What can the education award used to pay for?

The Segal AmeriCorps Education Award can be used to pay future education costs at qualified institutions of higher education or to repay qualified student loans.

For additional information, visit: http://www.americorps.gov/for_individuals/benefits/benefits_ed_award_use.asp

Please note that the Segal AmeriCorps Education Award is subject to federal tax in the year the payment is made.

If the Trust makes a payment on qualified student loans to a school or lender for the entire amount of a full-time education award in one calendar year, the member is responsible for any income taxes owed in that calendar year on the entire amount. If a member redeems only a portion of their education award in one calendar year, s/he is responsible for any taxes owed on that portion. Interest that is paid on qualified student loans is also subject to income taxes in the year it was paid.

Tax is not deducted from a member’s education award or interest payments. If the education award and interest payments total more than $600 in a calendar year, members will receive a Form 1099 to be used in filing their income tax return. The total sum of interest payments and the Segal AmeriCorps Education Award are listed together on the 1099 form.