Ibrahim Gardner
The student loan debt crisis has reached staggering proportions, affecting millions of individuals and families. As of the 2020-2021 school year, the total student loan debt in the United States surpassed $1.7 trillion. Luckily, grants can be a strategic way to alleviate this financial burden. Grants are available from a variety of sources, including the government, colleges and universities, hospitals, and businesses. They are typically career-based, rewarding those in fields such as teaching, medicine, the military, nonprofits, law, and government. Some grants are also need-based, such as military grants for veterans and their families. To apply for grants, individuals should start by checking with their alma mater, as many colleges and universities offer grants or forgiveness programs for alumni. They should also research their industry for state- or federal-based programs that offer loan forgiveness. Additionally, it is important to stay organized by listing all student loans, including their type, monthly payment, due date, interest rate, and servicer.
| Characteristics | Values |
|---|---|
| Who offers grants? | Government, colleges and universities, hospitals, businesses, private organizations, employers |
| Who is eligible for grants? | Teachers, medical personnel, military personnel, veterans, relatives of active military members, journalists, lawyers, prosecutors, public defenders, etc. |
| What are the requirements? | Work in specific careers, serve in high-needs areas, low-income status, etc. |
| How are grants received? | Directly to the recipient, through the school, by check, or used in multiple ways |
| How are grants used? | To fund innovative projects, as a stipend, to pay off a percentage of debt, to cover monthly payments, to reduce interest rates, etc. |
| What else can help with repayment? | Refinancing, consolidating loans, setting up direct debit, extra payments, loan forgiveness programs |
Explore related products
What You'll Learn
Career-based grants
Health Care
The National Health Services Corps (NHSC) has several grant programs designed to help medical professionals in different fields repay their student loans. The NHSC provides grants to help doctors, dentists, nurse practitioners, mental health providers, and other healthcare professionals reduce their overall student loan debt. If you do two years of full-time service in an area with limited healthcare availability, you could receive up to $50,000 toward your student loan debt. Part-time service opportunities are also available, with grants up to $25,000.
The Health Resources and Services Administration (HRSA) also offers student loan grants for nursing professionals. Qualifying nurses can get up to 85% of their nursing school debt paid through the Nurse Corps Loan Repayment Program.
The Allied Healthcare Loan Repayment program offers up to $16,000 for a one-year service commitment to providing direct patient care in one of HCAI’s underserved areas.
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.
Education
Teachers who have worked five full, consecutive years in qualifying schools can get up to $17,500 of their federal debt canceled through the Teacher Loan Forgiveness Program. Full-time teachers in low-income schools and/or who teach qualifying subjects can get up to 100% of their Perkins loans canceled through the Perkins Loan Cancellation for Teachers program. Teachers can also apply for Teacher Development Grants of up to $20,000 from the McCarthy Dressman Education Foundation to fund innovative projects for classroom development.
Law
State prosecutors and public defenders can apply for the John R. Justice Student Loan Repayment Program through the state in which they live and work for three to six years. The award is worth up to $10,000 a year (maxed at $60,000 or the current total of the student’s debt) to pay toward law school student loans.
Attorneys and other employees working in the Department of Justice can receive grants of up to $6,000 through the Attorney Student Loan Repayment Program.
Military
The Army Loan Repayment Program can cover up to $65,000 of student loan debt for active-duty soldiers, Army Reserve soldiers, and Army National Guard soldiers. The Army Reserve College Loan Repayment Program can pay for 15% of your student loan balance up to $20,000 for those who work in a Military Occupational Specialty (MOS), enlist in the army for at least six years, and have student loans before going on active duty.
Agriculture
The YFLF program provides $10,000 a year in exchange for operating a farm in New York state for five years.
STEM
The Alfond Leaders Student Debt Reduction Program offers up to $60,000 in student loan relief for eligible candidates employed by a STEM-based company in Maine.
Journalism
The Loan Repayment Assistance Program for Nonprofit Journalists helps pay off debt for journalists working in nonprofit newsrooms who are recent graduates of Columbia Journalism School.
