Looking for Scholarships to Pay Student Loans? Check Out Grants Instead
Scholarships to pay student loans are a form of financial aid that can help borrowers pay off their debt. These scholarships are typically awarded based on various factors, such as financial need, academic merit, and community service.
One of the most common types of scholarships to pay student loans is merit-based. These scholarships are awarded based on a student’s academic achievements, such as their grade point average (GPA), test scores, and extracurricular activities. Many colleges, universities, and private organisations offer merit-based scholarships to help students pay for their education.
Another type of scholarship to pay student loans is the need-based scholarship. These scholarships are awarded based on a student’s financial needs. They are typically determined by considering factors such as a student’s family income, assets, and the number of dependents they have. The federal government, state governments, colleges, and universities often offer need-based scholarships to help students pay for their education.
Some scholarships are awarded based on a student’s community service or volunteer work. Private organizations or non-profits typically award these scholarships, designed to recognize and reward students who have made a significant contribution to their community.
Additionally, some scholarships are specifically designed for student loan borrowers. These scholarships are typically awarded to borrowers who have demonstrated a significant financial need and are intended to help borrowers pay off their student loan debt.
It’s important to note that scholarships to pay student loans are less common than scholarships for tuition and other education-related expenses. Additionally, the number of available scholarships can vary depending on the year, the source of the scholarship, and the specific criteria on which the scholarship is based.
To find scholarships to pay student loans, it’s important to research and checks with different sources such as:
- The financial aid office at the college or university you plan to attend or are attending
- The government websites like fafsa.ed.gov
- Private organizations and foundations
- Professional associations or groups related to your field of study
- Employers or union organizations.
It’s also important to note that many scholarships require an application process, and the competition for scholarships can be high. To increase your chances of winning a scholarship, it’s important to apply to as many scholarships as you are eligible for and to put your best foot forward in your application by demonstrating your financial need and providing strong letters of recommendation.
An accountant claims that scholarships won’t help with loan repayment but grants will.
According to CPA and chairman of Debt.com Howard Dvorkin’s Q&A on the site, scholarship providers typically don’t verify how the money is spent. But he adds that since you need to be enrolled in college in order to receive a scholarship, they often don’t assist pay off student loans.
You can forget about using scholarship money to pay off your student debts until the mandatory repayment period begins six months after you graduate, as he puts it. Furthermore, the majority of the students I know who are now enrolled in higher education are trying to stretch every dollar. If they didn’t need the money, they wouldn’t have taken out student loans in the first place. (According to a blog post on the MoneySolver website, the company established a “student loan scholarship” in 2018, but the programme appears to have been terminated after the 2019 recipients were selected.)
Dvorkin does make an exemption for students who have received unsubsidized federal loans, arguing that they can start paying interest on those loans before they graduate. That prevents your debt from ballooning after graduation, but it’s a tricky balancing act, he says. Those who have already graduated should not give up hope, though. As you’ll see below, there are a plethora of career-focused grants that can be used to reduce or eliminate your student loan debt, as suggested by Dvorkin.
Student loan borrowers in a wide range of fields can apply for grants.
SoFi Learn provides information on a variety of scholarship opportunities that can be used toward the consolidation of existing student debt. For example, the National Health Service Corps offers medical professionals up to $50,000 in grants, and the Nurse Corps Loan Repayment Program forgives up to 85% of a nurse’s outstanding student loan balance.
Meanwhile, instructors in need of student debt payback can take advantage of state-sponsored initiatives like Maryland’s Janet L. Hoffman Loan Assistance Repayment Program, which provides up to $10,000 in loan forgiveness to qualified educators and other professions. Also, the Veterinary Medicine Loan Repayment Program forgives up to $25,000 in annual student loan debt for veterinarians.
There are other grants that are more targeted. Dvorkin notes that other programmes are available through the National Institutes of Health’s Division of Loan Repayment, such as the Extramural Loan Repayment Program for Contraception and Infertility Research. Options may also be available to you if you are currently employed in the corporate sector. According to SoFi Learn, many employers use student loan payback schemes as a recruiting tool.
In conclusion, scholarships to pay student loans are a form of financial aid that can help borrowers pay off their debt. These scholarships are typically awarded based on various factors, such as financial need, academic merit, and community service. There are different types of scholarships merit-based, need-based, community service-based, and specifically designed for student loan borrowers. However, it’s important to note that scholarships to pay student loans are less common than scholarships to pay for tuition and other education-related expenses. To find scholarships to pay student loans, it’s important to research and checks with different sources such as financial aid office, government websites, private organizations, professional associations, employers or union organizations.