Janice Lozano
Volunteering is a great way to give back to the community, gain new experiences, and build a professional network. It can also be a means to pay off student loans. While volunteering typically does not generate income, certain organizations and programs can help volunteers with their student loan debt. These include government-backed initiatives and nonprofit organizations that offer incentives for service, such as the Peace Corps, AmeriCorps, and SponsorChange.org. Volunteers may be eligible for deferment, partial cancellation, or loan forgiveness, depending on the program and their loan type. Additionally, some states and organizations offer unique programs to help with school costs in exchange for volunteer work.
| Characteristics | Values |
|---|---|
| Volunteer work programs | AmeriCorps, Peace Corps, Shared Harvest Fund, SponsorChange, Public Service Loan Forgiveness (PSLF), HEROES Act of 2025 |
| Benefits | Student loan debt cancellation, student loan repayment help, education awards, loan deferment, loan forgiveness, work experience, exposure to new experiences, psychological benefits, building a professional network, earning money toward loan payments |
| Requirements | Working full-time for 10 years while making payments, volunteering for a decade, working in public service, working in a qualifying position |
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What You'll Learn
Volunteer with organisations like AmeriCorps or the Peace Corps
Volunteering with organisations like AmeriCorps or the Peace Corps can be a great way to earn money to pay off student loans. These organisations offer various benefits, including loan repayment assistance, deferment, and income-driven repayment plans.
AmeriCorps
AmeriCorps is a federal agency that offers various volunteer opportunities to individuals interested in serving their communities. After successfully completing a term of service with AmeriCorps, individuals can enrol in the National Service Trust and receive the Segal AmeriCorps Education Award. This award can be used to repay qualified student loans or to pay for current educational expenses at eligible institutions. The award amount is equivalent to the maximum value of the Pell Grant for the fiscal year in which the term of national service is approved, and it can change each year. It's important to note that the award must be used within a seven-year period and is subject to federal tax.
Additionally, AmeriCorps service can count towards the Public Service Loan Forgiveness program offered by the US Department of Education. Under this program, individuals who work for 10 years full-time at a nonprofit or government agency and make 120 qualifying payments on their loans can have their remaining balance and accrued interest forgiven.
Peace Corps
The Peace Corps is another volunteer organisation that offers opportunities for individuals to serve internationally and make a positive impact on communities around the world. Volunteering with the Peace Corps may qualify individuals for the Department of Education's Public Service Loan Forgiveness (PSLF) Program. This program forgives the remainder of certain federal loans after 120 monthly payments are made under a qualifying repayment plan. It's important to note that the Peace Corps does not grant or deny student loan deferment, cancellation, or forgiveness, but it can be considered qualifying employment for the PSLF program.
Additionally, those who have volunteered with the Peace Corps may be eligible for deferment, partial cancellation, or income-driven repayment plans on their student loans. It's recommended to contact your lender as soon as you accept your Peace Corps invitation to discuss your options and understand the potential benefits, which may depend on the type of loan and your plans after service.
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Receive an education award to pay off student loans
Volunteering can be a great way to give back to your community, gain new experiences, and build a professional network. It can also help you pay off your student loans. Some volunteer programs, such as AmeriCorps and the Peace Corps, offer education awards that can be used to repay student loans.
The Segal AmeriCorps Education Award is a benefit received by participants who complete a term of national service in an approved AmeriCorps program. The award amount is equivalent to the maximum value of the Pell Grant for the fiscal year in which the term of service is approved. The award can be used to repay qualified student loans and to pay for current educational expenses at eligible institutions of higher education and training programs.
AmeriCorps members can also apply some or all of their Segal AmeriCorps Education Award toward their qualifying loans and receive up to 12 qualifying Public Service Loan Forgiveness (PSLF) payments. If they continue to make income-driven loan payments during their service, they may receive more than 12 qualifying payments toward PSLF.
The Peace Corps also provides a readjustment benefit of $10,000 for two service years and $20,000 for certain high-need positions. This benefit can be applied to student loans. Additionally, both the Peace Corps and AmeriCorps offer partial Perkins Loan cancellation for eligible volunteers, with a possible total of 70% loan cancellation.
Other organizations, such as SponsorChange and the Shared Harvest Fund, also offer opportunities to volunteer and receive financial support for student loan repayment. These organizations may provide a flexible and effective way to gain experience, build a network, and obtain debt relief.
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Student loan forgiveness for volunteer firefighters and EMTs
Volunteering can be a great way to give back to the community and gain new experiences. In the United States, there are several volunteer programs that can help individuals pay off their student loans or even get them forgiven.
Volunteer firefighters and EMTs are first responders who play a crucial role in keeping communities safe. Recognizing their dedication and service, there have been efforts to provide student loan forgiveness for these individuals. New York Representative Dan Goldman has proposed the Helping Emergency Responders Overcome Student Debt (HEROES) Act of 2025, which aims to offer federal student loan forgiveness to volunteer firefighters and EMTs. This bill addresses the declining number of volunteer first responders and aims to boost their ranks by providing financial relief.
