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Scholarships For Paying Off Student Debt

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Ihs Loan Repayment Program

Southwestern College paying off some students’ debts

Providing health services to American Indians and Alaska Natives, the Indian Health Service offers a loan repayment program for health professionals who practice at qualifying health facilities.

Participants receive up to $40,000 in student loan repayment grants and must agree to a two-year service commitment. Eligible health professionals include advanced practice nurses, behavioral health professionals, dentists, registered nurses, physicians, dietitians, and medical laboratory scientists.

What Is The Difference Between Student Loans And Grants

Student loans are a form of debt taken out to pay for college tuition and other education-related expenses. There are multiple types of student debt, including private student loans provided by a lender and federal loans that come from the federal government. After filling out the FAFSA, your aid package will likely include an option to borrow a certain amount from the government.

Grants and student loans are similar in the sense that grants can also come from both private and federal programs and are used for education costs. However, grants are a form of aid that doesn’t need to be paid back, and some grants are even designed to pay off student debt.

National Institutes Of Health Loan Repayment Programs

If you are a medical professional excited to dive into research, you may be able to receive grants to pay off student loans from the National Institutes of Health .

The award runs as high as $50,000 per year , which you can use to pay off doctoral level degrees. You dont have to be employed with NIH in order to apply.

Some key research areas may include:

  • Contraception and infertility
  • Research for individuals from disadvantaged backgrounds

Additionally, the National Institute of Mental Health offers even more research grants in the field of mental health.

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Nhsc Substance Use Disorder Workforce Loan Repayment Program

The NHSC substance use disorder workforce loan repayment program incentivizes healthcare professionals to work in underserved areas. Qualified professionals can receive up to $75,000 in student loan repayment assistance if they agree to work at an approved site for at least three years.

Some of the eligible professions include:

  • Certified nurse-midwives

Benefits received through this program are not taxable as income.

How To Find Money For College

Student Loan Prepayment Calculator

Grants are just one option of how to find money for college. Grants are typically need-based and awarded based on your financial situation. You can also research scholarships, which also do not need to be repaid, but are based on your merit. Even if you do not qualify for financial aid, you can pay for your education with scholarship opportunities.

Every branch of the U.S. Military offers educational benefits that service members can take advantage of during or after service. If you feel like joining up, you can access financial aid, college funds, and loan repayment programs.

A more modern way to raise money for college is Crowdfunding. With a crowdfunding campaign on sites like GoFundMe and Indiegogo, students can ask their friends, relatives, and communities to invest small amounts in their future without asking any one person for a large amount of cash.

Employer reimbursement is also another option depending on where you work. Many private companies now offer up to $10,000 in college tuition reimbursement disbursed over several years of employment.

Your first step should always be to fill out the FAFSA to see if you qualify for federal grants and financial aid, which have the best benefits associated with them.

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Can You Use Scholarships To Pay Off Student Loans

When youre trying to pay off your student loans, its a good idea to explore all your options. Some students wonder if they can pay off their loans with scholarships. If you received a scholarship your junior year, for example, can you use it to pay off a student loan from your freshman year?

The answer to that question is a little complicated.

Grants Or Student Loan Which Should I Go For

Grants and Scholarships provide free Money to Fund College fees and other fees. We have received testimonies of how students were almost giving up on college education, just a Scholarship turned things around.

On the Other hand Student loan almost provide money but with the notion that youll refund the system based on agreed terms and conditions.

Placing Student loans and Grants side by side, youll find out they both are designed to help students pay their University and College fees on time. Scholarships are giving by donors who found you worthy based on need base or merit base to award you with the fund for College.

These Scholarships take care of your College expenses, some are recurrent, some are just prizes that may not be enough for College.

What a Student needs is just a Fully Funded Scholarship that will take care of Feeding, Accommodation, Books, Air Tickets for International Students, VISA, etc.

Student Loans will be an Alternative for me if I cant get a Scholarship to Study or the Scholarship I have is not enough to take care of my College Expenses.

Whenever you choose a Student loan plan, get a Student Loan Counsellor to advise you on what to do to fix your debt. Im so sure that he/she must recommend grants to Pay Off Student Loans.

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Grants To Pay Off Student Loans For 2022

Student loan borrowers can apply for grants for specific professions to pay off their loans. These grants often include minimum years of service requirements.

Edited byJared HughesUpdated October 13, 2022

Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”

While you may know that grants are available to help fund your college education, you may not realize that you can also use certain grants specifically to pay off student loan debt.

