Volunteer in Exchange for Student Loan Payments

Sep 14th, 2009 @ 5:50 PM by Debbie Dragon

A college education has been proven to open the doors to higher paying job opportunities, but as many college graduates are finding out, there are no guarantees that the college diploma will land you a job right out of college. Since a large percentage of students rely on various forms of financial aid, including student loans, the stress of repaying those loans upon graduation is downright frightening to students who don’t immediately enter the workforce with a higher-than-minimum-wage position. What can a student with loans and living expenses do to keep up with their financial responsibilities if they’re unable to enter the workforce during the recession?

BusinessWeek.com offers an article regarding how to Kiss Those Student Loans Goodbye, but indicates that even with a number of programs out there, qualifying for them isn’t always easy.

In the last year or two, a number of programs have emerged that are designed to assist students with student loan repayments. Because there are thousands of students who are finding it difficult to land a job in the down economy, or who have lost their jobs before paying off student loan debt entirely, programs like SponsorChange.org are gaining popularity. When students volunteer in their communities, SponsorChange.org helps them repay their student loans.

Alternative Options for Paying off Student Loans

Americorps – In exchange for volunteering for one year, individuals receive a small living stipend and an education award of $4,725, which can be applied to existing student loan debt or future education courses you choose to take.

Peace Corps – In exchange for volunteering for two years in a foreign country, students can defer loan payments during their two-year term of service and a cancellation of federal Perkins loans up to 15% for one year of service and 70% for four years of service. After you complete a two-year term, you receive a $6,000 readjustment allowance, part of which can be used to repay student loan debt.

Sponsor Change – Located in Pittsburgh, Pennsylvania, this program allows young working professionals the ability to volunteer their free time in exchange for stipends paid by program donors, which are used to reduce student loan debt. You must have a bachelor’s degree and proof of student loan debt.

Work Programs – There are a large number of career specific programs available that let you work in your industry in exchange for forgiving or paying off student loan debt.

Loan Forgiveness Programs

There are also some circumstances which allow students to completely wipe out their student loan debt, such as military or public service, and certain volunteer situations.

11 Responses to “Volunteer in Exchange for Student Loan Payments”

1. Dyann Bernard says:

   June 3, 2010 at 7:03 am

   Would like to inquire about volunteer work in order to assist in my student loan repayments.
   Look forward to a response to my inquiry.

   Regards,
   Dyann Bernard
   dybernard06@gmail.com
2. Emily Parker says:

   June 3, 2010 at 1:25 pm

   Please send me opportunities to repay students payments in Atlanta, GA area.
   emipark17@hotmail.com
3. Sereion S. Humphrey says:

   February 4, 2011 at 12:07 pm

   Please send me info regarding opportunites to repay studen loans. Thanks.
4. Richard Colbert says:

   February 22, 2011 at 8:53 pm

   Please send me information regarding opportunities to repay student loans. Thanks
5. Vanesa Dudgeon says:

   February 24, 2011 at 6:39 pm

   Are there any opportunities available for me in or near my area (40033)for student loan repayment. I am a teacher but i don’t qualify for the forgiveness based on the 1998 cut off date.
6. Monica Velez says:

   October 5, 2011 at 8:12 am

   I am very interested in volunteering to reduce student loans. Any informaiton would be greatly appreciated.
7. Pedro Albizu says:

   October 14, 2011 at 7:45 pm

   Please send me information regarding opportunities to repay and lower my student loan. Thanks
8. nauki humanistyczne says:

   January 27, 2012 at 3:16 am

   It is in point of fact a nice and helpful piece of info. I’m satisfied that you simply shared this helpful information with us. Please keep us up to date like this. Thank you for sharing.
9. Jasmin says:

   January 30, 2012 at 11:02 am

   I would love information regarding opportunities to pay on my student loans . Thank you
10. Ron Morrison says:

    April 30, 2012 at 5:37 am

    I would like to know about oppotunities to repay my student loans. I am a part-time college educator who is struggling to pay off my student loans. I live in the Chicago area, but I would be interested in learning about opportunities on the East Coast (NY, MA, etc.)as well.
11. Andrew Maas says:

    May 7, 2012 at 11:29 am

    I would like to know about any opportunities in the Springfield,IL area (or even the Peoria,IL area) that will help me pay off my student loans in exchange for my volunteer work. I’m in desperate need right now.