Student loans are a common way to finance higher education, but they can also be a heavy burden for many graduates. According to the Institute for College Access & Success, 62% of four-year college graduates in 2019 had student loan debt with an average balance of $28,950. If you are struggling to repay your loans, you may be looking for ways to reduce or eliminate your debt.
One option is to apply for scholarships that are specifically designed to pay off student loans. These scholarships are also known as grants or loan forgiveness programs, and they typically require you to meet certain criteria or perform certain services in exchange for paying off a portion or all of your debt. Unlike loans, scholarships do not have to be repaid, so they can save you a lot of money in the long run.
In this article, we will list 20 scholarships that can help you pay off your student loans, along with their eligibility requirements, award amounts, and application deadlines. Some of these scholarships are open to students who have already graduated, while others are for current students or prospective students. Some of these scholarships are for federal loans, while others are for private loans. Some of these scholarships are for specific professions, while others are for general fields of study.
We will divide the scholarships into four categories: federal, state, private, and profession-based. Within each category, we will rank the scholarships from the highest to the lowest award amount. We will also provide links to the official websites of the scholarships, where you can find more information and apply online.
Federal Scholarships
Federal scholarships are funded by the U.S. government and are available for borrowers who have federal student loans, such as Direct Loans, Perkins Loans, or FFEL Loans. These scholarships usually require you to work in a public service or high-need area for a certain period of time, after which your loans will be forgiven or reduced. Here are some of the most generous federal scholarships that can help you pay off your student loans:
- Public Service Loan Forgiveness (PSLF): This program forgives the remaining balance of your federal student loans after you make 120 qualifying monthly payments while working full-time for a qualifying employer, such as a government agency or a non-profit organization. The amount of forgiveness depends on your loan balance and payment plan, but it can be up to 100% of your debt. You must apply for PSLF after you complete the required payments and service. There is no deadline to apply, but you must submit an Employment Certification Form every year or whenever you change employers. Learn more and apply here.
- National Health Service Corps (NHSC) Loan Repayment Program: This program pays up to $50,000 of your federal or private student loans if you are a primary care physician, dentist, nurse practitioner, physician assistant, or mental health provider who works for at least two years in a Health Professional Shortage Area (HPSA), which is a designated area with a shortage of health care providers. You can apply for this program every year, and the application cycle usually opens in the fall. Learn more and apply here.
- Nurse Corps Loan Repayment Program: This program pays up to 60% of your federal or private student loans if you are a registered nurse, advanced practice registered nurse, or nurse faculty who works for at least two years in a Critical Shortage Facility (CSF), which is a health care facility with a critical shortage of nurses, or in an accredited school of nursing. You can apply for this program every year, and the application cycle usually opens in the winter. Learn more and apply here.
- Teacher Loan Forgiveness Program: This program forgives up to $17,500 of your federal student loans if you are a highly qualified teacher who teaches full-time for five consecutive years in a low-income school or educational service agency. You must have taken out your loans before the end of your fifth year of teaching, and you must apply for forgiveness after you complete the required service. There is no deadline to apply, but you must submit a Teacher Loan Forgiveness Application to your loan servicer. Learn more and apply here.
- Indian Health Service (IHS) Loan Repayment Program: This program pays up to $40,000 of your federal or private student loans if you are a health professional who commits to work for at least two years in an Indian health program, which is a health care facility that serves American Indian and Alaska Native communities. You can apply for this program every year, and the application cycle usually opens in the fall. Learn more and apply [here].
State Scholarships
State governments fund state scholarships and are available for borrowers who have federal or private student loans and who live or work in a specific state. These scholarships usually require you to work in a high-need or underserved area or profession for a certain period of time, after which your loans will be forgiven or reduced. Here are some of the most generous state scholarships that can help you pay off your student loans:
- New York State Young Farmers Loan Forgiveness Incentive Program: This program pays up to $50,000 of your federal or private student loans if you are a college graduate who has operated a farm in New York State for at least five years. You must have graduated from an approved college or university with an associate’s, bachelor’s, or graduate degree, and you must have a contract with the New York State Higher Education Services Corporation (HESC) to operate a farm in New York State. You must apply for this program within two years of graduation, and you must submit annual documentation of your farm operation. Learn more and apply [here].