How to Use Refunds to Pay Off Student Loans
You may want to see also
Explore related products
Military grants
The US military offers several programs to help service members and veterans pay off their student loans, including the following:
Public Service Loan Forgiveness (PSLF)
The PSLF program is available to military service members, veterans, and those working in qualifying public service roles. To qualify, you must work full-time for a government or nonprofit organization and make 120 payments under a qualifying repayment plan, typically an income-driven repayment (IDR) plan. The amount you owe each month is based on your income and family size. After fulfilling these requirements, the PSLF program will forgive the remaining balance on your student loans.
Student Loan Repayment Program (SLRP)
The SLRP is for active-duty members who agree to serve in specific roles or occupations. The Army and Navy will repay up to $65,000 of student loans, while the Coast Guard will repay up to $30,000 with yearly limits. The National Guard offers a general repayment amount of up to $50,000. However, benefits may fluctuate based on funding issues and specific military specialties.
Servicemembers Civil Relief Act (SCRA)
The SCRA is a federal law that allows active-duty members to reduce the interest rate on their student loans to 6% for loans taken out before their military service. While this doesn't count as loan forgiveness, it can lower monthly payments and make managing expenses easier.
Veterans Total and Permanent Disability Discharge (TPD)
The TPD discharge applies to those with a disability that severely limits their ability to work, whether physical or mental. If you qualify for a TPD discharge, you are not required to repay your federal student loans. You will need to provide proof of your disability and may be subject to a post-discharge monitoring period.
Other Strategies for Military Families
Military families can also consider other strategies to pay off student loans, such as using tax refunds, military bonuses, or additional income from side jobs. Cutting back on non-essential expenses and redirecting savings towards student debt can also be effective. Additionally, military spouses should check with their employers to see if any assistance programs are available for employee student loans.
How to Use Your 403(b) for Student Loan Repayment
You may want to see also
Explore related products
Student loan forgiveness programs
There are various student loan forgiveness programs available, including:
- Public Service Loan Forgiveness (PSLF): This program is designed for military members and offers benefits through acts like the Servicemembers Civil Relief Act (SCRA) and the military's repayment assistance program. It helps service members manage their student loan debt during and after active duty, offering benefits like loan deferment, forbearance, interest suspension, or cancellation.
- Career-based Grants: These are national grants that provide funds to qualified individuals in specific careers, such as teaching and medical professions. The National Health Services Corps, for example, has grant programs to assist medical professionals in repaying their student loans. The Nurse Corps Loan Repayment Program offers to fund to cover 60% of student loan debt for those who work for at least two years in critical shortage areas.
- Military Grants: These grants are for military members, veterans, and their relatives. The Army Loan Repayment Program, for instance, can cover up to $65,000 in student loan debt for active-duty soldiers.
- State-based Programs: Many states offer 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 your state's offerings.
- Perkins Loans Forgiveness: If you took out a Perkins Loan before 2017, you may qualify for loan forgiveness if you're a teacher who teaches high-needs subjects or works in low-income schools.
- Veterinarian Medical Loan Repayment Program: This program provides up to $40,000 per year towards your student loan if you work for at least three years in an area with a shortage of veterinarians.
- John R. Justice Student Loan Repayment Program: State prosecutors and public defenders can apply for this program, which offers up to $10,000 per year (up to $60,000 total) to repay law school student loans.
- Segal AmeriCorps Education Award: Participants who complete a term of national service in an approved AmeriCorps program are eligible for this award, which can be used to repay qualified student loans.
Student Loan Forgiveness: What's the Catch?
You may want to see also
Explore related products
Teacher Development Grants
While there are no grants specifically called "Teacher Development Grants", there are numerous grants and loan forgiveness programs available to teachers to help pay off their student loan debt.
Teacher Loan Forgiveness Program
Teachers can have up to $17,500 in student debt forgiven by teaching full-time for five consecutive years in a low-income school or educational-service agency.
Perkins Loans
If you have a Federal Perkins Loan, you may qualify for student loan forgiveness. Qualifying teachers with Perkins Loans teach high-needs subjects or work in low-income schools. Teachers may get all their Perkins Loans debt forgiven in four or five years.
