Garamendi Introduces Legislation to Improve Student Loan Forgiveness Program for Peace Corps Volunteers and AmeriCorps Members
WASHINGTON, DC— Today, Congressman John Garamendi (D-CA), a returned Peace Corps Volunteer (Ethiopia 1966-1968) and co-chair of the Congressional Peace Corps Caucus, introduced the Peace Corps and AmeriCorps Student Loan Forgiveness Act (H.R.7457). The reintroduction coincides with the 63rd anniversary of President John F. Kennedy’s founding of the Peace Corps.
"Today, we celebrate the anniversary of the Peace Corps founding and the more than 240,000 Peace Corps Volunteers who have answered JFK's call to service over the last 63 years," said Congressman John Garamendi (D-CA), co-chair of the Congressional Peace Corps Caucus. "To commemorate this occasion, I introduced legislation to ensure that former, current, and future Peace Corps Volunteers and AmeriCorps members have full access to the federal government's Public Service Loan Forgiveness (PSLF) program."
"My wife Patti and I owe so much to our service in the Peace Corps. It inspired a lifetime of public service that began in Ethiopia during the late 1960s and continued into state government in California, the Clinton Administration, and now the U.S. Congress," Garamendi continued. "One of the greatest barriers to pursuing public service careers is the nearly impossible burden of student loan debt. Full access to the PSLF program ensures that the many PCVs and AmeriCorps members who, like us, hope to continue their careers in public service will be financially able to do so."
"Now more than ever, Congress should recognize and uplift the selfless service of our Peace Corps Volunteers and AmeriCorps members," Garamendi continued. "This legislation will ensure that their time well spent in service to communities at home and abroad counts towards meaningful loan forgiveness."
"On behalf of the National Peace Corps Association, I wholeheartedly endorse the 'Peace Corps and AmeriCorps Volunteer Student Loan Forgiveness Act' introduced by Representative Garamendi. This legislation recognizes the selfless service of Peace Corps Volunteers by ensuring their time spent in service to our country and host communities around the world counts towards public service loan forgiveness. This is a meaningful step towards honoring the financial sacrifices made by volunteers as they contribute to global peace and friendship. This bill supports the financial well-being of our volunteers and reinforces our nation's commitment to encouraging public service. Its passage is crucial for future, current, and former volunteers, making it a priority for our association and the communities we serve. We look forward to supporting this legislation and future bills that take steps such as this to make national service through the Peace Corps more accessible to those who might otherwise not have the financial means to devote two years of their life to Volunteer service in promotion of world peace and friendship," said Dan Baker, President and CEO of the National Peace Corps Association.
"AmeriCorps members, like Peace Corps volunteers, spend one to two years in service to their communities, responding to our country's most immediate and critical needs and supporting local nonprofit and faith-based organizations. If we want individuals from all walks of life to have the opportunity to serve in AmeriCorps, it's important that they have all the tools available to them to both manage and reduce student loan debt," said AnnMaura Connolly, President of Voices for National Service and Chief External Engagement, Policy and International Officer for City Year, Inc. "As a former Peace Corps volunteer, Representative Garamendi personally understands the sacrifices of those who serve their country. The national service community is grateful for his leadership on this issue."
Historically, Peace Corps Volunteers and AmeriCorps members who were in deferment or forbearance during their service were limited in their ability to count their periods of service under the PSLF program.
This legislation builds on a bicameral letter led by Garamendi and Senators Chris Van Hollen (D-MD) and Ben Cardin (D-MD) in December 2021 to Secretary of Education Miguel Cardona urging the U.S. Department of Education to include Returned Peace Corps Volunteers in the Biden Administration's recent improvements to the PSLF Program.
In April 2022, the Department of Education announced a one-time addendum to their limited-time waiver to incorporate certain borrowers in deferment, including Returned Peace Corps Volunteers and former AmeriCorps members. Moreover, in July 2023, the Department released new regulations expanding PSLF eligibility, including expanding situations where it's acceptable for a borrower to defer payments and still qualify for PSLF, including AmeriCorps service. However, these regulatory changes failed to capture the entire universe of Peace Corps Volunteers and AmeriCorps members.
Garamendi's Peace Corps and AmeriCorps Student Loan Forgiveness Act would codify these regulatory changes that incorporate borrowers in deferment or forbearance and provide a permanent fix for future, current, and former Peace Corps Volunteers and AmeriCorps members regardless of their repayment status. It would also provide a permanent, retroactive fix for Returned Peace Corps Volunteers and former AmeriCorps members who served on or after October 2007 and whose service was not covered by the regulatory changes. This includes:
- Peace Corps Volunteers who were in economic hardship deferment and were not included in the time-limited waiver;
- AmeriCorps VISTA members who chose the cash stipend at the end of their service rather than the education award; and
- Peace Corps Volunteers who are in-school deferment, including those who participated in the Master's International Program.
The legislation is cosponsored by Representatives Stephen Lynch (D-MA), Eleanor Holmes Norton (D-DC), Zoe Lofgren (D-CA), Andre Carson (D-IN), Gwen Moore (D-WI), David Trone (D-MD), and Sylvia Garcia (D-TX). The bill is endorsed by the National Peace Corps Association, Voices for National Service, and City Year, Inc.
The full text of the Peace Corps and AmeriCorps Student Loan Forgiveness Act (H.R.7457) is available here.
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