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Here are some frequently asked questions about the Segal AmeriCorps Education Award.
What can the education award be used for?
You can use your education award in the following ways, or a combination of them:
- to repay qualified existing or future student loans;
- to pay all or part of the current education expenses to attend a qualified institution of higher education (including certain vocational programs); or
- to pay expenses while participating in an approved school-to-work program.
How much are education awards for?
- If you successfully complete one full-time term of service (at least 1,700 hours over one year or less), you will be eligible for an award of $4,725.00.
- If you successfully complete one part-time term of service (at least 900 hours over two years or less), you will be eligible for an award of $2,362.50.
- If you are in a short-term program, such as a summer program, you will be eligible for a "reduced part-time" award -- usually $1,000 or less.
- If you serve at least 15 percent of your term and leave for compelling personal circumstances (as determined by your project director), you may be eligible for a prorated award based on the number of service hours you complete.
How many education awards can you receive?
Up to two. You can receive an award for your first two terms of service, regardless of whether they are full-time, part-time, or reduced part-time terms. If you end a term of service early, that term may count as one of your two chances to earn an award.
Which colleges and universities are "qualified institutions"?
You can use your education award at most institutions of higher education (including graduate and professional programs), as well as some vocational schools. An institution is considered qualified for the education award if it is a Title IV school, which means it has an agreement with the U.S. Department of Education making its students eligible for at least one of the federally backed forms of financial assistance (such as Pell Grants, Perkins Loans, Stafford Loans, National Direct Loans, and Federal Consolidated Loans). To make sure the institution you want to attend is qualified, check with the financial aid office to make sure the school is a "Title IV" institution before you make specific plans.
What types of loans can the education award repay?
Most postsecondary loans that are backed by the federal government are qualified for repayment with an Segal AmeriCorps Education Award. Also, loans that are made by state agencies, including state colleges and universities are now qualified. Your lender should be able to tell you if your loan is qualified. Qualified loans include:
- Stafford Loans
- Perkins Loans
- William D. Ford Direct Loans
- Federal Consolidated Loans
- Supplemental Loans for Students
- Primary Care Loans
- Nursing Student Loans
- Health Education Assistance Loans
- Loans issued to AmeriCorps members by the Alaska Commission on Postsecondary Education
What are "current educational expenses"?
Current educational expenses are expenses that were incurred after you became an AmeriCorps. Current educational expenses are based on:
- The "Cost of Attendance" for a degree or certificate-granting program at a qualified school and
- Educational expenses for non-degree courses, such as continuing education courses offered by qualified schools.
For credit or degree courses, the cost of attendance may include tuition, books and supplies, transportation, room and board, and other expenses. Each school's financial aid office determine a student's cost of attendance based upon standard U.S. Department of Education guidance.
When can you use your education award?
You can use your education award any time after you receive your voucher -- up to seven years after the date you end your service. You can apply for an extension if:
- you are unable to use the award for some reason during that time; or
- you perform another term of service in an approved program.
To be considered for an extension, you must apply before the end of the seven year period.
Is the education award taxable?
Yes. You will be taxed on your education award in the year you use it. For example, if you use all or part of your award for college in the fall of 2001, when you file your 2001 taxes, you must pay taxes on the portion of the award you used.
However, you may be able to take advantage of the Hope Scholarship Credit or the Lifelong Learning Credit. Those credits may provide you with significant tax relief. Both the Department of Education and the Internal Revenue Service have information on these tax provisions.
The Corporation for National and Community Service does not withhold taxes from the award. By the end of January the Corporation will send a 1099 Form to all AmeriCorps members who have made payments from their education awards and for whom interest payments have been made during the previous year. The 1099 Form does not need to be included in your tax return, but it reflects the amount that the National Service Trust reports to the IRS as taxable miscellaneous income.
What about paying student loans during your term of service?
You may be eligible for forbearance for your qualified student loans from your loan holder. During a period of forbearance, you do not have to make payments, although interest continues to accumulate on your loans. If you qualified for loan forbearance and completed the appropriate form at the beginning of your term of service and receive an education award, AmeriCorps will pay all or a portion of the interest that accrued on your qualified student loan during your service. This amount is in addition to your education award.
Looking for your W-2?
AmeriCorps*State and National members will receive their W-2 from the program where you served. AmeriCorps*VISTA and AmeriCorps*NCCC members will receive their W-2 from the Corporation for National and Community Service.
If you have not received your W-2 or need a duplicate:
Whom do I contact with question about my Award?
Please contact the National Service Trust at 1-800-942-2677. The Trust is staffed by live operators from 8:00-6:00 EST.
For duplicate vouchers, and report a change of address, you can e-mail edawardvoucher@cns.gov.
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