In the face of mounting student loan debt, some borrowers may find relief through volunteer programs designed to assist in debt cancellation. While these programs are not universally available, they offer a practical route for those looking to reduce their financial burden while giving back to society.
As the pressure of student loan repayments continues to grow, many Americans are exploring opportunities to ease their debt load.
The termination of the pandemic-related payment freeze and the resumption of repayments have heightened the urgency for solutions. Fortunately, several volunteer programs provide tangible benefits, ranging from partial loan cancellation to deferment, for those who dedicate their time to community service.
Peace Corps: Forgiveness Through Public Service
One of the most prominent volunteer programs offering student loan forgiveness is the Peace Corps. Volunteers who serve with the Peace Corps may be eligible for deferment, partial cancellation, or even full loan forgiveness through the Public Service Loan Forgiveness (PSLF) program.
According to the Peace Corps website, participants can qualify for PSLF by making ten years’ worth of payments while employed in public service roles.
In addition, volunteers with Perkins Loans may qualify for cancellation benefits of between 15% and 70% of their debt. Peace Corps service also provides an option for income-driven repayment plans, where monthly payments could be reduced to $0 while serving, which could significantly ease financial pressure during the volunteer period.
This arrangement makes the Peace Corps an appealing choice for individuals seeking to reduce their student debt while also engaging in meaningful international service.
AmeriCorps: Financial Support for Service
Another significant program for loan forgiveness is AmeriCorps, which sends young adults to work on a variety of projects across the United States. AmeriCorps offers the Segal AmeriCorps Education Award, which can be used to pay off qualified student loans.
The value of this award depends on the type of service completed and the number of hours involved, with a full-time award equalling the maximum Pell Grant for the fiscal year—approximately $7,395 for 2025.
AmeriCorps volunteers, through this educational award, can alleviate the burden of student loans while also contributing to projects ranging from disaster relief to education and public health initiatives.
The program provides a valuable avenue for those seeking a way to reduce their debt while gaining valuable work experience and giving back to their communities.
Shared Harvest Fund: A Modern Approach to Debt Relief
Innovative new platforms such as Shared Harvest Fund offer a fresh take on the intersection of volunteer work and student loan relief.
According to Dr. NanaEfua Afoh-Manin, co-founder of the Shared Harvest Fund, the platform allows volunteers to match their skills with short-term or long-term projects in exchange for reward points. These points are then converted into stipends, which are directly paid to the volunteer’s student loan servicer.
This model provides both flexibility and financial support, especially for working professionals who may struggle to dedicate themselves full-time to traditional volunteer programs. It is a promising solution for those seeking a way to reduce their student debt without taking time away from their careers.