In rare circumstances, the Federal government and some state and local institutions award special grants after a student’s graduation to enable them to more easily pay off their student loans. Because recipients do not need to repay these grants, this is one of the only effective ways for graduates to instantly and immediately pay off their loans without dipping into their personal savings.
Tragic and Hardship Conditions
Many of these grants are awarded to students and graduates who have come on sudden and unexpected tragic or hardship circumstances. A sudden unforeseen debt or abrupt loss of income through the death of a spouse or caregiver can qualify some students for grants that will enable them to pay off a portion of the debt they owe. The circumstances under which such grants are awarded must be severe enough and there must be no other recourse in order for the graduate to qualify for any hardship assistance.
Exceptional Circumstances
Sometimes the conditions under which grants are awarded are positive in nature. Students who find themselves in exceptional circumstances that enable them to positively impact their school or their government will often qualify. If a recent graduate contributes in some great way to their community through innovation or invention, or a student who improves the perception of the nation abroad may qualify for a grant, as well. These grants may be congratulatory or given as gratitude for the entity whose regard has been elevated.
Employment Opportunities
Some students may find grants available if they choose to pursue employment in a particular field. Many schools, law firms, and even police forces are more than happy to offer special grants for students who are looking for ways to pay off their student loans. These grants are often contingent on a minimum amount of time spent with a particular company, school, or community. For instance, some police forces will only offer student loan grants if the individual has served on the force for a minimum of five years. Law firms, on the other hand, may be willing to pay off the whole of a student’s outstanding debt as a signing bonus. Students should be sure to get all of the details before signing any contracts.
Service Opportunities
Other organizations may not be able to pay off the individual’s student loans but may instead qualify for federal or state grants. Nonprofit organizations like Teach for America and Americorps regularly issue grants for students who sign on for extended service opportunities around the country. Likewise, law students who go into nonprofit legal work or donate a certain number of pro bono hours in their early years can also qualify for federal grants to pay off their student loans.
For most individuals it can take decades to pay off the full balance of their student loan debt. With these special grant programs, though, it becomes possible to pay off the loans in a few short years. Individuals should be careful though to review all of the conditions under which these grants are extended. If the conditions for the grant equal the conditions for paying off the loan regularly, accepting the grant may not be worth the cost.
