The federal government allows its agencies to use student loan repayment as a recruiting tool. Not all do, but the Department of Defense is one agency that has embraced the federal student loan repayment program, which pays $10,000 a year in student loan debt for employees who commit to a three-year contract.
Those who may not want to commit for three years can still get benefits by volunteering. AmeriCorps' education awards, for example, are given after volunteers complete their 10- to 12-month stints. The amount is equal to the size of Pell Grants for the award year, which currently is $5,550, and volunteers can earn a maximum of two awards. Volunteers also can qualify for loan deferral and the National Service Trust will pay accumulated interest, a benefit that in Drago's case amounted to more than $2,000.
Drago used one of her awards to pay down her Stafford student loans and plans to use the other for further education.
"I'm hoping to go to graduate school in the next five years, and some schools will match the value" of AmeriCorps grants, Drago said. "It's a great program."