Government Help with Paying for School Debt

School debt in the form of student loans is one of the greatest sources of debt in the United States of America.Total student loan debt has already exceeded the nation's credit card debt and is well over 900 billion dollars. However, there are many ways to pay for and avoid school debt, some of which are offered by government sources.

Loan Forgiveness

This form of assistance with paying for school debt is typically available to people who are willing to provide a certain service to the funder. Loan forgiveness is often offered in exchange for employment, volunteer work and to professionals that work in law or medical fields. A number of well-known volunteer organizations offer student loan forgiveness options; the following list describes the most popular choices:

• The Volunteers in Service to America (VISTA) organization will pay $5,000 of your student loans in exchange for 1,700 hours of volunteer-work in their anti-poverty programs.


• Members of the Peace Corps have their loans deferred for the duration of their involvement with the organization and can have the loans reduced by up to 70% for extended service. The Peace Corps focuses on bridging the cultural gap between the United States and other countries while providing humanitarian aid.


• The Americorps offers volunteers a $5,000 reduction of their student loans. This organization specializes in educational work and environmental cleanup.

Federal Grants

There are several grants designed to help in repaying or reducing student loans that are available to qualified individuals. These grants are often sponsored by government agencies, but are also offered by private institutions, such as law firms and hospitals. The military offers student loan reduction options to employees and the families of employees who have student loans.