Notice: Undefined index: articledetail in /home/utils/securefiles/securecode/utl_article.cls.php on line 646
Loan forgiveness for Volunteer Work and Service to the Nation |
College Loan Consolidation, Federal Loan Consolidation, Private Loan Consolidation, Student Loan Consolidation

America's Top Student Loan Provider

Loan forgiveness for Volunteer Work and Service to the Nation
By Shaileja Mammen
The federal government will cancel all or part of an educational loan under certain conditions. Cancellation is available provided there has been no default on the loan. This practice of canceling the loan is also called Loan Forgiveness.

One of the conditions under which education loans are cancelled is when the borrower under takes some volunteer work.

The volunteer organizations that offer loan forgiveness are
  • AmeriCorps
  • Peace Corps
  • Volunteers in Service to America (VISTA)
When the borrower works for AmeriCorps for a period of 12 months, he/she is entitled to receive a stipend up to $7400 plus $4725 towards repayment of the education loan.

The volunteers for Peace Corps can apply for deferment of Stafford, Perkins, and Consolidation loans. The Perkins loans can be forgiven partially up to 70 percent of the total loan amount. The loans are forgiven up to 15 percent for each year of service up to 70 percent in total.

Volunteers in Service to America (VISTA) are those who work for private, non-profit groups that work for public interest. These non-profit groups work to eradicate poverty, illiteracy, homelessness, and hunger. If volunteers provide 1700 hours of service then they receive $4725 for repaying the education loan.

Service to the nation and other public service are other conditions for cancellation of education loans.

Military Service

Students who work for the U.S. Armed Forces can receive forgiveness of up to 50% of the loan provided they work in areas of hostility or imminent danger.


The Perkins Loans can be cancelled up to 100% if students become full-time teachers:
  • In elementary and secondary schools for students from low-income families.
  • For special education, including teaching children with disabilities in public or other nonprofit elementary or secondary schools.
  • Of math, science, foreign languages, bilingual education, or other fields designated as teacher shortage areas.
Other public service

The other conditions under which the Perkins loans can be cancelled up to 100% are if the student is a full-time:
  • Qualified professional provider of early intervention services for the disabled.
  • Employee of public or nonprofit child or family-services agency providing services to high-risk children and their families from low-income communities.
  • Nurse or medical technician
  • Law enforcement or corrections officer.
  • Staff member in the education component of a Head Start Program
Many law schools and medical colleges have instituted loan repayment assistance programs.

Loan Repayment Programs (LRP) are sponsored by national, state, and local governments. Some private organizations and non-governmental organizations also sponsor such programs.

A typical LRP provides living stipends and funds to repay educational loans to participants. A two to four year commitment is required under the contract, though individual programs differ. Scholarship opportunities and tax relief are some of the other benefits that may be available to participants.

Some of the professionals eligible for LRP are lawyers, nurses, nurse faculty, physical and occupational therapists, social workers, speech pathologists, physician assistants, teachers at some designated schools, and teachers in some specific areas of certification.

On the Net

Funding Education Beyond High School


Article Title : Loan forgiveness for Volunteer Work and Service to the Nation
Comment not found for this article.

Related articles
• Government Debt Consolidation Loans - Consolidate Your Federal Student Loan Debts
• Consolidate Federal Student Loans And Save Money
• Take Advantage Of A Federal Student Loan Consolidation Program
• Federal Direct Student Loans - A Helping Hand From Government
• Do You Need Public Student Loans Learn More about Your Options

Share this story:
  • BlinkList
  • blogmarks
  • Digg
  • Facebook
  • Google
  • Sphinn
  • MySpace
  • NewsVine
  • Simpy
  • StumbleUpon
  • Technorati
  • E-mail this story to a friend!
  • Print this article!
  • Faves
  • Furl
  • Netvouz
  • Slashdot
  • Spurl
  • Yahoo! Buzz

EdFed introduces… Awareness… Learnal
At, EdFed, we proudly introduce 'articles on student loans' and 'Learnal - the journal to learn from', our free newsletter on student loan management, which is sure to keep you informed of the latest events and happenings in the student loan market. To receive your copy of the above just use the RSS feed below and add this to your "My Yahoo", blogs, newstickers, and other similar channels accepting distributable content.
Click here to sign up for our Weekly Newswire now!

How EdFed Helped others!
My private loans had a 15% interest rate and I had called EdFed to see what they can do for me. The woman that I was working with started an application for me and ran my credit to see what my interest rate would be and its actually 8.6% I was so happy. Thank you for your help.
- Kathryn B.  Atlanta, GA
* Your Name: * Your E-mail Address:

We respect your privacy.
* Your Friend's name: * Your Friend's E-mail address:
Include a Message:
+ Privacy Policy

Student Loan Consolidation Info - How to Choose the Right Loan Company

This column is sponsored by Granted, America's top job search engine. The Career Resources column is presented by Granted, America's leading job search engine dedicated to getting people jobs.

Education is one of the most basic right of any human, but with the increase in prices and the costs involved in education this has made these rights turn into a privilege which very few can enjoy. Any normal person today in the whole of United States has to take an education loan at one point of time to pay for their education fees.

read more
Schools Will No Longer Receive Paper FAFSA Forms
(September 20, 2007)

news desk
Stafford Loan Payment Calculator
PLUS Loan Payment Calculator
Loan Consolidation Payment Calculator
Glossary of Terms
Loan Comparison Chart
Scholarship Search
Got questions about consolidation? You can chat live online with one of our loan counselors; or e-mail us, and we'll get right back to you.
US School Directory
Comprehensive List of Schools at which EdFed Assists Students.
EdFed is a FFELP lender with lender identification number 834241.
© Copyright 2020 EdFed. All Rights Reserved.

Home · About Us · Contact Us · News · Sitemap
Career Advice · Tell a Friend · Privacy Policy · Resume Service
Resume Distribution Service · Post Resume · Job Search Course
Sign up for the latest news on student loans.
Email Address:
+ Most Recent Newsletter
+ Newsletter Archives