Basics of the Segal AmeriCorps Education Award
The Segal AmeriCorps Education Awards -- named after Eli Segal, one of the pioneers of the national service movement and the first CEO of CNCS -- are a post-service benefit received by AmeriCorps members. Upon successful completion of a term of service, members are eligible to receive a Segal AmeriCorps Education Award, which may be used only to pay college costs or to repay student loans.
Minimum time AmeriCorps Members will receive a $1,175 award.
Where you can use the award:
You can use your Segal AmeriCorps Education Award to repay qualified student loans and to pay certain education costs at qualified institutions of higher education and training programs.
The national service legislation defines qualified student loan as a loan backed by the federal government under Title IV of the Higher Education Act (except PLUS Loans to parents of students) or under Titles VII or VIII of the Public Health Service Act. You may also use your Segal AmeriCorps Education Award to repay a student loan made to you by a state agency, including state institutions of higher education.
Qualified schools are higher educational institutions that currently participate in the Department of Education’s Title IV student aid programs (referred to as Title IV schools). This category includes most post-secondary colleges, universities, and technical schools.
The education award can also be used for programs of education, apprenticeship, or on the job training that have been approved for educational benefits under the Montgomery GI Bill and the Post 9/11 G.I. Bill.
Educational expenses that can be paid include:
How to use the award:
After you have completed your service and received notification of the availability of your award, you can begin to use your education award. To access your award and the My AmeriCorps portal go https://my.americorps.gov/mp/login.do and sign in. If this is your first time accessing the portal you will need to register to create a new account. In your home page, under “My Education Award” click on the “Create Education Award Payment Request” link to bring up the screen to request the payment. Follow the instructions and complete the form. You will select the purpose of the payment (loan or current educational expenses), the amount of the payment, and identify the holder of your student loan. When you click on “submit”, a notice will be sent electronically to your educational or loan institution. A record of your request will appear in your account home page.
The school or loan holder will complete their portion of the form and return it electronically to CNCS. They will fill in the amount for which you are eligible if the request is for current educational expenses or they will provide the payoff amount and loan type if the request is for a student loan. The institution will certify the accuracy of the information and submit it to CNCS for payment.
You have seven years to use the education award from the date of your completion of service. You can divide up your award and use portions of it at different times, as long as it is for authorized expenditures within the specified time period. You could, for example, apply a portion of it to existing qualified student loans, and save the remainder to pay for authorized college costs a few years down the road.
You can receive up to the equivalent of two full time awards in a lifetime. So, as minimum time members, you receive about one fifth of one full time award (currently $5,550).
Taxes:
Payments made from Segal AmeriCorps Education Awards are considered taxable income in the year that the Corporation makes the payment to the school or loan holder. This increase in your income could affect your tax liability for that year.
The education award is taxed 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 2014, that member must pay taxes on the portion of the award used when he or she files 2014 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 during the previous year totaling more than $600.00. 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.
Transferring the award:
The Serve America Act allows for the transfer of AmeriCorps State and National and Silver Service education awards under certain conditions. Basically, the person who earned the award has to have been at least 55 years old when they began the term of service and the person to whom the award is transferred has to be the transferring individual’s child, grandchild, or foster child.
To transfer an award, an individual must:
Terms of Service
A member may serve up to four terms of service in AmeriCorps State and National regardless of type of term. However, a member may only receive the value of two full-time education awards.
A program may use funds from the Corporation for member support costs for a member who has already received the value of two full-time education awards if the member has not yet served four terms total. 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.
Members who have received the value of two full-time education awards are eligible for forbearance during their service terms and to have their accrued interest paid after successfully completing their service.
For more info:
Visit: http://www.nationalservice.gov/programs/americorps/segal-americorps-education-award & https://www.nationalserviceresources.gov/edaward
Minimum time AmeriCorps Members will receive a $1,175 award.
Where you can use the award:
You can use your Segal AmeriCorps Education Award to repay qualified student loans and to pay certain education costs at qualified institutions of higher education and training programs.
