Just like with any other credit, loans for Peace Corps volunteers need to be repaid. However, this article gives you an overview of the options that the Peace Corps has offered to make it easier for you.
Background on the Peace Corps
The Peace Corps is an international volunteer service organization with a mission to promote sustainable development, provide emergency response assistance and help developing countries achieve self-reliance by sending volunteers abroad for up to two years.
The Peace Corps is a US-based volunteer program that sends American volunteers to serve in other countries. Participants learn about the country’s culture and language, develop skills for international careers, and gain experience that can help them find work after their term in the Peace Corps ends.
What are Student Loans?
Student loans are typically a form of debt that is given to students after they have taken out loans from a bank or other financial institution. In order to be eligible for student loans, you must meet certain criteria.
Student loans are a type of loan made to students by the federal government or private lenders. They can be used to pay for school, living expenses, or both. When you leave school after earning your degree, you will be eligible for a significant amount of money as repayment on your student loans. The payments go directly to the government and not to the lender so they are tax deductible.
Options for Repaying Student Loans
The Peace Corps is committed to helping volunteers repay the cost of their education. They offer options for repayment that include deferring your student loans, using scholarships, and taking a job in order to pay off the loan. The Peace Corps also offers options for how to fund your education. You can use Peace Corps grants to cover any money left over after you’ve paid off your loans. If a volunteer stays in the service for longer than one year, they can even apply for a monthly stipend through the Peace Corps Council.
The Peace Corps has long been known for its ability to offer outstanding opportunities in the name of international service. However, many volunteers have found themselves struggling with student loans after returning home from service. When it comes to repaying student loans incurred during a volunteer stint, there are various options that may help ease the burden.
When Can a Loan Be Forgiven?
When a loan is forgiven, it no longer counts as an obligation. Lenders understand that sometimes life circumstances change and you may need to cancel your loans. These are some situations where the loan may be forgiven:
There are only three circumstances where a loan can be forgiven by the federal government: when the borrower dies, when the borrower is in default on the loan, and when a borrower transfers his or her interest to someone else.
If you’re a Peace Corps Volunteer, you may be wondering what your options are for financing your education while serving in the Peace Corps. The final recommendations are as follows:
The release of this report marks the beginning of a new era for volunteers and the Peace Corps in general. The recommendations represent the first important overhaul of how the Peace Corps works since 1990, when volunteers were officially required to repay their loans.