Community Service Student Loan Forgiveness: How to Get It

• Public Service Loan Forgiveness can cancel your remaining loan balance after 10 years (120 qualifying payments), as long as you’re working for a government or nonprofit employer.

• If you’ve served with AmeriCorps or Peace Corps, your time counts toward PSLF since these programs meet the employment requirements.

• States like California, New York, and Texas offer loan repayment programs for community workers, helping with both federal and private student loans.

So you’re a community service worker, and you’re wondering: Does volunteer work qualify for student loan forgiveness?

Community service workers are eligible for student loan forgiveness. Here’s what you need to know about the key programs available:

• Public Service Loan Forgiveness: Forgives your remaining federal loan balance after 120 qualifying payments while working full-time for a government or nonprofit employer, such as a social services organization.

• Income-Driven Repayment Forgiveness: Adjusts your monthly payments based on income and family size, with any remaining balance forgiven after 20–25 years.

• Perkins Loan Cancellation: If you have Perkins Loans, you could be eligible for cancellation based on your years of service in volunteer work.

PSLF offers the most forgiveness the quickest, but there’s a catch: you have to be employed directly by a qualifying employer to get the benefit. So if you’re volunteering, that won’t count.

Related reading:

• AmeriCorps Student Loan Forgiveness

• Peace Corps Student Loan Forgiveness

Public Service Loan Forgiveness Program

The US Department of Education forgives your remaining federal student loan balance under PSLF 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 the breakdown:

• Employer: Your employer must be a government agency or a nonprofit organization classified under 501(c)(3). If you’re part of volunteer programs like AmeriCorps or Peace Corps—they qualify since they’re federal government agencies. You can use the PSLF Help Tool from Federal Student Aid to check if your employer is eligible. For more details, check out this PSLF Qualifying Employers Guide.

• 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. If you work part-time for two qualifying employers and your combined hours average at least 30 per week, you may still qualify for PSLF.

• Application Process: You should submit the PSLF form periodically to ensure your employment qualifies and to track your progress toward forgiveness. Check out this How to Apply For Student Loan Forgiveness Guide for more details.

Important Note: In some cases, community service or volunteer hours don’t count toward PSLF requirements because they don’t classify you as an employee. The only exceptions are hours completed through AmeriCorps or Peace Corps, as these programs meet PSLF eligibility criteria for service contributions.

IDR Forgiveness

Income-Driven Repayment plans offer a flexible repayment option for community service workers who may not qualify for PSLF or other forgiveness programs. These plans adjust your monthly payment based on your income and family size, not your total loan balance, making them a practical choice for volunteers in roles like social services, education, or nonprofit support.

Here’s how IDR forgiveness works:

• Eligibility for Federal Loan Borrowers: IDR plans are open to all federal student loan borrowers, including those in community service roles. Even if you transition to a private-sector job, IDR forgiveness remains an option.

• Payment Cap: Student loan payments are capped as a percentage of your discretionary income. This provides affordable repayment options for workers earning modest salaries. Related: How Do Student Loans Calculate Discretionary Income?

• Extended Term: After 20 or 25 years of qualifying payments (depending on the type of plan), any remaining balance is forgiven.

If you have federal loans and work for a qualifying employer under PSLF, it’s usually better to go with the PSLF program rather than IDR forgiveness. PSLF offers forgiveness in just 10 years (120 qualifying payments), while IDR plans take 20 to 25 years.

If you qualify for PSLF, it’s the faster and more efficient path to get debt relief, so it’s worth taking advantage of the opportunity.

Related: Income-Based Repayment Forgiveness

Perkins Loan Cancellation

Community Service workers can qualify for Perkins Loan cancellation under specific conditions. The eligibility criteria depend on the nature of the services provided and the employment setting.

Here are the key details:

• Eligibility: A borrower can have up to 100% of their Perkins Loan canceled if they work full-time at an eligible nonprofit child or family services agency that serves high-risk children from low-income communities. If you serve as a member of AmeriCorps or as a Peace Corps Volunteer, you can also qualify.

• Application Process: Contact your school or loan servicer to begin the cancellation process. You should obtain the necessary forms to certify your service and then submit a cancellation application along with proof of your participation in a nonprofit or public agency.

• Total and Permanent Disability Discharge: If you become permanently disabled, you can have your federal loans discharged. You’ll need documentation from a physician, the VA, or Social Security Administration. Learn more in our TPD Discharge Guide.

• Borrower Defense to Repayment: If your school closed while you were enrolled or misled you about job placement rates, program costs, or transfer credits, you may qualify for discharge. You’ll need to provide evidence of the school’s misconduct. Learn more in our Borrower Defense to Repayment Guide.

• Hardship-Based Forgiveness: A new program is under development that would offer relief to borrowers facing severe financial challenges. Details are pending legal approval.

Beyond the options mentioned, there are also state-based programs designed to help community service workers achieve student loan relief. Here are a few examples:

• California: The Cal Grant program supports students pursuing public service careers, including community service. It offers funding to help cover educational costs for those entering these vital fields.

• New York: The New York State Student Loan Forgiveness Program provides relief for those in community service roles. It’s designed to ease the burden of student debt for individuals dedicated to serving their communities.

• Texas: Texas offers various student loan repayment assistance programs, primarily for healthcare professionals, but some may extend to community service workers involved in health-related roles.

Take a look at StudentAid.gov for more forgiveness options. If you’re unsure where to start, we’ve got you covered. Just reach out, and we’ll help you figure out the best way to manage your student loans.

Refinancing student loans can be a practical choice for community workers in specific situations, especially for those with private student loan debt or who are not pursuing federal forgiveness programs like PSLF.

Scenarios to Consider Refinancing:

• You Have a Strong Income Compared to Debt: If your income comfortably exceeds your debt, refinancing can help you secure better interest rates and save money over the life of your loan.

• You Have a Stable Job: If you’re in a secure community service position with a steady income, refinancing may reduce your interest rate and make repayment more manageable.

• You Have Private Student Loans: Private loans aren’t eligible for federal forgiveness programs, but refinancing can provide more favorable terms, such as lower interest rates or shorter repayment periods.

If you’re not counting on PSLF or IDR forgiveness and have a strong income-to-debt ratio, refinancing can effectively manage your student debt faster and at a lower cost. Contact your private lender to know your options.

Related: Student Loan Refinance Guide.

Public Service Loan Forgiveness is the best choice if you work for a government or nonprofit employer. It’s a great way to shorten your repayment timeline. If PSLF doesn’t work for you, IDR Forgiveness is another solid option that adjusts your monthly payments based on income.

And for those with private loans or not pursuing federal forgiveness, refinancing could help lower your interest rates and save money.

We’ve worked with many community workers to find the best solutions for their student debt. Let’s make it simple—reach out for a consultation today, and we’ll guide you every step of the way.

Related reading:

• PSLF Qualifying Employers

• Nonprofit Employee Student Loan Forgiveness

• Social Workers Student Loan Forgiveness

• Government Contractor Student Loan Forgiveness Program

• Student Loan Forgiveness for Government Employees