Financial Benefits and Loan Deferment

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During service, Peace Corps Volunteers receive vacation time, pay and living expenses, deferment of student loans, and transportation to and from the country of service.

Vacation Time

Volunteers receive two vacation days per month of service, a total of 48 days over two years. Many use this time to travel to nearby countries, expanding their opportunities for adventure and cross-cultural experiences. Some invite family or friends to visit so they can share their experience of the host country with loved ones. And of course, Volunteers can use this time for a visit home (at their own expense).

Pay and Living Expenses

The Peace Corps provides Volunteers with a living allowance that enables them to live in a manner similar to the local people in their community. Returning from overseas requires some adjustment, so when you complete your service, the Peace Corps provides just over $6,000 toward your transition to life back home. This money is yours to use as you wish: for travel, a vacation, making a move, or securing housing.

Deferment of Student Loans

Volunteers may defer repayment of student loans under several federal programs, i.e., Stafford (formerly known as guaranteed student loans), Perkins, direct and consolidation loans. Some commercial loans may also be deferred during Peace Corps service. Because the rules that authorize deferment are complicated and subject to change, it is best to talk to a Peace Corps recruiter about how this benefit applies to your situation.

Cancellation of Student Loans

Only Volunteers with Perkins loans are eligible for a partial cancellation benefit. Fifteen percent of your Perkins loans can be cancelled upon the completion of each 365 days of service during your first two years of service, and 20 percent can be cancelled upon completion of each of the third and fourth years. Therefore, four full years of service would equal a 70 percent cancellation of your existing loan.

Instructions for Student Loans
Learn how Peace Corps service affects loan deferment, interest payment, and more.

Student Loan Deferment / Cancellation Frequently Asked Questions
Find answers to your loan deferment questions.

External Links

Financial Benefits and Loan Deferment Official US Peace Corps Website