If you’re struggling to pay down student loan debt, there may be a person or group out there who’s willing to help.
From service organizations and forgiveness programs to crowdfunding sites — and even, in rare cases, some celebrity benefactors — there are resources available if you’re looking for donations to pay off your student loans.
Read on for some programs that may be worth checking out, plus other repayment options that could help you pay off your student debt.
Key Points
• Celebrity donations for student loans are rare, but some philanthropists and organizations offer assistance to certain individuals through scholarship programs.
• Crowdfunding platforms can be utilized to raise funds for student loan repayment, though success varies based on network size and donor generosity.
• Tax implications for student loan donations depend on the amount of repayment, with potential gift taxes for donors.
• Employers may offer educational assistance programs (EAP) to help with student loan repayment, providing tax-free benefits up to a certain limit.
• Relying solely on donors is risky; consider other options like loan forgiveness programs and employer assistance.
How Donors Help Pay off Student Loans
Occasionally there are reports of a celebrity like Taylor Swift or Nicki Minaj helping out a fan in need by making a donation toward their student loans. Or you’ll see stories about people like philanthropist Robert F. Smith, who paid off student loans for an entire graduating class at Morehouse College. But that kind of student debt payoff is rare.
More often you may see celebrities who have set up foundations to help prospective college students further their education through scholarships. For example, Beyoncé sponsored a Homecoming Scholars Award Program for students at four historically black colleges and universities. Through his LeBron James Foundation, basketball player LeBron James offers students in his hometown of Akron, Ohio, the opportunity to earn four-year scholarships to the University of Akron. And the Oprah Winfrey Charitable Foundation has donated millions of dollars for scholarships.
However, for college graduates who are looking for donors to pay off their student loans, there are a few programs and organizations that might be able to help. You could also consider telling your story on a crowdfunding platform like GoFundMe, where multiple potential donors pool their money to give others a hand.
Recommended: Fast Ways to Pay Off Student Loans
Organizations that Offer Student Loan Assistance
Some national agencies and programs help provide borrowers with a pathway to tackling student loan debt, often in exchange for doing a certain type of work, volunteerism, or community service. These organizations include:
AmeriCorps
AmeriCorps is a federal agency for national service and volunteerism. While volunteers for AmeriCorps are in service, they may qualify for federal student loan forbearance, although interest will continue to accrue on their loans during that time. After completing full-time service with AmeriCorps, volunteers become eligible to receive the Segal AmeriCorps Education Award, which can be used to repay qualified student loans or pay current eligible higher education expenses.
Volunteers also can apply their time with AmeriCorps to the federal Public Service Loan Forgiveness (PSLF) program (see more about that below).
National Health Service Corps
The National Health Service Corps Loan Repayment Program (NHSC LRP) offers health care providers in the medical, dental, mental, and behavioral health fields an opportunity to have their student loans repaid in exchange for working for two years in communities with limited access to medical care. Award amounts vary based on whether an individual works full-time or part-time and the field they are in.
Public Service Loan Forgiveness
The Department of Education offers a range of student loan forgiveness programs for borrowers with certain federal loans. This includes the PSLF program for those with eligible Direct loans who work full-time in public service for a federal, state, local, or tribal government or a nonprofit organization, and make 120 qualifying payments.
There is also the federal Teacher Loan Forgiveness program for those with qualifying federal loans who teach full-time for five consecutive years in a low-income school or educational service agency and meet other requirements.
In addition, your state may offer forgiveness programs or loan repayment programs. These programs tend to have different conditions, eligibility requirements, and time limits for paying off student loans, but they may be worth checking out to see if you qualify.
Who Pays for Student Loan Forgiveness?
How to Find Donors Willing to Pay Off Student Loans
While it’s true that Taylor Swift once sent $1,989 (a reference to her popular album and her birth year) to a fan with student loans who got her attention with a YouTube video, things like that don’t often happen. You could try something similar with your favorite celebrity and hope for the best, but you might have more luck by crowdfunding your student loans on a site like GoFundMe, GiveCampus, Paidly, or GoGetFunding.
Crowdfunding Platforms and Social Media
With crowdfunding, you can reach out to family, friends, and even strangers by creating a fundraising campaign page through which you can securely receive donations. There’s no guarantee about how much you’ll earn; it depends on the size of your campaign and the generosity of your donors. Some of these sites do charge fees for transactions or processing, and you may need to pay taxes on the money depending on the size of the donation. But if you can tell your story in a compelling way and you have a large enough network, you may be able to make a dent in your debt.
Your Employer May Offer a Program That Could Help with Your Student Loans
If your employer has an educational assistance program (EAP), they may be able to use it to help pay principal and interest on your qualified education loans.
EAP programs have traditionally been used by employers to help employees pay for books, equipment, supplies, fees, and tuition. However, the option to use these benefits to pay for federal and private student loans has been available since 2020 and is scheduled to continue through December 31, 2025. You can receive up to $5,250 in tax-free EAP benefits each year.
