Peace Corps Student Debt Forgiveness and Cancellation Programs

The Peace Corps offers a unique opportunity for individuals to make a difference in the world while also addressing their student debt. The agency's student debt forgiveness and cancellation programs are designed to help volunteers alleviate their financial burdens.

The Peace Corps Forgivable Loan Program provides up to $10,500 in loan forgiveness to eligible volunteers. This program is available to those who have completed their service and have a qualifying loan.

If you're considering joining the Peace Corps to escape student debt, you're in the right place.

For another approach, see: Pronounce Peace Corps

You can still apply for forgiveness if you've worked in public service, even if it wasn't consecutive.

Borrowers who work in public service for 10 years or more can have all their student debt canceled. This includes federal, state, local, tribal government, or a non-profit organization.

Returned Peace Corps Volunteers Are Eligible for PSLF. To qualify, you'll need to certify your service to count your payments toward the 120 required for forgiveness.

Here's how to request PSLF Certification:

1. Set Up an RPCV Portal Account: Create an account using the name you used during your Peace Corps service to prevent delays.

2. Log In and Verify Details: Access the RPCV Portal to verify your contact information and service dates.

3. Select the Certification Type: Use the drop-down menu in the portal to choose the type of certification you need.

4. Processing Time: Allow 7–10 business days for your request to be processed.

To be eligible for PSLF, you must serve full-time in the Peace Corps as an AmeriCorps VISTA volunteer and have Direct Loans under a qualifying repayment plan.

Eligible employers for PSLF include Peace Corps, a U.S. federal agency qualified for PSLF, and other government or nonprofit organizations.

Here's an interesting read: Student Saving Account

Nonprofit employers that qualify for the Public Service Loan Forgiveness (PSLF) program are those that are 501(c)(3) organizations, such as charities and non-profit organizations.

If you work full-time for a nonprofit employer that meets this criteria, you may be eligible for PSLF. However, it's essential to note that simply volunteering for a nonprofit does not qualify.

AmeriCorps or Peace Corps volunteer service does count towards PSLF, but only if you're a full-time employee who is hired and paid by a qualifying employer.

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If you don't qualify for PSLF or IDR forgiveness, there are other options worth exploring. Forbearance or deferment can temporarily postpone or reduce your loan payments, but be aware that paused payments won't count toward the 120 required for forgiveness.

If you're considering refinancing, it can lower your interest rate or adjust your repayment term, potentially reducing monthly payments. However, be cautious - refinancing federal loans with a private lender eliminates federal protections like forbearance and PSLF eligibility.

Here are some alternative forgiveness options to consider:

If you're an AmeriCorps VISTA or Peace Corps volunteer, you're eligible for Perkins Loan cancellation. This program can wipe away up to 70% of your Perkins Loan balance.

To qualify, you need to have federal Perkins Loans, which is a specific type of loan. Private loans and other types of federal loans, like Stafford loans or PLUS loans, don't count.

AmeriCorps VISTA and Peace Corps volunteers receive a tiered rate of forgiveness based on the length of their eligible full-time volunteer service. Here's how it breaks down:

If you have qualifying volunteer service with the Peace Corps or AmeriCorps, you can apply for Perkins Loan cancellation with your school or loan servicer.

If you're a Peace Corps volunteer struggling with student debt, you're not alone. Forbearance or Deferment can temporarily postpone or reduce your loan payments, but be aware that paused payments won't count toward the 120 required for Public Service Loan Forgiveness (PSLF).

Refinancing is another option to consider, which can lower your interest rate or adjust your repayment term. However, be cautious as refinancing federal loans with a private lender eliminates federal protections like forbearance and PSLF eligibility.

Here are some key things to keep in mind about forbearance and deferment:

If you do decide to refinance, be aware that you'll need to meet credit and income requirements. Refinancing can lower your interest rate or adjust your repayment term, potentially reducing monthly payments.

If you're a Peace Corps volunteer, you're not alone in carrying student debt. Many volunteers have federal loans that can be forgiven through various programs.

You're still responsible for repaying student debt while serving in the Peace Corps or as an AmeriCorps VISTA volunteer. Make a plan to pay for your loans during and after completion of your service commitment.

Income-driven repayment plans, like IDR forgiveness, can provide a flexible repayment option for Peace Corps volunteers who may not qualify for PSLF or choose to pursue other forgiveness programs. These plans base your monthly payment on your income and family size.

IDR forgiveness is available to all federal loan borrowers, including Peace Corps volunteers, even if they transition to private-sector roles after service. Your monthly payments are calculated as a percentage of your discretionary income.

You can choose between a 20-year or 25-year repayment term, depending on the plan and whether your loans were for undergraduate or graduate studies. After this period, any remaining loan balance is forgiven.

Here are the main forgiveness programs available to Peace Corps volunteers:

Perkins Loan cancellation is a specific benefit for AmeriCorps VISTA and Peace Corps volunteers, offering 15% forgiveness of Perkins Loans for each of the first two years of service, and 20% cancellation of Perkins Loans for the third and fourth year of service.

If you're a Returned Peace Corps Volunteer, you can qualify for Public Service Loan Forgiveness (PSLF). You'll need to certify your service to count your payments toward the 120 required for forgiveness.

To request PSLF Certification, you'll need to create an RPCV Portal Account using the name you used during your Peace Corps service to prevent delays. You'll also need to verify your contact information and service dates in the portal, as certification documents will be sent to the email listed.

You'll have to allow 7-10 business days for your request to be processed. Once you've certified your service, you can use the studentaid.gov PSLF Help Tool to complete your PSLF forms.

Here are the steps to complete your PSLF forms:

If you've served both as a Volunteer and as Peace Corps staff, you'll need to send separate PSLF forms. For Volunteer Service, email to [email protected], and for Staff Service, email to [email protected].

You're likely wondering how the Peace Corps can help with student debt forgiveness. The Peace Corps offers a program called the Public Service Loan Forgiveness (PSLF) program, which can help wipe out up to $57,600 of student loans after 10 years of qualifying payments.

The Peace Corps also offers a monthly stipend of around $1,500 to volunteers, which can help with living expenses while you're serving. This stipend can be a huge help in reducing your financial burden.

The PSLF program is a great option for Peace Corps volunteers, but it can be a bit complicated. The program requires you to make 120 qualifying payments, which can be a challenge if you're not careful about your payment plan.

However, the Peace Corps is a great way to get started on your path to PSLF, as it offers a clear path to qualifying payments. By serving in the Peace Corps, you can earn a significant amount of service credit towards your PSLF program.