Getting Student Loan Debt Help Through Community Service

Anyone who is struggling to pay off student loans could use some student loan debt help. One way for a borrower to ease the burden of paying off the full amount of college loans is by partaking in community service. Depending on the type of loan that a borrower must pay back, and the type of community service that a borrower is willing to do, lending companies will be open to forgiving, reducing, or delaying payments due. 

Reduction Options

A borrower that is partaking in community service can be completely forgiven of their loans, be granted forbearance, or be allowed to defer payments. Forgiveness means that the loans are erased. The borrower does not owe money. Forbearance means that the borrower can delay or reduce payments for a period of time, but still must pay interest on the time that the loan is in forbearance. Deferring payments means that, for a period of time, the borrower is completely halting the loan process. No interest is due on the time that a loan is in deferment.


In order to see the benefit that working for AmeriCorps has on a borrowers student loans, the borrower must serve AmeriCorps for one full year. Once the year is completed, the borrower can receive up to $4, 725 to go towards reducing his or her loan payments.

Peace Corps

Peace Corps volunteers can defer their student loans for the entire time that they are in service. If a borrower has Stafford, Perkins, or consolidated loans, then he or she can defer payments if he or she works for the Peace Corps for at least one year.

If a volunteer has Perkins loans, he or she can defer payments on the principal. During the time of service, the borrower does not need to pay interest. With this type of loan, the first year and second year of service result in a 15% per year reduction in payments due. The third and fourth year result in a 20% reduction per year in payments due. Overall, a Peace Corps volunteer can reduce his or her Perkins loans by a maximum of 70%. If a Perkins loans is consolidated with another type of loan, payments cannot be deferred or reduced.

If a volunteer has Federal Consolidation Loans, he or she can defer payments for up to three years on the principal of the loan. During the time of deferment, the volunteer is still required to pay interest on the loan. 

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