AmeriCorps National Service Program, 51395-51416 [2010-20525]
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Federal Register / Vol. 75, No. 161 / Friday, August 20, 2010 / Rules and Regulations
25. Amend § 102–117.355 by revising
paragraph (b) to read as follows:
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§ 102–117.355 What is the
Governmentwide Transportation Policy
Council (GTPC)?
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(b) Provides assistance to your agency
with the requirement to report your
transportation activity to GSA (see
§ 102–117.345).
§ 102–117.360
[Amended]
26. Amend § 102–117.360 by
removing ‘‘Office of Transportation and
Personal Property (MT)’’ and adding
‘‘Office of Travel, Transportation and
Asset Management (MT)’’ in its place.
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[FR Doc. 2010–20604 Filed 8–19–10; 8:45 am]
BILLING CODE 6820–14–P
CORPORATION FOR NATIONAL AND
COMMUNITY SERVICE
45 CFR Chapter XXV
RIN 3045–AA51
AmeriCorps National Service Program
Corporation for National and
Community Service.
ACTION: Final rule.
AGENCY:
The Corporation for National
and Community Service (‘‘the
Corporation’’) is issuing rules to
implement changes to the operation of
the National Service Trust as directed
by the Edward M. Kennedy Serve
America Act (‘‘the Serve America Act’’
or ‘‘SAA’’). In addition, this rule
provides flexibility for exceptions to the
80 percent cost reimbursement
requirement for Senior Companion and
Foster Grandparent programs based on
hardship. Finally, this rule reorders and
renumbers certain parts of the existing
regulations, adds new definitions, and
makes several minor technical edits.
DATES: This final rule is effective
September 20, 2010, except for the
amendments to §§ 2522.220, 2522.230,
2522.235, and 2522.240, which are
effective August 20, 2010.
FOR FURTHER INFORMATION CONTACT:
Amy Borgstrom, Docket Manager,
Corporation for National and
Community Service, (202) 606–6930,
TDD (202) 606–3472. Persons with
visual impairments may request this
rule in an alternate format.
SUPPLEMENTARY INFORMATION:
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SUMMARY:
List of Topics
I. Background
II. Public Comments
III. Specifics of Final Rule and Analysis of
Comments
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A. Definitions
B. Eligibility to Receive an Education
Award
C. Successful Completion of a Term of
Service
D. Partial Awards for Release for
Compelling Personal Circumstances
E. Limitation on Amount of Award
Disbursed to Institution of Higher
Education
F. Use of Education Award for a Program
of Education Approved by the Secretary
of Veterans Affairs
G. Payment of Accrued Interest
H. Amount of AmeriCorps Education
Award
I. Amount of Silver Scholar and Summer
of Service Education Awards
J. Limitation on Value of Education
Awards Received
K. Impact of Aggregate Value of Education
Awards Received
L. Transfer of Education Awards
M. Periods of Availability for Silver
Scholar, Summer of Service, and
Transferred Education Awards
N. Certifications of Successful Completion
of Terms of Service
O. Effect of Erroneous Certifications of
Successful Completion of Terms of
Service
P. Public Service Loan Forgiveness and
AmeriCorps
Q. Term Limits for AmeriCorps State and
National
R. Selection Criteria Sub-Categories for
AmeriCorps State and National
S. Applications for the Same Project
T. Pre-Approval of Formula Programs
U. Hardship Waiver Permitted for Cost
Reimbursement Requirement for Senior
Companion and Foster Grandparent
Programs.
IV. Summary of Redesignations
V. Effective Dates
VI. Non-Regulatory Issues
I. Background
On April 21, 2009, President Obama
signed into law the Edward M. Kennedy
Serve America Act (Serve America Act).
The Serve America Act reauthorizes and
expands national service programs
administered by the Corporation by
amending the National and Community
Service Act of 1990 (42 U.S.C. 12501 et
seq.) (NCSA) and the Domestic
Volunteer Service Act (42 U.S.C. 4950 et
seq.) (DVSA). The Corporation engages
more than five million Americans of all
ages and backgrounds in service each
year, including approximately 85,000
AmeriCorps members, nearly 500,000
Senior Corps volunteers, 1.5 million
Learn and Serve America students, and
three million additional community
volunteers mobilized and managed
through agency programs.
Section 6101 of the Serve America
Act authorizes the Chief Executive
Officer of the Corporation to issue such
regulations as may be necessary to carry
out the amendments required under the
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51395
Act. To fulfill that responsibility, on
September 10, 2009, the Corporation
issued an interim final rule to
implement time-sensitive changes to the
Corporation’s AmeriCorps State and
National, Senior Corps, and Learn and
Serve America program regulations. (74
FR 46495). The changes resulting from
the interim final rule were required as
a result of amendments to the NCSA
and DVSA by the Serve America Act,
which took effect for most purposes on
October 1, 2009.
