How Much is the AmeriCorps Education Award Worth?

You've completed more than 300 hours of training, you've gained a lot of knowledge, and we hope you had some fun along the way. The reward for your hard work is an education award that is equivalent to the Pell Grant. All Bonner AmeriCorps members from New Jersey who successfully complete their term of service will receive this award. Any payments made with the Segal AmeriCorps Education Award are subject to federal taxes in the year they are made.

Anyone who completes a term of service within a 12-month period in one of the following programs is eligible to receive an education award. This award can be used to pay for associate, undergraduate, or graduate school tuition at a qualifying school. Interest payments and educational scholarship payments are considered taxable income and must be reported to the IRS. The AmeriCorps education award and any accrued interest payments are also considered taxable income for the year 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 given 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 equal to the maximum value of the Pell Grant for the fiscal year in which the national service period is approved. Your loan holder will be notified to verify that you participated in AmeriCorps and earned an educational award.

In rare cases, 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 use their education award to help with the costs of required certification courses. The Serve America Act allows for 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.