ServiceCorps Debt-Zero Guarantee Program
Welcome to the inaugural ServiceCorps Debt-Zero Guarantee Program! In an environment where the average college student graduates with over $30,000 in student debt (*Source: The Project on Student Debt), the ability to perform service has become a luxury that few can afford. ServiceCorps is the first and only program to democratize service by providing Fellows with modest living stipends and by paying 100% of student loan payments during their year of service. We are also speaking with universities and AmeriCorps about the potential for education payments and loan forgiveness.
How does the Debt-Zero Guarantee program work?
ServiceCorps will pay 100% of student loan payments based on 10-year loan repayment terms for the final 6 months of the ServiceCorps Fellowship (most student loan repayments start 6 months after graduation).
ServiceCorps may pay up to 100% of the monthly payments of U.S. Department of Education loans and select private loans received by Fellows with the following conditions:
- Total loan amount must be verified within 30 days of the start of the Fellowship.
- Graduation must be verified within 30 days of the start of the Fellowship.
- Not all loan types will count towards the total ServiceCorps payment; acceptable loan types are at the sole discretion of ServiceCorps.
- The maximum amount of time to accumulate the loan must be no longer than 6 academic years.
- ServiceCorps will pay the Fellow directly. It is the Fellows responsibility to decide how to manage his/her finances.
- ServiceCorps payments are pegged to the standard student loan repayment schedule of 120 months (10 years), regardless of the repayment schedule of Fellow loans.
- All ServiceCorps payments are pegged to the interest rate of U.S. Department of Education federal government direct unsubsidized undergraduate loans for January 1 of the year the ServiceCorps Fellowship begins regardless of the interest rate of the actual loan.
- ServiceCorps payments are made on a monthly basis beginning on January 1, the approximate midway point of the Fellowship, and continuing for 5 additional periods for a total of 6 equal monthly payments. This is to reflect that many student loan repayment plans begin 6 months after graduation.
- The maximum payment for a monthly period is $2,500 and the maximum amount ServiceCorps will pay in total is $15,000, regardless of the size of the loan.
- ServiceCorps reserves the right to selectively modify or revoke this program in whole or in part without notice for any reason.
What does a Fellow need to do in order to set up their Debt-Zero Guarantee?
We request that all Fellows that are interested in participating in our loan repayment program to first notify Ben Glass of ServiceCorps (email@example.com). The next step would include providing ServiceCorps with a bank statement of your student loans in order for us to verify the specific amount that you are obligated to pay back.
Upon approval, ServiceCorps will set up a Debt-Zero Guarantee payment plan based on the total amount of your loans and the standard 10-year loan repayment terms. How quickly or slowly you have committed to repay your loans will not impact the total amount of money that ServiceCorps will be giving you. We will pay Fellows per the terms of the repayment contract, which general kicks in 6 months after graduation.
Have any questions?
As always, feel free to reach out to learn more about this initiative. Please email Ben Glass for all inquiries related to the Debt-Zero Guarantee (firstname.lastname@example.org).