1. 2015-2016 Service Year Life After AmeriCorps: Using your Segal Education Award

2. Presentation Overview 1 Review Ed Award basics Accessing your Ed Award Using the Ed Award Connect members to available resources

3. Education Award Basics Each member is entitled to receive an Ed Award after successfully completing the term of service. You have seven (7) years from the date you complete service to use your award. You can divide up the award and use portions at different times, as long as it’s for authorized expenditures within the specified time period. An individual can earn up to the value of two full-time awards (may earn different amounts based on the years you serve) Any portion of Ed Award is subject to income tax in the year in which it is used. Ed Award amount is based on the term of service: $5,730* for a full-time term of service, half that amount for a half-time term of service, etc. 2

4. Education Award Amounts 3 Service TermHoursEd Award Full-time1700$5,730 Half-time900$2,865 Reduced Half-time675$2,182.78 Quarter Time450$1,515.55 Minimum Time300$1,212.44

5. Serving Multiple Terms Serve America Act outlined new terms for individuals wishing to serve in AmeriCorps program. In blending summer, part-time, and full- time terms, you can serve a maximum: – 4 with AmeriCorps State and National (i.e., SRI programs and National Directs) – 5 with VISTA (after 3 terms, must receive special approval) – 2 with NCCC If you max out the number of terms you serve with one stream of service, you can start a new term with another and receive additional awards -- as long as you have not yet reached the full value of two full-time awards. You can also serve terms (and elect not to receive an award) up the limits shown above. 4

6. Processing your Ed Award 5 Step 1: AC member completes all required Exit Paperwork and returns to AC Program Director Step 2: AC Program Director reviews Exit Paperwork AC Program Director to exit AC member in eGrants within 30 days of AC member end date. Step 3: The National Service Trust receives notification via eGrants of successful exit Once exit is processed, Ed Award will show up in the MyAmeriCorps portal Please note: once processed it can take 3-6 weeks before Ed Award is in your MyAmeriCorps account. SRI recommends checking MyAmeriCorps daily.

7. Ways to Use Your Ed Award

8. Using Your Ed Award Three main ways: 1.Repay Qualified Student Loans 2.Pay current Education Expenses at a Qualified School 3.Transfer your Award, if you are 55+ Must be age 55 at the time you began your term of service 7

9. Repay Qualified Student Loans The national service legislation defines qualified student loan as a loan backed by the federal government under Title IV of the Higher Education Act (except PLUS Loans to parents of students), or under Titles VII or VIII of the Public Health Service Act. You may also use your Segal AmeriCorps Education Award to repay a student loan made to you by a state agency, including state institutions of higher education. Segal AmeriCorps Education Awards may not be used to repay any other type of loan, even if the loan was obtained for educational purposes (private loans or lines of credit) OR to repay old tuition bills. 8

10. Repayment of Loans Most postsecondary loans that are backed by the federal government are qualified for repayment with a Segal AmeriCorps Education Award. Loans that are made by state agencies, including state colleges and universities are now qualified. Your lender should be able to tell you if your loan is qualified. Qualified loans include: – Stafford Loans – Perkins Loans – William D. Ford Direct Loans – Federal Consolidated Loans – Graduate PLUS Loans – Primary Care Loans – Nursing Student Loans – Health Education Assistance Loans – Loans issued to AmeriCorps members by state agencies, including state institutions of higher education 9

11. Pay Current Educational Expenses at a Qualified School (as authorized under 42 U.S.C. § 12604(c), include): The "Cost of Attendance" for a degree- or certificate-granting program of study at a qualified school; and Educational expenses for non-degree courses offered by qualified schools, such as continuing education courses. Current educational expenses are expenses that were incurred after you became an AmeriCorps member. For degree or certificate programs of study, the cost of attendance (COA) may include tuition, books and supplies, transportation, room and board, and other expenses. A school's financial aid office determines each student's COA based upon standard Dept. of Education guidance. 10

12. Qualified Institutions Which colleges and universities are "qualified institutions"? higher educational institutions that currently participate in the Department of Education’s Title IV student aid programs (referred to as Title IV schools) education institutions or training establishments that have been approved for educational benefits under the Montgomery GI Bill (referred to as GI-approved schools) To make sure the institution you want to attend is qualified, check with the financial aid office to make sure the school is a "Title IV" institution before you make specific plan. 11

13. Types of Schools The award can be used at colleges and universities listed as Title IV by the Department of Education. Title IVDepartment of Education You can also use the award for education, apprenticeship, and on-the-job training at institutions that accept the G.I. Bill.G.I. Bill Types of schools include trade schools and overseas schools, as well as two outdoor education programs (NOLS and Outward Bound).trade schoolsoverseas schoolsoutdoor education programs You can use your award in non-degree settings including enrichment classes at community colleges or university extension services. enrichment classes 12

14. Transferability of the Ed Award AmeriCorps members who begin on or after October 1, 2009 and are 55 or older when commencing service can give their education award to a child, grandchild, or foster child. The child would then have 10 years to use the award. To receive the award, the child must meet citizenship requirements for AmeriCorps. (The benefit does not apply to VISTAs.) 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. You can transfer one award one time to one designated individual. For more information: http://edaward.org/guidebook/transferability 13

