Using Your Segal AmeriCorps Education Award
After successfully completing your AmeriCorps term of service, you are eligible to receive a Segal AmeriCorps Education Award. You can use your education award to repay qualified student loans and to pay certain educational expenses costs at eligible institutions of higher education and training programs. You may use your education award to repay qualified student loans, to pay for current education expenses, or for both purposes.
You can access the entire award or part of it until the total amount has been used or the award expires. You must use your award within seven years of completing your term of service.
Under certain conditions, education awards can be transferred to specific family members. Briefly, the person who earned the award 1) must have earned the award by serving in an AmeriCorps State or National Program, 2) must have been been at least 55 years of age when he or she began the term of service and 3) must have begun the term of service on or after October 1, 2009. The recipient of the award has to be the transferring individual’s child, stepchild, foster child, grandchild, or step-grandchild. Visit the web page Transferring an Education Award for more information on transferring awards.
Use the Education Award to 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 that was made to you by a state agency, including state institutions of higher education.
Segal AmeriCorps Education Awards cannot 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.
Use the Education Award to Pay Current Educational Expenses at Eligible Schools
Eligible schools are higher educational institutions, both domestic and foreign, that currently participate in the Department of Education’s Title IV student aid programs. They are 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. For the purpose of the education award, these are referred to as G.I. Bill approved programs. See the paragraph on G.I. Bill approved programs below, for further explanation.
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.
If the G.I. Bill approved programs are offered by institutions that are also Title IV schools, expenses can be determined by either the institution’s Financial Aid Office or the VA-approved Certifying Official.
Current educational expenses are expenses that were incurred after you became an AmeriCorps member. Educational expenses that pre-date your AmeriCorps service are not considered “current”. For example, you cannot use the award to repay a school an old debt, such as an outstanding tuition bill, that you incurred before you entered AmeriCorps. However, if you took out a qualified student loan to pay for the expenses before you entered AmeriCorps, you can use your education award to repay that qualified loan.
If you withdraw early from a school where you have used an education award, the school may be required to refund the Trust. If any refund is owed, it is credited to your education award "account," and is subject to the award’s original expiration date (seven years from the date the award was earned). For general information on how withdrawing from school may affect your student financial aid, ask your financial aid counselor or refer to the U.S. Department of Education's Federal Student Aid Handbook.
Under certain circumstances, you can use the education award to study outside the U.S. See the web page on Using your Education Award for further information. You may also contact the National Service Hotline at 1-800-942-2677 if you have questions.
GI-Bill Approved Programs
An education award can now be used at programs of education, apprenticeship, or on the job training that have been approved by the Secretary of Veterans Affairs under the Montgomery G.I. Bill and the Post 9/11 G.I. Bill. If the GI-Bill approved program is offered by a Title IV school, any AmeriCorps alumni can use their award to pay for current educational expenses.
However, if the GI Bill approved program is offered by an institution that is not a Title IV school, then special rules apply. We use the term GI-Only for these programs. The rules for using the award at these GI-Only programs are based upon the date the education award was certified (approved) by an authorized program staff and whether the AmeriCorps alumnus is a veteran.
These are the rules governing using the education award at GI-Only programs (GI-Bill approved programs that are offered by institutions which are not Title IV schools):
- A Segal AmeriCorps Education Award certified on December 23, 2011, and later, can be used if the member is a veteran.
- An education award certified between October 1, 2009, and December 22, 2011, can be used by both veterans and non-veterans.
- No education award that was certified prior to October 1, 2009, can be used for GI-Only programs, even if the member is a veteran.
Use My AmeriCorps to Request a Payment Online
Accessing and managing your Segal AmeriCorps Education Award has never been easier. By registering to use the online system, you can check your award balances, access important important financial information, request forbearance, and, most importantly, easily make payments to your educational institution or loan holder.
Additional Information About Your Segal AmeriCorps Education Award
- Segal AmeriCorps Education Award Home Page
- Amount, Eligibility, and Limitations
- Postponing Student Loan Payments and Getting Interest Paid
- Tax Implications
- Transferring an Education Award
- FAQs About the Education Award
Determining the amount of financial aid for which a student is eligible can be a complicated process. The rules governing financial aid may contain terms that are hard to understand. Financial Aid Officers are trained to keep up with the ever-changing rules and legislation affecting federal student aid. Your school’s Financial Aid Office can assist you in planning your financial aid over your college years.
Below we are providing some basic guidance in making the most of your education award during your educational experience. We are also providing important information that you can pass on to Financial Aid Counselor which may help when he or she advises you on when and how to use your education award.
If you intend to apply for student financial aid as well as use your education award, payments from your education award, interest payments on your student loans and the living allowance you received during your service can affect your eligibility for some student aid in the school year after the payments were made.
- Under certain circumstances, your education award, living allowance, and Trust payments on accrued interest can be excluded from calculations determining your eligibility for student aid based on financial need. This could increase the amount of "need-based" aid for which you are eligible.
- Under different circumstances, using the education award can reduce the amount of other need-based student aid for which you are eligible.
Many schools will require you to fill out the Free Application for Federal Student Aid (commonly known as FAFSA) if you use your education award, even if you do not intend to apply for financial aid. The FAFSA can be completed online. If you are required to complete this form, complete it early and correctly. A section of the form asks about your income reported to the IRS from the previous year. If you used your education award in the previous year, had interest payments made by AmeriCorps, or received a living allowance, be sure to include those amounts on the line where it asks for AmeriCorps benefits (awards, living allowances and interest payments). This can give you a lower adjusted gross income and help you receive a better financial aid package.
Information You Can Give to Your Financial Aid Counselor