Peace Corps Student Loan Forgiveness: How to Get It

Quick Facts

• You could qualify for Public Service Loan ForgivenessPublic Service Loan Forgiveness (PSLF)A federal program that forgives the remaining balance on Direct Loans after 120 qualifying monthly payments made while working full-time for a government or qualifying nonprofit employer. if you serve full-time as a Peace Corps volunteer or combine multiple part-time public service roles to meet the full-time hours requirement.
• Payments made during Peace Corps service count toward PSLF, even if you later take a break and return to public service.
• Returned Peace Corps volunteers need to certify their service to track PSLF progress and ensure qualifying payments are counted.

Overview

If you’re a Peace Corps volunteer or alum with federal student loans, you may qualify for three main forgiveness programs:

1. Public Service Loan Forgiveness (PSLF): This program forgives your remaining federal loan balance after 120 qualifying payments (about 10 years) while working full-time for a government or nonprofit employer.
2. Income-Driven RepaymentIncome-Driven Repayment (IDR)A category of federal student loan repayment plans that calculate monthly payments based on income and family size rather than loan balance. Any remaining balance can be forgiven after 20–25 years of qualifying payments. (IDR) Forgiveness: Your monthly payments are capped based on your income and family size. After 20–25 years of payments under an IDR plan, any remaining loan balance is forgiven.
3. Perkins LoanPerkins LoanA low-interest federal student loan for borrowers with exceptional financial need, issued by schools under a now-discontinued program. New Perkins Loans have not been made since 2017, but many existing balances are still in repayment. Cancellation: If you have Perkins Loans, you may be eligible for cancellation based on your years of volunteer service.

Which program is best for Peace Corps Volunteers?

For most volunteers, PSLF is the fastest and most powerful option. But you’ll need to continue working full-time in public service after your Peace Corps service to meet the program’s 10-year requirement.

If PSLF isn’t an option, IDR ForgivenessIDR ForgivenessThe forgiveness of any remaining federal student loan balance after a borrower has completed 20 or 25 years of qualifying payments under an income-driven repayment plan, depending on the specific plan. is a solid alternative. It takes longer—20 to 25 years—but it can still wipe out your remaining federal loans once you meet the requirements.

Related:

• AmeriCorps Student Loan Forgiveness
• Social Workers Student Loan Forgiveness

Public Service Loan Forgiveness

The Public Service Loan Forgiveness program forgives your remaining federal student loan balance after you make 120 qualifying monthly payments. This typically takes about 10 years while working for a qualifying employer (government or nonprofit) and under a qualifying repayment plan, such as an Income-driven repayment plan.

Here’s how PSLF applies to Peace Corps volunteers:

• Employer: Peace Corps is a U.S. federal agency qualified for PSLF. If you want to learn more about determining if your employer is eligible for the program, you may use the PSLF Employment Search Tool from the Federal Student AidFederal Student Aid (FSA)The office within the U.S. Department of Education that manages federal grants, work-study, and student loans. It runs the FAFSA, the StudentAid.gov website, and oversees the federal loan servicers..
• Type of Loan: Only Federal Direct Loans are eligible for PSLF. If you have Stafford or Perkins Loans, you’ll need to consolidate them into a Direct Consolidation Loan to qualify. Learn more in our Student Loan Consolidation Guide.
• Qualifying PaymentQualifying PaymentA monthly loan payment that counts toward federal forgiveness programs like PSLF or IDR forgiveness. Whether a payment qualifies depends on the loan type, the repayment plan, and the borrower's employment at the time of payment. Plan: An Income-driven repayment plan, such as the SAVE Plan, is typically the best option for maximizing PSLF benefits.
• Commitment: You must make 120 qualifying monthly payments during your Peace Corps service or other qualifying employment, which usually spans 10 years of service.

Important Note: Volunteers don’t need to make consecutive payments to qualify for PSLF. Also, if you leave a qualifying job but later return to public service, any previous qualifying payments will still count toward the 120 total needed for forgiveness.