Grants are a form of gift aid, which means you dont have to repay them. Similar to student loans, you must apply and meet the grants eligibility requirements.

Here are some grants you can use to pay off student loans, whos eligible, and how to apply:

Learn About Specific Grants For College Students

This program is paying off student loan debt

Federal Pell Grants are usually awarded only to undergraduate students. The amount of aid you can receive depends on your financial need, the cost of attendance at your school, and more. The Pell Grant application process is the same as any federal financial aid processyou need to complete the FAFSA.3

TEACH Grants provide grants to students who agree to teach in a high-need field for four years at an elementary school, secondary school, or educational service agency that serves students from low-income families. Youll need to apply for a TEACH Grant every year by submitting the FAFSA. Youll also need to complete TEACH Grant counseling and sign a new Agreement to Serve every year and meet other requirements.4

Federal Supplemental Education Opportunity Grants assist low-income undergraduate students who need a lot of financial aid to help pay for college. Each participating school receives a certain amount of FSEOG funds each year from the U.S. Department of Educations Office of Federal Student Aid. Once all of the schools FSEOG funds have been awarded to students, no more FSEOG awards can be made for that year.5

Iraq and Afghanistan Service Grants are available to students whose parent or guardian died as a result of military service after September 11, 2001, in Iraq or Afghanistan and meet other eligibility requirements.6

College grants for international students

2. This information was gathered on 09/16/20 from .

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Grants For Members Of The Military

Army Loan Repayment Program: If you enlist in the military after going to college and you have student loans, you can get forgiveness for those loans.

Army Reserve College Loan Repayment Program: This program provides up to $50,000 in student loan forgiveness for those in specific specialties who agree to serve for at least six years.

If you agree to serve for three years and meet other qualifications, you can get a third of your outstanding principal paid each year, for a maximum of $65,000.

Iraq-Afghanistan Service Grant: If your parent was a member of the military and died while serving in Afghanistan or Iraq, and you were not eligible for a Pell Grant based on financial criteria, you could be eligible for an amount up to the maximum Pell Grant amount available for the award year. The amount for 2020-21 is $6,345..

You must have been under 24 years of age or enrolled at least part-time in college when your parent died.

Health Professions Student Loan Repayment Program: Doctors, dentists, pharmacists, nurses, veterinarians, and other healthcare professionals who enlist in the army can receive up to $120,000 in student loan forgiveness if they enlist for a specified amount of time, usually three years. The amount and time period vary by profession and service branch.

In addition, the military offers special student loan forgiveness programs in:

Claim The Student Loan Tax Deduction

If youre making student loan payments, you should be claiming the student loan tax deduction.

The IRS lets you deduct up to $2,500 worth the interest paid on a loan for higher education. That means paying your student loans will actually save you a bit of money on your IRS tax returnso itd be silly not to claim it.

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John R Justice Student Loan Repayment Program

If you are a state public defender or prosecutor, you may be eligible for the John R. Justice Student Loan Repayment Program. Under this initiative, you can receive up to $10,000 per year with a maximum benefit of $60,000. The funds can be applied to the remaining balance of most federal student loans, apart from parent PLUS loans.

To apply for the grant, you must agree to work as a public defender or state prosecutor for at least three years. For more information, visit your state agency website to learn about your areas requirements.

Department Of Justice Attorney Student Loan Repayment Program

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If you work as an attorney for the Department of Justice, you can apply to receive about $6,000 per year, with a lifetime maximum of $60,000 in student loan assistance. You need at least $10,000 in federal student loan debt to qualify. However, this grant is highly competitive so its worth applying for additional grants in case you dont get selected for this one.

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Can Scholarships Be Used To Pay Off Student Loans

Yes! There are so many options for having your student loans forgiven. Many of them are related to your job and where you work, but you can also get grants through organizations youre active in, volunteer opportunities, and other sources.

Most student loan forgiveness programs fall into one of the categories below:

Nonprofit/volunteer student loan forgiveness

Military Student Loan Repayment Assistance

Various programs are offered for military and veteran student loan forgiveness, as well as for student loan forgiveness for military spouses. These programs are often based on the branch of military service and can result in partial or total forgiveness. Additionally, there are student loan discharges for veterans or military service members experiencing permanent disability.

