Massive student loan debt seems like a fate etched in stone for college graduates everywhere. It can take eons of payments to eliminate student loan debt, even if your bachelor’s degree lands you a high-paying job right after college.

It’s no surprise that 44% of post-graduates regret their major. It makes sense that people with a degree sometimes wonder if the cost of their education was even worth the effort. The good news is making slow and steady repayments is not the only solution. Student loan relief comes in various forms, and volunteer work can be an excellent way to lower your interest rates, defer your monthly payments, and more!

Read on to discover how you can do an incredible amount of good and reduce your student loan debt along the way.

Federal and Private Student Loan Relief

Federal student loans have options not usually available for private student loans. This article focuses on federal student loans.

Loan forgiveness opportunities differ for federal direct loans, which are available through various government programs. Private loans aren’t backed or funded by government agencies, so student loan forgiveness is up to the individual loan servicer.

Consider speaking with a credit counselor for assistance with private student loans or a debt relief law firm for private student loans that have fallen delinquent.

Federal Student Loan Payments Resume In September 2023

Due to the pandemic, the federal government paused student loan payments and interest in 2020. During this time, graduates have been able to take a breather from hefty repayments that can eat away at their budget. It was a lifeline for many during the difficult times of 2020.

Public Service Loan Forgiveness Eliminates Federal Student Loans

Before we explore ways to eliminate student loan debt by volunteering, let’s get a quick understanding of the Public Service Loan Forgiveness Program (PSLF). The PSLF program was created to offer qualified students relief from the high student debt needed to enter what are often lower-paying public service fields. After all, a bachelor’s degree can be quite costly, and public service isn’t always very lucrative.

The Public Service Loan Forgiveness Program promises student debt forgiveness after making 10 years of qualifying payments while employed by a qualifying public service organization.

Volunteering To Reduce Federal Student Debt

Volunteer work can be incredibly beneficial when looking for solutions to student loan debt. Not only are you doing a good deed for the community, but you can also be rewarded in a financial sense.

Organizations such as AmeriCorps, the Peace Corps, the U.S. Armed Forces, and medical organizations will provide volunteers with living stipends, health insurance, loan deferments, and more. Depending on the length of your service commitment and program type, you could receive significant student loan repayment assistance.

The spirit of volunteering aligns with basic Christian debt management principles. Serving in volunteer programs shows an outward commitment to live in faith. Volunteering to erase debt is a great way to help others and do good in our world while benefitting from student loan repayment programs.

The following organizations offer student loan repayment assistance programs through volunteer opportunities. Please note that their programs may change over time, so we cannot guarantee the accuracy of the following statements. We have provided links to each organization. Carefully review each organization’s direct website to learn more about eliminating student loan debt through volunteering.

Peace Corps

As a volunteer program run by the U.S. Government, the Peace Corps sends volunteers to more than 70 nations. Volunteers work worldwide to improve education, agriculture, and business and reduce hunger and poverty. Peace Corps volunteers are trained for three months and serve at least 24 months. The Peace Corps will repay up to 70 percent of Federal Perkins loans, depending on your length of service as a volunteer.

Volunteering with the Peace Corps may provide student loan benefits such as:

• Become two years closer to forgiveness of loans made under the Public Service Loan Forgiveness (PSLF) Program
• Student loan deferment for some federal loans
• Reduced repayment amounts while you are serving as a volunteer
• Four years of service can reward you with Perkins Loan cancellation of up to 70%
• Peace Corps volunteers may also be eligible for additional benefits such as loan consolidation and interest rate reduction.

Peace Corps Student Loan Resources

Peace Corps: Student loans and forgiveness initiatives

StudentAid.gov: Peace Corps and Repayment of Your Federal Student Loans

AmeriCorps VISTA

Americorps provides service opportunities to people who want to make a difference in their communities. VISTA volunteers commit to a one-year volunteer term. Much like a domestic version of the Peace Corps, AmeriCorps VISTA is dedicated to assisting nonprofit and faith-based organizations in helping low-income individuals and communities eradicate hunger, homelessness, poverty, and illiteracy.

Alleviate poverty and create change while serving in any U.S. state or territory. Volunteering with the AmeriCorps VISTA may help you pay student loans with benefits such as:

• Segal AmeriCorps Education Award, which is available to individuals who complete a term of service and can be used to pay for a range of educational expenses. Up to two full Education Awards may be earned with multiple service terms
• Childcare assistance
• Living allowance
• Loan deferment or forbearance during the service year

AmeriCorps Student Loan Resources

AmeriCorps VISTA Education Award FAQs

StudentAid.gov: Student Loan Forgiveness (and Other Ways the Government Can Help You Repay Your Loans)

Serving in the Armed Forces

Serving in the armed forces can also reduce the burden felt by costly student loans. Each branch of the military offers education benefits. According to Military.com, each branch of the military will provide up to the following benefits:

• Army and Navy will repay up to $65,000 of your student loans
• Coast Guard will repay up to $30,000 with yearly limits
• National Guard will repay up to $50,000

Armed Forces Student Loan Resources

Please note that these are maximum amounts and may be limited to specific military specialties or circumstances. However, the repayment of student loans is an excellent benefit for those willing to serve actively in the armed forces.

Military.com: Student Loan Repayment Programs

National Guard Student Loan Repayment Program

StudentAid.gov: For Members of the U.S. Armed Forces

Medical Service

Becoming a medical professional takes years of education and commitment. Costly education and commitment. The high cost of medical or nursing school debt can make repaying student loans more difficult. The good news is multiple options are available for new doctors and nurse to get out from under this burden. Fortunately, we dug up numerous opportunities to eliminate student loans by supporting medical organizations and initiatives.

State and federal government agencies offer debt repayment for practicing in places lacking adequate medical care by bringing a medical specialty to a community.

The National Institute of Health offers Loan Repayment Awards (LRP) for individuals who serve as faculty members in the research laboratory or in a clinical capacity. LRPs can be up to $100,000 over a two-year period.

The Veterinary Medicine Loan Repayment Program (VMLRP) pays up to $25,000 a year toward qualified student loans for veterinarians working three-year terms in areas designated by the federal government as having veterinary shortages.

If you’re called to help others heal, you may receive the following student loan benefits by volunteering with medical organizations:

• Reduced payments for loans during service
• Loan cancellation and/or loan forgiveness
• Subsidized interest rates or other incentives

Medical Service Student Loan Resources

National Institutes of Health – Division of Loan Repayment

AMVA – Student Loan Forgiveness and Repayment Programs

If dedicating a long period of time to volunteer work is not an option, but you’re still overwhelmed by student loan debt, a certified Credit Counselor may be able to explore student loan repayment strategies with you. Call us today at 561-232-3760 or fill out the short form for a FREE consultation to help you find your best option.