Total student loan debt in the U.S. has reached $1.7 trillion, with about one in six adult Americans owing student loans. On average, undergraduate borrowers leave school owing $29,560, while graduate student borrowers owe $106,129.
Paying off debt of this magnitude can take a long time, but some colleges are stepping in to help. Through loan repayment assistance programs (LRAPs), some schools offer thousands of dollars toward your education debt if you meet program requirements.
Here’s how these LRAPs work, which colleges offer them, and how much financial assistance you could receive toward your student loans.
What is a loan repayment assistance program?
A loan repayment assistance program offers student loan relief to eligible borrowers. It can pay off some or all of your student loans, depending on the program’s terms and conditions.
You can find LRAPs from many states and a growing number of colleges and universities. They’re more commonly found in graduate programs, especially at law schools, but some undergraduate institutions offer them as well.
Each loan repayment assistance program has its own rules, but you generally need to work in a certain field and earn below a certain income threshold. For example, several law schools offer loan repayment assistance to graduates who work in nonprofit law and earn less than around $75,000 per year.
Some programs offer funds for upcoming student loan payments, while others reimburse you for payments you already made. An LRAP isn’t going to lower your tuition bill or reduce how much you need to borrow in student loans. But it can help you pay your student loans off after you graduate if you meet the program’s criteria.
What types of loans qualify for repayment assistance?
While federal forgiveness programs like Public Service Loan Forgiveness only forgive federal student loans, many loan repayment assistance programs can help you pay off federal and private student loans. Some LRAPs can even pay off Parent PLUS loans that your parents borrowed for your education.
However, rules vary by program. For example, Georgetown Law’s LRAP mainly covers federal Direct student loans, though it also offers up to $100 per month for eligible bar loans. Yale Law School’s LRAP, on the other hand, covers federal, institutional, and private law school loans and some undergraduate loans.
Since each program is different, it’s always wise to read the fine print and check which specific loans your school’s LRAP will cover. But the good news is that private student loans are eligible for some repayment assistance programs, not just federal ones.
Which colleges offer LRAPs to their graduates?
There are a variety of colleges and universities that offer LRAPs to their graduates, so check with your financial aid office about any programs. Here are a few examples:
Belmont University
If you attend Belmont’s College of Education, you could qualify for loan repayment assistance after you graduate. Belmont’s LRAP offers student loan payment reimbursement on a quarterly basis to qualifying graduates who earn less than $55,000 per year. Other requirements include graduating within six years and working at least 30 hours per week.
Butler University
Butler University offers LRAP awards to selected incoming students. It can help repay federal, private, or Parent PLUS loans if you’re making less than $59,000 in your first year after you graduate. You’ll keep receiving repayment assistance until your income exceeds that threshold for 12 months or until your loans are paid off.
Tufts University
You can apply for the Tufts LRAP if you attended as an undergraduate, graduate, or professional student. You’ll need to work full time for a public sector or nonprofit organization and must reapply on an annual basis. The Tufts LRAP offers an annual award that you can put toward your student loans.
Georgetown University Law Center
Graduates of Georgetown Law can qualify for repayment assistance toward their federal Direct loans if they work in a qualifying government or nonprofit legal job. You can get the maximum benefit if you make less than $75,000 per year, but may still get a smaller award at higher income levels. This program is meant to work in conjunction with the federal Public Service Loan Forgiveness program, which forgives federal Direct loans after 10 years of service and 120 qualifying payments.
Notre Dame Law School
J.D. graduates from Notre Dame Law School can get student loan repayment assistance if they earn less than $110,000 each year for qualifying public interest work. The amount can equal your payments on federal or private student loans, but it can’t exceed the annual cap or be less than $2,500.
Valparaiso University
Valparaiso helps its graduates pay off student loans if they’re making less than $55,000 per year. Federal, private, and Parent PLUS loans are all eligible for this assistance. You’ll have to receive the LRAP award as a student, as well as complete the FAFSA and graduate on time. Award amounts are based on each student’s financial need and other factors.
Yale Law School
Yale Law School has a Career Options Assistance Program (COAP) that can cover your student loan payments up to a certain threshold. If your payments exceed that amount, you’ll make some payments and Yale’s LRAP will cover the rest. Award requirements are mainly based on your income and debt level. You could qualify if you work in public interest, government, academia, or private practice.
Is an LRAP right for you?
LRAPs are mainly designed for graduates who work at non-profits, so if public service is in your plans, an LRAP could be a good fit. These programs could make it easier for you to pursue a career you care about even if it has a modest salary. If you’re considering an LRAP, some questions you can ask include:
- What are the requirements to receive an LRAP award?
- What types of student loans and payments are covered?
- What do I need to do after graduation to qualify?
While an LRAP can be valuable if you already plan to pursue an eligible career, that doesn’t mean you should change your career plans just to qualify. Consider what you want out of your work and how your student loans fit into your plans before making your decision.
Other ways to get help paying off your student loans
If you’re looking for help paying off your student loans, a college LRAP isn’t your only option. Here are a few other options that could help:
- State-run loan repayment assistance programs: Many states offer LRAPs to qualifying professionals who work in a certain field or high-need area. California, for example, has an LRAP that pays up to $50,000 to medical providers in Health Professional Shortage Areas (HPSAs). Check with your state to see if it offers a similar program.
- Loan repayment assistance programs from government organizations: The National Health Service Corps, Nurse Corps, and the National Institutes of Health, for example, offer student loan repayment assistance to eligible health care professionals and researchers who meet requirements. The military also has programs that can repay college loans.
- Federal student loan forgiveness programs: If you have federal student loans, consider forgiveness programs like Public Service Loan Forgiveness, which forgives your loans after 10 years of public service, and Teacher Loan Forgiveness, which forgives up to $17,500 after five years of qualifying teaching.
- Forgiveness from income-driven repayment: Federal income-driven plans like Income-Based Repayment and the Repayment Assistance Plan can eventually end in loan forgiveness if you still owe a balance at the end of your term. Forgiveness from an income-driven plan typically counts as taxable income.
- Student loan discharge for special circumstances: Federal student loans can be discharged in certain circumstances, such as permanent disability or being defrauded by your college.
- Alternative student loan relief programs: Some state and local programs also help with student debt. Hamilton, Ohio’s Talent Attraction Program, for example, offers student loan repayment assistance to qualifying recent graduates who move to the area. Maine has a student loan repayment tax credit to eligible residents who make payments on their education loans. And Maryland’s SmartBuy program helps eligible first-time homebuyers pay off student loans when they purchase a home.
If you have federal student loans, you may also have the option of adjusting payments through income-driven repayment or postponing them through deferment or forbearance. Some private lenders will also let you temporarily pause payments or modify your loan if you experience financial hardship, go back to school, or have another qualifying reason.
Borrowers with strong credit may explore refinancing their student loans for new rates and terms. Reducing your rate could save you a significant amount of money over the life of your loans. Keep in mind, though, that refinancing federal student loans means losing access to federal programs, including income-driven repayment and forgiveness programs.
Whether it’s loan repayment assistance, forgiveness, refinancing, or another strategy, choose an approach that will best fit your career goals and long-term financial goals.
