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An anonymous reader sent the following story about the approach she is taking to tackle her debt.
First I need to point out that this won’t work for everyone. I only have a two-year degree from a community college, so my total school loans were only up to $10,000 — a drop in the bucket compared to some people.
After making regular payments for a couple years I was left with a little over $8,000 in loans. Then I lost my job and was unemployed for five months. I was on unemployment, but with food, shelter and utilities, I had to stop paying on my loans. Like an idiot, I failed to file for a hardship forbearance and my credit took a nose dive. About this time I found out that I had old hospital bills that I thought my parents were going to cover for me (another bout of idiocy on my part).
So I was pretty much in over my head. The first thing I needed to do was get a job, so I ended up signing on with AmeriCorps VISTA. Since AmeriCorps is a volunteer program, they only pay a living stipend of $800 a month (for my area at least). This means you have to live near poverty level, which is good practice for living within (or under) your means later in life. The VISTA program also provides members with an $4,725 education award when they complete a year of service. The education award can be used to pay off certain types of student loans (mine all met the criteria) or as tuition at a qualifying school.
I am half way through my second year in AmeriCorps. By the end of it, I will have paid off all my student loans and have a couple hundred dollars left for future tuition. The hospital bill I was able to pay off thanks to a larger than expect tax return last year. All in all, AmeriCorps helped me get back on my financial feet.
Obviously, many people will have trouble swinging the $800 a month, but for people just leaving high school or college with limited job prospects, AmeriCorps can be a great starting place.
One of my close friends did Teach for America after college, which offered similar loan repayment benefits. I knew several people from school who served in the Peace Corps. Do any of you have experience with AmeriCorps or similar programs?
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March 2nd, 2007 at 9:59 am
Brandon Rogers (the writer, not the guy who I guess is on American Idol now…sheesh…) was a volunteer for AmeriCorps and gives a speech every year at the swearing-in ceremony. He’s generally a modest guy, but he posted his speech (and an MP3) of it b/c–well, I don’t know for sure, but knowing Brando a bit, I’m guessing it’s b/c he’s one of the good guys and wants to raise awareness for what sounds like an amazing program.
The text of the speech and link to MP3 of it are here:
http://www.onechildleftbehind.com/2006/10/rock-boat.html
He’s an amazing writer–smart, sly, funny, deep–and his speech is quite moving. And, of course, also hilarious. Highly recommended.
March 2nd, 2007 at 10:10 am
Sounds interesting and congrats on paying off your loans and bills!
What kind of work did you do while in AmeriCorps Vista?
March 2nd, 2007 at 1:37 pm
March 2nd, 2007 at 5:35 pm
My tuition (I’m from Ireland) was zero. All paid for by the taxpayer, and I’m happy to pay for the next generation. It never ceases to amaze me that Americans start themselves off in life with colossal debt hanging over their heads. I won the birth lottery for sure.
March 3rd, 2007 at 9:07 am
I did Americorps VISTA my first year out of college. It was the BEST EXPERIENCE of my working/financial life so far. There are different “branches” of Americorps volunteering, and VISTA is a specifically non hands-on voluteer option (there are other branches if you want to do hands-on work directly with those in need). I worked a 40hr/week job in a Habitat for Humanity office taking care of all things Public Relations (planning & editing publications, media relations, etc). It was certainly a challenge but I wouldn’t trade this year of experience for any amount of money I could have made at a “real” job. I’m using my Education stipend to get my master’s (though I have student loans to pay off as well). Thank you for profiling this excellent opportunity on your oh-so-excellent site, I can’t stress enough what a wonderful growing experience it provided me.
March 3rd, 2007 at 9:27 am
I worked in the Americorps, not as a Vista, but as a reading tutor. I thought I might want to teach but I wasn’t sure I could stand working with kids every day. I am SO glad I did this, it was a wonderful experience. If you’re just out of college and kind of drifitng, this is a great place to give your time. What better time to take the opportunity to give back, than before you start your “career,” you’re used to living on the cheap, and it’s a worthwile way to spend a year or two. (more productive than backpacking around Europe so the parents are more likely to approve.)
I would recommend everyone to look into the program. It was the best experience of my life.