AmeriCorps Education Award
What is an Education Award and what can it be used for?
What types of loans can the Education Award repay?
What types of expenses are considered part of the current “cost of attending” an institution?
When can Education Awards be used?
What if a member loses the voucher or never received one after being exited?
Is the Education Award taxable?
Must the Education Award be used all at once?
How many Education Awards can I receive?
What if I need to transfer to another college?
What kinds of courses can I use my education award for?
What is an Education Award and what can it be used for?
After successfully completing a term of service and submitting the required exit paperwork to the SFS Program Director within 30 days of their exit date, SFS members are enrolled in the National Service Trust and are then eligible to receive an education award. The education award can be used to pay education costs at qualified institutions of higher education or to repay qualified student loans. You may use the Education Award in the following ways, or a combination of them:
- To repay qualified existing or future student loans;
- To pay all or part of the current cost of attending a qualified institution of higher education (including certain vocational programs); or
- To pay current expenses while participating in an approved school-to-work program.
What types of loans can the Education Award repay?
Most post-secondary loans that are backed by the federal government are qualified for repayment with an AmeriCorps education award. The lender should be able to tell you if the loan is qualified. Qualified loans include:
- Stafford Loans
- William D. Ford Direct Loans
- Supplemental Loans for Students
- Nursing Student Loans
- Loans issued to AmeriCorps members by the Alaska Commission on Postsecondary Education
- Perkins Loan
- Federal Consolidated Loans
- Primary Care Loans
- Health Education Assistance Loans
If you are unsure if your lender will not honor the education award, call them, ask, and get written confirmation that if they will honor the award!
What types of expenses are considered part of the current “cost of attending” an institution?
“Cost of attending” may include tuition, room and board, books, supplies, transportation, and other various expenses. The financial aid office at your school has information on expenses for specific academic programs, and that office determines the cost of attendance for your particular school.
When can Education Awards be used?
The Education Award can be used any time after you receive your voucher for up to seven years after the date you ended your service. The member must fill out the AmeriCorps Exit Form and turn it in the SFS Program Coordinator. Once all require paperwork has been completed and entered into the Corporation for National & Community Service’s database, they will send a voucher directly to the members’ permanent address noted on the exit form. They have seven years to use their Education Award.
What if a member loses the voucher or never received one after being exited?
Its best to first check with the SFS Program Director to ensure all paperwork was completed and to verify the Social Security number as well as the permanent address of the member. Once the paperwork has been processed the Corporation for National & Community Service handles the voucher and sends it directly to the member. The quickest way to obtain a new voucher is to visit http://www.americorps.gov/for_individuals/benefits/benefits_ed_award.asp. You may also choose to simply find this by going to www.americorps.gov. But here at this web site, one can check on the balance of their education award, find out how to use the education award, request a duplicate voucher, and more! They can be reached by phone at 1-888-507-5962 or by email at edawardvoucher@cns.gov.
Is the Education Award taxable?
Yes. The education award is taxed in the year it is used. The Corporation for National Service does not deduct taxes from the award, but in late January it sends 1099 Forms to all AmeriCorps members who have made payments from their education award. The 1099 Form does not need to be included in your tax return, but it reflects the amount that the National Service Trust reports to the IRS as taxable miscellaneous income. If you have questions about how to file taxes for your award, contact your local IRS office. Remember, you can split up the use of your award to pay a combination of student loans and/or educational expenses. And, you can split up the allocation of your award over multiple calendar years, as well, to divide up the tax costs.
Must the Education Award be used all at once?
No. It is completely up to the member as to how the education award is used. It may be used all at once or in increments. A new voucher will be sent showing the current balance each time one is submitted. If it is used in increments we recommend the member visit www.americorps.gov and follow links to Alumni information. There, the member will be allowed to sign up for a login to view their account and how much has been processed. We also recommend that members keep copies of everything.
How many Education Awards can I receive?
You may receive up to two education awards in your life-time, and only for the first two terms of service, regardless of whether they are for full-time, part-time or reduced parttime terms. Even if you do not complete one of the first two terms of service, you cannot receive an education award for a third term. You may, however, serve two AmeriCorps terms (receiving the education award) and one term as a VISTA, where you can receive the end of term cash grant instead of the end of term education award.
What if I need to transfer to another college?
In some cases, students need to transfer from one school to another. If these circumstances arise during your term of service, they will be reviewed by campus supervisor and the SFS Program Coordinator on an individual basis. By working together we will find a resolution that will best suit the needs of all involved parties.
If I have already paid for some education expenses out of my own pocket, can the check be sent to me?
By law, the Trust can only send checks to qualified schools and loan holders. Checks cannot be sent to others, such as landlords, parents, or mortgage companies. However, your school can reimburse you for the expenses included in the “cost of attendance” that you paid for yourself. See your financial aid office for more information about how they handle reimbursement and disbursements.
What kinds of courses can I use my education award for?
You may use your education award to pay for all courses in which you are enrolled as a student in a Title IV educational institution. You are not limited to courses that are part of a degree, certificate or credential program.
No. Only AmeriCorps-approved Members are eligible for education awards. You may not transfer it to a relative or any other individual under any circumstances.