- John R. Justice (JRJ) Student Loan Repayment Program: This program pays up to $10,000 per year, up to $ 60,000-lifetime maximum, of your federal student loans if you are an attorney who works as a state or federal public defender or prosecutor for at least three years. You must have an outstanding balance on your eligible loans, and you must sign a service agreement with your state agency. You must apply for this program every year, and the application cycle varies by state. Learn more and apply [here].
- ND Career Builders Scholarship & Loan Repayment Program: This program pays up to $17,000 of your federal or private student loans if you are a college graduate who works in a high-demand or emerging occupation in North Dakota for at least three years. You must have graduated from an approved college or university with an associate’s, bachelor’s, or graduate degree, and you must have a contract with the North Dakota University System (NDUS) to work in a qualifying occupation in North Dakota. You must apply for this program within three years of graduation, and you must submit annual documentation of your employment. Learn more and apply [here].
- Maryland SmartBuy Program: This program pays up to 15% of the purchase price of a home, up to $40,000, of your federal or private student loans if you are a first-time homebuyer who buys a home in Maryland. You must have at least $1,000 in student loan debt, and you must pay off your entire student loan balance at the time of the home purchase. You must also meet the income and credit requirements of the program, and you must use an approved lender and real estate agent. Learn more and apply [here].
- California State Loan Repayment Program (SLRP): This program pays up to $50,000 of your federal or private student loans if you are a primary care physician, dentist, nurse practitioner, physician assistant, or mental health provider who works for at least two years in a Health Professional Shortage Area (HPSA) or a Medically Underserved Area/Population (MUA/P) in California. You must have a valid license to practice in California, and you must have a contract with the California Office of Statewide Health Planning and Development (OSHPD) to work in a qualifying site. You must apply for this program every year, and the application cycle usually opens in the summer. Learn more and apply [here].
Private Scholarships
Private scholarships are funded by private organizations, such as foundations, companies, or associations, and are available for borrowers who have federal or private student loans. These scholarships usually do not have any service or employment requirements, but they may have other criteria, such as academic merit, financial need, or personal characteristics. Here are some of the most generous private scholarships that can help you pay off your student loans:
- Delete Your Debt No-Essay Grant: This grant pays $500 of your federal or private student loans if you are a U.S. citizen or permanent resident who is 18 years or older. You do not need to write an essay or have a minimum GPA to apply for this grant. You need to fill out a short online form and agree to receive emails from MoneySolver, the organization that sponsors this grant. You can apply for this grant every month, and the deadline is the last day of each month. Learn more and apply [here].
- $10,000 “No Essay” Scholarship: This scholarship pays $10,000 of your federal or private student loans if you are a U.S. citizen or permanent resident who is 18 years or older and enrolled or planning to enroll in an accredited college or university. You do not need to write an essay or have a minimum GPA to apply for this scholarship. You need
- To enter a sweepstakes, provide your name and email address. You can apply for this scholarship every month, and the deadline is the last day of each month. Learn more and apply [here]. 13. $2,000 “No Essay” College Scholarship: This scholarship pays $2,000 of your federal or private student loans if you are a U.S. citizen or permanent resident who is 18 years or older and enrolled or planning to enroll in an accredited college or university. You do not need to write an essay or have a minimum GPA to apply for this scholarship. You need to fill out a short online form and agree to receive emails from Niche, the organization that sponsors this scholarship. You can apply for this scholarship every month, and the deadline is the last day of each month. Learn more and apply here. 14. $1,000 ScholarshipPoints Scholarship: This scholarship pays $1,000 of your federal or private student loans if you are a U.S. citizen or permanent resident who is 13 years or older and enrolled or planning to enroll in an accredited college or university. You do not need to write an essay or have a minimum GPA to apply for this scholarship. You just need to create an account on ScholarshipPoints, a website that offers free points for completing activities, such as surveys, quizzes, games, and more. You can use your points to enter drawings for various scholarships, including this one. You can apply for this scholarship every month, and the deadline is the last day of each month. Learn more and apply [here]. 15. $1,000 You Deserve It Scholarship: This scholarship pays $1,000 of your federal or private student loans if you are a U.S. citizen or permanent resident who is 16 years or older and enrolled or planning to enroll in an accredited college or university. You do not need to write an essay or have a minimum GPA to apply for this scholarship. You just need to create an account on ScholarshipOwl, a website that helps you find and apply for multiple scholarships with one application. You can apply for this scholarship every month, and the deadline is the last day of each month. Learn more and apply [here].