15. Loan Forbearance and Interest Payments Interest Payments Individuals who have successfully completed a term of service in AmeriCorps are eligible to have the Trust pay as much as 100% of the interest that accrued on their qualified student loan during their service. The portion that the Trust will pay is determined by the type of service (full or part-time) and the length of your service period. Interest payments are in addition to your education award; they are not deducted from your education award amount. Remember that interest payments, as well as payments made from your education award account, are considered by the IRS to be taxable income in the year in which a payment is made. 14

16. How to Access Your Ed Award

17. My AmeriCorps Portal Only way to access your Education Award and Interest Accrual form. – https://my.americorps.gov https://my.americorps.gov User specific – members create username and password. The portal is similar to an online banking system, you can check Ed Award balance and “send” payments to qualified institutions and loan holders. Program Directors or SRI staff do not have access to your own personal account. 16

18. Using the MyAmeriCorps Portal Check your Ed Award balance Review and print out payment statements Review and print out W2s and 1099s Create Loan Forbearance Request (at beginning of term) Submit Ed Award payments to qualified Title IV schools or lenders Create Interest Accrual Request (within 30 days of exit) 17

19. My AmeriCorps Log-in Screen 18

20. My AmeriCorps Member Home Page 19

21. My Education Award Home Page 20

22. Loan Forbearance Request 21

23. Loan Forbearance (Search for Institutions) 22

24. Loan Forbearance (Search for Institutions) 23

25. Loan Forbearance Request (Submit) 24

26. Interest Accrual/Interest Payment Request 25

27. Using Your Education Award 26

28. Ed Award Payment Request (Search for Institutions) 27

29. Ed Award Payment Request (Search for Institutions) 28

30. Ed Award Payment Request (Submit) 29

31. Maximizing Your Ed Award

32. Maximize your Award Current RI Institutions that match the Ed Award (below). Not all have the same match criteria, so contact respective financial aid offices. – For a complete list of higher education institutions go to: http://www.nationalservice.gov/programs/americorps/segal-americorps-education-award 31

33. Loan Forgiveness Options The College Cost Reduction Act: http://www.compact.org/initiatives/policy-and-advocacy/college-cost-reduction- access-act-public-service-loan-forgiveness/ The Income Based Repayment plan is a loan-repayment plan available today for students with a high debt-to-income ratio. The Public Service Loan Forgiveness plan allows for total loan forgiveness after 10 years of payments for students working for nonprofit or governmental organizations. Documents can be found at http://serverhodeisland.org/AmeriCorps/MemberResources.aspx http://serverhodeisland.org/AmeriCorps/MemberResources.aspx Teacher Loan Forgiveness http://studentaid.ed.gov/repay-loans/forgiveness-cancellation/charts/teacher Teacher Loan Forgiveness allows for loan forgiveness after five years of full-time teaching at qualified schools and educational services agencies (AmeriCorps service does not count). 32

34. Ed Award Limitations & Taxes

35. Award Limitations An individual can only earn up to the value of two full-time awards. – Members who max out Ed Award value can still take advantage of Loan Forbearance in multiple terms If released for cause before completing term of service and member does not receive an education award, that term of service counts as one of two terms. – An individual who is released for cause must disclose that fact in any subsequent applications to participate in an AmeriCorps program. Failure to do so disqualifies the individual for an education award, regardless of whether the individual completes a term of service. The Trust only makes payments to qualified schools and loan holders. See your financial aid counselor for information on how they handle disbursements and reimbursements. 34

36. Award Limitations (cont’d) If you withdraw from the school at which you have used the education award, the school may be required to refund the Trust. For general information on how withdrawing from school may affect your student financial aid, ask your financial aid counselor or refer to the U.S. Department of Education's Federal Student Aid Handbook. You have seven years (7) to use the entire education award from the date of completion of service. To be considered for an extension, you must apply before the end of the seven year period. 35

37. Education Award & Taxes You will be taxed on Ed Award amount in the year you use it. For example, if you use all or part of your award for college in the fall of 2014, when you file your taxes in April 2015, you must pay taxes on the portion of the award you used. However, you may be able to take advantage of the Hope Scholarship Credit or the Lifelong Learning Credit. Both the Department of Education and the Internal Revenue Service have information on these tax provisions. By the end of January the Corporation will send a 1099 Form for all payments from education awards and for interest payments made during the previous year totaling more than $600.00. 36

38. Resources Official AmeriCorps Education Award Website http://www.nationalservice.gov/programs/americorps/segal-americorps-education-award Includes vital information on issues like loan forbearance, the effect of the education award on taxes, and how the award applies to financial aid. EdAward.org http://www.nationalservice.gov/resources/edaward An online resource, including guidebook, with comprehensive information about the Ed Award. AmeriCorps Alums http://www.americorpsalums.org AmeriCorps Alums contains information on Public Service Higher Education Institutions, hosts a job posting board, and alums can receive updates from the branch of their choice. National Service Trust Hotline https://questions.nationalservice.gov/app/answers/list 1-800-942-2677 Operators can provide specific information about transactions, provide temporary login, etc. 37

39. Questions about your Award First step: contact the National Service Trust AmeriCorps Information Hotline at 1-800-942-2677. The Hotline is staffed by live operators from 8:00- 6:00 EST. If you are still having problems contact your AmeriCorps Program Staff at Serve Rhode Island: Kate Pisano 401-331-2298 kpisano@serverhodeisland.org 38