While Peace Corps -- a volunteer organization that sends participants all over the world to help with projects, such as AIDS research -- volunteers receive a living stipend, they may not make enough to pay for anything other than basic living expenses. Peace Corps workers usually receive perks to keep them on, which may include deferring their student loans. Some federal programs offer automatic student loan deferment, but private lenders have more discretion with their deferment programs.
Identification
Sometimes you can defer your loans if you enter the Peace Corps, but not always. Some federal loan programs, such as the Perkins and Stafford loans, guarantee deferral for Peace Corps volunteers. Private student loans do not necessarily provide the option to defer payment while serving in the Peace Corps.
Applying for Deferment
Talk to your lender about deferring your student loans before you enter the Peace Corps. If you have federal loans or you private lender approves your deferral contingent on your service in the Peace Corps, you must bring your deferral forms when you arrive at Peace Corps orientation. A Peace Corps officer will sign the form and provide proof of your enrollment in Peace Corps.
Reapplying for Deferment
Check with your lender about the requirements of your deferral. Some lenders may require you to reapply for deferment each year. If you need to reapply for deferment while in your host country, you should take extra copies of your deferment form with you. You also can have a Peace Corps official in your host country certify your deferral form or you may give someone in the U.S. power of attorney to sign your deferral form and send it to Peace Corps headquarters.
Tip
Talk to your Peace Corps officer about deferring your loans as soon as possible. You may owe interest during your deferment. Some Peace Corps volunteers use a portion of their stipend to pay interest on a loan in deferment. The Corps also provides transitions funds -- $7,425 after 27 months of service in 2011 -- which you can apply to your student loans at the end of your service.
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