<p>As I was going through a few financial aid and student loan info sites I came across Americorps and Peacecorps organizations. Basically it says if you volunteer your time (almost a year or so) they defer your student loans or in some cases even get a stipend. Is this true? and are there any catches to this?</p>
<p>Yes, it’s true. The Peace Corps gives you a living allowance stipend (not that much though). Your Stafford loans and Perkins loans can be deferred and your Perkins loans can be cancelled (15% of them each year for the first two years, then 20% for the two subsequent years). You have to fill out the forms and negotiate this with your lender though. There’s no real catch, except to say that Peace Corps and AmeriCorps are volunteer work so if you hate helping the less fortunate (or if you really can’t afford to live off of the stipend that they pay you while you’re in the service) then it might be a strain. Otherwise, it’s a worthy opportunity and a great way to get work experience.</p>
<p>Yes, that’s true, but the stipends are very small. I had a couple of friends who did AmeriCorps and they told me that the stipends are like barely enough to live on - around $10K per year. I know two of them lived with their parents while they did it, and one lived with a whole bunch of roommates. It should be seen as a volunteer position first and foremost, with a little money to help you live.</p>
<p>AmeriCorps and I think the PC will also give you an educational grant - it’s something like $4,600, although it might have gone up. You can use it to pay off loans or to attend a graduate program.</p>
<p>If you are in Americorps, however, some locations have compounds at which you can live - not to mention you usually qualify for foodstamps, which can help.</p>
<p>AmeriCorps and I think the PC will also give you an educational grant - it’s something like $4,600, although it might have gone up. You can use it to pay off loans or to attend a graduate program. >></p>
<p>The Peace Corps does not give an education grant. Loans can be deferred during the 27-month service time and a readjustment allowance is given for each month of your commitment. I can’t remember how much is it (not much) and it is taxable.</p>
<p>The Peace Corps is a 27 month minimum commitment…3 months training and two years of service. The Stafford loans can be deferred during this time. Perkins loans are canceled at 15% for each of two years. My DD’s understanding is that the schools can actually cancel more than that…don’t know if that’s true or not. </p>
<p>Upon return from the Peace Corps, the volunteers are given a dollar amount to be used to reestablish themselves here…this money COULD be used for education if the person so chooses.</p>
<p>The stipend the PC provides while a volunteer is to live as the folks in the country live…not a large amount of money by any means and solely used for housing/food expenses.</p>