Ed ucation Award Training
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Transcript of Ed ucation Award Training
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THE SEGAL AMERICORPSEDUCATION AWARD
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Education Award Basics
AmeriCorps members have 7 years to use the Education Award
Several ways to use it: Repay qualified student loans Pay toward cost of attendance at qualified
institutions of higher education A combination of the two
Unlike most other scholarships and fellowships, it is fully taxable in the year it is redeemed
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Education Award Amounts
Full-time term of service: $4,725
If you serve at least 15% of your term and leave for compelling personal circumstances, you may be eligible for a pro-rated award based on the number of hours completed
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Eligibility
You are eligible for a Segal AmeriCorps Education Award if you successfully complete a term of service, in accordance with your member contract, with AmeriCorps* State and National, VISTA, or NCCC
You must have received a high school diploma or the equivalent
AmeriCorps members are only eligible to receive TWO awards, regardless of whether the term of service was full- or part-time
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Using the Award
The award can be used any time after it is activated on MyAmeriCorps (about two weeks after you are exited from the program)
It can be used up to 7 years after the date you end your term of service
Award can be divided up and used in portions It is possible to apply for an extension (before
the end of the 7 years) if: You are unable to use the award during that time You perform another term of service in an
approved program
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Limitations
Award cannot be transferred to any other individual
Payments cannot be made to anyone other than qualified schools and loan holders
If you withdraw from school, the institution may be required to refund the award
Under certain circumstances, the award can be used to study outside the U.S.
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“Qualified” Student Loans
National legislation defines qualified loans as loans backed by the federal government under Title IV of the Higher Education Act, or under Titles VII or VIII of the Public Health Act
Can also be used for loans made by state agencies, including state institutions of higher education
Loans can be defaulted, as long as they are qualified loans
Cannot be used for any other loans, including private or Parent PLUS loans
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Examples of qualified loans
Stafford Loans Perkins Loans William D. Form Direct Loans Federal Consolidated Loans Supplemental Loans for Students Primary Care Loans Health Education Assistance Loans Nursing Student Loans
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Current Education Expenses
“Cost of Attendance” for a degree- or certificate-granting program of study at a qualified school “Cost of Attendance” may include tuition, books
and supplies, transportation, room and board, and other expenses, as determined by the school’s financial aid office
Continuing education courses at qualified schools
Qualified schools are Title IV institutions of higher education Includes most colleges, universities, and
graduate schools
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Interest Accrual
AmeriCorps members who have earned an Education Award are eligible to have up to 100% of the interest that accrued on qualified student loans during their service paid.
Lender must complete the Interest Accrued During National Service Form, which indicates the amount accrued
If you fail to complete your term of service, the interest will not be paid off
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Which Loan?
If you have more than one loan, it may be best to pay off the loan with the higher interest rate first
“Unsubsidized” loans have been gathering interest while you were in school, so should be prioritized
Perkins Loans are typically the “best,” so it may be best to pay them off last
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Consolidating Loans
It may be possible to get a better interest rate by consolidating one or more “old” student loans
Things to keep in mind: Make sure the “new” loan is qualified, so that
you can use your Education Award to pay for it If you are consolidating during your term of
service, call the National Service Trust, so that they can ensure that the interest will be paid
Read the fine print – there may be fees that will end up costing more than the original interest
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Other Loan Benefits
Public Service Loan Forgiveness You can have student loan debt wiped
away after ten years of working with a non-profit and making steady student loan payments
Income-Based Repayment Plan Loan payments can be significantly
reduced if you are earning a low income
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Matching Institutions
Some institutions of higher education will match the Segal AmeriCorps Education Award, doubling the amount of the award to $9,450
A list of schools is available on the AmeriCorps web site, and includes: 20 schools in New England Graduate programs in public service, social
work, business, law, and education
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Taxes
The Education Award, unlike most scholarships and fellowships, is subject to Federal taxes in the year it is used Living allowances/stipends and any interest
paid by AmeriCorps on your loans during your term of service are also taxable
Taxes are NOT automatically deducted from the Education Award or interest payments In the year(s) you use the award, you will be
mailed a Form 1099 to use while preparing your tax return
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Taxes on Stipends
The living allowance received in a calendar year is subject to income taxes in that year The portion of your stipend earned in 2009 will
be filed on your W2 for 2009 Goodwill will mail another W2 in January of
2011 for the stipend earned during the spring of 2010
Though you are responsible for the taxes on your Education Award and stipend, you may be eligible for tax relief The IRS and the Department of Education have
more information about potential tax credits
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Taxes on Education Awards
In January following the year you use all or part of your Education Award, you will receive a 1099 The form can also be downloaded from the
MyAmeriCorps web site If you use $600 or less, a 1099 form will
not be created for you; however, you are still required to report any amount withdrawn from the award as income on your taxes
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Paying Lower Taxes
If you move on from service and start a job in the $30-40,000 range, you will move into a higher tax bracket Using the Education Award over multiple
years may help to prevent you from bumping up a tax bracket
The interest you pay on student loans is often tax deductible
You can receive tax credits while in school Seek out other tax credits and deductions
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How to Register for Your Award Before your end date (July 11, 2010), you
must complete and upload exit paperwork to the TRC web site so you can be exited from the program
By August 1, you will be able to access the Education Award in the My AmeriCorps Portal
Click on the link to register and follow the instructions sent via email Email will come from
[email protected] and may go straight to junk mail
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My AmeriCorps Portal
Within the Portal, you can control several things: Loan deferral Request payment of accrued interest Request payment of qualified student loans Request payment of current educational expenses Certify status as an AmeriCorps member Check the balance of the Education Award Extend the expiration date of your Education
Award View the status of pending requests Submit applications to AmeriCorps programs
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•Many institutions are already connected to The Trust online.
•You search for your lender to request interest accrual payoff at the end of your term, no earlier than a month before the end of your term.
•Directions to request Ed Award are also the same.
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How does the payment process work?
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Good luck!