MAXIMIZING THE�EDUCATION AWARD

TRADITIONAL AND NON-TRADITIONAL USES

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Katie Sylvis with Habitat Iowa

Special Guest – Nick Borders – Kirkwood Community College

EDUCATION AWARD BASICS

• 3 parts of the education award (Award, Forbearance, Accrued interest)
• How to use the education award – Traditional /Basic
• Loans, Cost of Education, Transferring to others
• How to use the education award – Non-Traditional and Traveling

WHAT’S MY AMERICORPS EXPERIENCE?

• 2 years as a VISTA and VISTA Leader in Iowa
• 6 years as an AmeriCorps Program Director
• Used 1 award on loans
• Used partials on future tuition costs

WHO HAS PLANS FOR THEIR AWARD?

EDUCATION AWARD BASICS �– 3 PARTS OF THE AWARD

1. ACTIVE MEMBER: National Service Forbearance (36-month lifetime max)
2. AFTER SERVICE: Accrued interest payment on loans in National Service Forbearance
3. AFTER SERVICE-7 YEARS: Education Award Money (2 full-time equivalent lifetime max)

EDUCATION AWARD BASICS �1. ) NATIONAL SERVICE FORBEARANCE

AmeriCorps members actively serving are eligible to place their federal education loans into National Service Forbearance.

• This is easily done through your My.AmeriCorps.Gov account.
• Loans in forbearance do not have any payments due. They are frozen, but interest still accrues.
• Can only be used for up to 36 months.

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If you place your loans into National Service Forbearance, you cannot count that time for Public Service Loan Forgiveness Program. You have to choose between PSLF or Forbearance.

EDUCATION AWARD BASICS �– PUBLIC SERVICE LOAN FORGIVENESS

• If you place your loans into National Service Forbearance, you cannot count that time towards Public Service Loan Forgiveness Program.
• You must choose between PSLF or Forbearance.
• https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service

EDUCATION AWARD BASICS �2.) ACCRUED INTEREST PAYMENTS

• After you have exited successfully from the program AND your federal student loans were in National Service Forbearance
• You are able to have all accrued interest on federal student loans paid off

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*Only on federal education loans that were placed in National Service Forbearance.

EDUCATION AWARD BASICS �3.) SCHOLARSHIP MONEY

• After completing your term of service, you will be awarded the money
• Located in My.AmeriCorps.gov
• Available 30-60 days after term of service is complete

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2021-22 Amounts (increases each year):

1700 hours $6345

1200 hours $4441�900 hours $3172�450 hours $1678

300 hours $1342

HOW TO ACCESS IT?

• The education award, accrued interest payments, and federal loan forbearance are controlled in MY.AMERICORPS.GOV
• The education award is placed with in your my.americorps.gov account and almost acts like a savings account.
• You must direct where the money goes and when it is paid out.

HOW TO ACCESS IT?

• In my.americorps.gov, you can direct your education award towards your loan or school:
• Select “My education payment”
• Select Forbearance, interest, or Education Payment”
• Select “Education payment” or “loan payment”
• Select the amount of money to send
• Search for your institution. ( you may have to add your school if you are the first person using it there)
• Certify and submit (only hitting it once)

WHAT HAPPENS IF MY SCHOOL IS NOT THERE?

• If a school is not listed, do not panic!
• You will need to suggest the school to My.AmeriCorps.gov.
• >Search institutions > “not found”
• It will ask for things like address, phone, contact, etc.

EXTRA TIPS

• 7 years to spend it – Don’t fret, think it over
• Only 2 full-time equivalent education awards in your lifetime.
• Education award is considered taxable income when you use it
• You choose what amount of money you want to use each time. $1 or $5000. You check the balance on my.americorps.gov
• There is a long list of Matching Institutions/Schools of National Service to double your money.

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WHAT CAN YOU DO WITH THE MONEY?

