Volunteering or working in public service? Several programs can cancel part or all of your student debt in exchange.
A number of federal programs reduce or eliminate student loan debt in exchange for a term of service — teaching in a low-income school, providing health care in an underserved area, or volunteering through a national service program. These are not income-driven plans or repayment schedules. They are programs that cancel debt as a direct exchange for your work.
This page covers the main national service and volunteer programs: AmeriCorps, VISTA, Peace Corps, Teacher Loan Forgiveness, the National Health Service Corps, and the Nurse Corps Loan Repayment Program. Each program is different in what it requires and what it delivers, so the details matter. For people working in government or nonprofit jobs who are interested in forgiveness based on employer type rather than a service commitment, that program is covered separately on the Public Service Loan Forgiveness page.
- NOTE: Other options exist as well. For people currently struggling to make monthly loan payments, options including deferment, forbearance, and income-driven repayment are covered on the site - see the student loan program assistance page for all options.
AmeriCorps State and National
AmeriCorps members who complete a full-time term of service — typically 1,700 hours over the course of a year — earn a Segal AmeriCorps Education Award. The award amount is set each year equal to the maximum Pell Grant for that fiscal year, so it changes annually. Current award amounts are listed at at https://my.americorps.gov/trust/help/member_portal/eli_segal_americorps_education_award.htm. The award can be used to pay down existing qualifying federal student loans or to pay for future education costs at eligible institutions. Members also receive a modest living stipend while serving and are eligible for loan forbearance on federal student loans during their service term, meaning payments are not required while they are actively volunteering.
Part-time and reduced-schedule service terms also earn awards, at lower amounts based on the hours required. Members have seven years from the end of their service to use the award, and in some cases the award can be transferred to a family member. The award is considered taxable income in the year it is applied. Apply or find an AmeriCorps program at https://www.americorps.gov/. The AmeriCorps hotline is 1-800-942-2677.
AmeriCorps VISTA
VISTA — Volunteers in Service to America — is a branch of AmeriCorps focused specifically on reducing poverty and increasing economic opportunity. VISTA members complete a year of full-time service embedded in a community organization and earn the same Segal AmeriCorps Education Award as other AmeriCorps members. Alternatively, members without student loans can choose a cash end-of-service stipend instead of the education award. VISTA service qualifies as employment at a qualifying public service employer for purposes of Public Service Loan Forgiveness, and members with federal student loans are eligible for economic hardship deferment during their term.
VISTA positions are posted and searchable at https://www.americorps.gov/serve/americorps/americorps-vista/americorps-vista-resource-hub.
Peace Corps
Peace Corps volunteers serve for roughly two years at an international placement. Federal student loans go into deferment during service, meaning no payments are required while a volunteer is in the field. Volunteers with existing Federal Perkins Loans — a program that stopped issuing new loans in 2017, so this applies to borrowers who took out Perkins Loans before that date — are eligible for cancellation of a portion of that debt for each year of Peace Corps service, with the total cancellation available reaching up to 70 percent over four years of qualifying service.
Volunteers whose loans are Direct Loans rather than Perkins Loans do not receive cancellation through the Peace Corps itself, but Peace Corps service does count as qualifying employment toward Public Service Loan Forgiveness if the volunteer is otherwise meeting PSLF requirements.
Upon completing the standard two-year commitment, volunteers receive a readjustment allowance — a lump sum intended to help with the transition back to life in the United States — that can be applied toward any debt. The current readjustment allowance amount is listed at https://www.peacecorps.gov/, along with information about loan benefits. Peace Corps recruitment is at 1-855-855-1961.
Teacher Loan Forgiveness
Teachers who work full-time for five consecutive academic years at a qualifying low-income school or educational service agency may be eligible for Teacher Loan Forgiveness on their federal student loans. The amount depends on what and where a teacher teaches. Highly qualified secondary school math and science teachers, and highly qualified special education teachers, can receive up to $17,500 in forgiveness. Other qualifying teachers — full-time elementary or secondary school teachers who meet the program's definition of highly qualified — can receive up to $5,000. These amounts apply to Direct Subsidized and Unsubsidized Loans and Subsidized and Unsubsidized Federal Stafford Loans. Direct PLUS Loans, FFEL PLUS Loans, and Perkins Loans are not eligible for this program.
Qualifying schools are those that serve low-income families and appear on the Department of Education's Teacher Cancellation Low Income directory. The five years of service must be consecutive — a gap year breaks the count and requires starting over. The application goes to the teacher's loan servicer after the five years are complete, and must be certified by the school's chief administrative officer. Details and the application are at https://studentaid.gov/manage-loans/forgiveness-cancellation/teacher.
