How to Use Your Segal Education Award After AmeriCorps Service

What the Segal Award covers and when you can use it

The Segal Education Award is money you've earned through AmeriCorps service that you can use to pay down student loans or fund future education. The amount depends on which AmeriCorps program you served in and how long you served — most people receive between $3,000 and $6,500, though some programs offer more. You don't have to use it right away; you have seven years from the end of your service to spend it.

The award covers tuition, fees, books, supplies, and room and board at any school or training program that's accredited and recognized by the U.S. Department of Education. That includes four-year universities, community colleges, vocational schools, graduate programs, and some certificate programs. You can also use it to repay federal student loans you took out before or during your service.

The key difference between the Segal Award and other education money is that it's tied to your service dates. Once your AmeriCorps term ends, your seven-year window starts. If you don't use it by then, the money is gone — there's no extension or carryover.

Key Takeaways

• You have seven years from the end of your AmeriCorps service to use your Segal Award, and the amount you receive depends on which program you served in.
• The award can pay for tuition, fees, books, room and board at accredited schools, or it can go toward repaying federal student loans you already have.
• Your service program will give you a document called a Notice of Award that shows your exact amount and your seven-year deadline.
• To use the award for education, you transfer it to your school's financial aid office; to use it for loan repayment, you work directly with your loan servicer.
• If you leave your service early or don't complete it, you may receive a smaller award or none at all, depending on how much time you served.

Getting your Notice of Award and understanding the deadline

When your AmeriCorps service ends, your program will send you a Notice of Award — a one-page document that states your exact award amount and your end date for using it. This is the official record you'll need to show schools or loan servicers. Keep it somewhere safe; you'll refer back to it for years.

The seven-year clock starts the day your service term officially ends, not the day you leave. If you're unsure of your exact end date, check your service agreement or ask your program's exit coordinator. Many people lose track of the deadline and miss out on money they've earned, so write down your deadline date now and set a reminder for six months before it expires.

If you completed your full term of service, you receive the full award amount. If you left early, your program calculates a prorated amount based on the percentage of time you served. Some programs have minimum service requirements — if you don't meet them, you may receive nothing. Your Notice of Award will show exactly what you earned.

Using the award to pay for school

To use your Segal Award for education costs, contact the financial aid office at the school where you plan to study. Tell them you have an AmeriCorps Segal Education Award and ask what information they need. Most schools will ask for your Notice of Award and your Social Security number.

The school's financial aid office will set up an account for your award and coordinate with AmeriCorps' servicer (currently Heartland ECSI) to transfer the money. You don't send the money yourself — the school and the servicer handle the transfer. The funds typically arrive within two to four weeks, though timing varies by school.

The award is treated as a resource in your financial aid package, which means it may reduce other aid you receive (like grants or loans). Ask your financial aid office how the award will affect your overall aid package before you commit to using it. Some students find it's better to use the award for costs that wouldn't otherwise be covered by other aid.

Using the award to repay student loans

If you have federal student loans, you can use your Segal Award to pay them down instead of using it for new education. Contact your loan servicer — the company that sends you your monthly bill — and tell them you want to apply your AmeriCorps award to your account. They'll ask for your Notice of Award and may need your loan account number.

The servicer will work with AmeriCorps to transfer the funds directly to your loan balance. The money goes toward your principal, which lowers what you owe and can reduce your monthly payment or shorten your repayment timeline. If you have multiple federal loans, ask your servicer how they'll distribute the award — some apply it to the loan with the highest interest rate first, while others let you choose.

You cannot use the Segal Award to repay private student loans, only federal loans. Federal loans include Direct Loans, Stafford Loans, PLUS Loans, and Perkins Loans. If you're unsure whether your loans are federal or private, log into studentaid.gov and check, or contact your servicer directly.

Combining the award with other education funding

The Segal Award works alongside other money you might have for education — federal student loans, grants, scholarships, and employer tuition assistance. There's no rule against using multiple funding sources for the same program. However, the total amount you receive for education in a given year cannot exceed the school's cost of attendance, which includes tuition, fees, room, board, books, and supplies.

If you're planning to use the award along with other funding, tell your financial aid office about all your sources upfront. They'll coordinate everything so you don't accidentally receive more than the school's cost of attendance, which could trigger a requirement to repay the excess.

Some employers offer tuition reimbursement or assistance programs. You can use your Segal Award and employer assistance for the same degree or certificate — they're separate funding streams. Just make sure you're not double-paying for the same expenses.

What happens if you don't use the award by the deadline

If your seven-year window closes and you haven't used your Segal Award, the money is forfeited. There are no extensions, no exceptions, and no way to recover it once the deadline passes. AmeriCorps does not send reminders as your deadline approaches, so it's your responsibility to track it.

If you're close to your deadline and haven't decided how to use the award, you have a few options. You can enroll in a short certificate program at a community college, use the award to pay down existing student loans, or transfer it to a school you plan to attend even if you haven't started yet. The key is to initiate the transfer before your deadline date.

If you're still serving in AmeriCorps or considering another term of service, know that each term generates its own separate award with its own seven-year deadline. You don't lose the first award if you serve again — you simply have two separate awards to track and use within their respective windows.

Transferring the award if you change schools or programs

If you start using your Segal Award at one school and then transfer to another, you can move the unused portion to your new school. Contact your original school's financial aid office and tell them you're transferring. They'll work with the servicer to stop the transfer and redirect the remaining balance to your new school.

The process usually takes one to two weeks. Make sure your new school's financial aid office knows you're bringing an AmeriCorps award with you and has your Notice of Award on file. If there's a gap between schools, the unused portion of your award stays in your account and doesn't expire — only your seven-year deadline matters.

If you're using the award for loan repayment and you change loan servicers (which can happen if your loans are sold), notify your new servicer that you have an AmeriCorps award pending. Provide them with your Notice of Award so they can coordinate with AmeriCorps to complete the transfer.

Frequently Asked Questions

Can I use the Segal Award for graduate school?

Yes, as long as the graduate program is accredited and recognized by the U.S. Department of Education. This includes master's degrees, doctoral programs, and professional degrees like law or medicine. The award amount doesn't change based on the level of education — you use whatever you earned through your AmeriCorps service.

What if I served in AmeriCorps years ago and just found my Notice of Award?

Check the end date on your Notice of Award immediately. If seven years have passed since your service ended, the award has expired and cannot be used. If you're still within the seven-year window, you can use it right away by contacting a school's financial aid office or your loan servicer. If you're close to the deadline, act quickly.

Do I have to pay taxes on the Segal Award?

The Segal Award itself is not taxable income. However, if you use it to repay student loans, the interest portion of those loan payments may be deductible on your taxes (up to $2,500 per year) if you meet income requirements. Consult a tax professional about your specific situation.

Can I use the award if I'm already in school?

Yes. If you're currently enrolled in an accredited program, you can transfer your award to your school's financial aid office at any time during your seven-year window. The award will be applied to your account and may reduce your out-of-pocket costs or other aid you receive.

What if my AmeriCorps program says I didn't complete my service?

Contact your program's exit coordinator and ask them to review your service record. If you believe the information is wrong, you can request a formal review. Your award amount is based on the percentage of time you served, so even partial service may result in a prorated award. Get the details in writing before you assume you're not may have access to to anything.