Payment of Interest on Qualified Student Loans. AmeriCorps Members who have successfully completed a term of service are eligible to have the National Service Trust pay up to 100% of the interest that accrued on their qualified student loan(s) during their term of service. The loan must have been in forbearance, deferment or a grace period during this period. To have the Trust pay all or a portion of the interest accrued on qualified student loans, the Trust must receive verification from the WSC that the Member has successfully completed their term of service. The Member must complete the Interest Accrued During National Service Form using the MyAmeriCorps online system. This payment, like payments from an education award, is considered taxable income in the year the payment is made.
Payment of Interest on Qualified Student Loans. Upon successful completion of a term of service, the National Service Trust will pay, on behalf of the borrower (the member), all or a portion of the interest that accrued on a qualified student loan during the member's term of service. A qualified student loan is 1) any loan, made, insured, or guaranteed pursuant to Title IV of the Higher Education Act of 1963, as amended, other than a loan to a parent of a student pursuant to section 428B of such Act; 2) any loan made pursuant to Titles VII or VIII of the Public Health Service Act; and 3) any loan determined by a Title IV institution of higher education to be necessary to cover a student's cost of attendance at such an institution and made directly to a student by a state agency. The loan must have been in forbearance, deferment, or a grace period during this period. Payment will only be made to the loan holder. The payment, like payments from the member's education award, is considered taxable income in the year the payment is made. If the member obtains loan forbearance at the beginning of their term of service, they must submit an Interest Accrual Form to their loan holder up to 30 days before their service ends. Submission is made through the member’s My AmeriCorps account. The loan holder will complete the applicable portion of the form, compute the total accrued interest, and send it to the Trust for payment. The Trust will only pay interest if the member completes their term of service and receives an education award. This amount, in addition to the education award, is taxable. Living Allowance (Stipend members only) For stipend members, the living allowance is designed to help the member meet necessary living expenses incurred while participating in the program. The living allowance is not an hourly wage and will not fluctuate based on the hours served in each period. The member may not fundraise for their living allowance. The living allowance is typically paid in 20 payments (for a 10-month term of service) or 21 payments (for a 10.5-month term of service). If member needs to extend their term of service, they will not receive additional living allowance payments or health insurance coverage beyond the service term listed in this Member Service Agreement.
