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Ed ucation Award Training

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Joely Ross
Joely Ross

The document summarizes information about the Segal AmeriCorps Education Award, including: - AmeriCorps members receive an education award after completing service that can be used within 7 years to pay student loans or education expenses. - A full-time term earns a $4,725 award, with pro-rated amounts for less than full-time service. - The award is taxable and must be used at qualified schools. It can pay existing student loans or current tuition, fees, books and supplies. - The MyAmeriCorps portal allows members to manage the award, including requesting interest accrual payments or paying loans/expenses.

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THE SEGAL AMERICORPS EDUCATION AWARD
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
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
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
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
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.
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
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
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 schools 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
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
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
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
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
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
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
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
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
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
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_address] and may go straight to junk mail
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
油
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.
How does the payment process work?
Good luck!

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Ed ucation Award Training

  • 1. THE SEGAL AMERICORPS EDUCATION AWARD
  • 2. 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
  • 3. 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
  • 4. 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
  • 5. 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
  • 6. 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.
  • 7. 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
  • 8. 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
  • 9. 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 schools 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
  • 10. 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
  • 11. 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
  • 12. 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
  • 13. 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
  • 14. 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
  • 15. 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
  • 16. 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
  • 17. 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
  • 18. 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
  • 19. 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_address] and may go straight to junk mail
  • 20. 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
  • 21. 油
  • 22. 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.
  • 23. How does the payment process work?