You've received more than 300 hours of training, you've learned a lot, and we hope you had some fun along the way. The amount of the prize is equivalent to the Pell Grant. Every Bonner AmeriCorps member from New Jersey will receive an education award upon successful completion of their term of service. All payments made with the Segal AmeriCorps Education Award are subject to federal taxes in the year in which each payment is made.
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. Of course, you can use the education award to pay for associate, undergraduate, or graduate school tuition at a qualifying school. Interest payments, as well as educational scholarship payments, are considered taxable income and are reported to the IRS. The AmeriCorps education award and accrued interest payments are considered taxable income for the year in which they are used.
Each period of service for which an individual earns an education award counts as a period of service when calculating term limitations. The AmeriCorps Education Award is awarded to members who serve, part time or full time, in participating programs through AmeriCorps. 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. A notification will be sent to your loan holder to verify that you participated in AmeriCorps and earned an educational award.
Rarely, the education award can affect the process of receiving additional financial aid through the FAFSA. AmeriCorps VISTA members who choose to receive the education award are not eligible for this cancellation. Members who have completed their full time service periods, completed them within 12 months, and have received education awards will receive 100% of the interest accrued on their qualifying loans during their service. While a person can serve more than two terms, they cannot earn more than the added value of two full-time education awards.
Many members of the body use their education award to help with the costs of required certification courses. The Serve America Act allows the transfer of educational awards earned by a member who successfully completes a term of service in state and national AmeriCorps programs, under specific conditions.