Volunteer Service Cancellation
A borrower may qualify for a cancellation for volunteer service in the Peace Corps or Americorps*VISTA (under Title I, Part A of the Domestic Volunteer Service Act of 1973).
Americorps volunteers do not qualify for this cancellation unless their volunteer service is with Americorps*VISTA. Americorps*VISTA volunteers may only qualify for this cancellation if the Americorps*VISTA volunteer elects not to receive a national service education award for his or her volunteer service. The Americorps*VISTA volunteer must provide appropriate documentation showing that the volunteer has declined the Americorps national service education award.
An authorized official of the Peace Corps or Americorps*VISTA program must sign the borrower's cancellation form to certify the borrower's service.
The cancellation rate for each completed year of service is as follows:
- 15 percent of the original principal loan amount plus accrued interest for the first and second years of service
- 20 percent of the original principal loan amount plus accrued interest for the third and fourth years of service
- Maximum amount cancelled - up to 70 percent