Returned Peace Corps Volunteers Are Eligible for PSLF

Here’s how to request PSLF Certification:

1. Set Up an RPCV Portal Account: Create an account if you don’t already have one, using the name you used during your Peace Corps service to prevent delays.
2. Log In and Verify Details: Access the RPCV Portal to verify your contact information and service dates. Certification documents will be sent to the email listed in the portal.
3. Select the Certification Type: Use the drop-down menu in the portal to choose the type of certification you need.
4. Processing Time: Allow 7–10 business days for your request to be processed.

For PSLF Forms: RPCVs must use the studentaid.gov PSLF Help Tool to complete their PSLF forms. After filling out the form:

• Request a digital signature from your employer.
• Email the completed PSLF forms to certify@peacecorps.gov.

If you have served both as a Volunteer and as Peace Corps staff, you’ll need to send separate PSLF forms:

• For Volunteer Service: Email to certify@peacecorps.gov.
• For Staff Service: Email to payrollandbenefits@peacecorps.gov.

Related: Student Loan Forgiveness Applications and Forms

Get Ahead on PSLF with One Big Payment

Making a lump-sum payment could be a great way to speed up your progress. By prepaying your federal student loans, you might be able to knock out several qualifying payments at once and get closer to forgiveness.

Here’s how it works:

• You can prepay your federal student loans, and these payments may count toward your PSLF qualifying payment total if all program criteria are met.
• Prepayments can be applied for up to 12 months or until your next IDR recertification date, whichever comes first.
• Peace Corps volunteers can use their Peace Corps transition payment to make a single lump-sum payment, which may count for up to 12 PSLF payments. Ensure your lump-sum payment is properly credited.

Related

• What to Know About Paying Off Your Student Loans
• Can You Negotiate a Student Loan Payoff?

IDR Forgiveness

Income-driven repayment plans provide a flexible repayment option for Peace Corps volunteers who may not qualify for PSLF or choose to pursue other forgiveness programs. These plans base your monthly payment on your income and family size, making them an accessible and affordable alternative.

Here’s how IDR forgiveness can benefit Peace Corps volunteers:

• Eligibility for Peace Corps Volunteers: IDR forgiveness is available to all federal loan borrowers, including Peace Corps volunteers, even if they transition to private-sector roles after service.
• Payment Cap: Your monthly payments are calculated as a percentage of your discretionary incomeDiscretionary IncomeFor federal income-driven repayment plans, a borrower's adjusted gross income minus a set percentage of the federal poverty guideline for their family size. Monthly IDR payments are calculated as a percentage of this amount.. Related: How Do Student Loans Calculate Discretionary Income?
• Extended Term: Repayment terms last 20 or 25 years, depending on the plan and whether your loans were for undergraduate or graduate studies. After this period, any remaining loan balance is forgiven.

PSLF is a popular option for Peace Corps volunteers because it offers faster forgiveness. If you’re looking for more repayment flexibility or exploring a career change, IDR forgiveness is worth considering.

Related: Income-Based Repayment Forgiveness

Perkins Loan Cancellation

If you have old Perkins Loans, you may qualify for partial loan cancellation based on your years of service. After four years, up to 70% of your Perkins Loans can be canceled. Here’s how it works:

Loan Cancellation by Year:

• 15% canceled after the first year of service.
• 15% canceled after the second year of service.
• 20% canceled after the third year of service.
• 20% canceled after the fourth year of service.

Eligibility Requirements: To qualify, you must complete at least 365 days of service in a year (partial years don’t count).

Before proceeding with consolidation, it is advisable to consider consulting with a financial advisor or with our student loan lawyers to make sure it’s the right move for you.

Eligibility Criteria at a Glance

Program

Requirements

Key Details

1. Public Service Loan Forgiveness

Full-time employment with the Peace Corps or another qualifying employer. Federal Direct Loans required; Perkins and Stafford Loans must be consolidated.

