I'm currently planning for college, thinking ahead about costs, and I am curious if there are scholarships specifically aimed at helping pay down student loans once you're out of school. I've read about some that assist with loan payments but don't have solid leads. Is anyone familiar with programs or initiatives like this? Any insights would be really helpful!
Absolutely, there are programs that offer loan repayment assistance which work very much like scholarships. They're just applied directly to your student loan balance instead of your tuition bill. These programs come in a variety of flavors, here are some examples:
1. Loan Repayment Assistance Programs: These programs are often provided by specific industries, and assist with repaying student loans for graduates who choose to work in high-need areas after graduation. For instance, medical professionals who choose to work in under-served communities, teachers who work in low income school districts, or lawyers working in public interest law often have access to such programs.
2. Employer Student Loan Repayment Assistance Programs: An increasing number of employers are offering student loan repayment assistance as a benefit to employees. These employers pay a certain amount towards their employees' student loans each year.
3. Loan Forgiveness Programs: Certain professions offer student loan forgiveness programs, where a portion or all of your student loans can be forgiven after you've worked in that profession for a certain number of years. Notable examples include the Public Service Loan Forgiveness program for those working in government and non-profit positions, and Teacher Loan Forgiveness for teachers working in low-income schools.
4. Scholarship Sweepstakes: While traditional scholarships are meant to help pay tuition fees, there are also sweepstakes that provide “scholarship” money that can be used to repay student loans. SoFi, an online lender, occasionally hosts these sweepstakes.
Remember, all these programs typically have specific eligibility requirements, so it's important to research the fine print carefully. Good luck!
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