I am applying to the Peace Corps and I have subsidized and unsubsidized Stafford Loans out. I need to know if 1. they are principal deferrable 2. if they are interest deferrable.

There is also a note in the package I received from the Peace Corps directly concerning the Stafford Loan which is wordy and I do not understand:

"IM[i]PORTANT!
New legislation governing eligibility requirements for deferment of Stafford loans has changed the category under Peace Corps service qualifies. Please refer to the information below if your lender has questions regarding your eligibility for a loan deferment..." It then goes on to mention "New borrowers on or after July 1, 1993" and "Other borrowers pre- and post- July 1, 1993"

Just hoping this notice could be cleared up so I could understand and also figure out the deferment process.

THANKS

It is true that Peace Corps volunteers are eligible for deferment of Stafford, Perkins and Direct Consolidation loans. However, the details of deferment vary and are subject to change. Your best bet is to talk to your Peace Corps recruiter and find out how this benefit applies to your situation.