The national service legislation defines qualified student loan as a loan backed by the federal government under Title IV of the Higher Education Act (except PLUS Loans to parents of students) or under Titles VII or VIII of the Public Health Service Act. You may also use your Segal AmeriCorps Education Award to repay a student loan made to you by a state agency, including state institutions of higher education.
Qualified schools are higher educational institutions that currently participate in the Department of Education’s Title IV student aid programs (referred to as Title IV schools). This category includes most post-secondary colleges, universities, and technical schools.
The education award can also be used for programs of education, apprenticeship, or on the job training that have been approved for educational benefits under the Montgomery GI Bill and the Post 9/11 G.I. Bill.
Educational expenses that can be paid include:
- The "Cost of Attendance" (COA) for a degree- or certificate-granting program of study at a Title IV school. The COA may include tuition, books and supplies, transportation, room and board, and other expenses. Each Title IV school's financial aid office determines their students’ COA based upon standard U.S. Department of Education guidance.
- Educational expenses for non-degree courses, such as continuing education courses or workshops offered by Title IV schools. Educational expenses that can be paid normally include tuition & fees, books, and supplies, as determined by the school’s administrative office.
- Courses or training programs authorized under the Montgomery G.I. Bill and the Post 9/11 G.I. Bill. These courses and programs have been approved by the Department of Veterans Affairs for GI Bill educational benefits. The educational institutions or training establishments that offer these courses and training programs will have a VA-approved Certifying Official who can determine eligible expenses.
How to use the award:
After you have completed your service and received notification of the availability of your award, you can begin to use your education award. To access your award and the My AmeriCorps portal go https://my.americorps.gov/mp/login.do and sign in. If this is your first time accessing the portal you will need to register to create a new account. In your home page, under “My Education Award” click on the “Create Education Award Payment Request” link to bring up the screen to request the payment. Follow the instructions and complete the form. You will select the purpose of the payment (loan or current educational expenses), the amount of the payment, and identify the holder of your student loan. When you click on “submit”, a notice will be sent electronically to your educational or loan institution. A record of your request will appear in your account home page.
The school or loan holder will complete their portion of the form and return it electronically to CNCS. They will fill in the amount for which you are eligible if the request is for current educational expenses or they will provide the payoff amount and loan type if the request is for a student loan. The institution will certify the accuracy of the information and submit it to CNCS for payment.
You have seven years to use the education award from the date of your completion of service. You can divide up your award and use portions of it at different times, as long as it is for authorized expenditures within the specified time period. You could, for example, apply a portion of it to existing qualified student loans, and save the remainder to pay for authorized college costs a few years down the road.
You can receive up to the equivalent of two full time awards in a lifetime. So, as minimum time members, you receive about one fifth of one full time award (currently $5,550).
Taxes:
Payments made from Segal AmeriCorps Education Awards are considered taxable income in the year that the Corporation makes the payment to the school or loan holder. This increase in your income could affect your tax liability for that year.
The education award is taxed 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 2014, that member must pay taxes on the portion of the award used when he or she files 2014 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 during the previous year totaling more than $600.00. 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.
Transferring the award:
The Serve America Act allows for the transfer of AmeriCorps State and National and Silver Service education awards under certain conditions. Basically, the person who earned the award has to have been at least 55 years old when they began the term of service and the person to whom the award is transferred has to be the transferring individual’s child, grandchild, or foster child.
To transfer an award, an individual must:
- have earned an education award in an AmeriCorps State and National or a Silver Scholar term of service;
- have been at least 55 years of age before beginning the term of service for which the award is attached;
- have begun this term of service on or after October 1, 2009;
Terms of Service
A member may serve up to four terms of service in AmeriCorps State and National regardless of type of term. However, a member may only receive the value of two full-time education awards.
A program may use funds from the Corporation for member support costs for a member who has already received the value of two full-time education awards if the member has not yet served four terms total. 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.
- AmeriCorps State and National – 4 terms
- VISTA – 5 terms
- NCCC – 2 terms
Members who have received the value of two full-time education awards are eligible for forbearance during their service terms and to have their accrued interest paid after successfully completing their service.
For more info:
Visit: http://www.nationalservice.gov/programs/americorps/segal-americorps-education-award & https://www.nationalserviceresources.gov/edaward