Americans with student loan debt can have some of their debt canceled through various volunteer work programs.

Why It Matters

The programs could help student loan borrowers who are struggling to pay down their student loan debt following the end of a years-long pause on repayments.

The Trump administration announced earlier this year that it would start involuntary collections on defaulted loans, with plans to garnish the wages of workers whose loans are in default. Meanwhile, income-driven repayment plans, which reduce monthly payments for borrowers with lower incomes, were temporarily paused.

The Department of Education had paused federal student loan payments in March 2020, offering borrowers relief during the COVID-19 pandemic. Though payments resumed in 2023, the Biden administration had provided a year-long grace period that ended in October. President Joe Biden oversaw the cancellation of student loans for more than five million Americans, though his efforts for widespread student loan forgiveness were stopped by the courts.

Peace Corps

Those who have volunteered with the Peace Corps may be eligible for deferment, partial cancellation or eligible for the Department of Education's Public Service Loan Forgiveness (PSLF) Program, which offers to cancel any remaining student debt after borrowers make 10 years of payments while working in public service.

Volunteer service with the Peace Corps is considered qualifying employment for the PSLF program, according to the Peace Corps website.

"Under a qualifying repayment plan, your payments could be $0 per month while volunteering," the website states. "Signing up at the beginning of your service allows you to make the greatest number of qualifying payments."

Those with Perkins loans may be eligible for "a 15?70 percent cancellation benefit," according to the Peace Corps.

Student loan borrowers, including those who have private loans, are urged to contact their loan servicer to see if they could be eligible for relief for their Peace Corps volunteer service.

AmeriCorps

Those who have completed an approved term of service with AmeriCorps, a federal agency that sends young adults to work on projects across the country, are eligible to receive the Segal AmeriCorps Education Award.

The value of the award varies depending on the participation type and number of hours of qualifying service.

The amount for a full-time award is the equivalent to the maximum value of the Pell Grant for the fiscal year in which the term of service is approved, according to the AmeriCorps website. For the 2025 fiscal year, the amount for a full-time award is $7,395.

The award can be used to repay qualified student loans or to pay current educational expenses at eligible higher education institutions and training programs.

Shared Harvest Fund

Shared Harvest Fund says its Student Loan Debt Relief (SLDR) program provides "loan repayment support to skilled volunteers and frontline care workers who show up for their communities, especially during emergencies."

Founded by three doctors, people who want to pay down their loans can sign up to the platform as a "debtfreelancer," pay a subscription fee and list their skills and interests. They are matched with nonprofits needing volunteers for short-term or long-term projects.

Volunteers earn reward points when a project is completed, and those points are converted to stipends and paid out directly to the volunteer's student loan lender.

In return for completed projects, Shared Harvest Fund makes a direct payment to the volunteer's student loan servicer.

"We are a tech-enabled marketplace for nonprofits to source human capital while helping to reduce the burden of ballooning student loan debt. It's TINDR meets the Peace Corps," Dr. NanaEfua Afoh-Manin, one of the co-founders, told Forbes in 2021.

"A large number of participants in the initiative are working professionals who appreciate the flexibility of the volunteer opportunities we provide and benefit from the volunteer experiences themselves."

What People Are Saying

The Peace Corps said in a statement to Newsweek: "Peace Corps service is a life-changing experience that offers many benefits. Among those benefits, volunteers with federal student loans may be eligible for deferment, partial cancellation, income-driven repayment, or forgiveness."

Betsy Mayotte, president and founder of The Institute of Student Loan Advisors (TISLA), told Newsweek: "These programs can be a great way to reduce student debt while also giving back to society or even your local community."

What's Next

Programs offering loan forgiveness or cancellation can change their terms at any time or be shut down. Those considering taking part in such programs should not do so assuming they will be guaranteed relief.

AmeriCorps let thousands of volunteers go earlier this year after the Trump administration slashed grants and placed a majority of staff on administrative leave. A judge in June ordered the administration to restore programs in 24 Democrat-led states that sued, but allowed the agency to proceed with its reduction in force. (Newsweek)

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