Reduce Your Student Loan Debt by Volunteering

I read an article published in January 08 on the personal finance site TheStreet.com entitled How to Get Uncle Sam's Help With Student Loans by Laura Moran. My summary below is worth a read if you want to take time out to volunteer and reduce your educational debt at the same time!

At Planet Gap Year we are committed to telling our readers about the broad range of options that exist for taking time out and identifying opportunities that fit a range of budgets. In the US, it is common knowledge that student loan debt has been increasing with the rising costs of college tuition. We also read in the media that the high costs of college keep some students from taking a year out. Let's just say you are in college now, and want to take time out after graduation, before starting a career, or heading off to graduate school. The article outlines options for graduates to pay back loans through volunteer service, or defer payment of some loans during volunteer service. Here are the main points:

1. Volunteer for the Peace Corps and the Uncle Sam may forgive 15% of a Perkins loan per year for the first two years of service and up to 20% for the third and fourth years of service. According to Molly Jennings Levine, a Peace Corps public affairs specialist quoted in the article, "This benefit is definitely attractive to many people interested in serving in the Peace Corps.

2. Volunteer for AmeriCorps and receive money towards the payment of education. The Segal AmeriCorps Education Award provides $4,725 for a year of service. The money can be used towards educational expenses, educational training or to repay qualified loans.Find out more about the different AmeriCorps programs.

You can find details on the Peace Corps and AmeriCorps programs in our database of Gap Year Options.