Paying off student loan payments is known to be difficult. According to a 2021 report from the Education Data Initiative, it takes an average of 20 years for borrowers to pay off their student loans.
And while the Biden-Harris student loan forgiveness plan was rejected by the Supreme Court in June 2023, borrowers with outstanding balances may still be able to choose another option to reduce (or even wipe out) their balances. Winning a grant means you get financial support that you don’t have to pay back (unlike a loan). Keep in mind that many of these grants require you to belong to a certain profession and perform specific services to qualify, and even then there is no guarantee that you will receive the financial assistance.
But if you’re staring at a stubborn student loan bill and wondering how you’ll ever pay it off, these grants may be worth exploring as a solution. Here’s what you need to know to get started.
What we will cover
Can you get a grant to pay off your student debt?
The short answer is: yes, it is possible to get a subsidy that will help you pay off your pension student loans. Unlike loans, grants do not have to be repaid (unless, of course, there was an expectation of a service or other obligation to receive the grant and you failed to comply).
You should also carefully read the guidelines to qualify for the grant, as some programs require you to work in a specific role or industry for a certain number of years to qualify for the grant.
Nonprofits and some private companies are usually good options for obtaining grants, but you can also keep an eye on federal or state-specific programs.
Where can you find student loans?
You’ll have to do some searching online to find grants designed to pay off your student debt, but here’s a non-exhaustive list of some of the largest.
1. National Health Care Corps
The NHSC offers both grants and loan repayment programs to doctors, dentists, nurses, mental health providers and other healthcare professionals. If you fall within one of these qualifying roles and provide at least three years of full-time service in an underserved community in an NHSC-approved location, you may be eligible for a grant of up to $120,000.
Their website offers additional criteria for smaller grant amounts.
2. Health Resources and Services Administration (HRSA) Nurse Corps Reimbursement Program
If you are a registered nurse (RN), an advanced practice registered nurse (APRN), or a nursing faculty member (NF), this program will pay up to 85% of your unpaid nursing education debt. If you accept this scholarship, you must also work for a minimum of two years in a critical shortage facility or an eligible nursing school as a nursing faculty member.
See their website here.
3. John R. Justice Student Grant Program
This program provides $10,000 per year (with a total maximum benefit of $60,000) to public defenders or prosecutors. Full-time employees of nonprofit organizations that work under a contract for a state or local government and provide legal representation to indigent individuals are also eligible.
View more details here.
4. Department of Justice Student Loan Repayment Program
This program is for incoming Honors Program attorneys and awards them $6,000 per year for a total maximum benefit of $60,000. Eligible attorneys must also have a minimum student loan balance of $10,000.
View more details here.
State-sponsored grants and loan forgiveness programs
Some states also offer grant or loan forgiveness programs for residents with outstanding student loan balances. Keep in mind that they may all have certain eligibility criteria beyond just their residency in that state. Here’s what might be available to you:
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What if you don’t qualify for a grant or loan forgiveness program?
If you do not qualify for federal or state grants or loan forgiveness programs, Refinancing your student loans can make paying down your balance a little more manageable. Refinancing can also help you pay off your balance faster and save you money, as you would ideally refinance at a lower interest rate.
That said, if you already have a fairly low interest rate on your student loan, you may want to pass on the refinance. Also keep in mind that if you have a federal student loan and you refinance with a private lender, you lose all federal protections on your loan, such as federal forbearance. However, it may be worth taking the plunge. A former CNBC Select reporter refinanced his student loans six times and saved thousands of dollars in interest.
Student loan refinancing from Citizens Bank is one of many strong options for student loan refinancing, especially because the company allows you to refinance up to $300,000 and apply with a cosigner. This helps student loan borrowers with low or non-existent credit scores qualify.
One problem with Citizens Bank (and other refinancing companies) is that they require you to earn a minimum annual income to refinance (in Citizens Bank’s case it’s $24,000). However, Earnest Student Loan Refinancing does not have this requirement nor does it charge an origination fee for refinancing, so it is another solid candidate to consider.
Student loan refinancing through Citizens Bank
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Cost
No origination fees when refinancing
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Eligible Loans
Federal, Private, Graduate and Undergraduate Loans, Parent PLUS Loans, Medical and Dental Residency Loans.
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Types of loans
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Variable rates (APR)
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Fixed rates (APR)
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Loan terms
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Loan amounts
A minimum of $10,000, up to $300,000 (undergraduate degree or less) or $500,000 (graduate degree)
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Minimum credit score
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Minimum income
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Get a co-signer
Serious student loan refinancing
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Cost
No origination fees when refinancing
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Eligible Loans
Federal, private, graduate and undergraduate loans
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Types of loans
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Variable rates (APR)
5.72% – 9.74% (rates include a 0.25% discount on autopay)
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Fixed rates (APR)
4.96% – 9.74% (the rates include a 0.25% autopay discount)
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Loan terms
Flexible terms from 5 to 20 years
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Loan amounts
Minimum $5,000, maximum $500,000 (California residents must apply to refinance $10,000 or more)
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Minimum credit score
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Minimum income
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Get a co-signer
The actual rate and available repayment terms depend on your income. Fixed rates range from 5.21% APR to 10.04% APR (excluding 0.25% Auto Pay discount). Variable rates range from 5.74% APR to 9.99% APR (excluding 0.25% Auto Pay discount). The serious variable rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR), published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next working day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. The maximum rate for your loan is 8.95% if the term of your loan is 10 years or less. For terms of more than 10 to 15 years, the interest rate will never be higher than 9.95%. For loan terms longer than 15 years, the interest rate will never be higher than 11.95%. Please note that we cannot offer variable rate loans in AK, IL, MN, NH, OH, TN and TX. Our lowest rates are only available to our most credit-qualified borrowers and include our 0.25% automatic payment discount from a checking or savings account.
In short
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