Posted Date:January 14, 2010
|Author:||Jeff Baker, Director Policy Liaison and Implementation, Federal Student Aid|
Subject: 2009-2010 FSA Handbook Error in Volume 3 on page 3-144 Concerning the Treatment of AmeriCorps Benefits in Awarding FSA Financial Assistance
The purpose of this announcement is to inform institutions that the 2009-2010 Federal Student Aid Handbook in Volume 3 on page 3-144 incorrectly indicates that AmeriCorps awards or benefits are no longer estimated financial assistance (EFA). This general statement is not accurate. AmeriCorps awards or benefits are generally EFA for purposes of the Federal Title IV student assistance programs, as they have been in the past. Also as in the past, AmeriCorps awards or benefits are not to be included as EFA when determining eligibility for subsidized Stafford loans, but are included as EFA for unsubsidized Stafford loans. In addition, while AmeriCorps awards or benefits are EFA, an institution may, as in the past, for the Campus-Based, ACG, National SMART Grant, and the TEACH Grant programs exclude as EFA a portion of any subsidized Stafford loan that is equal to or less than the amount of the student’s AmeriCorps award or benefit paid for the cost of attendance.