A: Cherri Walrod says that if you did get a grant after you had already paid for your adoption, you could possibly use some of those funds to pay down the loans. Typically, grant funds are only distributed directly to your adoption service provider agency. If you had all of your balance paid with them, then they might be able to give you a ‘refund’ for the amount you had ‘over paid’ with the grant funds. You want to make sure that you’re complying with all the IRS guidelines on this topic. IRS rules about this stuff can be kind of tricky, so I always recommend checking in with someone who understands the laws. Your adoption agency might be able to help with that.
Cherri Walrod is the founder and director of Resources 4 Adoption. She is dedicated to providing adoptive families with the most accurate and current information about adoption financing options. For more information on this topic, visit our resource page on adoption grants or loans and visit our blog: “Everything You Ever Wanted to Know About Adoption Grants.”Image credit: Steve Snodgrass