Signing up for the Peace Corps is a great way to make a difference in the world while also immersing oneself in a different culture. The organization has been placing volunteers in needy areas in other countries for over 50 years. Let us know more detail about ‘Will Peace Corp Pay For College?’.
Will Peace Corp Pay For College?
Associating or joining with Peace Corp can help you to pay off your student loans, while there is no specific loan forgiveness program for the Peace Corps, your volunteer service may qualify you for other loan forgiveness opportunities as it is a government-sponsored public service organization. Let’s read Will Peace Corp Pay For College.
Is It Possible To Forgive Peace Corps Loans?: Will Peace Corp Pay For College?
There is no particular way for a student to waive their loans through the peace corps.
However, the Peace Corps can assist you in reducing your student loan debt and beginning the process of repayment.
Here are two approaches that you can use individually or in combination.
Option 1: Public Service Loan Forgiveness
The Public Service Loan Cancellation (PSLF) program can be touted as the best possible method for student loan forgiveness.
After making 120 monthly payments, this program forgives federal loans owed to public employees.
PSLF, on the other hand, is exclusively available for federal Direct Loans. If you have additional federal loans, you can combine them into a single Direct Loan to be eligible. Consolidating Federal Perkins loans isn’t a good idea because they have a distinct repayment schedule.
If you are unsure about your loans, log onto your FSA account, to know about it.
Option 2: Federal Perkins Loan Forgiveness
Perkins Borrower has the feasibility to avail partial interest and cancellation on the principal amount for 12 months and it will last up to four years.
For every First and Second 12 month installment period, Schools have to Cancel 15% of the Regular Principal Loan Amount coupled with interest deposited throughout the year.
For Every third and fourth year of service, the percentage will rise up to 20%, which gives the indication that the second phase in the Peace Corps may waive off 70% of your Federal Perkins loans.
If you choose to take this path, don’t consolidate your Federal Perkins loans because that will make them ineligible for forgiveness.
The choices for private loans differ based on the servicer. You can probably seek a delay, but keep in mind that you will still be charged interest during this time.
How Do You Qualify For Peace Corps Student Loan Forgiveness?
As previously stated, Peace Corps student loan forgiveness does not exist on its own; but, it can be achieved in part — or entirely — by strategically utilizing other programs.
Check out this useful explainer from the Office of Federal Student Aid for two sample scenarios comparing the various repayment options.
Four phases to PSLF are outlined below. However, examine the examples above and decide which option makes the most sense for you before implementing this strategy.
1. Sign Up For An Income-Driven Repayment Plan
Income-driven repayment plans are exactly what they sound like: they compute your monthly payments depending on your income. This is a nice thing if you aren’t making any money.
According to the Consumer Financial Protection Bureau, “Pay As You Earn (PAYE) is the ideal option for recent grads” (CFPB). “For older loans, income-based repayment (IBR) works well.”
Most Peace Corps volunteers’ monthly “payments” will be $0 if they enlist in one of these plans, according to the Consumer Financial Protection Bureau. The cool part is this: Even if you pay nothing, your payment will contribute toward the 120-month PSLF requirement.
You can also apply for an economic hardship deferral, but most people should use income-driven repayment, according to the Office of Federal Student Aid.
2. Certify Your Employment
You’ll need to have your documentation in order if you wish to apply for PSLF in the future.
The first step is to prove that your employer works for the government. To begin, send an email to certify@peacecorps.gov.
Fill out the Employer Certification form the next year as well. According to the Consumer Financial Protection Bureau, this is the “best method to keep your payment low and ensure you stay on track for loan forgiveness.”
3. Use Your Transition Payment For Your Loans
When you complete your service, the Peace Corps will provide you with more than $10,000 to assist you in reintegrating into society.
Even though this money is not designated for education, you might put it aside to pay your monthly student loan bills in the future.
You might also use it to make a one-time payment on your debts, but this isn’t a good idea if you want your debts forgiven in the future.
If you choose to go that route, be aware of the following warning from the Federal Student Aid Office: If you use your Peace Corps transition payment to make PSLF-qualifying payments, inform your loan servicer that your payment is not intended to cover future installments, or it may affect your ability to make qualifying payments in the future.
4. Remain In Public Service
If you want to keep going down the PSLF path after the Peace Corps, you’ll have to work in public service for nearly eight years and make monthly payments.
Working in a nonprofit or government agency is the most common example. If you want to work in the private sector, you can do so; just keep in mind that any payments you make during that time will not count toward the 120 payments required to get your loans forgiven.
Student loans don’t have to keep you from joining the Peace Corps.
Conclusion
Now we’ve learnt about ‘Will Peace Corp Pay For College?’, Though there is no direct road to Peace Corps loan forgiveness, employing the programs listed above can allow you to serve the planet and humanity while not having to worry about your loans as well. It would be like extending their hands to you for your help, the way you are doing for the planet and humanity.
FAQs
1. Do you get paid for the Peace Corps?
Service is an important consideration. As a volunteer, do I get paid? As a volunteer, you will be paid a monthly in-country living stipend to cover your costs. You’ll also be earning a monthly readjustment allowance, which you’ll get in one large payment once your service is done.
2. How long are Peace Corps contracts?
The Peace Corps is a serious commitment that includes three months of training in your host country and two years of service at your permanent location. Every month you work, you earn two days off, however, the Peace Corps will not reimburse you for your travel expenses.
3. How Much Does the Peace Corps Pay Student Loans?
Pay down your school loans as quickly as possible. When you complete your military duty with the Peace Corps, you are eligible for nearly $10,000 in financial aid to help you transition back to civilian life. However, since this money isn’t for education, you can put it aside for other purposes.
4. Will The Peace Corps Pay For Grad School?
Graduate study can be pursued in conjunction with the Peace Corps for Peace Corps graduates. The scholarship will be given by the Iddio Foundation for Art. The Coverdell Fellows Program offers financial help to volunteer returnees who are enrolled in graduate programs across the country.
