Segal AmeriCorps Education Award

After successfully completing a term of service, Fellows are eligible to receive a Segal AmeriCorps Education Award. You can use your education award to pay education costs at qualified institutions of higher education, for educational training, or to repay qualified student loans. The Edward M. Kennedy Serve America Act made changes to the maximum amount of the Segal AmeriCorps Education Award. The amount is now tied to the maximum amount of the U.S. Department of Education’s Pell Grant. For terms of service that are approved using 2009 funds (or earlier funds) the award continues to be $4,725 for a year of full-time service, and is pro-rated for part-time service based on the full-time amount. For terms of service that are supported with 2010 funds the award value may increase to $5,350.00. You can make payments from your award in full or part, and can take up to seven years after your term of service has ended to use your award.

In addition, there are many colleges and universities that will MATCH the Segal AmeriCorps Education Award in full! For a list of participating schools click here

To manage your Segal AmeriCorps Education Award log-in to MyAmeriCorps here

See below if you would like to learn...

If your questions still haven't been answered, feel free to contact Colleen Holohan.

How To Use Your Ed Award

You can use your Segal AmeriCorps Education Award in any of the following ways—or a combination of them.

Repay Qualified Student Loans

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.

Segal AmeriCorps Education Awards may not be used to repay any other type of loan, even if the loan was obtained for educational purposes. You can use your Segal AmeriCorps Education Award to repay defaulted student loans as long as the loans meet the definition of qualified student loan.

Pay Current Educational Expenses at a Qualified School

Current educational expenses, as authorized under 42 U.S.C. § 12604(c), include:

  • The "Cost of Attendance" for a degree- or certificate-granting program of study at a qualified school; and
  • Educational expenses for non-degree courses offered by qualified schools, such as continuing education courses.

Your school is qualified if it is a Title IV institution of higher education. This means that it participates in the US Department of Education’s Title IV Student Aid Programs. Students who attend the school are eligible for Federal student aid.

Current educational expenses are expenses that were incurred after you became an AmeriCorps member.

For degree or certificate programs of study, the cost of attendance (COA) may include tuition, books and supplies, transportation, room and board, and other expenses. A school's financial aid office determines each student's COA based upon standard Federal legislation and guidance.

Pay Current Educational Expenses While Participating in an Approved School-to-Work Program

Current educational expenses are expenses that were incurred after you became an AmeriCorps member. 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.

For Additional Information on Using Your Segal AmeriCorps Education Award

The Corporation is not in a position to provide advice about your income taxes or how you use your education award. However, for a discussion on how the education award may affect other financial aid and income taxes, see The Effective Education Award by National Service Fellow Brandon Rogers.

Tax Implications

The Segal AmeriCorps Education Award, unlike most other forms of scholarships and fellowships, is subject to federal tax in the year the payment is made When and how much of the education award you redeem may have an impact on your overall income tax responsibility.

If the Trust makes a payment on qualified student loans to your school or lender for the entire amount of a full-time education award in one calendar year, you will be responsible for any income taxes owed in that calendar year on the entire amount . If you redeem only a portion of your education award in one calendar year, you will be responsible for any taxes owed on that portion. Interest that is paid on qualified students loans is also subject to income taxes in the year it is paid.

The Trust DOES NOT deduct taxes from your education award or interest payments. If your education award and interest payments total more than $600.00 in a calendar year, in January of the following year, the Corporation will send you a Form 1099 to be used in preparing your income tax return. The total sum of interest payments and the Segal AmeriCorps Education Award payments are listed together on the 1099 form.

Living Allowance

You are responsible for any income taxes owed on any AmeriCorps living allowances you receive. The living allowance amount received in a calendar year is subject to income taxes for that calendar year. For example, if you receive a portion living allowance in 2009 and the rest in year 2010, the portion received in 2009 is subject to 2009 income taxes, and the portion received in 2010 is subject to 2010 income taxes.

After the calendar year in which you earned any living allowance, your AmeriCorps project will send you a W-2 form indicating the amount of the allowance you earned in that year. Most AmeriCorps VISTA and AmeriCorps NCCC members receive their W-2 forms from the Corporation.

Tax Relief

While you are responsible for taxes on your education award and other AmeriCorps benefits, you may be eligible for other tax relief through the Taxpayer Relief Act of 1997. Issues about income taxes are very complicated. The important point to remember is that you should consider the tax consequences of any decisions you make about when and how to use your education award.Contact a tax professional or the Internal Revenue Servicefor details.

IRS Publication 970, Tax Benefits for Education explains tax benefits that may be available to members who are using education awards to pay for current educational expenses or to repay qualified student loans.