If you’re a student, chances are you’ve taken out a loan or two to pay for your education. If you took out a private loan, there’s no doubt that it’s been weighing on your mind—and your wallet—for quite some time now. But what if we told you that there was an easy way to get rid of those pesky loans? What if we told you there were grants available specifically for students who want to pay off their loans?
Well, in this article, we’ll give you all the information you need to know about these grants and how they can help make paying back those pesky private student loans easier than ever before!
Grants To Pay Off Private Student Loans
Taking out student loans is becoming increasingly necessary in order to afford college, but paying off your debt may still feel impossible. Keep reading to learn about the available grants to pay off student loans.
About student loan grants
Grants to pay off student loans are a unique and specific form of financial aid. Unlike most scholarships, which often can only be used for tuition, grant programs for student loans can help current students or graduates pay down loans taken out for college expenses.
The student loan crisis
Due to the rising costs of college, many students are forced to take out loans. There are currently 45 million student loan borrowers in the US alone, owing a record $1.71 trillion. The average borrower owes more than $37,000 and the crisis is continuing to grow. Student debt in the US is growing at a rate six times faster than the economy, leaving many students wary of taking out loans and pursuing higher education.
In addition to borrowing for undergraduate degrees, many students also take out loans for graduate programs. Colleges often offer less need-based financial aid to graduate students, leading many to take out law school loans, veterinarian school debt, or loans for medical or dental school.
Keeping up with payments
Whether one takes out federal student loan debt or private loans, student loan repayment can be very difficult. As a result, 10.8% of recent graduates and students who left school default on their loans. Additionally, 11.1% of all student loans in the US are at least 90 days delinquent.
Your repayment period may vary based on the type of loan repayment program you’re on, often ranging between 10-30 years. The average borrower takes 18.5 years to pay off debt, allowing many people to be debt-free by their 40s.
Paying off debt
However, many people struggle to pay off their loans by then, resulting in there being 14.2 million borrowers in the 35 to 49 age range and 2.3 million borrowers who are 62 or older. While some of these older borrowers are non-traditional students who completed their degree later in life or have taken out debt for their children’s college costs, many older borrowers have simply not been able to repay their loans.
High interest rates on private loans can quickly make student debt overwhelming and impossible to pay off, especially if you struggle to find a good job immediately after graduating.
Luckily, repayment grants can be found through the federal government or through programs such as Bold.org. Keep reading to find student loan grants available for graduates and for current college students.
Exclusive grants to help pay off student loans
Many scholarships and grants are created with the intention of helping current students pay tuition. As a result, you may feel as though there’s a lack of opportunities for students and graduates who have student loan debt. Luckily, there are plenty of available grants to pay off student loans. You can get started with the opportunities below!
- The Forget Your Student Debt. No-Essay Grant
This $10,000 award is exclusively open to people with student loan debt. Whether you’re a current student with loans or a graduate still paying off debt, this grant is a perfect opportunity for you. You can apply by clicking the link above. - The @ESPDaniella Debt Grant
This grant is worth $3,300 and is open to any graduate student or undergraduate senior who has student debt. Graduates with loans and those who took out loans and dropped out are also eligible to apply. - The Nitro Student Loan Forgiveness Grant
This grant is worth $1,ooo, and is offered by Nitro, a consumer finance resource. College graduates who have loans are eligible to apply for this opportunity. - The Graduate Debt-Free Scholarship
This grant is worth $500 and is available to high school seniors who are trying to avoid taking on debt during college. - The Noah Jon Markstrom Student Debt Paydown Grant
This opportunity is worth $500 and is available to a more niche group of students. Graduates who have student loan debt and are currently working in pediatric medicine can apply, and applicants in the Pacific Northwest are preferred.
This grant will have less competition due to its eligibility requirements, so you should definitely consider applying if you qualify!
donors that pay off student loans
If you’re looking for charities that help with student loans, there are a few that can be good choices. Some might have requirements, such as volunteer work, in order to qualify.
Here are some of the charities that help with student loans.
Rolling Jubilee
Rolling Jubilee is a project of the Debt Collective, which focuses on debt abolition. It’s not just student loan debt, but all types of debt. As part of the effort, Rolling Jubilee buys the debt, for pennies on the dollar. Then, instead of making the debtor make payments, they just forgive the debt.
Shared Harvest Fund
Shared Harvest is an organization that offers student loan funds in exchange for volunteer work. You’re paired with charities and other nonprofits and as you volunteer, Shared Harvest puts money toward your student loan repayment. As a result of COVID-19 pandemic, there has been a shift toward those that can help in hard-hit communities. This can be an opportunity for student loan forgiveness for nurses.
Organizations That Offer Student Loan Repayment Assistance
Some of the organizations that provide loan repayment assistance include those that offer government-backed relief.
AmeriCorps
Rather than being a charity, AmeriCorps offers partial loan repayment after you complete 12 months of service. You need to work full-time and, on top of offering partial loan repayment, your time in AmeriCorps can be used toward qualifying for Public Service Loan Forgiveness (PSLF).
National Health Service Corps
There are various loan repayment assistance programs through the National Health Service Corps. Your level of loan repayment depends on your healthcare specialty and whether you work full-time or part-time. You also have to work in an area that is considered underserved. This can be one way to get student loan forgiveness for doctors.
Teach For America
For teachers willing to work in a low-income and needed area for at least five years, it’s possible to get up to $17,500 in loan repayment assistance. This is one option for student loan forgiveness for teachers.
Peace Corps
Peace Corps is another government-backed program aimed at volunteer work around the world. After you complete your service, you can receive partial loan repayment assistance. On top of that, this is another opportunity to work in a way that qualifies you for PSLF.
Donors That Help Repay Student Loans
For borrowers who aren’t eligible for loan forgiveness and repayment assistance through the above charities and government organizations, here are a few other channels to consider:
Crowdfunding
Another option is to get individual donations from people to help you pay off your student loans. Crowdfunding is a way to get small amounts of money from a lot of people to help pay down your student debt. Some of the popular crowdfunding sites include:
- LoanGifting
- GoFundMe
- YouCaring
Before you use crowdfunding, realize that it requires a lot of work to promote your campaign and raise money. Additionally, many crowdfunding websites take a cut, so you won’t necessarily get the full amount.
Celebrities & Private Individuals
In addition to government programs and charities that help with student loans, celebrities sometimes help pay off debt.
For example, Ellen Degeneres has a program where fans can apply for debt pay off. Robert H. Smith paid off the debt of Morehouse College graduates in 2019 and has an ongoing scholarship relationship with the institution. Taylor Swift and Nicki Minaj have also provided help for struggling students and graduates.