Financial Benefits and Loan Deferment

During service, Peace Corps Volunteers receive pay and living expenses, transition money, vacation time, and deferment of student loans. Peace Corps covers the travel costs to and from the country of service. Unlike other international volunteer programs, there is not a fee to participate in the Peace Corps.

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, covering housing, food, and incidentals.

Transition Funds

Returning from overseas requires some adjustment. To assist with the transition back home, Volunteers are paid $7,425 (before taxes) at the close of 27 months of service. This money is yours to use as you wish: for travel, a vacation, making a move, or securing housing.

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).

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.

Loan Deferment FAQ

Find answers to your loan deferment questions.

Last updated Jun 03 2010