Continue the Pause on Student Loan Payments through AmeriCorps Service
After over three years of administrative deferment that paused both federal student loan interest and payments, 43.5 million Americans will need to resume making payments on October 1. According to research from the Federal Reserve Bank of New York, the average monthly payment is $393.
If you have student loans, this likely isn’t news to you. But did you know AmeriCorps offers both federal student loan forbearance and interest repayment for members? Coupled with the Segal AmeriCorps Education Award (that provides members with up to $4,800 for student loans or tuition) service is an incredible option for anyone pursuing post-secondary education or looking to pay down their loans!
Loan Forbearance
Members serving in AmeriCorps are eligible to postpone principal payments on most federally-guaranteed student loans. This is called “forbearance”. Members and interested applicants should contact their loan holders to confirm their loan qualifies.
Qualified loans typically include:
Stafford Loans
Primary Care Loans
William D. Ford Direct Loans
Perkins Loans
Federal Consolidated Loans
Nursing Student Loans
Supplemental Loans for Students
Health Education Assistance Loans
Loans issued to AmeriCorps members by state agencies, including state institutions of higher education
Interest Repayment
Interest continues to accrue while loans are in forbearance but when you successfully complete your term of service, the National Service Trust will repay all or a portion of the interest that accumulated on qualified student loan(s) during the term of AmeriCorps service. Requests for interest repayment are submitted through the My AmeriCorps Portal at AmeriCorps.gov.
Requesting Forbearance
Once enrolled as an AmeriCorps member:
Log into the My AmeriCorps Portal at my.americorps.gov.
Click on the “Create Forbearance” link on the homepage to begin the process.
Your loan holder will notify you when they have acted upon your request. You can also check the status of your forbearance request in your my AmeriCorps account.
You can call the AmeriCorps Hotline at 1-800-942-2677 for more detailed information on student loan forbearance and interest payment.
Requesting Interest Repayment
AmeriCorps alums, you are eligible to have the National Service Trust pay all or a portion of the interest that accumulated on qualified student loan(s) during service.
To be eligible to have accrued interest paid:
Your loan was placed in forbearance for your term of service
You successfully completed your term of service and received an Education Award
To request your Interest Accrual Benefit:
Log into the My AmeriCorps Portal at my.americorps.gov.
Click on "Create Interest Accrual Request."
Verify that all of the pre-populated information on your request form is correct.
If you served more than one term, select the dates of service for which you are requesting your interest accrual benefit.
Search for and select your Financial Institution.
Click the "Submit" button. Your Interest Accrual request will be sent to your Financial Institution, which will complete the payment request.
Apply Now to Keep Your Loans Paused
If you’ve been thinking about AmeriCorps, now is the time to apply! Whether you choose to help students boost their skills, address environmental issues, or focus on building healthy futures, you are sure to make an incredible impact in your community. The next opportunity to begin service is August 2023 and you can learn more or apply by visiting www.ampact.us/serve.
Fast Facts
$4B
in education awards earned by members to pay for college
$1M+
education awards paid annually to historically black colleges and universities