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How Do Scholarships For Student Loans Work

Traversing the landscape of scholarships is key to any student that needs financial help. Beginning in Ancient Rome, financial aid has been a part of our society for thousands of years. However, finding scholarships for your student debt is what weâre discussing today and how exactly they work. So letâs break this down:

  • Question 1: Can you use any scholarship for student loans?
  • Answer: No, unfortunately most scholarships are largely used to cover your tuition. Usually being sent directly to your college, or if sent to you, the provider will normally list what you are able and/or unable to do with that money.
  • Question 2: Can I try and use my scholarship money to pay off my student loans?
  • Answer: In most cases, no. If you try to use your scholarship money for something other than what is specified by the supplier, they may take that money back from you.
  • Question 3: Can just any student get a scholarship to pay off their student loans?
  • Answer: Yesâ¦ish. The land of college scholarships is known for being intricate, and finding scholarships to pay off those student loans tends to have some stipulations.

In that event, letâs decode those stipulations and give you examples of how you can qualify to pay off those pesky student loans!

The answers can be frustrating and limited to find, but scholarships to pay off student loans are out there!

Student Loan Discharge Options

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There are also ways to get your student loans discharged in some circumstances. We consider student loan discharged to be a little bit different than forgiveness, both due to the nature of the way the loan is eliminated and the potential taxability surrounding it.

There are various discharge options you may qualify for.

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$10k Federal Student Loan Debt Relief

In August 2022, the Department of Education announced one-time debt relief for students with outstanding federal student debt. This debt-relief includes up to $20,000 of federal loan forgiveness for Pell Grant recipients and $10,000 for borrowers who currently earn a qualifying income .

Learn more: Who is Eligible for President Biden Student Loan Forgiveness?

Only Borrow What You Need

Review your financial aid annually to see what you need to borrow for the upcoming academic year. Be sure youre using your full eligibility for subsidized federal direct loans. The federal government covers the interest for these loans while youre in college. Check out subsidized federal loans before considering other loan options.

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The Veterinary Medicine Loan Repayment Program

If youre a veterinarian looking for grants to pay off student loans, look no further than the National Institute of Food and Agriculture . Its loan repayment assistance program awards up to $25,000 per year $75,000 total in exchange for three years of paid work in an underserved area.

To be eligible, you must have an accredited degree in veterinary medicine and carry at least $15,000 in loan debt.

National Health Service Corps Loan Repayment Program

best student loans Pay Off Debt #beststudentloansEducation (With images ...

The National Health Service Corps provides a grant designed to help doctors, nurse practitioners, dentists, mental health providers and other health care professionals reduce their overall student loan debt.

Its fairly straightforward: You do two years of full-time service in an area with limited health care availability. In exchange, you receive up to $50,000 to go toward your student loan debt. Part-time service opportunities are also available, with grants up to $25,000.

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Pay Extra Toward Your Loans Each Month

If you want to pay off your loans faster, you can start by paying more than the required amount. You dont have to overwhelm yourself by setting lofty goals to contribute twice as much as usual. However, try to get into the habit of putting in any extra cash you have from the month.

If you never have any cash left over, you can re-evaluate your budget to look for wiggle room. See if theres any subscriptions you dont use or expenses you can cut. If you have extra time, you can also look for odd jobs or a side hustle to earn some extra income. However, if you happen to find a contract job, be sure to put aside some money for taxes before devoting the rest of your paycheck to student loan payments.

The Harold Alfond Foundation Student Loan Debt Reduction Program

The Harold Alfond Foundation Student Loan Debt Reduction Program was created to attract top science and engineering talent to the state of Maine. It requires applicants to complete written essays and resumes and those accepted can receive up to $60,000 in student loan assistance.

Its a competitive application process. It only chooses 150 Alfond Leaders over a three-year period.

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Other Options To Pay Off Debt

If you are in debt but do not want to cash out your IRA, then there are other methods to look into. For example, you can make a budget. It might seem simple, but making a written plan can be extremely helpful. By being more intentional with your money, you can pay off debts quicker, and account for every dollar that comes in and out. This can help you to avoid using the money in your IRA when life gets tough.

Another option is called the debt snowball method. Known as the fastest way to pay off debt, it gives you rewards as you pay off your debts. You begin with listing all of your debts from smallest to largest. First, you go for the smallest debt and attempt to at least pay off the minimum payments. Once this debt is gone, you can take that payment, and pay it on the next debt. As you continue to budget more for your debts, you will create a snowball effect and be able to eventually pay off your debts.

Rather than dip into your IRA, avoid the costs of early withdrawal. Instead, work with someone who can talk you through your options and help to get you on track. This might include a financial coach or debt counselor. Debt can seem scary, but losing your retirement is even worse. Take control of your future today and save your IRA.

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