This bill would allow Peace Corps volunteers and AmeriCorps members to count periods of loan deferment or forbearance toward their eligibility for public service loan forgiveness. Currently, these service members can pause their federal student loan payments while serving but the time spent in deferment or forbearance does not count toward the 120 qualifying payments needed to receive forgiveness through the public service loan forgiveness program. The legislation would treat each month of deferment or forbearance during Peace Corps or AmeriCorps service as if a qualifying payment were made, going back to October 1, 2007. The bill requires the Department of Education to consult with the Peace Corps, AmeriCorps, and affected borrowers when implementing this change. This change would help service members reduce their student debt burden while contributing to national service programs.
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