It is not easy paying for school, and student looks for whatever way necessary to raise the funds for their education including taking a student loan. Over 70% of students take loans to pay for their education and they incur student debts.
Obtaining a loan from the government, or a private financial firm is easy. You just have to acquire enough credit to be eligible and some loans do not even require your credit. However, repaying these loans is not so easy, some loans depending on the one you applied for can 10 to 15 years before it is fully repaid some take more years. Find out the best student loans to apply for this year.
Before you apply for a loan, you must have a repayment plan in place. There are so many repayment plans one is the Income-driven plans which require you to pay some percentage of your monthly income. Another popular but rare repayment plan is the Public Service Forgiveness plan which allows the government to forgive all your loans provided you do public service jobs. Find out more repayment plans suitable for you here, before you obtain any loan.
With all the repayment plans, you still have to work for years to clear your student debt. Reports and stats have also shown that more than 20% of students who owe some debt fall short on their payment.
How Do Grants Help You Repay Your Debt
Repaying loans is difficult especially when you don’t have a good-paying job or no job at all. Thankfully, there are grants which exist to help a student pay off their loans. A grant is a form of financial aid from the government to students, graduates, or non-federal entities that are non-repayable.
Although, grants are more popular to students who are still studying just as scholarships and other financial aid. Some grants are there specifically to help you pay off debts, sometimes for exchange of professional service. Let us take a look at some grants
Grants to Help Students Pay off Student Loan Debts
- Teacher Loan Cancellation and Forgiveness Program
As a teacher, your loans will be canceled entirely or forgiven up to $18,000 student loan in exchange for working at low-income schools or educational institutions. However, teachers must be highly qualified and certified by an educational board. Find out more here
- Department of Justice Attorney Student Loan Program (ASLRP)
Lawyers working with the department of justice receive grants from $6,000 to $55,000 in exchange for a 3-year service commitment. Find out all about this type of grant here
- John R. Justice Student Loan Repayment Program
Lawyers who work extensively as public defenders are given $10,000 to $60,000 yearly. you must be committed to working at least 3 years full time as a state prosecutor. Want to get more information on this type of grant? find out more about it.
- Public Service Student Loan Forgiveness
A public loan forgiveness program offers grants and student loan repayment assistants on direct loans from the federal government. You Can qualify for this program only if you have successfully made at least 120 monthly payments. Find out how to get this grant here
Contraception and Infertility Research Grant
this is another great option for those who work in the medical field. the program distributes over $35,000 each year to help pay off students in exchange for service rendered by the recipient. To qualify, you must have certifications to work in a laboratory or a clinical research field and be pursuing a master’s, doctoral, nursing, research fellow, or clinical degree.
- Nurse Corps Loan Repayment Program
If you are a registered nurse this is the loan repayment program you should be looking at. This program payoff 70% to 85% of your loan debts when you serve in a Critical Shortage Facility. Find how to qualify for this grant here
- National Institutes of Health (NIH) Loan Repayment Programs
This is a federally funded program that helps you pay off up to $50,000 every year provided you work in a high-need medical field. To qualify, your loan debt has to equal at least 20% of your base salary. Find out how to get this grant here
There are still so many options for you to repay your loans if you don’t meet the requirements for a grant. Depending on the company you are employed to, you can still gain access to student loan repayment employee benefits. So many companies in the US, Canada, and the UK offer such benefits.
You can also consider taking another loan to repay the one you took which would result in an extended payment term length, and lower interest rate.