In that rule, we stated our intention to
engage in full notice and comment
rulemaking to implement those
amendments mandated by the Serve
America Act that did not require
immediate regulatory action. This
rulemaking is the Corporation’s second
in a series to implement the
amendments mandated by the Serve
America Act. This rule primarily makes
amendments and additions to existing
regulations regarding the National
Service Trust, including limitations on
education award receipt, the available
uses of an education award, eligibility to
receive an education award, eligibility
to transfer an education award, and the
amount of an education award. This
rule also addresses the limitation on the
number of terms an individual may
serve in an AmeriCorps State and
National program. This rule adds
flexibility in managing match
requirements for Senior Companion and
Foster Grandparent programs facing
hardship. Finally, this rule makes
several technical corrections
inadvertently omitted from the interim
final rule, including an amendment to
the provision on pre-approval of
Subtitle C formula programs,
amendments to the AmeriCorps State
and National selection criteria, and an
amendment to include a reference to the
Department of Education’s new Public
Service Loan Forgiveness Program.
II. Public Comments
On February 23, 2010, the
Corporation published a proposed rule
in the Federal Register (75 FR 8013)
with a 60-day comment period. In
addition to accepting comments in
writing through e-mail and through
https://www.regulations.gov, the
Corporation held four conference calls.
During the public comment period, the
Corporation received over 400
comments on the proposed rule from
grantees, the Corporation’s Inspector
General, and other interested parties.
Over half of the comments received
recommended changes to the rule that
are not currently authorized by statute,
including expanding the types of people
who can transfer and receive education
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awards. The Corporation also received
numerous comments on items not
within the scope of this rulemaking,
such as comments on the Silver Scholar
program and the amount of the Foster
Grandparent stipend. While these
comments are not addressed here, the
Corporation will take them under
consideration in the future.
The remaining comments expressed
views on the merits of particular
sections of the proposed regulations, as
well as some broader policy statements
and issues. Acknowledging that there
are strong views on, and competing
legitimate public policy interests
relating to, issues in this rulemaking,
the Corporation has carefully
considered all of the comments on the
proposed regulations.
The Corporation has summarized
below the major comments received on
the proposed regulatory changes, and
has described the changes we made in
the final regulatory text in response to
the comments received. In addition to
the more substantive comments below,
the Corporation received some editorial
suggestions, some of which we have
adopted. The Corporation has also made
minor editorial changes to better
organize the regulatory text.
III. Specifics of the Final Rule and
Analysis of Comments
As discussed in more detail below,
the final rule:
• Amends the definitions of
‘‘education award’’ and ‘‘term of service,’’
and adds definitions for ‘‘AmeriCorps
education award,’’ ‘‘Silver Scholar
education award,’’ ‘‘Summer of Service
education award,’’ ‘‘approved Silver
Scholar position,’’ ‘‘approved Summer of
Service position,’’ ‘‘G.I. Bill approved
program,’’ and ‘‘economically
disadvantaged youth’’;
• Adds individuals who complete
approved Silver Scholar and Summer of
Service positions as eligible to receive
an education award;
• Adds a requirement for programs to
complete an end-of-term evaluation to
determine whether an individual
successfully completed the term of
service;
• Clarifies that an individual must
have served satisfactorily prior to being
released for compelling personal
circumstances in order to receive a
partial award;
• Removes consideration of an
individual’s veterans’ benefits when
determining the maximum amount of an
individual’s education award that may
be disbursed to an institution of higher
education;
• Adds to the list of uses for an
education award use to pay expenses
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incurred in enrolling in an educational
institution or training establishment
approved by the Secretary of Veterans
Affairs for offering programs of
education, apprenticeship, or on-the-job
training for which educational
assistance may be provided by the
Secretary of Veterans Affairs;
• Includes individuals who
successfully complete service in a Silver
Scholar program as eligible for the
payment of accrued interest on qualified
student loans;
• Amends the amount of a full-time
AmeriCorps education award to be
equal to the maximum amount of a
Federal Pell Grant for the year in which
the AmeriCorps position is approved;
• Adds sections stating the amount of
a Silver Scholar education award
($1,000) and Summer of Service
education award ($500);
• Adds limitation that no individual
may receive more than the aggregate
value of two full-time education awards
and describes how an education award’s
value is determined;
• Adds a new part on transferring
education awards, including limitations
on who may transfer, who may receive
a transferred award, and the processes
for transferring, accepting, rejecting, and
revoking a transferred award;
• Clarifies the periods of availability
for Silver Scholar education awards (7
years), Summer of Service education
awards (10 years), and transferred
education awards (10 years);
• Adds a requirement for programs to
certify that an individual successfully
completed a term of service in order to
receive an education award;
• Adds a section on the Corporation’s
recourses in cases where a grantee
makes an erroneous certification that an
individual successfully completed a
term of service;
• Adds flexibility to permit an
individual to credit service time
towards receiving an education award
and earning Public Service Loan
Forgiveness through the Department of
Education;
• Increases the limit of terms one may
serve in AmeriCorps State and National
from two to four;
• Removes selection criteria subcategories and relative weights for
AmeriCorps State and National grant
competitions;
• Removes the restriction on
submitting more than one application
for the same project at the same time
and clarifies that the Corporation will
not provide more than one grant to the
same project in the same fiscal year;
• Removes the requirement that State
Commissions pre-select formula
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programs prior to submitting a formula
application; and
• Adds an option for a hardship
waiver for the Senior Companion and
Foster Grandparent cost-reimbursement
requirement.
