The Top 9 Donors That Pay Off Student Loans
December 22, 2020 by Amy
It has often been said that modern problems require modern solutions, and the current $1.56 trillion dollar student debt crisis is indeed a modern problem.
As the average student of higher education graduates with over $32,000 in federal student loans that they will pay on for over 21 years, an increasing number of recent graduates are seeking alternative ways to pay off their mountains of debt.
While it is still possible to pay off student loans in under 10 years, many young adults are getting creative and attempting to pay off their loans in only a few months or years.
Between charitable donations, crowdfunding, and celebrity donors, tens of thousands of students have received relief help on their massive student loans.
While receiving donations from friends, family, strangers, or celebrities sounds like an easy and fun way out of debt, the truth is that a lot of work must go into making your campaign or application successful. Because 45 million Americans carry some amount of student loan debt, the competition for monetary help is just that competitive.
However, it can be done!
Heres our ultimate list of donors that help pay off student loans.
Tyrese Gibson Stood Out As A Particularly Positive Student Online
Tyrese Gibson was always someone who gave something back. He has been a long-time ambassador for Coca-Colas Pay It Forward program, which provides scholarships to young people. Just recently, the singer and actor decided to be very generous to Lorenzo Murphy, a 21-year-old student. Gibson offered Murphy a $50,000 scholarship. But Murphy wasnt sitting still either. On social media, he was known as So Motivator. His constant support of others caught Gibsons attention, and he decided to remove an obstacle on Murphys educational path.
Celebrities & The Wealthy
Individual donors might be more difficult to contact and receive from, but itâs not impossible. Some of them try to support their fans and peers in shouldering the costs of expensive loans through acts of charity. Most notably, American Businessman Robert F. Smith pledged to pay for the student loan debt of every graduating senior at Morehouse College in 2019. He also founded a new nonprofit, The Student Freedom Initiative, to help students who attend historically Black colleges and universities pay off student loan debt. Oprah Winfrey has given $13 million to Morehouse. Taylor Swift sent $1,989 to a fan who made her a mashup video. Rihannaâs Clara Lionel Foundation has funded education initiatives and doubles as an emergency weather response fund. LeBron James funded a school in his hometown of Akron, Ohio for at risk kids through The LeBron James Family Foundation. Chrissy Teigen donated to a studentâs crowdfunding campaign requesting for additional assistance in pursuing her educationâs out of pocket costs. All of these are charitable acts, but truthfully, giving back to the fans who enabled your fame is the least you can do.
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Shannon Otto Student Loan
Shannon was featured on The New York Times podcast The Daily when her nursing license was suspended because she couldnt make her student loan payments. In serious financial trouble and unable to work, she didnt know where to turn. A listener started a GoFundMe for her, but it turned out she had already set one set upand it ended up raising more than $9,000 to help her get back on her feet.
Individuals Who Can Reduce Student Loans
Many students have contacted family members to help pay off their student loans. Once the family members evaluate the student loans, some relatives may offer donations worth more than $5,000, or the family members may provide interest-free loans.
If you utilize crowdfunding, these relatives may encourage other people to offer substantial donations. In addition, family members can share the campaign on social media networks, and subsequently, multiple friends may send donations, provide helpful advice and share relevant links.
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Charities That Pay Back Student Loans
Unfortunately, the list of charities dedicated to paying back student loans isnt as long as wed like. While some organizations offer scholarships before or during college attendance, paying off debt after a student leaves school is rare. However, a couple of knights in shining armor are helping borrowers across the country tackle their debt.
Do A Search For A Grant That Fits Your Circumstances
As youve seen, before you can apply, you need to narrow down your search. Here are a few ideas:
- Do a search for grants available for people in your profession. These may involve working in a high-needs area.
- See if your current job qualifies for Public Service Loan Forgiveness.
- Search for grants available in your state, for people in your profession.
- Look into grants available for members of the military or nonprofits such as Teach for America or the Peace Corps, if youre willing to join up.
- See if your employer offers tuition assistance or student loan forgiveness.
- Find out if your college offers student loan forgiveness for people in your major.
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Are There Donors That Pay Off Student Loans
Yes, some donors pay off student loans. One example is the American Student Loan Consolidation and Debt Reduction Company. This company offers to pay off your student loans to work for them for a certain period.
Another option is to look for scholarships and grants that can help you pay off your student loans. You can search for these scholarships and grants online or through your financial aid office.
You can also negotiate with your student loan lender to lower your interest rate or monthly payment. If you have trouble making your payments, you can also look into deferment or forbearance options.
If you are struggling to repay your student loans, many options are available to you. By exploring all of your options, you can find a repayment plan that works for you.
