On April 21, 2009 the United States officially entered altruistic territory as President Obama signed the Edward M. Kennedy Serve America Act into law. As the president promised on the campaign trail, this would be a year dedicated to serving those in need and the signing of this law put his words into action. For recent graduates, this act is particularly of interest, since it is partially focused on those who graduate with large amounts of debt.
Many students can relate to this; therefore, just as the Peace Corps has done with Perkins loans, the AmeriCorps will provide an educational stipend for those who serve after they graduate. With the signing of this law into effect, the president increased the stipend to $5,350, the exact same number as an Obama Pell Grant. Volunteer positions will increase from 75,000 to 250,000 by the year 2017, thus helping the needs of low income areas across the US.
Additionally, attached to this act is the Silver Scholars program. Volunteers 55 years or older who perform over 350 hours of service will receive $1000 educational award.
Segal Education Award for Recent College Graduates
The volunteer must be enrolled in the National Service Trust to be eligible for the Segal Education Award. Upon completion of service, the volunteer may use the money to repay student loans that qualify. For example, the qualifying loans are: Stafford, Perkins, William D. Ford, Federal Consolidated, Supplemental, Primary Care, Nursing Student and Health Education Assistance. In addition, the loans given by state agencies, which include state schools of higher learning qualify as well. Terms that apply for the Segal Award are:
- The volunteer must sign up for the National Service Trust and select the Segal Award option prior to service.
- After completing 12 months of service, the person has up to seven years to use the award. It can be used in partial or full payments.
- The award is taxable income in the year the payment was made (a different method from other scholarships and fellowships). The Trust Corporation will automatically send the recipient a 1099 form to declare for the tax year.
There is also the option of deferment or forbearance of loans when volunteers begin service. It is best to check with the loan provider to see if they work with AmeriCorps. The person must fill out the forbearance or deferral forms prior to service.
If this is a desirable option for a post-graduate, the following section will answer who is eligible to enter the AmeriCorps program.
How to Become an AmeriCorps Volunteer and Join the Silver Scholars Program
To enter the VISTA program, which is geared toward college graduates, and to be accepted is a prestigious feat. Not everyone will be accepted. Here are the eligibility requirements:
- The prospective volunteer must be a US citizen, US national or lawful permanent resident. No exceptions allowed.
- Depending on the program, the applicant must have an accredited Bachelor's degree and an additional three years of work experience. Retirees with extensive work experience are also welcome to apply to the Silver Scholars program.
- The applicant must be able to serve for one year. It is a full-time commitment.
- S/he must pass a criminal history background check.
Through Obama's legislation, it is possible to apply and receive one of the many thousands of positions of an AmeriCorps volunteer. Along with other rewards, the financial benefit includes the ability to pay off student debt*. To become a volunteer, applicants must check the eligibility and decide if the program is right for them.
*These two articles, Stafford Student Loans and Student Loan Interest Consolidation, discuss ways to lower and write off interest on college loans.
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