Your AmeriCorps Education Award

Can the award be applied directly to the principal rather than the net terms of the loan?

Ask your lender, they may honor your request but usually reserve the right to apply as they see fit.

How long does it usually take to process a loan payment to a lender?

It depends on how long it takes the lender to certify the request. Once paperwork is received, the Corporation processes it within 30 days. Requests submitted through my.americorps.gov are automatically set up for payment once the lender certifies the request.

I sent in my request for forbearance several days after I started my service and it still says "pending." Do I have to contact my college?

Yes, contact your college and inform them of the pending action.

I wasn't aware that AmeriCorps would pay the interest accrued during my service year so I've paid it this year. Can AmeriCorps refund me those payments as well as the interest that is accruing now?

AmeriCorps cannot refund you the interest payments that you have already made. You are still entitled to have the interest that accrued during your term of service applied to your loan. You will need to contact your lender to see how the funds will be applied.

Is it more beneficial for tax purposes to spread out the award money or to use it all at once?

Make sure to consult a tax professional before you use the award to know the tax brackets. To truly understand your options you have to take into account information that we are not privy to.

Tax Bracket* Married Filing Jointly Single Head of Household

10% Bracket $0 – $18,450 $0 – $9,225 $0 - $13,150

15% Bracket $18,451 – $74,900 $9,226 - $37,450 $13,151- $50,200

25% Bracket $74,901 - $151,200 $37,451 – $90,750 $50,201 - $129,600

Make sure to consult a tax professional before you use the award to avoid joining higher tax bracket.

For more detailed tax bracket information visit taxfoundation.org.

*As of January 2015

Do I owe taxes on the ed award in the year I receive it or in the year I use it?

The tax liability is incurred when the education award is disbursed.

How do I use the Ed Award for educational costs other than tuition (books, computer, etc.)?

Eligible Cost of Attendance is determined by your school using the guidelines set forth by the Department of Education.

Keep in mind:

• The beneficiary of the award has 10 years to use the award (not seven) from the date when the transferring individual completes a service term. Remember that children seven or younger will be 17 or younger when the award expires and might not have a chance to use it.

Staying Connected:

• americorpsalums.org

• Facebook: @americorpsalumniassociation

Be active in financial aid process:

If you are going to school:

• Meeting with the financial aid office = job interview so be prepared.

• Notify them of Education Award - but let them know you don't want to use if you'll lose other aid.

Fill out FAFSA's "Additional Financial Information/Student Grant and Scholarship Aid" section - nothing to lose, everything to gain.

Public Service Loan Forgiveness

• Wipe out loans in 10 years

• http://www.ibr.org

Transferring your ed award (does not apply to VISTA members):

• You must be 55 or older

• Can transfer to child, grandchild, foster child

• They have up to 10 years to use the award

• You have up to 7 years to decide to revoke or transfer

• No additional ed award if they serve in AmeriCorps

• One award, one time to one individual (different award to different people)

• Consider tax liabilities for recipient

If your school doesn't provide additional financial or credit support for Alums check here for tips on how to ask them to consider it:

www.edaward.org

Public Service Loan Forgiveness

Are you a veteran?

• Use your GI Bill to attend school

• Use your Ed Award for "school gear" (computer, digital camera, internet connection, etc.)

Check americorpsalums.org for institutions that:

• Match Ed Award

• Provide scholarships for alums

• Grant credit for your AmeriCorps service

After 10 years in non-profit, public service or education, remainer of loan forgiven.

Think Strategically!

Not sure how to use your award?

• 7 years to decide

• Be creative!

Remember:

• Ed award is taxed so plan carefully

• Use 1040 not 1040 EZ to take advantage of tax breaks.

Your AmeriCorps Education Award

Living allowance, ed award, loan interest not considered income for financial aid purposes.

If my institution isn't registered to use

my education award can I request the

institution to sign up to accept the award?

Yes. However, you should submit your request

through the "My AmeriCorps" system and they

will attempt to get the school to register.

Commonly Asked Questions

Why is the ed award disbursed in two separate payments and not a lump sum?

• Federal rules require that payments greater than $10 have to be split.

• Only applies to payments for education expenses, not loan payments.

• The payments are not based on the number of ed awards you have.

Can the ed award be used for certification processes like ESL certification?

Yes, if these certifications can be found at qualified institutions that will consider you to be enrolled at the institution when taking the training or certification.

Access your Education Award at

http://my.americorps.gov

Example:

• You have two $5730 education awards and your eligible educational expense is $30,000.

• You can make the entire amount of both awards available with one payment request and the total authorized amount of $11,460.

• Payment will be split into two disbursements of $5730.

• If you submit a request for a lump sum payment to your qualified student loan the payment will be disbursed as a single $11,460 payment.

Going to school?

Pay student loans?

Transfer award?

No idea?

Do I have to use my ed award to have my interest repaid?

No, but you must earn an ed award to get the appropriate portion of your accrued interest paid. The paper and electronic processes have separate forms for interest accrual requests.

Questions?

National Service Hotline 1-800-942-2677

On the Web:

http://www.edaward.org

The Effective Ed Award Webinar:

http://tinyurl.com/edawardwebinar

The Effective Ed Award Q&A:

• When an Education Award is transferred, it affects the transferring and designated individual’s ability to receive future awards. For example, if a parent gives her child two full-time awards, neither parent nor child will be able to receive awards in the future.

How to Transfer Your Award

• The transferring and designated individuals are required to provide a certification (under a penalty of law) that each meets the criteria to give or receive a transferred award.

Do AmeriCorps members serving quarter time (ed award only) receive interest reimbursement?

Yes, as long as you earn an education award.

Log into my.americorps.gov

Select "Create an Award Transfer"

(Upper left corner)

Avoid losing aid!

• You can transfer the award to a child, grandchild, or foster child. You CANNOT transfer it to other family members, mentored children, or scholarship funds.

Recipient receives e-mail with instructions

Is it possible to use the ed award

to pay for a work/study program abroad?

Yes, as long as it is a Title IV school and the school considers you to be enrolled in the institution.

Enter:

• Required personal information

• Amount being transferred

• Recipient's information

Click "Submit"

Use your Ed Award like you would a savings account - only when you absolutely need it.

Financial aid is based on need.

Using your ed award too soon may lead to lost financial aid.

Can you use the ed award to pay off private student loans?

No, only used to repay state issued or federally secured loans (Perkins, Stafford).

What about transferring your award to a child, grandchild or foster child (55+ only)?

For alums who are retired, what are educational travel opportunities?

Consider study abroad classes.

Road Scholar is also a good option.

http://www.roadscholar.org/.