HOW MUCH OF YOUR STUDENT LOANS CAN BE CANCELED BY VOLUNTEERING WITH THE PEACE CORPS?

I do not have a Perkins loan, only Sallie Mae and sovereign and state loans.

Thanks!

{ 2 comments }

altaira October 2, 2013 at 2:11 pm

Only perkins loans are eligible for cancellation. Your other federal loans will be eligible for deferment while you’re in the peace corps. This just means you don’t have to make any payments during that time but you’ll still owe it all when you’re finished. Unsubsidized loans will continue to build interest while you’re in the peace corps as well.
Your sallie mae loan may or may not be deferred for the peace corps. Many private loans cannot be. You would have to check with them to see. Even if payments can be deferred interest will continue to build on this loan as well.

L October 2, 2013 at 2:46 pm

From the PC website, which is easy enough to find:
“Deferment and Cancellation of Student Loans
Volunteers with Perkins loans may be eligible for a partial cancellation benefit. School loan deferments exist for several federal programs (i.e., Stafford, Perkins, direct, and consolidated loans). Some commercial loans may also be deferred during Peace Corps service. Because the rules that authorize deferment are complicated and subject to change, it is best to talk to your lending institution about how this benefit applies to your particular situation.”

Then, there’s this: http://www.peacecorps.gov/learn/whyvol/finben/instructions/ which also popped up in a quick search of the Peace Corps site. That’s the best place to look, after all.

It does not appear that any of your loans would be canceled through PC service. Perkins looks to be the only type of loan that has a portion canceled after at least a year of PC service.

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