Chrissy Teigen Has Donated To The Crowdfunding Campaign For Students Of
Its not every day that your tuition crowdfunding page gets noticed by a major donor. Thats exactly what happened to Mercedes Edney in 2017. Edney created a crowdfunding page on YouCaring. She raised money to cover the cost of the beauty school. Chrissy Teigen heard about their plight and quickly donated $5,605. Ms. Edney had already raised $300, but needed a total of $6,000 for her program. Edney told NBC News that when she got a notification from PayPal, she thought there was a problem. Teigen expressed her support for Edney and her future in the beauty industry on her Twitter.
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Federal Student Loan Forgiveness
The federal government administers many of the career-based forgiveness programs weve mentioned already, but the following are either not tied to your job title or apply to a wide range of professions.
Public Service Loan Forgiveness : Weve this program. The upshot is that you can get the remainder of your federal student loans forgiven after 10 years or 120 qualifying payments, if you work for a qualifying government or nonprofit employer.
Under this program, there are a lot of hoops to jump through. It matters more who you work for than your job title doctors, lawyers, teachers, and many other professionals could qualify for forgiveness.
Income-Driven Repayment Plan Forgiveness: There are four different kinds of income-driven repayment plans, and they all set your federal loan payments based on a percentage of your income. After 20 or 25 years, the remainder of your balance will be forgiven, but you’ll have to pay taxes on the forgiven balance.
Perkins Loan Cancellation: Weve already listed a Perkins loan forgiveness program for teachers, but the federal government will also forgive your Perkins loan if you choose other careers. See the website for a complete list.
Cancellation and Discharge: The federal government may also discharge your loans under some extreme circumstances, including:
The Different Kinds Of Student Loans
When looking to borrow for college, most people go through federal entrance and financial awareness counseling. There, youâll be instructed on how to finance for college and estimate your potential payments. You apply for student loans through filling out the Free Application for Federal Student Aid . Each studentâs different, and the amount of aid, including grants and some scholarships, are determined based on your parents cumulative income. Each institution will have a different way of rewarding students. Financial aid can help to cover the costs of tuition, fees, room, board, transportation, books, and supplies. Your aid package will include grants, scholarships, federal or private loans, work study programs, and a potential out of pocket cost. The difference, however, is that grants and scholarships don’t need to be repaid, but loans do, including the accumulated interest.
It’s best to get as many scholarships and grants as possible on top of your financial aid package to ensure that you have to repay less. A large number of students rely on federal loans to help with the costs associated with higher education. Federal loans are also called Stafford loans, which are determined by the studentâs calculated financial need and must be repaid. Other than federal, you can opt for private loans, which are offered by private lenders.
Hereâs our breakdown of the different kinds of loans and what they mean:
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Oprah Winfrey Is One Of The Most Generous Donors For Student Loan Repayment
Oprah Winfrey is a billionaire, but shes also a philanthropist. His acts of kindness extend across the globe and his presence in the media has captured the hearts of many. In 1989, Winfrey started a scholarship program at Morehouse College that continues to this day. This scholarship provides financial assistance to African-American men who want to make a difference in the world through higher education. It has donated $13 million to this scholarship fund. She also donates significant amounts to the University of Tennessee, the United Negro College Fund and more than 80 organizations in Chicago. In addition, Winfrey established a scholarship for African women in community service at New York University. Oprah is a well-known personality, and she doesnt limit herself to donations. For some young people, it was their generosity that helped them through high school.
Nicki Minaj Helped Students Pay Their Tuition Via Twitter
In 2017, Nicki Minaj posted a tweet asking students to send her their grade transcripts in exchange for paying their tuition. A few days later, Minaj posted on Instagram the names of the eight students she had helped. That week, she donated a total of $18,000, which she used to pay off seven student loans in full, in addition to textbooks and tuition. In 2018, Minaj spoke out again on Twitter and launched the Student of the Game University Foundation.
She asked fans to send a tweet with the hashtag #StudentOfTheGame and share how much money they need and what they need it for. It has helped 30 students pay off their student loans and tuition. This is not a permanent award. But Minaj still speaks openly about the importance of education on her platform. So you never know when another tweet might be the most creative way to pay off a student loan.
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Ellen Degeneres Helped A Nurse Pay Off Her Student Loan
Ellen DeGeneres has awarded full scholarships to many teens and challenged viewers of the show to talk to her about their debts, including student loans. Lauren Wakefield studied nursing and had significant student loan debt. She saw the call to action on social media and left a comment. Wakefield was invited to take a seat in the audience, and DeGeneres was joined by student loan donor Nicki Minaj. Ms. Wakefields name was called and she was awarded the maximum scholarship of $50,000 to pay off her student loans. All of these celebrities use their excess funds to help others graduate. Since tuition will never go down and interest on PLUS loans is high, this is a much needed contribution to society. But that doesnt mean it will happen to you, so it doesnt hurt to have a plan if you cant get your student loan paid off by Nellie.
