You may be eligible for cancellation due to voluntary service, if you meet certain criteria.
- serve as a Peace Corps volunteer or
- AmeriCorps VISTA (under Title I, Part A of the Domestic Volunteer Service Act of 1973) volunteer.
- AmeriCorps volunteers do not qualify for this cancellation unless their volunteer service is with AmeriCorps VISTA. An AmeriCorps VISTA volunteer may only qualify for this cancellation if the AmeriCorps VISTA volunteer elects not to receive a national service education award for his or her volunteer service. The AmeriCorps VISTA volunteer must provide appropriate documentation showing that the volunteer has declined the AmeriCorps national service education award.
An authorized official of the Peace Corps or AmeriCorps VISTA program must sign the borrower’s cancellation form to certify the borrower’s service.
Cancellation Rates for Volunteer Service
- first and second years; 15% of the original principal loan amount, plus the interest that accrued during the year.
- third and fourth years; 20% of the original principal loan amount, plus the interest that accrued during the year.