You may be already aware that grants might help defray the costs of attending college, but you might not know that some awards are designated explicitly for repaying student loans. In contrast to loans, grants are considered gift aid and are therefore not expected to be repaid. Getting a grant is a lot like getting a student loan: you must apply for it and prove that you qualify. Sometimes paying back student loans can make you feel like you’re in over your head. Monthly payments can still be prohibitive, even with income-based repayment programmes or after refinancing. One possible solution to student loan debt is to use a grant to pay off existing loans.
How do I qualify for it?
There are many prerequisites for each grant. The answers to these questions and others depend on your chosen profession and whether you live in a high-demand region. Some of these grants are only applicable to federal student loans, so you may need to borrow more money from the government.
Paying off student loans with grants
There is no quick way to determine which award is ideal for you; you simply need to invest the time to investigate the available grants to pay off student loans. Fortunately, we have a list to help you get started:
- Benefits of Repaying Your National Institutes of Health Loan
Loan forgiveness programmes for doctors and other healthcare workers are offered by the NIH. The program’s annual loan-repayment awards can be as high as $50,000, to attract health professionals into research professions. Participating researchers must have expertise in areas such as the study of infertility and contraception, as well as the study of health inequalities among minority communities.
- NIMH Loan Repayment Program
Some healthcare workers can receive loan forgiveness through the National Institute of Mental Health. Research funds in the field of mental health are made available through the National Institute of Mental Health Loan Repayment Program. Clinical researchers in the fields of mental health, paediatrics, health disparities, and developing fields crucial to human health may be eligible for this fellowship. Benefits include annual student loan repayment of up to $50,000.
- The John R. Justice Repayment Assistance for Student Loans Program
Because of the high cost of attending law school, many graduates avoid the lower-paying public sector. We hope to correct that via the John R. Justice Student Loan Repayment Program. The funding is available to state prosecutors and public defenders. Recipients must commit to working as state public defenders or prosecutors for a minimum of three years after receiving the award. The award can be used annually for up to six years at $10,000 each year.
- Initiatives to Repay NHSC Loans
For those in the medical field, the National Health Service Corps has three loan forgiveness options. Participants who commit to working in a qualifying programme for two to three years are eligible to receive up to $100,000 in loan repayment. There is a programme for those who live in remote locations, as well as a programme for people who are addicted to substances.
- IHS Loan Repayment Program, Number
The Indian Health Service is a government agency that provides healthcare to Native Americans and American Indians, as well as a loan repayment scheme for medical professionals who work at certain hospitals. In exchange for a two-year service commitment, participants can receive awards of up to $40,000. Professionals in the fields of advanced nursing, behavioural medicine, dentistry, medicine, nutrition, and medical laboratory science are all eligible for employment in this sector.
- Repayment Program for Student Loans
The Students to Service Loan Repayment Program may be available for graduating medical and dentistry students. Also included are NPs, CNMs, and PAs. Grants to pay off student loans for educational expenses, administered by the Health Resources and Services Administration, can total up to $120,000. Awardees must commit to working full-time in clinical sites for three years. Community outpatient facilities, state and municipal health departments, community mental health centres, rural health clinics, and critical access hospitals are all examples.
- Repayment Program for Servicemembers’ Educational Loans
Many people who have served their country in the armed forces return to school with the help of the G.I. Bill®. Recruits can have their academic debt eliminated under the Loan Repayment Program (LRP). Loan Repayment Program (LRP) participants receive varying amounts of aid based on their service branch. There is a catch: you must do community service in exchange for the grant. Enlistees must serve anywhere from three to six years before qualifying for debt payback benefits.
- Financial Aid from Employers
The number of businesses that provide this perk to their workers is expanding. In 2020, eight per cent of companies offered some form of aid for paying off student loans, up from four per cent in the previous year. One company matches up to $20,000 annually; another, Google, matches up to $2,000. Hulu, Ally Financial, Carhartt, Peloton, and Estée Lauder are just a few of the businesses that also provide student loan repayment aid.
- Loan Cancellation Plans
Borrowers have options beyond subsidies to help them pay down their student loans, including loan forgiveness programmes. When a borrower meets the requirements of one of the federal government’s loan cancellation programmes, they are relieved of all debt Most of the fellowships and scholarship opportunities are only open to adults. In any case, present students can profit from this information as well by learning about potential future pathways.
The capacity of an entire generation of Americans to achieve other long-term financial goals, including purchasing a home, constructing an investment portfolio, or launching a business, is being hampered by the monthly payments on student loan debt. Thankfully, there are grants to pay off student loans available to assist persons with debt in paying off their college loans and pursuing their financial objectives.
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