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Author Topic: Student loan deferment  (Read 1658 times)

Nicole

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Student loan deferment
« on: November 01, 2013, 07:38:09 AM »
I have student loans (unfortunately) and want to defer them.  I have heard they can be deferred if you are in the Peace Corps.  I have also heard that only some loans can be deferred.  What is the answer to that and also how do you get them deferred? 

Offline Amelia.Plant

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Re: Student loan deferment
« Reply #1 on: November 01, 2013, 07:44:22 AM »
Check out this website: http://www.peacecorps.gov/learn/whyvol/finben/faq/

Here is the information for a Perkins loan:

"Only Volunteers with Perkins loans are eligible for a partial cancellation benefit. Fifteen percent of your Perkins loans can be cancelled upon the completion of each full year of service during your first two years of service, and 20 percent can be cancelled upon completion of each of the third and fourth years. Therefore, four full years of service would equal a 70 percent cancellation of your existing loan. You can apply for cancellation at the end of each completed 12 months of consecutive service. A Volunteer must serve one complete year (365 days) in order to qualify for this cancellation benefit. Partial years of service will not qualify. Please note that you cannot receive partial cancellation of your Perkins loan if you have consolidated it with any other loan."

The best thing to do is talk with your university.  I remember that I had to send them letters from PC while in service, renewing the deferral each year.  If you have other loans, you will have to check more specifically with your university.


Amelia
RPCV, Botswana 2011-2013

Offline shawn

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Re: Student loan deferment
« Reply #2 on: November 01, 2013, 12:28:37 PM »
While it's true that only Perkins loans are eligible for cancellation, a good number of gov't loans are eligible for deferment and subsidization while you serve. Usually, this is done through an economic hardship claim for up to 3 years, and requires a letter from the Peace Corps stating your start and end dates. Look up the deferment forms for you individual loan and look for an economic hardship category.
PCVL - Rwanda 2010-2013
NPCA Serving Volunteer Advisory Council