One important distinction for teachers who are also considering Public Service Loan Forgiveness: the five years of teaching service used to qualify for Teacher Loan Forgiveness cannot be counted toward the 120 payments required for PSLF. A teacher who receives Teacher Loan Forgiveness and then pursues PSLF would need to complete the PSLF requirement on top of the five years already used — not in addition to them as a head start. Teachers with large balances who expect to be in qualifying employment for the full ten years often come out ahead by going directly to PSLF rather than using Teacher Loan Forgiveness first. A loan counselor familiar with both programs can help work through the comparison for a specific situation.
Teach for America
Teach for America corps members complete a two-year teaching commitment in low-income communities. Because TFA is part of the AmeriCorps network, corps members are eligible for the Segal AmeriCorps Education Award for each year of their commitment, which can be applied to existing student loans. TFA itself does not cancel loans directly, but the AmeriCorps connection provides access to forbearance during service and the education award upon completion. Many school districts that partner with TFA also offer local signing bonuses or additional loan assistance to attract teachers; those benefits vary by district. More at https://www.teachforamerica.org/
National Health Service Corps Loan Repayment Program
The National Health Service Corps offers loan repayment assistance to licensed health care providers who agree to work at an NHSC-approved site in a Health Professional Shortage Area — an underserved rural, urban, or tribal community designated by the federal government as lacking adequate health care access. Eligible providers include physicians, nurse practitioners, physician assistants, certified nurse midwives, dentists, dental hygienists, and behavioral health professionals including licensed clinical social workers, psychologists, and substance use counselors.
The program offers a two-year initial commitment. Primary care providers receive a higher award amount than behavioral health and oral health providers, and full-time service receives more than half-time service. The specific dollar amounts are set and updated by HRSA annually; current award amounts are listed at nhsc.hrsa.gov. After completing the initial two-year contract, participants can apply for continuation contracts in one-year increments to pay down any remaining loan balance, though continuation awards are not guaranteed. NHSC loan repayment funds are exempt from federal income and employment taxes, which is a meaningful financial benefit on top of the award itself.
Applications open once per year through the NHSC online portal. The program is competitive, and sites with higher shortage scores receive priority. More information and the application are at https://nhsc.hrsa.gov/loan-repayment.
For medical and dental students in their final year of training, the NHSC Students to Service Loan Repayment Program offers a separate path — a higher award in exchange for a three-year post-graduation service commitment. Details for that program are also at the NHSC site.
Nurse Corps Loan Repayment Program
The Nurse Corps Loan Repayment Program is available to registered nurses, advanced practice registered nurses, and nurse faculty who commit to working at a Critical Shortage Facility or an eligible school of nursing. A Critical Shortage Facility is a health care site that serves an area with a significant shortage of nurses, such as a Federally Qualified Health Center, a rural health clinic, or a disproportionate share hospital.
The program is structured as a percentage of qualifying nursing education debt rather than a flat dollar amount. A two-year service commitment results in repayment of 60 percent of the total outstanding qualifying nursing education loan balance. An optional third year of service pays an additional 25 percent of the original balance, bringing the total potential benefit to 85 percent of the original loan balance. Unlike the NHSC program, Nurse Corps repayment funds are treated as taxable income, so recipients should plan for a federal tax bill in the years the award is paid. The program can cover private student loans as well as federal loans, which is one feature that distinguishes it from most forgiveness programs.
Applications open once per year. Current program details, eligibility requirements, and the application are at https://bhw.hrsa.gov/funding/apply-loan-repayment/nurse-corps. The HRSA hotline is 1-800-221-9393.
Watch for scams targeting people seeking loan forgiveness
People dealing with student loan debt are heavily targeted by companies that charge fees to "process" forgiveness applications, "enroll" borrowers in programs, or "guarantee" relief. Every program listed on this page is free to apply to directly. No legitimate service or volunteer program charges an application fee. We have tips below - or read our page on what a scam may look like.
No one can guarantee you loan forgiveness, and no third party can access programs that are not available to you directly through the federal government. If someone contacts you offering to handle your loan forgiveness for a fee, that is a scam. Report it to the Consumer Financial Protection Bureau at https://www.consumerfinance.gov/complaint/.
This page covers federal service and volunteer loan repayment programs based on program details current at the time of writing. Award amounts, eligibility requirements, application deadlines, and program availability change from year to year. The Perkins Loan program stopped issuing new loans in 2017; borrowers who hold existing Perkins Loans may still be eligible for cancellation benefits described here. Verify current program details directly with each program before making service or career decisions based on loan benefits. Nothing on this page constitutes legal or financial advice.
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