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How to Reduce Your Student Loan Debt by Volunteering in Chicago
You Can Do It!
However daunting it may seem to pay down your student loans after college, the more you pay back, the more you save in interest. $25,000 in student loan debt at just 2.5% interest over 30 years adds an additional $10,561 in payments. Paying off the same loan in 15 years reduces the interest payments to $5,006 if you can afford the higher monthly payment. That's still a lot of extra money to pay back on top of the loans themselves! Chances are that the interest rate that you're paying on your student loans is probably higher than 2.5%, making these numbers conservative. Student loan calculators like this one from Bankrate can help you get a more accurate assessment based on your own personal student loan amounts, term, and interest rate.
The good news is that Chicago offers a few options for help in paying back student loan debt. Read on to learn more about some of the government agencies and federal programs available in Chicago for repaying student loan debt.
SponsorChange helps volunteers pay back their student loans by completing projects across a variety of categories and causes. Projects include building websites, running online marketing campaigns, competing in marathons, construction, counseling, and much, much more. Check out the projects that SponsorChange has available in the Chicagoland area here by selecting IL as the state first: SponsorChange Projects in Chicago.
AmeriCorps is a division of the Corporation for National and Community Service. AmeriCorps volunteers qualify for forbearance (and possibly interest) while offering their service. After 12 months of full-time service, AmeriCorps volunteers can elect to receive the Segal AmeriCorps Education Award, which is tied to the maximum amount for the Pell Grant that year ($5,920 for 2017-2018), or to receive a cash stipend instead of the Segal Award. AmeriCorps volunteers can also count time in AmeriCorps toward Public Service Loan Forgiveness. A list of AmeriCorps programs in Chicago can be found here.
Teach For America (TFA) offers volunteer opportunities for teachers to serve in underserved districts with large economic challenges. In addition to a salary of between $33,000 to $58,000, the work also counts toward Public Service Loan Forgiveness. TFA volunteer teaching opportunities in Chicago and Northwest Indiana can be found here.
Peace Corps volunteers work toward creating sustainable change at the grassroots level, becoming global citizens while serving their country. Peace Corps volunteers might be able to defer federal student loans. There is also the possibility for eligibiity of income-driven repayment and PSLF, as well as a partial cancellation of Perkins Loans. Opportunities for joining the Peace Corps in Chicago can be found here.
You can also find Chicago student loan repayment assistance programs from Student Loan Hero. Select Illinois as the Location to find out which programs might be available near Chicago. Student Loan Hero also offers more detailed information on Public Service Loan Forgiveness here.
