How can I use my service award?

Peace Corps Volunteers will earn $10,800 pre-tax if they serve for 27 months. This amount will accrue monthly (adjusted for partial months of service) and can be used by Volunteers in several ways, including the most popular five listed below.

*Readjustment allowance

1. Pay down student loans

Student loan interest adds up! While some student loans can be deferred during service, Volunteers may still choose to use a portion of their service award to pay off student loans while abroad. The Peace Corps covers living expenses, travel to and from your host country, medical care, and many other costs to help you conduct your work while in service. So, it can be a great way to reduce some debts, knowing day-to-day needs are taken care of.

2. Pay off credit cards or other debt

Any debt acquired before entering into your country of service is eligible for debt repayment using your service award. This also includes federal income tax payments, which if go unpaid, can rack up interest.

3. Invest

The best time to start saving for retirement is … yesterday. Some Volunteers choose not to delay their retirement contributions and transfer some of their service award directly into an IRA or another retirement account. It’s a great way to have your money grow for the future while you’re living in the moment.

4. Pay fees for further study

Some Volunteers decide that further study is the next step in their journey after the Peace Corps—often inspired by their work with Peace Corps communities. Your service award can be used to pay for continuing education application fees or fees for applications to U.S. colleges and universities.

Also keep in mind that a major way to reduce costs for ongoing study after service is through the Peace Corps Paul D. Coverdell Fellows Program, which provides support like reduced tuition, stipends, and more at 150+ campuses across the country.

5. Cover emergency expenses

If an emergency situation arises, such as the death of a friend or an extended family member at home, which is not covered by the Peace Corps’ emergency leave provisions, you may—with the permission of your country director—use your service award to purchase flights home and spend your accrued vacation time with loved ones.

Note that if a serious illness or death occurs in your immediate family, the Peace Corps allows a two-week leave period and pays for your travel home.

Saying all that, there is no obligation to spend your service award while you serve. You can save it and walk away from service with a chunk of change, new skills, amazing memories, and friendships that will last a lifetime.

How will you spend yours?