The Trump administration states the intention behind the loan limits is to encourage institutions to contain tuition costs and to discourage borrowers from taking on more debt than their future salaries can sustain. Excessive student debt is a root driver of the national student loan crisis. These new caps provide an opportunity to explore some of the innovative ideas for funding education, many of which have existed for decades.
Instead of taking one large loan, students can combine smaller sources to stack funding more sustainably. Scholarships + Employer Support + Service Programs + Small Federal Loans = Affordable Degree
The resource below is compiled for school staff and families to discuss funding opportunities that reduce long-term debt and increase financial stability with students. Note that programs are constantly changing and updating, and website links may also change. However, these resources will serve as a valuable guide for college funding options.
Funding Options Beyond Federal Loans
National Service, Healthcare, and Human-Services Programs With Loan Repayment
National Health Service Corps (NHSC) – Loan Repayment Program
For licensed healthcare, dental, mental-health, and behavioral-health providers serving in federally designated shortage areas.
Repayment: Up to $75,000 for 2 years of service.
NURSE Corps Loan Repayment Program
For registered nurses, nurse faculty, and APRNs working in facilities with critical shortages.
Repayment: Up to 85% of student debt over 3 years.
National Teaching and Education Programs With Tuition Support or Loan Assistance
Teach For America (TFA)
Members receive AmeriCorps benefits, including a stipend, grants, and interest-free loans.
Stipend: Up to $6,500
AmeriCorps – Segal Education Award
Available to students in hundreds of national service roles, not limited to teaching.
Award: Up to $7,395 toward tuition or student loans.
Federal Teacher Loan Forgiveness
Teachers serving 5 consecutive years in low-income schools may qualify.
Forgiveness: Up to $17,500.
Military Programs With Tuition and Loan Repayment Benefits
Army College Loan Repayment Program (CLRP)
For eligible new enlistees in specific job roles.
Repayment: Up to $65,000.
Montgomery GI Bill
Provides tuition, housing allowance, and books for service members and veterans.
ROTC Scholarships
Covers full tuition at participating colleges in exchange for service commitments.
Employer Tuition Assistance & Reimbursement Programs
These are available nationwide and often cover degrees in fields recently reclassified by the Department of Education.
Common examples:
Hospital Systems (nursing, allied health, mental health)
Most major hospital networks (HCA, Kaiser Permanente, AdventHealth, NYU Langone, etc.) offer $5,000–$20,000+ in annual tuition assistance or loan repayment.
Students should check each employer’s HR Benefits page.
Large Corporations
Many companies offer tuition programs regardless of major, such as:
Amazon Career Choice: 100% tuition for high-demand fields
Target, Walmart, Starbucks, and others also offer full tuition programs.
School Districts
Paraprofessionals, substitute teachers, and staff in many large districts receive tuition support to become teachers, counselors, or social workers. Here is an example of what staff at NYCPS can receive. Visit each district’s website for information.
Scholarships and Private Grants (National)
These are the lowest-risk funding streams because they never require repayment.
FastWeb – Largest national scholarship database
CollegeBoard BigFuture Scholarships & Search Tool
Scholarship America
Jack Kent Cooke Foundation (high-achieving, low-income students)
UNCF Scholarships
529 College Savings Plans
529 plans are tax-advantaged savings accounts that families can use to pay for qualified education expenses. Contributions grow tax-free, and withdrawals used for tuition, fees, books, required materials, and certain living expenses are also tax-free. Many states offer additional benefits, such as tax deductions or credits for contributions.
529s can play an important role in a stacking strategy. Families with an existing account can use it to cover undergraduate or graduate programs, eligible apprenticeship programs, and up to $10,000 in student loan repayment.
Parents and students can contribute to a 529 at any time, before, during, or after college, with no age limit. Contributions can come from parents, students, or anyone else. Under newer rules, unused 529 funds may also be rolled into a Roth IRA, making these accounts even more flexible for long-term planning.
Private & Nonprofit Loans
These can supplement the federal cap, but students must understand they lack federal protections (income-driven repayment, PSLF, etc.).
National lenders and nonprofit options include:
The FAFSA Still Matters
Even as students look toward alternative funding pathways, completing the FAFSA remains essential. It unlocks access to federal grants, work-study, and need-based institutional aid—resources students should not miss out on, even if they plan to minimize borrowing.
Educators can remind families that:
The FAFSA is required for Pell Grants, which do not need to be repaid.
Many national scholarships and foundation grants require a FAFSA on file.
Colleges use FAFSA data to award institutional scholarships and need-based aid.
Completing the FAFSA does not obligate a student to take a federal loan. It simply ensures all options remain available.
What Educators Can Emphasize to Students and Families
Federal loans are still available, just capped.
Relying solely on federal loans is not necessary or wise.
These national programs significantly reduce long-term debt.
Stacking funding sources is often the most effective strategy.
Students need full information in middle and high school, not after the FAFSA is filed.