A. Definitions (§§ 2510.20, 2525.20)
The National Service Trust is an
account in the U.S. Treasury authorized
to disburse education awards to national
service participants. Prior to passage of
the Serve America Act, the Corporation
was authorized to disburse one type of
education award from the National
Service Trust—a national service
education award, also known as a Segal
AmeriCorps Education Award, available
upon successful completion of a term of
service in an approved AmeriCorps
position. An ‘‘approved AmeriCorps
position’’ is one of the positions
described in Section 123 of the Act,
including a position in AmeriCorps
State and National, AmeriCorps NCCC,
AmeriCorps VISTA, and the newly
authorized ServeAmerica Fellowship
program.
The Serve America Act authorizes
two new types of education awards: (1)
A Silver Scholar education award of
$1,000, available upon successful
completion of a term of service in an
approved Silver Scholar position; and
(2) a Summer of Service education
award of $500 (with authority for
awards up to $750 for economically
disadvantaged youth), available upon
successful completion of a term of
service in an approved Summer of
Service position. Silver Scholar and
Summer of Service education awards
are available for use for the same
purposes as AmeriCorps education
awards: to repay qualified student loans,
to pay for current educational expenses
at an institution of higher education,
and to pay for the cost of attending a
program of education approved by the
Secretary of Veterans Affairs.
Several commenters sought
clarification regarding the nature of the
Summer of Service program, as the
Corporation has supported multiple
initiatives referred to as ‘‘Summers of
Service.’’ To clarify, an approved
Summer of Service position is one
supported through a Learn and Serve
America grant authorized and funded
under Subtitle B of Title I of the NCSA.
For more information on the Summer of
Service program, see https://www.
learnandserve.gov/about/programs/
community_based.asp.
To align with the amended statute,
this rule amends § 2525.20 by adding
three separate definitions for
‘‘AmeriCorps education award,’’ ‘‘Silver
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Scholar education award,’’ and
‘‘Summer of Service education award.’’
Each of these awards is based upon
successful completion of a term of
service in an approved position. For a
position of any type to be considered
‘‘approved,’’ the Corporation must have
agreed to provide a corresponding
education award upon successful
completion of a term of service in that
position. This rule amends § 2510.20 by
adding definitions to clarify that in
order for a Summer of Service or Silver
Scholar position to be considered
approved, it must be approved by the
Corporation for the receipt of a Silver
Scholar or Summer of Service education
award, respectively.
A term of service in an approved
Silver Scholar position must be for at
least 350 hours during a period of one
year. A term of service in an approved
Summer of Service position must be for
at least 100 hours ‘‘during the summer
months.’’ To clarify that what
constitutes a term of service will vary
depending upon the program, this rule
amends the definition of ‘‘term of
service’’ in § 2525.20 to align with the
NCSA by providing separate
descriptions for terms of service in
approved AmeriCorps, Silver Scholar,
and Summer of Service positions.
We received many requests for
additional clarification on the Silver
Scholar and Summer of Service
programs, including whether there will
be limitations on the number of terms
an individual may serve in each
program and how the Silver Scholar
program will interact with other
programs. Specific rules for these
programs were not a part of this
rulemaking; the Corporation may
undertake separate rulemakings on
these topics in the future.
As stated above, a Summer of Service
education award will generally be $500.
However, the NCSA authorizes the
Corporation to establish a Summer of
Service award of $750 for ‘‘economically
disadvantaged youth.’’ The Corporation
defines ‘‘economically disadvantaged
youth’’ for the purposes of the larger
Summer of Service education award as
a child who is eligible for a free lunch
or breakfast under the Richard B.
Russell National School Lunch Act.
This rule amends § 2525.20 to add this
definition.
The Corporation received several
comments questioning the Corporation’s
definition of ‘‘economically
disadvantaged youth,’’ including
comments that such a definition would
exclude home-schooled children and
middle school youth who do not sign up
for free lunch. Using the eligibility
guidelines for participation in a free
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lunch or breakfast program under the
Richard B. Russell National School
Lunch would not exclude homeschooled students or students who do
not sign up for a free lunch or breakfast.