1. Past loan expenses
2. Current & Future Education Expenses
3. Transfer to family

Easiest 🡪

Okay 🡪

Hardest 🡪

HOW CAN YOU USE IT? ��1. PAYING OFF STUDENT LOANS

Easiest way to use the award

1) PAYING OFF FEDERAL STUDENT LOANS

• The education award can be used to pay off federal student loans
• If you try to use it on the private school schools, it will be rejected
• You can send any amount from 1%- 100% of the award.
• You need to know the who holds your loans – Name of institution
• Usually takes 30 days to process
• You can check the status of that payment under “My Education Award” tab.

STOP! LET’S DO AN EXAMPLE

• Daniel would like to pay off student loans.
• Completes his term of service
• Daniel makes sure his loans are federal student loans.
• He locates the name and address of his loan provider. Not the School.
• Daniel goes to My.AmeriCorps.gov and directs money towards the intuition who holds his loans
• Daniel checks every week or so to make sure the loan payment has gone through. There is no notification in the system.
• If there is an issue, he may need to call his loan provider to address the issue.

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• Common mistakes:
• Loan does not qualify for repayment
• Sent to the wrong address or institution
• Loan provider confused and rejected payment

HOW CAN YOU USE IT? ��2. COST OF EDUCATION

Current or future school expenses

2.) PAYING FOR COST OF EDUCATION

• Always approved:
• Future School Tuition
• Not Approved:
• School bills that occurred before service began
• Approved only by your school financial aid office:
• Housing
• Food
• Fees
• Books and computers

PAYING FOR COST OF EDUCATION

Before sending money to your future school:

1. Make sure you were accepted to that school
2. Find out if your school is a Title IV school (education awards must travel through a Title IV entity)
3. See if your school is a Matching Institution. (If not, ask your school if they will become one)
4. Call your financial aid office so they know it is coming.
1. Let them know What is the Eli Segal Education Award
2. How much to expect and that it is delivered in 2 parts (beginning of semester and halfway through
3. Ask if it can be used for Cost of Education expenses. AmeriCorps allows it, but it is up so the school policy.
4. Double check that the school is a Title IV school
5. Ask if they will become a matching institution.

TITLE IV INSTITUTION

Ask the financial aid office if the school is a Title IV institution.

OR….

�Learn if students who attend the school are eligible to use Pell Grants, Perkins Loans, or Stafford Loans to attend the school. If students are eligible for these loans, it is a Title IV school. These loans are examples of some of the most common types of Title IV assistance.

MATCHING INSTITUTIONS / SCHOOLS OF NATIONAL SERVICE

Some schools are willing to give additional money to those using the AmeriCorps Education Award.

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Explore on the website:

https://americorps.gov/partner/partnerships/schools-national-service-search

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AVOID LOSING FINANCIAL AID

“AVOID LOSING AID

Keep your Education Award funds in your MyAmeriCorps portal account until after your institution awards you a financial aid package. (Your Education Award funds should not count against you, as long as they are still in your My AmeriCorps account and not yet sent to the school.) Even then, if you are filling out your financial aid forms correctly, your award funds should not count against you. See Create a Better Aid Offer above for more information. Remember you have seven years to use your Education Award, from the date your receive it.”

Strategy

To make sure that you do not lose aid when using your award, work with financial aid officers from your school, and let them know you have a Segal AmeriCorps Education Award, but don't want to use it if it will cause you to lose aid.

STOP! LET’S AN EXAMPLE!

• Daniel would like to go to Iowa State for a 4 year degree.
• Daniel looks at the list of matching institutions to see if Iowa State will match his education award.
• Daniel schedules an appointment with his financial aid office and explains the Segal AmeriCorps Award
1. The award will come in 2 payments (at the beginning and in the middle of the semester. Just like many scholarships)
2. He double checks that Iowa State is a Title IV school
• Daniel goes to my.americorps.gov
• He submits an education payment request
• He waits for the school to accept that payment.

STOP! LET’S AN EXAMPLE!

