AmeriCorps Student Loan Forgiveness: PSLF and Other Options

• Serving with AmeriCorps like State and National, VISTA, or NCCC counts toward Public Service Loan Forgiveness.

• AmeriCorps alumni who have yet to certify service can still have past periods count toward the 120 qualifying payments needed for PSLF.

• Using your Segal AmeriCorps Education Award as a lump-sum payment can help you rack up multiple qualifying PSLF payments at once.

If you’re an AmeriCorps member or alum, Public Service Loan Forgiveness and other loan relief programs are available to you. With these solutions, the weight of student debt doesn’t have to hold you back anymore.

Here’s a quick look at the programs available:

• Public Service Loan Forgiveness: Wipes out your remaining federal loans after 120 qualifying payments while working for a government or nonprofit employer.

• IDR Forgiveness: Limits your monthly payments based on income and family size, with the balance forgiven after 20–25 years.

• Refinancing: Perfect for private student loans or borrowers not pursuing forgiveness, refinancing can help lower your interest rate or adjust your repayment terms.

We’ve got you covered with this guide—it’s packed with ways to ease the burden of student loans. You’ll feel a lot better knowing there’s a path ahead.

Under the Public Service Loan Forgiveness, the US Department of Education forgives your remaining federal student loan balance after making 120 qualifying monthly payments, typically over 10 years, while working for a qualifying employer (government or nonprofit) and under a qualifying repayment plan (e.g., IDR plans).

Here’s how PSLF applies to AmeriCorps members:

• Employer: The AmeriCorps Program is considered eligible, and your time with AmeriCorps State and National programs, AmeriCorps VISTA, and NCCC may count towards PSLF.

• Type of Loan Only Federal Direct Loans are eligible for PSLF. If you have other federal student loans, like FFEL or Perkins Loans, they won’t qualify unless you consolidate them into a Federal Direct Consolidation Loan. Learn more in our Student Loan Consolidation Guide.

• Payment Plan: Income-driven repayment plans are often considered the most favorable option for those seeking to qualify for PSLF.

• Commitment: You’ll need to make 120 qualifying monthly payments, typically over 10 years of full-time service.

What Counts as Full-Time Service?

For AmeriCorps members, full-time service is usually defined as completing 1,700 hours per year in AmeriCorps State and National programs. But, even if you don’t meet this threshold, you may still be eligible if:

• You serve at least 30 hours per week while being certified, even if that period is less than a full year.

• You combine your hours from AmeriCorps with another qualifying employer to reach an average of 30 hours per week across both roles.

How to Receive PSLF Credit for AmeriCorps Service

The most effective approach is enrolling in an Income-driven Repayment plan during your AmeriCorps service. With an IDR plan, your monthly payment may be significantly reduced, and every payment counts directly toward PSLF.

If you opt for deferment or loan forbearance, you won’t make payments during your service term, but you’ll need to use your transition payment or the Segal AmeriCorps Education Award to make a lump-sum payment on your Direct Loans after completing your service.

Here’s what you need to know:

• Timing Matters: The lump-sum payment must be made within six months of receiving your transition payment or education award.

• How Payments Are Counted: The number of PSLF-qualifying payments will be determined by dividing your lump-sum payment by your monthly payment amount at the start of your service.

• Limitations: You can only receive up to 12 PSLF-qualifying payments, even if your service term was longer than a year.

Income-Driven Repayment plans offer a flexible repayment option for AmeriCorps members who may not qualify for PSLF or other forgiveness programs. These plans base your monthly payment on your income and family size, not your loan balance, making them an accessible alternative.

The available IDR plans include the SAVE plan (formerly REPAYE), Pay As You Earn (PAYE), Income-Based Repayment (IBR), and Income-Contingent Repayment (ICR).

Here’s how IDR forgiveness works and how it can help AmeriCorps members:

• Eligibility for AmeriCorps Members: IDR forgiveness is available to all federal loan borrowers, including those who served in AmeriCorps, regardless of whether they remain in public service after their term of service.