Public Service Loan Forgiveness (PSLF)
PSLF can be combined with the Teacher Loan Forgiveness Program. Teachers must work for a government agency or a qualifying non-profit, and the balance of the student loan debt can be forgiven.
Career-based grants
These are national grants that provide funds to qualified people in specific careers, including teachers. They can be awarded by the government, colleges and universities, hospitals, and businesses.
State and federal programs
There may be state- or federal-based programs that offer student loan forgiveness to teachers. These often require working in high-needs areas.
Employer grants
Some companies have grants, scholarships, and student loan forgiveness benefits for employees.
School financial aid
Certain post-grad schools like law school or medical school may forgive student loan debt in exchange for working in communities in need.
It is important to keep track of grant opening and closing dates and always look into other repayment options if you are having trouble paying back your loans.
Student Loans: Paying Off Credit Card Debt?
You may want to see also
Explore related products
Private scholarships and grants
There are many different types of student loan repayment assistance available, including income-driven repayment plans that alter your monthly payments based on your income. Depending on your area of work, loan forgiveness options may be available. Teachers, medical workers, public defenders, military personnel, and veterans are just some examples of those who can take advantage of public service loan forgiveness. For instance, qualifying teachers with Perkins Loans who teach high-needs subjects or work in low-income schools may get all their Perkins Loans debt forgiven in five years. The Public Service Loan Forgiveness (PSLF) program will pay off your student loan balance, saving you tens of thousands of dollars. However, PSLF only applies to Federal Direct Loans, so private student loans are not eligible.
There are also career-based grants that provide funds to qualified people in specific careers, like teachers, medical personnel, and more. They can be awarded by the government, colleges and universities, hospitals, and businesses. For instance, the National Health Services Corps has several grant programs designed to help medical professionals in different fields repay their student loans. 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.
Additionally, certain post-grad schools like law school or medical school may forgive your student loan debt in exchange for your service working in communities that need you the most. Some companies also have grants, scholarships, and student loan forgiveness benefits for employees.
You can find private scholarships and grants on websites like Bold.org, Scholarships360, and Sallie Mae. Bold.org offers scholarships and grants to help provide financial relief to students and graduates struggling to repay their student loans. Scholarships360 provides a free scholarship search tool that custom-matches you to vetted scholarships based on your demographic and career interests. Sallie Mae also has a blog with information on various grants and scholarships to pay off student loans.
Utilizing 0% APR Credit Cards to Pay Off Student Loans
You may want to see also
Frequently asked questions
Here are some grants that can help you pay off your student loan debt:
- Teacher Development Grants from the McCarthy Dressman Education Foundation offer teachers up to $20,000 to fund innovative projects for classroom development.
- The Loan Repayment Assistance Program for Nonprofit Journalists helps pay off debt for journalists working in nonprofit newsrooms.
- The Shared Harvest Fund allows people to volunteer in exchange for student loan payments.
- The John R. Justice Program offers prosecutors and public defenders up to $10,000 per year to cover student loan repayment.
- The Army Loan Repayment Program covers up to $65,000 of student loan debt for active-duty soldiers.
- The Nurse Corps Loan Repayment Program will pay off 60% of your student loan debt if you work for at least two years in a critical shortage area.
Aside from grants, there are other ways to pay off student loan debt, including:
- Refinancing your loans through a private lender to get a lower interest rate.
- Consolidating your federal loans to reduce your monthly payments into one bill.
- Setting up direct debit (autopay) for a 0.25% discount on your interest rate.
- Making extra payments to get out of debt faster and save on interest.
You can find grants to pay off your student loan debt by:
- Checking with your school's financial aid office, as some post-grad schools offer loan forgiveness in exchange for service.
- Asking your employer, as some companies offer grants, scholarships, and student loan forgiveness benefits for employees.
- Looking for grants on websites like Bold.org and creating a profile to apply.
- Checking for state- or federal-based programs in your industry that offer loan forgiveness.