• Daniel would like to textbooks with his money at DMACC.
• Daniel schedules an appointment with his financial aid office and explains the Segal Education Award
1. He must ask, “Are students allowed to use loan and scholarship funds to pay for the COST OF EDUCATION items like textbooks or a laptop?”
2. If they say yes, they may require Daniel to purchase books at the DMACC bookstore, or they may cut a check for reimbursement for outside sources. This is completely up to the school and their policies
• Daniel goes to my.americorps.gov
• He submits an education payment request to go to DMACC
• He waits for the school to accept that payment.

COMMON MISTAKES

Common mistakes of education award payments:

• Not a Title IV school
• School rejects the payment because they do not recognize the funds (member did not call financial aid office)
• Send the whole award even if only a small amount is required
• Forgets to speak with financial aid office to see if Cost of Education covers other non tuition costs

HOW CAN YOU USE IT? ��3. TRANSFERRING THE EDUCATION AWARD

Give the award to children or grandchildren

3.) TRANSFERRING THE EDUCATION AWARD

• 55 and older at time of signing contract
• Can only be transferred to a child, stepchild, grandchild, step grandchild or foster child
• 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. (beware if they are too young)
• Members can initiate a transfer request through the MyAmeriCorps Portal.
• This award counts towards their lifetime award limit
• Step by step guide: https://www.nationalservice.gov/node/29899
• https://www.nationalservice.gov/resources/ed-award/transferability

ALTERNATIVE METHODS TO USE THE EDUCATION AWARD

Wait…. There are other ways?!??!

ALTERNATIVE USES

TRAVEL:

Many backpacking programs have partnerships through universities allowing AmeriCorps Alum to use their education award for traveling in country or abroad.

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STUDY OR SERVE ABROAD: �Alums have been able to enroll in study abroad programs through universities and pay for their programs through the school.��SPECIALIZED SKILL PROGRAMS: �If you’ve ever wanted to learn a new specialized skill, your Ed award can help pay for the classes towards your new hobby. Alums have previously used their ed award towards specialized classes, such as photography, EMT training, and even SCUBA certification. With all of these options, make sure to check with your education institution or student loan companies to see if they accept the Ed award as a form of payment.

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Other Resources:

• Non-profit Management Certificates –
• University of Northern Iowa - Philanthropy and Nonprofit Management.
• Colorado Fire Camp
• DMACC Continuing education Courses
• Alternative ways to use your ed award
• Using your ed award to travel
• Getting outdoors with your education award
• Complete guide to using your education award (alternative ways page 46)
• IPSL-https://www.ipsl.org/graduate-education-abroad

ALTERNATIVE USE - TRAVEL

• NOLS (National Outdoor Leadership School)
• Offers scholarships to AmeriCorps Alum up to $2000
• https://info.nols.edu/americorps
• Outward Bound
• https://www.outwardbound.org/expeditions/scholarships/americorps-education-awards/
• Colorado Fire School
• https://www.coloradofirecamp.com/

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• These programs accept the money through local universities

MEMBER BENEFITS

SERVICE-LEARNING PROGRAMS

• AmeriCorps alumni members can connect to unique learning experiences and apply and further develop their service-learning and leadership skills in an international setting
• Institute for Global Learning - IPSL
• AmeriCorps Alumni Benefits: Priority Admission, Use your AmeriCorps Segal Education Award Automatic, Matching $5,500 Scholarship, Application Fee Waived
• https://www.ipsl.org/americorps
• Global Service Corps
• globalservicecorps.org/americorps-segal-award/
• AmeriCorps alumni can apply their Segal Award towards GSC program fees, airfare, and most related expenses.

PAYING FOR EDUCATION: �NONCREDIT COURSES

• Most community colleges and universities have noncredit courses.
• These are one off classes on random topics
• Example: Intro to photography, HR, Computer classes, art classes

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• https://ce.dmacctraining.com/dmacc2/public/store/search.do?navigator=courseCategories

MEMBER PAYING FOR EDUCATION: �TRADE SCHOOL

• There are many more options and schools. You just need to look.

