The value of an educational award received is three times greater than the amount of the award received ÷ the amount of a full-time award in the fiscal year in which the position in the national service was approved. While a person can serve more than two terms, they cannot earn more than the added value of two full-time education awards. Anyone who completes a term of service within a 12-month period, in one of the following programs, is entitled to receive an education award. All payments made with the Segal AmeriCorps Education Award are subject to federal and potential state taxes in the year in which each payment is made.
Most federally backed post-secondary loans are eligible to be repaid with an AmeriCorps education award. The amount of a full-time Segal AmeriCorps education award is equivalent to the maximum value of the Pell Grant for the year in which the national service period is approved. Of course, you can use the education award to pay for associate, undergraduate, or graduate school tuition at a qualifying school. Rarely, the education award can affect the process of receiving additional financial aid through the FAFSA.
The amount of a full-time Segal AmeriCorps education award is equivalent to the maximum value of the Pell Grant for the fiscal year in which the national service period is approved. AmeriCorps VISTA members who choose to receive the education award are not eligible for this cancellation. After successfully completing your term of service with AmeriCorps and enrolling in the National Service Trust, you are eligible to receive the Segal AmeriCorps Education Award. Ford direct loans, consolidated federal loans, supplemental student loans, primary care loans, nursing student loans, health education assistance loans, and loans issued to AmeriCorps members by the Alaska Commission on Postsecondary Education.
Any amount of the educational grant used and any interest payments made during a tax year may affect your annual income tax liability. IRS Publication 970, Tax Benefits for Education, explains the tax benefits that may be available to taxpayers who pay higher educational costs or repay student loans. The AmeriCorps Education Award is awarded to members who serve, part time or full time, in participating programs through AmeriCorps. Currently, members can only participate in AmeriCorps and receive an education award for up to two years, but the new rules may allow AmeriCorps members who work part-time to serve for more than two terms.
The maximum amount of a full-time education award is equivalent to the maximum amount of the Pell Grant for the year in which the national service position was approved.