I am in my first year of AmeriCorps, and I am considering serving for another year. I am going to apply to medical school as well next year, and while I expect it's going to be a very tight year financially, one advantage of AmeriCorps is that a full year of service is 1700 hours, which works out to just under 33 hours a week, which gives you some flexibility for going to interviews, writing essays, etc., or getting a part time job or volunteering at a hospital.
I'm actually curious to ask. . .does anyone know if schools will waive the application fees for AmeriCorps? I feel like they really should, but maybe it's a stretch to ask them. I make slightly over $900 a month, my loan payments are defered (which saves me $60 in interest a month), and the educational award will be helpful. My parents put $100 into my account every other month or so, which helps a little. Still, I am taking on about a $100 in credit card debt (O Apr till mid-2008 saves the day).
It has been a great experience for me. I get to work on a variety of projects, which includes teaching to diverse groups, working with the disadvantaged, serving on a public health committee, organizing events. I've really tailored it a lot to my interests, which I can do since they are paying me so little. So you aren't getting rich, but if you can find a program that really interests you, it's a once in a lifetime opportunity to do something that's not immediately "cost-effective," but which IS making a psotive difference in some people's lives. Of course, this isn't true for every experience. My brother did a VISTA program for a summer and didn't like the work too much. . .editing program evaluations. He had a bad supervisor and most of the other volunteers ended up surfing the internet at work for the whole summer.