- Profession-Based Scholarships
- Profession-based scholarships are funded by various organizations and are available for borrowers who have federal or private student loans and who work or plan to work in a specific profession. These scholarships usually require you to demonstrate your commitment, excellence, or potential in your chosen field, and they may have other criteria, such as academic merit, financial need, or personal characteristics. Here are some of the most generous profession-based scholarships that can help you pay off your student loans:
- Fulbright Student Program: This program pays up to $35,000 of your federal or private student loans if you are a U.S. citizen who is a graduating senior, graduate student, or young professional who wants to study, research, or teach abroad for one academic year. You must have a bachelor’s degree or equivalent, and you must have a proposal for a project or course of study in a foreign country. You must also have sufficient proficiency in the language of the host country, and you must meet the eligibility requirements of the specific country you apply to. You must apply for this program through your institution or at-large, and the application cycle usually opens in the spring. Learn more and apply [here].
- American Association of University Women (AAUW) Career Development Grants: These grants pay up to $12,000 of your federal or private student loans if you are a U.S. citizen or permanent resident who is a woman of color and/or a woman pursuing her first advanced degree or credentials in a nontraditional field. You must have earned a bachelor’s degree more than two years before the start date of the grant, and you must have a plan to advance your career, change careers, or re-enter the workforce. You must apply for these grants every year, and the application cycle usually opens in the summer. Learn more and apply [here].
- National Science Foundation (NSF) Graduate Research Fellowship Program (GRFP): This program pays up to $34,000 of your federal or private student loans if you are a U.S. citizen or permanent resident who is a graduating senior, first-year graduate student, or second-year graduate student who is pursuing a research-based master’s or doctoral degree in science, technology, engineering, or mathematics (STEM) or in STEM education. You must have a bachelor’s degree or equivalent, and you must have a research proposal and a personal statement that demonstrate your potential for significant achievements in STEM or STEM education. You must apply for this program every year, and the application cycle usually opens in the fall. Learn more and apply [here].
- The Paul & Daisy Soros Fellowships for New Americans: These fellowships pay up to $25,000 of your federal or private student loans if you are a U.S. citizen or permanent resident who is a new American, which means you are an immigrant or the child of immigrants, and who is a graduating senior, current graduate student, or recent graduate who is pursuing a graduate degree in any field of study in the U.S. You must have a bachelor’s degree or equivalent, and you must have a record of academic excellence, leadership, and creativity. You must apply for these fellowships every year, and the application cycle usually opens in the summer. Learn more and apply here.
- The Rhodes Scholarships: These scholarships pay up to $50,000 of your federal or private student loans if you are a U.S. citizen or permanent resident who is a graduating senior, current graduate student, or recent graduate who is pursuing a postgraduate degree at the University of Oxford in the U.K. You must have a bachelor’s degree or equivalent, and you must have a record of academic achievement, leadership, service, and character. You must apply for these scholarships through your institution or at-large, and the application cycle usually opens in the spring. Learn more and apply here.
Conclusion
These are some of the best scholarships that can help you pay off your student loans, but they are not the only ones. There are many other scholarships out there that can suit your needs and goals, so you should do your own research and apply for as many as you can. You can use websites like Fastweb, Scholarships.com, or College Board to find and compare thousands of scholarships for free. You can also check with your school, employer, community, or professional associations for more opportunities.
Paying off your student loans can be challenging, but it is not impossible. With the help of these scholarships, you can reduce or eliminate your debt and achieve your dreams. Good luck and happy applying!