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• Automotive- Wisconsin Indian Head Technical College / Shell Lake, WI - www.witc.edu
• Cosmetology- Minnesota School of Cosmetology / Woodbury, MN - www.msccollege.edu
• Culinary Arts - The Culinary Institute of America / Hyde Park, NY - www.ciachef.edu
• Electrical - Community College of Denver / Denver, CO - www.ccd.edu
• Emergency Medical Technician (EMT) -Central Lakes College / Brainerd, MN - www.clcmn.edu
• Massage Therapy -European Massage Therapy School /Skokie, IL - www.school-for-massage.com/chicago-campus
• Truck Driving (CDL)- Alexandria Technical College / Alexandria, MN - www.alextech.edu
• Welding- Cincinnati State Technical and Community College / Cincinnati, OH - www.cincinnatistate.edu
• Yoga instructor-College of Lake County / Grayslake, IL www.clcillinois.edu/ads/yoga-teacher-certificate

https://static1.squarespace.com/static/5c463fdd3c3a53c04e227a38/t/5cb3a1c5f4e1fc911a390b77/1555276243022/Using+your+Segal+Education+Award+and+Non-Traditional+Uses+of+the+AmeriCorps+Education+Award.pdf

All these schools and programs are operated through Title IV schools

EDUCATION AWARD AND TAXES

• The education award and accrued interest payments are considered TAXABLE INCOME
• *Except in Iowa (special instructions for deducting the Segal Award from your State taxes)
• You will receive a 1099 misc at the end of the year (also on my.americorps)
• https://americorps.gov/members-volunteers/education-award-faqs

MORE RESOURCES

• Education Award- webpage
• National Service website on using the education award
• Step by Step My.AmeriCorps - How to use your americorps education award – youtube video
• How to use AmeriCorps Education award – CNCS youtube
• AmeriCorps Alum- FAQs
• List of Matching Institutions
• My.AmeriCorps.Gov Guide
• Instructions for deducting the Segal Award from Iowa Taxes

WHO HAS PLANS FOR THEIR AWARD NOW?

QUESTIONS WITH A FINANCIAL AID OFFICER - GROUP

• How do members need to start the process of speaking with the financial aid office to use funds? 
• Visit with the financial aid advisor or counselor about a month or two before school will help.
• How long does it take to process the award? How to speed this up? Easier on the staff?
• This varies. Typically within a week or two.
• Start conversation early
• Other tips for using the funds?
• How can they spend the money on other Cost of Education expenses?
• Varies by institution,
• How to convince a school like Kirkwood to become a matching institution?
• Educate the office and leaders. Educate policy leaders on the program.

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• 1. Always fill out your FAFSA
• 2. Always speak to the financial aid office
• 3. Always apply the grants/scholarship/loans first before using the education award first.

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QUESTIONS FOR BREAKOUT- SMALL GROUP

• Has financial aid or scholarships changed because of COVID/ recession?
• Slight increase in Pell Grant
• CARES funds have been given to some school for students in the form of direct aid. They will end this Fall.
• How can you maximum your financial aid?
• General tips for getting scholarships
• Get going. Apply for scholarships.
• Schools have money, they just need people to fill out the applications
• Highlight your americorps experience on the applications/ scholarship applications
• Tell your story
• Why are you going to school? What are your obstacles?
• Save a basic scholarship essay that they can use over and over again. Keep 1 and tweak it for each scholarships.

QUESTIONS FOR BREAKOUT- SMALL GROUP

• #1 Tip: Asking for tips and advise from the Financial aid office!!!!!!!!!!!!!!! We are not scary.
• FINANCIAL AID TRICK – Did your income change from last tax season? Let your financial aid officer. They can apply for a special conditions EFC appeal. Can edit your financial information.
• Is there a repository for scholarship that are specific for AmeriCorps Alum?
• Not that we know of
• Each school will have lots of scholarships
• Go to Kirkwood.edu/scholarships to learn about all of there’s
• Where to get more info on www.studentaid.gov
• What documents for financial aid application?
• Taxes for two years,
• Social security numbers of parents
• How to get help with scholarships?
• Sitting down with the financial aid officer at your school will usually help write essays.
• Tutoring centers