How To Get A Grant To Help You Pay Off Your Student Loan Debt

Student loan payments are infamously tough to settle. In reality, usually it takes customers 20 years to settle their trainee loans, according to a 2021 report from the Education Data Initiative.

And while the Biden-Harris trainee loan forgiveness strategy was overruled by the Supreme Court in June 2023, customers with an exceptional balance might still have the ability to rely on another alternative to minimize their balance (or perhaps clean it completely). Winning a grant indicates getting financial assistance you do not need to repay (unlike a loan). Just bear in mind that a number of these grants need you to come from a specific occupation and carry out particular services to certify, and even then there’s no warranty you’ll be granted the financial assistance.

Still, when you’re gazing at a persistent trainee loan expense and questioning how you’ll ever pay it off, these grants might be worth checking out as a service. Here’s what you require to understand to begin.

The brief response is that, yes, it is possible to get a grant to assist you settle your student loan debt. Unlike loans, grants don’t need to be paid back (unless, of course, there was an expectation of a service or some other commitment to receive the grant and you didn’t follow through).

You should also carefully read the grant’s eligibility guidelines, since some programs may require that you work in a specific role or industry for a set number of years to remain a qualifying recipient.

Non-profit organizations and some private companies tend to be good avenues for sourcing grants but you may also keep an eye out for federal or state-specific programs.

You’ll have to do some digging online to find grants designed to pay off your student loan debt, but here’s a non-exhaustive list of some of the biggest ones.

1. National Health Service Corps

The NHSC provides both scholarships and loan repayment programs to doctors, dentists, nurse practitioners, mental health providers and other health care professionals. If you fall within one of those qualifying roles and perform at least three years of full-time service in an underserved community at an NHSC-approved site, you can qualify 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 Repayment Program

If you’re a registered nurse (RN), advanced practice registered nurse (APRN) or nurse faculty member (NF), this program pays up to 85% of your unpaid nursing education debt. If you accept this grant, you’ll have to also work for a minimum of two years in a critical shortage facility or an eligible nursing school as a nurse 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 state public defenders or prosecutors. Full-time employees of nonprofits that operate under a contract for a state or local government and provide legal representation to indigent persons also qualify.

See more details here.

4. Department of Justice Attorney Student Loan Repayment Program

This program is meant for incoming honors program attorneys and awards them $6,000 per year with a $60,000 total maximum benefit. Eligible attorneys must also have a minimum student loan balance of $10,000.

See more details here.

State-sponsored grants and loan forgiveness programs

Some states also offer grant programs or loan forgiveness programs for residents with an outstanding student loan balance. Keep in mind that they may each have certain eligibility criteria beyond just residing in that state. Here’s what may be available to you:

If you don’t qualify for any federal or state grants or loan forgiveness programs, refinancing your student loans can help make paying back your balance feel a little more manageable. Refinancing can also help you pay back your balance faster and save you money since, ideally, you’d be refinancing for a lower interest rate.

That being said, if you already have a fairly low interest rate on your student loan then you may want to pass on refinancing. Also keep in mind that if you have a federal student loan and you refinance with a private lender, you will lose all federal protections on your loan, like federal forbearance. However, taking the plunge can be well worth it. A former CNBC Select reporter refinanced his student loans six times and saved thousands of dollars in interest.

Citizens Bank Student Loan Refinancing is one of many strong options for student loan refinancing, particularly because the company allows you to refinance up to $300,000 and to apply with a co-signer. This helps student loan borrowers with low or non-existent credit scores to qualify.

One catch 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). Earnest Student Loan Refinancing, however, doesn’t have this requirement and also doesn’t charge any origination fees to refinance, so it’s another solid contender to consider.

Getting a grant or some other form of loan forgiveness can make a huge difference in your student loan management journey. Be sure to double-check what programs might be available to you. But if you’re having trouble making your student loan payments, reach out to your loan servicer ASAP to see what you can work out.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of student loan refinance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best student loan refinance companies.

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