A blog article about US Peace Corps volunteers that were impacted by the recent elimination of the Peace Corps Volunteer Service Agreement, which previously provided loan forgiveness for returned volunteers.
What is the Peace Corps Lending forgiveness program?
The Peace Corps Loan Forgiveness program allows volunteers to fully repay their student loans while serving in the Peace Corps. The program is designed specifically for those who work in economically disadvantaged communities to improve their lives through service. However, it is not restricted to military members or law enforcement personnel.
The Peace Corps Loan Forgiveness program is a program that will help reduce the amount of interest you pay on loans taken out to fund your service. If you are interested in this program and qualify, you can sign up by visiting our website or contacting us here.
Why was the program discontinued?
In spite of the program being closed, the Peace Corps has made it possible for those who were never able to qualify for this loan forgiveness to still receive approval. Those individuals will be sent a full refund along with a letter explaining the status of their application process.
The Peace Corps announced in mid-December 2017 that it will no longer be accepting new applications for the Loan Forgiveness Program, with the program set to end on December 31. The Peace Corps said the problem was with how loans were repaid within 30 years of service.
How does the change impact returned volunteers?
Peace Corps has updated their loan forgiveness policy to allow for participants who were unable to complete their service because of an unexpected medical circumstance.
The Peace Corps has made changes to its loan forgiveness policy. The new policy allows those who returned their loans after being deployed on the military, in an emergency situation such as a natural disaster, or for extended service reasons to apply for the loan forgiveness.
What if I am not a borrower, but I have a companion or spouse that is a borrower?
If you are not a borrower, but have a loan forgiven under the new forgiveness policy, your Chief Financial Officer (CFO) will need to complete the Foreign Loan Forgiveness Form. The CFO is required to request that their loan be forgiven because they were in an eligible program prior to the changes on October 1, 2015.
The Peace Corps loan forgiveness program is now available to those who are not borrowers, but have a companion or spouse who is a borrower. The policy change is designed to ease the transition for their companions and spouses between their service in the Peace Corps and subsequent employment.
Alternative loan forgiveness options for returned volunteer borrowers
Volunteerism is an important part of society, and the United States sends volunteers abroad to help those in need. But when a volunteer returns home, they are faced with a difficult situation – the repayment of their loan. The Peace Corps is now offering forgiveness under specific circumstances for volunteers who want to repay their loans.
The Peace Corps is now offering a new alternative loan forgiveness option for returned volunteers. They have created a Returned Volunteer Loan Forgiveness Program that provides borrowers eligible for the alternative loan forgiveness options listed below with a reduction on their education loans through their federal direct lending program and a loan repayment assistance award of up to $5,000.
The Peace Corps has announced full loan forgiveness for current and past volunteers. As of June 1st, Peace Corps member loans will be fully discharged after the volunteer has completed their service commitment.
The Peace Corps has introduced new loan forgiveness guidelines that allow any loans taken out by a Peace Corps volunteer to be automatically forgiven.