Stafford Tidbit #1: Peace Corps
In the next few posts, I’ll outline what I’ve learned about Stafford loans here at staffordloanjustice. While I’m still unraveling the bureaucracy and the new laws and regulations, there are some things I’ve discovered over the last 4–5 years of intensely researching these types of student loans.
One of the first fun facts I learned through the Office of Personnel Management (OPM) Web site was “although the student loan is not forgiven, agencies may make payments to the loan holder of up to a maximum of $ for an employee in a calendar year and a total of not more than $ for any one employee.” The OPM further states, “each agency must develop a plan to describe how the program will be implemented.”
As an example, the U.S. Department of State offer loan assistance per OPM as an incentive for foreign service specialist positions, while true service opportunities through federal programs such as the Peace Corps offer negligible assistance to student loan holders in paying down their loans (or in loan forgiveness), as interest on unsubsidized portions of the loan continue to accrue while one is, let’s say, doing noble work building sanitation systems in less developed countries.
While it is important for Congress to pass new loan-related legislation to make monies available to undergrads to continue their education, not as much has been done to assist Stafford loan (grad) borrowers on a basic level, specifically with the issue of capitalization. There are millions of Stafford loan borrowers in the same situation – doctors, lawyers, psychologists, researchers, academics alike – burdened financially and psychologically by the specter of student loan debt; Loan debt we can’t hope to reduce due to capitalization practices, poor employment prospects, and quirky features of the newly enacted student loan repayment laws.
Note: I’ve made every attempt to verify the information I post.