While the HEROES Act is not yet law, there are existing programs that offer student loan forgiveness for first responders, including volunteer firefighters and EMTs. The Public Service Loan Forgiveness (PSLF) Program is one such initiative. This program was created to attract and retain talented individuals in public service jobs by offering tax-free loan forgiveness after 10 years of service and 120 on-time, qualifying payments. The PSLF program has been revamped to address previous shortcomings, with the Department of Education working to ensure more borrowers can benefit from it.
In addition to the PSLF program, there are other opportunities for student loan forgiveness or repayment assistance for first responders. For example, the Peace Officer Loan Repayment Assistance Program in Texas offers up to $20,000 in loan forgiveness after five years of service. Various states, including New York and Pennsylvania, have also proposed bills to provide repayment assistance to volunteer first responders. While these proposals are not yet law, they demonstrate a growing recognition of the importance of supporting volunteer first responders with their student loan debt.
Volunteering with organizations like AmeriCorps and the Peace Corps can also provide opportunities to earn education awards or benefits that can be applied to student loan repayment. These programs may offer partial loan cancellation or deferment, and they are considered qualifying employment for the PSLF program.
Overall, while there is no dedicated federal program specifically for volunteer firefighters and EMTs, there are various avenues through which they can seek student loan forgiveness or repayment assistance. These programs recognize the invaluable service of first responders and aim to provide financial relief as a form of appreciation for their dedication to protecting communities.
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Loan forgiveness for full-time work at a qualifying employer
Volunteering with certain organizations can help Americans with student loan debt to have some of their debt canceled. For instance, AmeriCorps and the Peace Corps are two volunteer programs that can help you pay off your student loans. The Peace Corps awards a readjustment benefit of $10,000 for two service years and $20,000 for certain high-need positions when you return to the U.S., which can be applied to student loans. AmeriCorps allows you to apply some or all of your Segal AmeriCorps Education Award toward your qualifying loans.
Public Service Loan Forgiveness (PSLF) is a federal program that forgives student loan debt for borrowers who work for a government or non-profit employer. Qualifying employers include government organizations at any level (federal, state, local, or tribal) and qualifying nonprofit organizations. This includes teachers, firefighters, first responders, nurses, military members, and other public service workers. To qualify, you must be working full-time or a minimum of 30 hours per week.
Borrowers who ultimately plan to go into public service may also be eligible for PSLF. After making 120 payments over ten years in an income-driven repayment plan, direct loans will be forgiven for eligible borrowers. However, the program has strict requirements and many borrowers who apply for it are denied, so it is important to carefully understand the rules before applying.
In addition to the Peace Corps and AmeriCorps, there are other organizations that offer student loan repayment help for volunteers, such as Shared Harvest Fund. This organization makes a direct payment to the volunteer's student loan servicer upon the completion of a project.
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Student loan repayment help from national and state organisations
Student Loan Repayment Help from National and State Organizations
The US government offers several programs to help borrowers with their student loan repayment. These include:
- Public Service Loan Forgiveness (PSLF): This program offers to cancel any remaining student debt after borrowers make 120 monthly payments over ten years while working full-time in a public service position. Volunteer service with organizations like the Peace Corps and AmeriCorps is considered qualifying employment for PSLF.
- Income-Driven Repayment Plans: The Department of Education offers four income-driven repayment plans where monthly payments are based on a percentage of the borrower's discretionary income and household size. These include Pay-As-You-Earn (PAYE), Income-Based Repayment (IBR), Revised-Pay-As-You-Earn (REPAYE), and Income-Contingent Repayment (ICR).
- Student Loan Forgiveness for Teachers: Teachers can apply for TPD discharge if they have a disability that severely limits their ability to work. If approved, they don't have to repay their federal student loans or complete their Teacher Education Assistance for College and Higher Education (TEACH) Grant service obligation.
- Military Service Member Benefits: The Servicemembers Civil Relief Act and Department of Defense offer student loan repayment programs and interest rate caps for military service members. Military service can also count toward PSLF.
In addition to these federal programs, there are also several national and state organizations that offer student loan repayment help:
- American Consumer Credit Counseling (ACCC): Offers loan consolidation, loan cancellation, help with applying for deferment or forbearance, and choosing a repayment plan.
- The Institute of Student Loan Advisors (TISLA): Provides assistance with loan forgiveness, default, repayment plan options, and servicer disputes.
- National Association of Consumer Advocates (NACA): Helps individuals find an attorney.
- National Consumer Law Center (NCLC): Offers loan forgiveness, repayment plans, challenges to collection attempts, loan consolidation, and loan rehabilitation.
- National Foundation for Credit Counseling (NFCC): Provides repayment options and debt payoff plans.
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Frequently asked questions
AmeriCorps and the Peace Corps are two federal government agencies that offer volunteer programs to help pay off student loans. The Shared Harvest Fund and SponsorChange are two other organizations that connect volunteers with nonprofits to help pay off student loans.
Volunteers with AmeriCorps and the Peace Corps can apply their Segal AmeriCorps Education Award or readjustment benefit towards their student loans. The Peace Corps also offers partial Perkins Loan cancellation of up to 70% for eligible volunteers.
Yes, in addition to helping with student loan repayment, these programs offer valuable work experience, the opportunity to build a professional network, and the chance to make a positive impact in communities.