• Payment Cap: Your monthly payments are calculated as a percentage of your discretionary income. Related: How Do Student Loans Calculate Discretionary Income?

• Extended Term: Repayment terms last 20 or 25 years, depending on the plan and whether your loans were for undergraduate or graduate studies. After this period, any remaining loan balance is forgiven.

PSLF is often the preferred route for AmeriCorps members, but IDR forgiveness provides an additional option for those who move into private-sector roles or need long-term flexibility.

Related: Income-Based Repayment Forgiveness

If you served with AmeriCorps after the PSLF program began in 2007, you may be able to count that service. Follow these steps to make sure your service is recognized:

1. Submit a PSLF Form: Complete and submit a PSLF Form for the periods you served with AmeriCorps. You can find the form in our Forms and Application Guide.

2. Certify Your Service: Identify an authorized official who can certify your AmeriCorps service. This is often someone from your HR department, your direct supervisor, or another individual who has access to your service records. Contact your organization to confirm who is authorized.

3. Track Your Progress: Once certified, your service will be reviewed and credited toward the 120 qualifying payments needed for forgiveness. Keep track of your qualifying payments and employment certifications through the MOHELA student loan portal.

4. Apply for Forgiveness: After completing 10 years of qualifying public service employment or making 120 payments, submit a final PSLF form to apply for forgiveness.

If you’re unsure how to proceed with sorting through your student loan options, reaching out to our knowledgeable student loan lawyers can provide the clarity and guidance you need.

Public Service Loan Forgiveness is the top forgiveness option for AmeriCorps members, but it’s not the only path to student debt relief. If you don’t qualify for PSLF or IDR forgiveness, there are other programs and strategies to explore.

Here’s an overview of alternative options:

• Perkins Loan Cancellation: AmeriCorps VISTA members may qualify for Perkins Loan cancellation, forgiving up to 70% of the loan balance, including interest payments based on years of service. To apply, you’ll need to contact your school or loan servicer to certify your service and initiate the cancellation process.

• Refinancing: If you meet credit and income requirements, refinancing can lower your interest rate or adjust your repayment term, potentially reducing monthly payments. Be cautious, though—refinancing federal loans with a private lender eliminates federal protections like forbearance and PSLF eligibility. Learn: How to Refinance Your Student Loans.

Private student loans don’t typically offer forgiveness programs, which can be frustrating. But, you can explore alternatives like settlement or refinancing to ease the burden.

• Settlement Options: If your loan payments are unmanageable, negotiating a settlement with your lender could reduce your debt. This typically requires defaulting to open negotiations, which may negatively affect your credit score, so it’s often a last resort.

• Bankruptcy for Private Loans: Although it’s challenging, filing for bankruptcy may discharge private student loans if you can prove undue hardship. This option is for extreme cases and requires demonstrating significant financial difficulties beyond normal repayment struggles.

If you’re struggling with your private student loan debt, consider contacting your loan servicer or consult a financial counselor for guidance on refinancing, settlement, or other resources.

AmeriCorps qualifies for Public Service Loan Forgiveness, making your service eligible to count toward loan forgiveness. If PSLF isn’t an option for you, other programs like Income-Driven Repayment forgiveness or Perkins Loan Cancellation may help you manage or reduce your student loan debt.

We’ve helped countless AmeriCorps members and alumni secure loan forgiveness, including retroactive PSLF credit for past service.

If you’re unsure about the best path forward, schedule a consultation with our experienced student loan lawyers today. Together, we can create a plan to help you achieve financial relief.

Related reading:

• PSLF Qualifying Employers

• Peace Corps Student Loan Forgiveness

• Nonprofit Employee Student Loan Forgiveness

• Social Workers Student Loan Forgiveness

• Government Contractor Student Loan Forgiveness Programs