OVERVIEW
The purpose of this grant is to reduce the educational debt burden of Central District Conference (CDC) clergy. The application and approval process for this grant will be overseen by a five-member committee approved by the CDC Board of Directors. The committee will include the Conference Minister, a representative of the Ministerial Committee, a member of the Board of Directors, the CDC Administrator, and an at-large member. This grant is made possible by a one-time, $50,000 donation by an anonymous donor. Unless funded beyond this one-time gift, the Educational Debt Grant will expire when the funds are depleted. The number of grants provided, and the amounts of grants are dependent on the funds available.
CONSIDERATIONS FOR APPLICATION
- Grants are available to active credentialed (licensed or ordained) persons who are members of CDC congregations or who have been active in a CDC congregation for the past three years. Individuals reflective of groups who have been prohibited from ministry or discriminated against in the past are especially encouraged to apply.
- Applicants must have outstanding educational debt from an accredited college, university, or seminary.
- Applications are submitted to the conference minister and are considered and awarded by the CDC Board appointed Committee. Only committee members will view the actual applications. Reporting of aggregate statistics, without applicant identifying information, may be provided to the CDC Leadership Council or broader constituency.
- The application deadline is November 1, 2024. Grants will be awarded before December 31, 2024.
- Successful applicants will receive a grant of up to $2000 without needing matching funds.
- An additional grant of up to $2000 may be awarded with a one-to-one match, dependent on the availability of funds. [Example: The grant awards Pastor Gretchen $2000 unmatched. Pastor Gretchen’s congregation provides a $2000 student loan gift above her salary. An additional grant of up to $2000 of matching funds may be provided from the CDC Educational Debt Grant) for a total of up to $6000.] Proof of the matching grant is required. (See grant application.)
- The number and size of grants available is dependent on the number of applicants. The amount of the grant shall not exceed the amount of outstanding educational debt of the applicant.
- In addition to the above, various criteria will be used to award grants including, but not limited to, the amount of educational debt and household income.
- The grants will be paid directly to the applicant. When the recipient is informed of their grant, they will also be sent a W-9 form which will need to be completed and returned to the CDC office. The recipient will then be issued an IRS 1099-MISC form (other income). Please note that this grant is taxable income and may affect the recipient’s tax rate.
- Some employers provide an educational assistance program that may allow the employer to make payments directly to a lender without any tax liability to the employee. See https://www.kiplinger.com/taxes/tax-free-employer-student-loan-repayment-assistance
- Those with educational debt may also be interested to learn more about federal programs for debt reduction/elimination. It is our understanding that churches are qualifying non-profit institutions for which ministers may be eligible for some form of debt relief. The following websites may be helpful.
https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service#qualifying-employment
https://studentaid.gov/manage-loans/forgiveness-cancellation
https://studentaid.gov/manage-loans/repayment/plans
- Mennonite Church USA and Everence have teamed up with Financial Choice (LSS) for debt counseling. This is confidential budget and debt counseling for pastors and congregation members. There is no charge for this service.
Applicants for the CDC Educational Debt Grant are expected to read and understand the Policy. Any questions should be directed to the Conference Minister. Applicants are also expected to clarify with their congregation or place of ministry what funds are available for the matching grant. This grant is made possible by a one-time, $50,000 donation by an anonymous donor. Unless funded beyond this one-time gift, the Educational Debt Grant will expire when the funds are depleted. The number of grants provided and the amounts of the grants are dependent on the funds available and the number of grant requests.
The application deadline is November 1, 2024.
One of the questions on the application form asks about MC USA geographical units associated with your place of residence. You can find these HERE
Educational Debt Reduction Grant Application (pdf)