Check with your company’s HR department to see if your employer has an EAP program.
Tax Considerations for Student Loan Donations
It’s important to understand the possible tax implications for you and potential donors when someone pays off your student loans. It typically depends on how the loans were repaid and the amount. Here are some general guidelines.
• If you belong to a profession such as health care or teaching that has a loan repayment assistance program: In this case, the amount of student debt that’s forgiven won’t be included in your individual gross income, so it won’t be considered part of your taxable income.
• If a benefactor (celebrity or otherwise) donates money toward your student loans: You won’t have any tax liability as the recipient, but the donor might have to pay a gift tax, depending on the size of the donation. In 2024, the IRS exclusion for gift taxes is $18,000; for 2025, it’s $19,000. Any gift above that amount may be taxed.
• If you receive donations through crowdfunding: The donations may be taxable, depending on the amount. The IRS advises those who use crowdfunding to keep complete and accurate records, hold on to records for at least three years, and consider consulting with a tax professional if they’re unclear about whether donations may be taxable.
• If your employer offers a student loan repayment option: Employers can contribute up to $5,250 per employee per year toward student loans through an EAP program without the payment counting toward an employee’s taxable income.
Pros and Cons of Relying on Donors to Pay off Student Loans
There are advantages and disadvantages to turning to donors for assistance with your student loan debt. On the plus side, if you can get one or more student loan donors to help you pay off your loans, it can relieve a big financial burden. You can ditch the monthly payments, save money on interest, and put your focus on your future financial goals.
But there are a number of downsides to consider. First, relying on donors to help repay your student loans can be risky. There is no guarantee that they will contribute, so it’s a wise idea to have a backup plan.
Crowdfunding can take time and a lot of effort, if you want your campaign to be successful. And it may make you uncomfortable to ask friends, family, and others to donate when they have bills and financial obligations of their own.
If you choose to apply for student loan forgiveness, just be aware that it can be a challenging process. You have to meet the eligibility requirements and it can take up to 10 years to have your loans forgiven. Volunteer programs like AmeriCorps that help with repayment can be very rewarding, but they require a full-time years-long commitment. You also won’t be earning money during that time, though you typically will get a living stipend.
Student Loan Refinancing as an Option
As you’re considering various methods for repaying your student loans, you may want to explore the idea of student loan refinancing to help reduce your debt.
When you refinance your student loans, you get a new loan to replace the old loans — ideally, with a lower interest rate and more favorable loan terms, if you’re eligible. This can help you better manage your payments. However, if you refinance federal student loans, you will no longer have access to federal benefits like income-driven repayment plans and federal forgiveness programs.
If you choose to lengthen the amount of time you have to repay your loans, you may reduce your monthly payments through refinancing. Though you will end up paying more interest over the life of your loan in this case, reducing your student loan payments can help free up your finances so you can start putting money toward other goals, like buying a home.
The Takeaway
Though it’s unlikely a celebrity benefactor will suddenly write you a check to pay off your student loans, there are other ways to get help with student loan debt you may want to consider, including service organizations, loan repayment programs, and forgiveness programs.
You could also turn to your employer for help if they have an EAP, or even consider crowdfunding to help tackle your debt. Student loan refinancing is another option that may help borrowers manage their student loan payments. Consider all the different available methods to decide which one is best for you and your financial situation.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
FAQ
What are the risks of relying on donors to pay off loans?
Relying on donors to pay off your student loans is risky because there is no guarantee that anyone will contribute money to you. Celebrity help is rare, and crowdfunding to raise money can be difficult as it depends on the size of your network and the generosity of the people who read your story. However, there are loan repayment and forgiveness programs you can apply to, if you are eligible. And you can check with your employer to find out if they offer student loan repayment help through an educational assistance program.
How much of my student loan can be paid off by donors?
A donor can pay off your entire student loan at any time. Some gifts may be taxable, however, for you or the donor, if they exceed a certain limit. Check with a tax professional about the specifics.
Are donations to pay off student loans tax-deductible?
If a donor pays off your student loans, they may need to pay taxes on the money, which is considered gift money. It depends on how much they donate: According to the IRS, the gift tax exclusion for 2024 is $18,000 and $19,000 for 2025. If a donor gives more than that, they will owe taxes on the excess amount. You, as the recipient, generally should not have to pay taxes, though you will need to file Form 709 with the IRS. You may want to consult a tax professional about your specific situation.
Is crowdfunding a good way to pay off student loans?
Crowdfunding may help you raise money to help pay off student loans, but the results can be unpredictable. How successful you are depends on such factors as the size of your network and the generosity of donors. There may also be processing and transaction fees you’ll need to pay. It’s wise to have a solid backup plan and not rely solely on crowdfunding.
Can social media help me find donors for my student loans?
You can use social media to get out the word about your student loan repayment fundraising goals. Some crowdfunding sites like Paidly make it easy to share your story across multiple social media platforms.
Photo credit: iStock/South_agency
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