Resources That Will Help You Pay Back Your Student Loan

VD February 02 2022

Did you know? According to the statistics, the student loan volume in the United States in 2021 has reached USD 95.9 billion.

Considering that you are also looking for a resource that will help you repay your student loan, you can look at the following options to pay back your student loan more quickly.

1. Indian Health Service Loan Repayment Program

The Indian Health Service Loan Repayment Program is one of the most prominent loan repayment programs available for healthcare professionals in the United States.

The program offers assistance in loan repayment of up to 40,000 USD. The loan repayment clause is applicable on both federal and private loans. But to qualify, you must have a minimum of two years of the service term.

2. Department of Justice Attorney Student Loan Repayment Program

The program focuses on the student loan repayment of attorneys in the United States. According to the plan, you can get a 6000 USD per year or a lifetime of 60,000 USD grant under the banner of loan repayment. To be eligible, you need to have a minimum of three years of service.

But you must be aware of some specific clauses in the Department of Justice Attorney Student Loan Repayment Program. The loan repayment is only applicable on federal loans. Private loans aren’t accepted under the program banner. The loan amount will also be considered as taxable income.

3. National Health Service Corps Students to Service Loan Repayment Program

At the moment, there is no other loan repayment program or grant other than the National Health Service Corps Students to Service Loan Repayment Program that offers this considerable amount for loan repayment. The program provides a loan repayment amount that can go up to 120,000 USD!

The program is only available for healthcare professionals with a minimum service term of three years. The program covers loan repayment for both federal loans and private loans. Plus, the loan repayment amount is not considered a taxable asset. The program is a complete package and does face a lot of competition.

4. National Institute of Mental Health Loan Repayment Program

In the United States, the National Institute of Mental Health Loan Repayment Program is one of the very programs out there specifically available for the health professionals related to the mental health division. The repayment program is applicable on both federal and private loans. 

To be eligible for the program, you need to have a service term of at least two years. According to verified reports, the loan repayment amount under this program reaches 100,000 USD. But yes, the loan repayment is still taxable for most recipients.

5. TEACH Grant

The grant was approved explicitly for teachers distributing knowledge in low-budget schools where financials aren't that strong. The grant covers student loan payments up to 4000 USD per year. But the fee is only applicable for federal loans. Plus, you need to have a minimum of 4 years of service terms to be eligible.

The restrictions and the eligibility criteria associated with the program are pretty strict. But the significant benefit regarding this program is the tax statement. The loan repayment amount will not be considered a taxable asset of the recipient.

6. Nurse Corps Loan Repayment Program

A program that facilitates all the brave nurses of this nation that are still working in one way or the other for the betterment of their patients. They are the real heroes of this nation who don't wear a cape. The program is a tribute to their efforts and service to its healthcare system.

The loan repayment program is applicable on both federal loans and private loans. The program is specifically for the nurses and covers up to 60% of the outstanding student loan. You need to have a minimum of two years of service terms to be eligible.

7. Public Service Loan Forgiveness (PSLF)

After the stimulus package, the Public Service Loan Forgiveness program is the new hot topic. Every student loan recipient is hoping that they fall under the category of this program. But there are specific regulations that you must follow to be eligible for the program.

The essential requirement is to work in a non-profit organization or any government-based body. If you have successfully gone through 120 monthly payments, you can apply for the PSLF program. But the employer must also be credible, and your work record must also be straight.

8. Repayment Assistance from employer

In March 2020, the Trump administration signed specific bills that promoted the concept of employers paying the student loan of their employees. There is still a lot of work left in this regard. The Government still needs to make a solid foundation plan that an employer can follow to pay for the student loan. But still, it is a great initiative.

Generally, the loan repayment program is offered as part of the benefits package. You can contact the human resource department back at your office to ensure that your employer offers such a program or not.

9. Refinancing Student Loan

Now, refinancing the whole student loan dynamics is something most loan recipients don't go with. Why is that? There is a solid misconception that there are a lot of details and paperwork one needs to deal with. In reality, a little guidance is all you need.

Let's say that you have taken a private student loan. Now, you can practically negotiate to lower the loan's interest rate after a specific period. You can also reduce the monthly payments of your loan. All you need to have is a good credit score and some excellent negotiating skills.

10. Getting an Income-Driven Repayment Plan

After the pandemic, in particular, the Income-Driven Repayment Plan is getting quite popular among student loan recipients. The plan offers lowering down your federal loan payments following your income. But you will need to apply for it first.

If you qualify for the program, a certain amount of your base income will be considered the monthly loan repayment of your student loan. And the significant part is that you can even get forgiveness over the remaining amount. But this will only happen if you have been repaying the loan for 20-25 years.