and consecutive academic years in certain elementary or secondary schools serving low-income families may be eligible for forgiveness of up to $17,500 in federal student loans.
Total and Permanent Disability (TPD) Discharge
If you have a physical or mental disability that severely limits your ability to work now and in the future, you may qualify for a TPD discharge. With a TPD discharge, you don't have to repay your federal student loans or complete any grant service obligations.
AmeriCorps Service
Completing a term of national service in an approved AmeriCorps program, such as AmeriCorps VISTA or AmeriCorps NCCC, can make you eligible for the Segal AmeriCorps Education Award. This award can be used to repay qualified student loans, and AmeriCorps service can also count toward PSLF.
In addition to these programs, some employers offer benefits to help employees pay off their student loans. It's worth checking your benefits handbook to see if your employer provides any assistance with student loan repayment. Furthermore, organizations like Bold.org offer grants and scholarships specifically designed to help individuals burdened with student loan debt.
Strategies to Repay Your Student Loan Debt
You may want to see also
Explore related products
Employer benefits
Many employers now offer student loan repayment as an employee benefit to attract and retain top talent. Some companies that offer student loan repayment programs as part of their employee benefits include Aetna, Google, SoFi, and PwC. These programs match employee payments up to a certain amount annually, helping to reduce student loan debt.
If you are employed by a government or not-for-profit organization, you might be eligible for the government's Public Student Loan Forgiveness (PSLF) Program. The PSLF Program forgives the remaining balance on your Direct Loans after you've made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for an eligible employer. Qualifying employers include the government or any 501c3 non-profits.
The National Health Services Corps has several grant programs designed to help medical professionals in different fields repay their student loans. For example, the Nurse Corps Loan Repayment Program will give you funds to pay off 60% of your student loan debt if you work for at least two years in a critical shortage area. For a third year, eligible nurses may get another 25% of their student loans paid off.
The Teacher Loan Forgiveness Program will pay up to $17,500 on your Federal Direct Subsidized or Unsubsidized Loans if you are employed as a full-time qualified teacher for five consecutive academic years at a low-income school or educational service agency.
The Segal AmeriCorps Education Award is a benefit received by participants who complete a term of national service in an approved AmeriCorps program. After you successfully complete your service, you are eligible to receive a Segal AmeriCorps Education Award, which can be used to repay qualified student loans.
Veterinary Student Loan: Repayment Strategies for New Grads
You may want to see also
Explore related products
Scholarships and grants for current students
Scholarships and grants can be a great way to help current students pay off their student loans. While scholarships tend to be merit-based, grants are usually need-based. Grants can be used during or after school to help pay down student loans.
There are a variety of scholarships and grants available for current students to help pay off student loans. Here are some options:
- Bold.org offers scholarships and grants for students burdened with student loan debt. Their exclusive scholarships are for college students or adults currently in a career who have student debt. Students must be African American or Hispanic/Latino and first-generation students to apply.
- Scholarships360 offers a free scholarship search tool that custom-matches you to vetted scholarships based on your demographic and career interests. They also provide information on Income-Driven Repayment plans, including Income-Based Repayment, Pay As You Earn, Revised Pay As You Earn, and Income-Contingent Repayment. These plans can help pay off your remaining student loans after 20 or 25 years of payments.
- Sallie provides a platform for students to connect with free money for school and college planning tools. They offer step-by-step guides to help students maximize their federal aid and qualify for scholarships.
- 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.
- National Health Services Corps has several grant programs to help medical professionals repay their student loans, such as the Nurse Corps Loan Repayment Program.
- Teacher Loan Forgiveness Program (TLF): This program offers student loan forgiveness of up to $17,500 off of Direct Subsidized and Unsubsidized loans and Subsidized and Unsubsidized Federal Stafford Loans.
- State-based grants: Many states offer grants tied to specific jobs and industries. It's worth researching your state and industry to see what grants may be available.
- Military grants: These grants are need-based and often funded by the government. They are available to military members, veterans, and their relatives. To be eligible, students must have military status and complete the FAFSA.
It's important to note that the availability and eligibility criteria for these scholarships and grants may vary, so be sure to review the requirements carefully. Additionally, some employers offer benefits to help employees pay off student loans, so don't forget to check your benefits handbook.
Grad Students and Florida Taxes: What You Need to Know
You may want to see also
Explore related products
$24.35 $30.99
Federal grants
There are various federal grant programs available, each with its own unique criteria and benefits. For instance, the Teacher Loan Forgiveness Program (TLF) offers student loan forgiveness of up to $17,500 off of Direct Subsidized and Unsubsidized loans, as well as Subsidized and Unsubsidized Federal Stafford Loans. To qualify, individuals must teach full-time for five consecutive academic years in a low-income school or within an educational service agency.
The Iraq-Afghanistan Service Grant is another example of a federal grant. To be eligible, applicants must have lost a parent or guardian who was a member of the U.S. armed forces and died while serving in Iraq or Afghanistan. Additionally, they must have been under 24 years old or enrolled in college at the time of their parent's or guardian's death and meet the eligibility requirements of the Federal Pell Grant. The award amount for the 2025-26 academic year is $7,395.
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. The IHS Loan Repayment Program is also worth considering, as it offers grants of up to $50,000 to pay off eligible student loans for those who serve for two years in American Indian and Alaska Native areas. Furthermore, individuals with disabilities that severely limit their ability to work may qualify for a TPD discharge, which means they won't have to repay their federal student loans.
It is important to note that federal grants might have specific requirements and limitations, and they may be tied to certain jobs or industries. Therefore, it is essential to carefully review the terms and conditions of each grant program to determine eligibility and ensure the funds are utilized for their intended purpose.
Dental Treatment Costs for Students in Northern Ireland
You may want to see also
Frequently asked questions
Scholarships are usually merit-based, and they are often awarded to current students to pay their tuition fees. However, there are scholarships and grants available to help students and graduates pay off their student loan debt. Bold.org, for example, offers grants to alleviate student loan debt. Scholarships360 also has a free scholarship search tool that can help you find scholarships that match your demographic and career interests.
Grants are similar to scholarships, but they tend to be need-based. They can be used to pay off student loans during or after your studies. Grants are available from a variety of sources, including the government, colleges and universities, hospitals, and businesses.
You may be eligible for federal student loan forgiveness programs. For example, if you work for the government or a not-for-profit organisation, you may qualify for Public Service Loan Forgiveness. Additionally, some employers offer benefits to help employees pay off their student loans, so be sure to check your employee handbook.
