Amount of the Segal AmeriCorps Education Award

One of the important changes to the Segal AmeriCorps Education Award under the Serve America Act is how the value of the award is determined. Beginning with terms of service that are supported with 2010 funds, the amount of a full-time education award will be equivalent to the maximum value of the Pell Grant for the award year in which the term of service was funded. Because AmeriCorps State and National programs are funded on a different schedule than VISTA and NCCC, VISTA and NCCC members will be eligible for the new amount sooner than AmeriCorps State and National members.

• All members who enrolled before October 1, 2009, will be eligible for awards based on a full-time award amount of $4,725.
       
• VISTA and NCCC members enrolling on or after October 1, 2009, will be eligible to receive awards based on the maximum value of the Pell Grant this year- $5,350.
       
• Most State and National programs will receive their 2010 funding in the summer of 2010. State and National members who enroll in a program supported by 2009 funds will be eligible for awards based upon the $4,725 amount; State and National members who enroll in a program supported by 2010 funds will be eligible for awards based upon the $5,350 amount.

FOR ALL MEMBERS:
YOU CAN CHECK WITH YOUR PROGRAM OR PROJECT SPONSER TO CONFIRM THE VALUE OF THE AWARD FOR WHICH YOU ARE ELIGIBLE.

• Because the maximum value of the Pell Grant can change every year, the amount of a full-time award can change in the future. However, once a member earns an award, the value of that award will not increase.
       
• For all programs, award amounts for part-time terms of service vary based upon the length of the required term of service.
       
• 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.
       
• A member serving in a full-time term of service is required to complete the service within 12 months.

Eligibility

You are eligible for a Segal AmeriCorps Education Award if you successfully complete your term of service in accordance with your member contract with one of the following approved AmeriCorps programs:

• AmeriCorps State and National
• AmeriCorps VISTA
• AmeriCorps NCCC

At the time you use the Segal AmeriCorps Education Award, you must have received a high school diploma, or the equivalent of such diploma.

Alternative to the Segal AmeriCorps Education Award

As an alternative to the Segal AmeriCorps Education Award, AmeriCorps VISTA members may choose to take a post-service cash stipend instead.

Only AmeriCorps VISTA alumni who choose the stipend and have student loans may be eligible for up to 15% cancellation on certain types of loans. To determine what student loans may be eligible for cancellation and to receive forms, contact the U.S. Department of Education at 1-800-433-3243. AmeriCorps VISTA members who choose the education award may not claim a partial cancellation.

Award Limitations

Currently, the maximum number of terms that you can serve remains at two terms. Full-time, half-time, reduced half-time, quarter time, and minimum time terms of service each count as one term of service. The Corporation is developing new term limits through its rulemaking process. Any new term limitations are expected to go into effect in 2010.

• Generally, if you are released for cause before completing your term of service and do not receive an education award, that term of service counts as one of your two terms.
       
• The Trust does not make payments to anyone other than qualified schools and loan holders. See your financial aid counselor for information on how they handle disbursements and reimbursements.
       
• If you withdraw from the school at which you have used the 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. Contact the National Service Trust/AmeriCorps Hotline at 1-800-942-2677 for further information.
       
• 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.

Award Transfers

The Corporation is currently preparing rules to cover the transfer of education awards by individuals age 55 or older who begin service on or after October 1, 2009, under certain conditions. Proposed rules are expected to be published for public comment in the winter. Rules will be finalized in early 2010 and will be published on this site.