Three Ways To Serve Humanity And Cut College Costs
NEW YORK (MarketWatch) -- Paying down student debt can be particularly challenging for people who are interested in embarking on modest-paying public service careers. Luckily, civic-minded folks can take advantage of a number of government-sponsored programs designed to alleviate the burden of student debt.
Debt management consultant Harrine Freeman, of H.E. Freeman Enterprises, suggests three debt-forgiveness alternatives for good Samaritans:
AmeriCorps
Who's eligible? To qualify for service in AmeriCorps, you must be at least 17 and be a United States citizen or lawful permanent resident. Note: You may have to meet some additional qualifications to serve in specific AmeriCorps programs. For more information, visit Americorps.org.
What do you do? Members of AmeriCorps work for more than 2,000 nonprofits, public agencies and community organizations. Jobs include everything from constructing affordable housing to teaching computer skills and cleaning up public parks.
Where do you do it? A variety of locations across the U.S.
What do you get? Volunteers who complete one year of full-time service are eligible for the Segal AmeriCorps Education Award, a $4,725 grant that can be put towards the costs of college or used to repay existing student loans. (Part-time volunteers receive a prorated award.) AmericaCorps participants are also eligible for loan forbearance throughout their terms of service.
Peace Corps
Who is eligible? Peace Corps volunteers must be U.S. citizens at least 18 years of age. While holding a four-year college degree and speaking a foreign language can improve your changes of being accepted into the Peace Corps, neither is required and work experience will also be taken into account.
What do you do? Peace Corps volunteers can be assigned to a number of areas, including agriculture, public health and HIV/AIDS education, information technology, and business development. Visit Peacecorps.gov for details.
Where do you do it? The Peace Corps is active in more than 70 countries around the globe.
What do you get? You can apply for a deferment of Stafford and Perkins loans, as well as consolidation loans, while volunteering with the Peace Corps. For each year you spend in the program, 15% of your Perkins loans will be forgiven, up to a total of 70%. Some commercial loans can also be deferred. Talk to a Peace Corps recruiter to find out more about the particulars.
Federal Perkins Loan Teacher Cancellation
Who is eligible? You must be a teacher, employed directly by a school system, who has served a full academic year as one of the following:
An authorized instructor at a public or nonprofit elementary or secondary school serving low-income families
A teacher specializing in the fields of mathematics, science, foreign languages, bilingual education, or another subject area determined by the state to be experiencing a shortage of teachers
A special-education teacher who provides instruction to infants, toddlers, children or youth with disabilities. (For more information on specific requirements for special-education teachers, visit )
What do you do? You provide:
Classroom instruction
Classroom-type teaching in a nonclassroom setting
Non-educational student services directly related to classroom teaching, including jobs such as librarian or guidance counselor
Where do you do it? To determine if your school has been certified as "low-income" visit the Teacher Cancellation Low Income Directory at https://www.tcli.ed.gov/CBSWebApp/tcli/TCLIPubSchoolSearch.jsp.
For all other questions, consult with administrators at your school or contact the U.S. Department of Education.
What do you get? If you meet the above mentioned criteria, up to 100% of your federal Perkins loans may be forgiven. You can also apply for deferment while performing teaching duties that qualifyyou for cancellation. Contact your lender for more information on applying for deferment.
By Marshall Loeb