The Nd Career Builders Loan Repayment Program
If you reside in North Dakota and are employed in a high-need occupation, you can apply for the ND Career Builders loan repayment program. You will need to secure a commitment from a private-sector donor, who will be responsible for matching state dollars. The grant awards up to $5,667 per year for a maximum of three years. The award can go toward both federal and private student loans.
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The Cons Of Using Crowdfunding To Pay Student Loans
- Theres a possibility that you might not reach your fundraising goal. While GoFundMe offers the tools and resources to create an effective fundraiser, it is still a good idea to have other strategies to supplement the money you raise in case you need additional aid.
- Creating an impactful fundraiser can take some time, but with GoFundMe, set up is easy and you can easily manage your fundraiser on the go. The more time and effort you put into writing your fundraiser story, adding images or videos, and posting updates, the greater chances you have of achieving your goal.
Rihanna Opened A Global Scholarship Program
Rihanna has been at the top of the music charts on numerous occasions. Shes also made helping children in need a priority since 2006. She supports over 24 charities and foundations, including one of her own, the Clara Lionel Foundation.
In 2016, she added to her list of generosities by opening up a global scholarship program through her foundation. If you were born in Brazil, Barbados, Cuba, Haiti, Grenada, Guyana or Jamaica and were accepted to a four-year college or university in the U.S., then you may be eligible for Rihannas scholarship. If you meet the requirements, you could be awarded between $5,000 and $50,000.
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Who Can Pay Your Student Loan
The first thing you need to do is to search at as many places as possible for student loans donors. If you dont know anyone who has found one, you can search the internet:
The first place we recommend you to look at is crowdfunding platforms. One of the most famous is Gofundme, and many people have achieved financial goals through it. To get a donor, or several donors, for your student loan, you have to create a campaign and tell people what you need. You must be convincing and explain why you urgently need to solve your situation.
You can also seek information from charities and non-profit organizations. You may not find anything specific, but you can create a network that will lead you to find potential donors that would address your student loan.
Finally, you could also look for possibilities by trying to contact celebrities and famous people. Getting a conversation with them as individual donors can be tricky but not impossible. There are several cases in which some people were able to get celebrities to advance their loan repayment and thus get out of it.
In short, you should not despair and try to keep a cool head to look for solutions. There is a possibility of finding donors to pay off your student loan, and you should focus on finding them.
What Is Student Loan Forgiveness
Student loan forgiveness can come in many different forms. You could receive a grant to pay off some or all of your loans, or you could get your loans cancelled in exchange for working in a specific high-needs area for a period of time.
For instance, one of the most well-known student loan forgiveness programs is Public Service Loan Forgiveness. Under this program, the government will cancel your federal loans if you work for a qualifying employer in public service and make 120 qualifying payments.
We go into that program in later in this article, but for now, know that it’s not the only way to get your loans forgiven.
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Pennsylvania Primary Care Loan Repayment Program
Physicians, dentists, psychologists and other health care professionals willing to work in underserved areas in Pennsylvania can receive between $24,000 and $80,000 to be applied to their eligible student loans.
To receive Pennsylvanias health care grant, you must make a two-year service commitment. Opinions for both part-time and full-time work are available.
Cant Find Sponsors For Student Loan Repayment
It might be tempting to tweet Ellen or send Drake a direct message, but thats not always the most practical way to pay off your student loan debt. Dont hesitate to try it! However, other options also need to be explored. Most students who leave college have an average student loan debt of $28,650. If you are considering graduate school, this number could easily triple. If you are still in school, apply for some of the scholarships listed above. Other than that, Rihanna said it best: Its time to work, work, work, work on a plan to pay off your student debt. Start by exploring the Student Loan Planner® blog.
If you have federal student loans and want to lower your payments, look into income-based installment plans. If you work full time in the public sector, you should consider getting a loan. You can also consider getting a new loan through refinancing to pay less interest, but it is important to note that you will lose your government benefits since you will have a private loan. Health care professionals, people who work for the Corporation of America, and military personnel can explore other government loan repayment programs. Also, find out if your job offers the opportunity to contribute to employee student loan repayment or offers other incentives. And you can always get advice on student loan debt. A plan for a student loan Refinance your student loan and receive a bonus in 2021.
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