Requires 120 payments under an IDR plan. Payments don’t need to be consecutive, and prior qualifying payments count if you return to public service. Forgiveness typically takes about 10 years.

2. Income-Driven Repayment Forgiveness

Federal loans only. Payments are based on discretionary income and require 20–25 years of payments, depending on the plan and loan type.

Available even if you leave public service. Forgiveness takes longer than PSLF but offers affordable monthly payments.

3. Perkins Loan Cancellation

Must serve at least 365 days per year.

Forgiveness is 15% for the first two years and 20% for the next two years, up to 70% total. Consolidation disqualifies Perkins Loans from cancellation. Forgiveness is gradual and based on years of service.

Other Forgiveness and Assistance Options for Peace Corps Volunteers

PSLF is the best forgiveness option for Peace Corps volunteers, but it’s not the only way to tackle student debt. If you don’t qualify for PSLF or IDR forgiveness, here are other options worth exploring:

• Forbearance or Deferment: Forbearance and deferment are both options that allow you to temporarily postpone or reduce your loan payments. If you’re pursuing PSLF, avoid these options, as paused payments won’t count toward the 120 required for forgiveness. Stick with an Income-driven repayment plan instead.
• RefinancingRefinancingTaking out a new private loan to pay off one or more existing student loans, usually to lower the interest rate or change the repayment term. Refinancing federal loans into a private loan eliminates federal benefits like IDR and PSLF.: If you meet credit and income requirements, refinancing can lower your interest rate or adjust your repayment term, potentially reducing monthly payments. Be cautious, though—refinancing federal loans with a private lender eliminates federal protections like forbearance and PSLF eligibility. Learn: How to Refinance Your Student Loans.

What Are My Options If I Have Private Student Loans?

Private student loans generally lack forgiveness programs, unlike federal loans provided by the Department of Education, which offer options like PSLF and IDR forgiveness. But the good news is you can explore alternatives like settlement or bankruptcy to ease the burden.

• Settlement Options: If your loan payments are unmanageable, negotiating a settlement with your lender could reduce your debt. This typically requires defaulting to open negotiations, which may negatively affect your credit score, so it’s often a last resort.
• Bankruptcy for Private Loans: Although it’s challenging, filing for bankruptcy may discharge private student loans if you can prove undue hardshipUndue HardshipThe legal standard a borrower must meet to discharge federal student loans in bankruptcy under 11 U.S.C. § 523(a)(8). Courts apply different tests, most commonly the Brunner Test or the Totality of the Circumstances Test.. This option is for extreme cases and requires demonstrating significant financial difficulties beyond normal repayment struggles.

If you’re struggling with your private student loanPrivate Student LoanA student loan issued by a bank, credit union, or other private lender rather than the federal government. Private loans generally lack federal protections like income-driven repayment and broad forgiveness programs. debt, you should contact your loan servicerLoan ServicerThe company that manages a borrower's federal student loan account, processes payments, and handles applications for repayment plans, deferment, forbearance, and forgiveness on behalf of the U.S. Department of Education. or consult a financial counselor for guidance on refinancing, settlement, or other resources.

Bottom Line

Peace Corps volunteers and staff don’t have to carry the weight of student loans alone. With programs like PSLF, IDR forgiveness, and Perkins Loan Cancellation, there are options to ease the burden—provided you meet the eligibility criteria for each program.

Among these, PSLF stands out as the fastest and most effective path to debt relief. With years of experience, we’ve helped countless Peace Corps volunteers successfully manage their loan options and find the right solutions.

You don’t have to figure this out on your own. We’re just a call away and can set up a virtual consultation to go over your options. Book a consultation today—our student loan lawyers are here to help you every step of the way.

Related reading:

• PSLF Qualifying Employers
• Community Service Student Loan Forgiveness
• Nonprofit Employee Student Loan Forgiveness
• Government Contractor Student Loan Forgiveness Programs
• Federal Employee Student Loan Forgiveness