You can serve in the Peace Corps with outstanding financial obligations if you can show that the debts can be managed and/or paid in a timely way during service. If you plan to have another person assume responsibility for making payments on a debt, an original copy of a notarized statement from that person acknowledging his or her responsibility is required. Additionally, you may include an allotment or multiple allotments up to 75 percent of your gross monthly allowance from your Volunteer readjustment allowance when making debt payment plans. This allotment is not available until the trainee is sworn in as a Volunteer. These allotments must be paid directly to the company that holds the debt. For student loan debt, you should contact the lender directly to see if they offer any relief or deferment plans.
You may want to discuss with an attorney the possibility of giving a relative or friend power of attorney to handle your financial matters, along with an accountant to file your taxes while you are serving abroad. Keep in mind that your monthly living allowance and readjustment allowance are considered taxable income, so W-2 forms will be sent to your in-country worksite. You can either file your taxes from overseas or send them home, along with other income records, to be filed by someone else. As a Volunteer, you may be granted an extension on the tax filing date. Consult your tax adviser for additional information.