Loan Forbearance / Interest Accrual

AmeriCorps Manual Main Page

AmeriCorps members who are earning a Segal AmeriCorps Education Award are uniquely eligible for one type of postponement of the repayment of their qualified student loan called forbearance. During the forbearance period, interest on the principle amount of the loan continues to accrue. If a member successfully completes their term of service and earns an Education Award, the National Service Trust will pay all or a portion of the interest that has accrued on the qualified student loans during this period. This accrued interest paid by the Trust, like the Segal AmeriCorps Education Award itself, is subject to income taxes.

AmeriCorps members enrolled in an AmeriCorps project are eligible for forbearance for most federally-backed student loans. For other types of student loans, members must ask their loan holder if their AmeriCorps service qualifies for a deferment or forbearance.

This postponement of the student loan payment (forbearance) is not automatic. Members must request it from their loan holders by completing the National Service Forbearance Request Form. Members may complete the Forbearance Request Form by accessing their My AmeriCorps Portal.

The National Service Trust does not grant forbearances. Loan holders do. The Trust merely verifies membership in AmeriCorps and forwards the documents to the loan companies. The Trust is able to verify membership only when it has proof from a project that the individual is an AmeriCorps member.

Interest Accrual Payments

AmeriCorps members who have earned a Segal AmeriCorps Education Award are eligible to have the Trust pay up to 100% of the interest that accrued on their qualified student loan during their service. To have the Trust pay all or a portion of the interest accrued on a qualified student loans, the Trust must receive verification from the Program indicating the member has completed their service and are eligible for an award. A member and their lender also must complete the Interest Accrual Form, which indicates the amount of interest accrued during your service period. The loan holder sends this completed form to the Trust for payment.

For further information regarding Interest Accrual Payments.

Defaulted Loans

Most student loans that are in default are not eligible for forbearance. If a member has loans that have gone into default before they begin their AmeriCorps service, they can attempt to negotiate an arrangement with the loan holder or collection agency to bring the loan out of default so forbearance can be granted and interest paid.

See attached files: