The Edward M. Kennedy Serve America Act made important changes to the Segal AmeriCorps Education Award, including increasing the amount of the award by tying its value to the maximum Pell Grant, expanding its available uses, and authorizing transferability of the award for certain individuals. The Serve America Act went into effect on Oct. 1, 2009, and the final rules became effective on August 20, 2010.

To assist, here are some answers to frequently asked questions:

Term Limitations
Education Award Amount
Education Award Value
Transfer of Education Award
My AmeriCorps Portal
Use of Education Award

Term Limitations

1. How many terms of service may a member serve?

A member may serve up to four terms of service in AmeriCorps State and National regardless of the type the of terms. However, a member may only receive the value of two full-time education awards.

2. Do terms served prior to October 1, 2009 the effective date of the Act count towards the four-term limit for AmeriCorps State and National?

Yes. Any term an individual has served in AmeriCorps State and National in the past will count towards the four-term limit.

3. Have the term limits for VISTA and NCCC changed as well?

No, the Final Rule only increased the term limit for AmeriCorps State and National. The term limits are as follows:

AmeriCorps State and National – 4 terms
VISTA – 3 terms
NCCC – 2 terms

Education Award Amount

1. What is the maximum amount of an education award that can be earned?

Members who served terms of service that were approved using 2009, or earlier, funds received awards based on a full-time award amount of $4,725.

Beginning with terms of service that were supported with 2010 funds, the maximum education award amount is equivalent to the maximum value of the Pell Grant for the award year for which the national service position was approved. For terms of service supported with 2010 funds, this amount was $5,350. For terms of service supported with 2011 funds, this amount is $5,550. Because approval of national service positions is managed differently for VISTA and NCCC members than for AmeriCorps State and National members, VISTA and NCCC members may be eligible for the new amount several months earlier than AmeriCorps State and National members. To confirm the award amount for which you are eligible, call your program or project sponsor.

2. Will the amount of the award change?

The amount of the full-time Segal AmeriCorps Education Award is based on the maximum amount of the Pell grant for the award year in which the Corporation approved the national service position. The amount of the award a member may receive by completing a term in an approved national service position will change to correspond to the amount of the Pell Grant, and may change every year. However, once an award is earned the amount does not change to reflect future changes in the updated amount of the Pell Grant. A, awards earned in prior years will not increase in value.

3. For AmeriCorps State and National members, does the amount of the Education Award depend on the date the member’s position was approved by the Corporation or the date the member was enrolled by the program?

The amount of the Education Award depends on the date in which the member's position was approved by the Corporation.

Education Award Value

1. What is the “value” of an education award and how is it determined?

For the purpose of the limitation on education award receipt, “value” is distinct from “amount.” The value of an education award is equal to the actual amount of the education award received divided by the amount of a full-time education award in the fiscal year in which the position upon which the award is based was approved.

The value of an education award received	=	The amount of the award received
		--------DIVIDED BY--------
		The amount of full-time award in the fiscal year in which the position upon which the award is based is approved

For example, an individual who completed a part-time position approved in 2009 received an education award of $2,362.50. The value of this award is the amount received, $2,362.50, divided by the amount of a full-time award in that fiscal year, $4,725, or .5. While the dollar amount of a full time education award may change from year to year, the value of a full time award remains the same. All education awards range in value from 0 to 1 and are based on the value of a full time award being 1.

2. Is there a limit on the value of education awards that an individual is eligible to receive?

Yes. No individual may receive more than the aggregate value of two full time awards.

3. Do education awards received prior to the effective date of the rule count toward the maximum value of education awards an individual may receive?

Yes. The national service laws, as amended by the Serve America Act, do not differentiate between awards received prior to the effective date and those received subsequent to the effective date. All awards earned in the past will have a value attributed to them for the purposes of this section. Thus, if an individual has received two full-time education awards in the past, that individual is not eligible to receive another education award.

5. May an individual who has already received the aggregate value of two education awards serve another term in VISTA and receive a stipend for the service?

Yes. The individual may serve a third term in VISTA and accept the cash stipend upon successful completion.

6. What happens if a member is not eligible to receive the entire award offered for a term of service, based on the value of awards previously awarded?

To ensure that no individual receives more than the value of 2 full-time education awards, an individual who, based upon the aggregate value of education awards previously received, is not eligible to receive the entire award amount offered for a term of service, will instead receive the portion of the education award that he or she is eligible to receive. The award will be reduced (or discounted) to correspond to the remaining value of the education award for which the individual is eligible. The maximum amount of the discounted award in this case is determined using this formula:

(2 minus the aggregate value of education awards previously received)
X
(the amount of a full-time education award in the year the position is approved)

For example, a member has received a half-time education award and a full-time education award. The aggregate value of these awards is 1.5. The member may receive an education award of .5 X the amount of a full-time education award in the year the member’s position is approved.

7. What happens if an individual who isn’t eligible to receive the full value of an education award (based on the aggregate value of awards received for prior terms) leaves for compelling personal circumstances?

An individual must successfully complete his or her term of service in order to receive the education award the individual is eligible to receive. An individual who is only approved to receive a discounted education award, and who leaves early for compelling personal, circumstances will receive a corresponding portion of the discounted amount.

For example, a member enrolls in a term of service offering an award amount of $5,350, but is only eligible to receive an award of $3,000 based on the aggregate value of education awards the member has already received. If this member exits the term for compelling personal circumstances after serving 50% of the term, the member will receive $1,500, or 50% of $3,000 (the discounted value of the education award amount for which the individual was approved).

8. If an individual is only eligible to receive a discounted education award based on the value of education awards previously awarded, may that individual enroll in VISTA and receive the value of the education award remaining and also receive a partial post-service stipend corresponding to the remainder of the term?

No. An individual may not receive both an education award and a post-service stipend for the same term of service.

9. What is a “zero value” education award?

A “zero value” education award is an education award that has a monetary dollar amount of $0 and a corresponding value of 0. If an individual has met the limit on the aggregate value of two full-time education awards received, he or she may enroll in an additional term of service, as long as the person does not exceed the term limit for that particular national service program. Program term limits are shown above.

10. If a person has already met the limit on the “aggregate value of two full-time awards” earned, can the person still enroll in another term?

Members in this situation who are ineligible to earn additional education awards may be eligible to serve additional terms, as long as the person does not exceed the term limit for the program. The individual can enroll for an education award with a zero value.

11. Are forbearance and interest payments available for members serving in terms with “zero-value” education awards?

Yes. Members who have received the aggregate value of two full-time education awards are eligible for forbearance during their service terms and eligible to have all or a portion of the interest paid that accrued during their service.

12. May a program use funds from the Corporation for member support costs (living allowance, health care) for a member who has already received the value of two full-time education awards and is only eligible for a “zero value” education award?

Yes. A program may use funds from the Corporation for member support costs for a member who has already received the aggregate value of two full-time education awards if the member has not yet served the maximum number of terms for that program. A program may not use funds from the Corporation for member support costs for a member who has already served the maximum number of terms for that stream of service.

Transfer of Education Award

1. Can an eligible individual transfer an education award using the My AmeriCorps portal?

Eligible members are able to transfer their education awards using the My AmeriCorps portal. From a member’s home page, click on the “Create Transfer Request” option and follow the instructions. Occasionally, additional information is required and the requesting member will be contacted by a National Service Trust staff member.

2. What rules apply to the member who earned the award and wants to transfer it?

To transfer an award, the transferring individual must have: been at least 55 years of age before beginning the term of service; begun the term on or after October 1, 2009; transferred the award before its expiration date; and earned the award in an AmeriCorps State or National Program.

3. What rules apply to the recipient of a transferred award?

The recipient of a transferred award must: be the child, foster child, or grandchild of the transferring individual; be a citizen, national, or lawful permanent resident alien of the US; have been designated as the recipient by a qualified award-earner; and complete the required process for accepting the award.

4. May an individual transfer an education award by creating a payment request through the My AmeriCorps portal and submitting the request to the recipient’s institution for certification?

No. A transfer cannot be made using the payment request process.

The transfer offer is made by creating a Request for Transfer to an eligible recipient. The recipient must accept the transfer offer for the transfer to be completed. Once the transfer is successfully completed, the recipient is able to use the transferred award balance to make a payment to a qualified institution.

My AmeriCorps Portal

1. Do I have to use the on-line My AmeriCorps system to request payments?

In order to prevent a delay in the processing of Segal AmeriCorps Education Award payments, individuals must request payments electronically using our on-line system, My AmeriCorps. This is a secure, user friendly and fast method for requesting payments to be remitted to qualified schools or loan holders. It also provides electronic records of payments requested and there are no forms to mail.

The Corporation for National & Community Service cannot guarantee the prompt and accurate processing of requests for payments using paper forms. Payments requested by paper can take up to six months or more for processing and are less secure.

It is fast and easy to access your National Service Participant account in My AmeriCorps. To register, go to and click on “Register to create a new Member/Alum account”. Then follow the instructions.

2. Will the My AmeriCorps portal show members and programs the value of education awards that a member has already earned?

Yes. A member’s home page shows the aggregate value of education awards earned to date. Also, when a program enrolls an individual into a position, the enrollment screen will show that information. A statement similar to this will be on the screen: This member has served in 2 previous terms of service earning the value of "1.5" full-time education awards out of a maximum possible two full-time education awards (2.0).

Use of Education Award

1. For what purposes can the education award be used?

The education award can be used in one of, or a combination of, the following ways:

• To repay qualified student loans.
• To pay all or part of the current education expenses to attend a qualified institution of higher education (including certain vocational programs).

2. Which institutions are considered qualified institutions?

Qualified institutions are institutions of higher education (including graduate and professional programs), as well as qualified vocational schools that currently participate in the Department of Education‘s Title IV student aid programs. An institution is considered a Title IV school, if 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).

Education awards may also be used at a program of education approved by the Secretary of Veterans Affairs. Beginning with terms of service that started on or after October 1, 2009, the education award may be used to pay expenses incurred in enrolling in an educational institution or training establishment that is approved under the GI Bill.

To make sure that an institution is qualified, check with the financial aid office of the institution before making specific plans.

3. What types of loans can the education award repay?

Most postsecondary loans that are backed by the federal government are qualified for repayment with a Segal AmeriCorps Education Award. Also, loans that are made by state agencies, including state colleges and universities are now considered "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 state agencies, including state institutions of higher education
  

4. What expenses are considered to be “current educational expenses?”

Eligible educational expenses are based on:

• The Cost of Attendance (COA) for a degree or certificate-granting program at a Title IV school.
• Educational expenses for non-degree courses, such as continuing education courses offered by Title IV schools.
• Educational expenses for enrollment in GI Bill-approved courses or programs

Each Title IV school’s financial aid office determines a student’s COA based upon standard U.S. Department of Education guidance. The COA may include tuition, books and supplies, transportation, room and board, and other expenses.

For non-degree educational courses at Title IV schools, the appropriate administrative office that oversees the course—for example the Continuing Education Business Office—will determine the expenses necessary for the course. Normally it includes tuition, books, and supplies.

For enrollment in GI Bill-approved courses/programs, the school’s approved Certifying Official for VA courses determines the expenses based upon all or part of the student’s costs for enrollment.

Education expenses are considered “current” if they were incurred on or after the date the member began his or her term of AmeriCorps service.

5. What is the period of time in which the education award can be used?

A member may use the education award up to seven years after his or her last day of service. For a transferred award, the recipient of the transferred award can use it for ten years from the original service completion date.

• he or she is unable to use the award for some reason during that time that is outside of his or her control such as a serious illness; or
• he or she enrolls in another term of service in an approved program.

To be considered for an extension, a member must apply for an extension before the end of the seven year period.

6. Is the education award taxable?

Yes. The education award is considered taxable income in the year it is used. For example, if a member uses all or part of the education award for college in the fall of 2011, that member must pay taxes on the portion of the award used when he or she files 2011 taxes.

The Corporation for National and Community Service (CNCS) does not withhold taxes from the award. By the end of January each year, the Corporation sends a 1099 Form to all AmeriCorps members who have made payments from their education awards and for whom interest payments have been made totaling more than $600.00 during the previous year. The 1099 Form does not need to be submitted to the IRS with a member’s tax return, but it reflects the amount that CNCS reports to the IRS as taxable miscellaneous income.

7. What about paying student loans during your term of service?

A member may be eligible for forbearance from the loan holder for a qualified student loan. During a period of forbearance, the member will not have to make payments, although interest continues to accumulate on the loans. If the loan was in forbearance, after the successfully completed term, CNCS will pay all or a portion of the interest that accrued on qualified student loans during the term of service. This amount is in addition to the Segal AmeriCorps Education Award.

8. Where can a member find their W-2 form or 1099 form for tax purposes?

W-2s are used to report to the IRS that portion of the living allowance or stipend that is taxable. It is not used for reporting on the amount of the education award used.

AmeriCorps State and National members receive their W-2 from the program where they served. AmeriCorps VISTA and AmeriCorps NCCC members receive their W-2 from the Corporation for National and Community Service.

Form 1099 MISC is used to report to the IRS all education award and interest payments if the payments total $600.00 or more for the year.

9. What is the contact for questions about the Segal AmeriCorps Education Award?

Please contact the National Service Hotline at 1-800-942-2677. The Hotline is staffed by customer service representatives from 8:00-8:00 EST. Changes of address may be reported in the My AmeriCorps portal, or by visiting http://www.nationalservice.gov/questions/app/ask .