A child need not actually be enrolled in
a school-based free lunch or breakfast
program to qualify for the larger
Summer of Service education award.
The definition means only that the
eligibility standards of such a program
will be used to determine whether a
child qualifies for a larger education
award.
The proposed rule defined an
‘‘economically disadvantaged youth’’ as
one who is eligible for free or reduced
lunch and breakfast. Upon further
consideration, the Corporation has
amended the definition in the final rule
to an individual who is eligible for free
or reduced lunch or breakfast.
While the Corporation has the
authority to establish a larger award for
economically disadvantaged youth, the
Corporation has not elected to use this
authority in the first year of funding
Summer of Service programs.
B. Eligibility To Receive an Education
Award (§ 2526.10)
The Serve America Act created two
new types of education awards: Silver
Scholar education awards and Summer
of Service education awards, for $1,000
and $500 respectively, available upon
successful completion of an approved
Silver Scholar or Summer of Service
position. This rule amends § 2526.10 to
include individuals who successfully
complete terms of service in approved
Silver Scholar or Summer of Service
positions as eligible to receive an
education award from the National
Service Trust.
Previously, the list of eligibility
criteria to receive an education award in
§ 2526.10 described the eligibility
criteria to serve in AmeriCorps State
and National, AmeriCorps NCCC, and
AmeriCorps VISTA, including age and
education criteria that would exclude
individuals in Summer of Service
positions, which are available for ‘‘youth
who will be enrolled in any of grades 6
through 12 at the end of the summer’’
(42 U.S.C. 12563(c)(8)). To align with
the amended statute, this rule amends
§ 2526.10 to defer to the eligibility
criteria of individual programs for
program-specific criteria.
Under this rule, for an individual to
be eligible to receive an education
award, the organization responsible for
the individual’s supervision must
certify that the individual: (1) Met the
applicable eligibility requirements for
the approved national service position,
approved Silver Scholar position, or
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51397
approved Summer of Service position,
as appropriate; (2) successfully
completed the term of service in the
AmeriCorps, Silver Scholar, or Summer
of Service program; and (3) is a citizen,
national, or lawful permanent resident
alien of the United States.
C. Successful Completion of a Term of
Service (§ 2526.15)
Section 146 of the NCSA directs the
Corporation to determine a process by
which an organization responsible for
the supervision of a national service
participant may determine whether the
participant successfully completed a
term of service. This rule adds a new
§ 2526.15 describing that process. Under
this rule, organizations supervising
AmeriCorps State and National
participants will continue to use the
existing process detailed at
§ 2522.220(d).
For Summer of Service and Silver
Scholar programs, the organization is
required to conduct an end-of-term
evaluation for each participant to
determine whether the individual
successfully completed the term of
service. To determine whether an
individual successfully completed a
term, the program must examine
whether: (1) The individual completed
the required number of service hours for
the respective term of service; (2) the
individual performed satisfactorily on
assignments, tasks, or projects; and
(3) the individual met any other
performance criteria as communicated
to the member by the organization.
What is considered ‘‘satisfactory
performance’’ is within the discretion of
the program.
For the purpose of this requirement,
certification that an individual did or
did not successfully complete a term of
service will be deemed to incorporate an
end-of-term evaluation. A certification
of successful completion will not,
however, suffice as documentation of
hours served.
One commenter noted that the
proposed language of § 2526.15 is not
explicit that an individual must satisfy
all three elements of the evaluation in
order to be considered to have
successfully completed a term of
service.
The Corporation has amended
§ 2526.15 to clarify that a certification of
successful completion necessarily
encompasses a determination that the
individual completed the service hour
requirement, performed satisfactorily,
and met any other performance criteria
set by the program.
The Corporation received several
requests for standard definitions of
‘‘satisfactory’’ and ‘‘unsatisfactory.’’ To
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afford programs the necessary flexibility
to supervise and manage their members,
the Corporation declines to set a
standard for what is considered
‘‘satisfactory.’’
The proposed rule inadvertently
included AmeriCorps VISTA and
AmeriCorps NCCC in the above
certification process. The Corporation
uses its own process to determine
whether a VISTA or NCCC member has
successfully completed a term of
service; the above rules do not apply to
VISTA or NCCC.
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D. Partial Awards for Release for
Compelling Personal Circumstances
(§§ 2526.20–25)
Section 147 of the NCSA authorizes
the Corporation to make education
awards in five different amount
categories: (1) An amount for successful
completion of a full-time approved
national service position; (2) an amount
for successful completion of a part-time
approved national service position;
(3) an amount for partial completion of
service, available upon release for
compelling personal circumstances from
an approved national service position;
(4) an amount for a Silver Scholar
education award for successful
completion of an approved Silver
Scholar position; and (5) an amount for
a Summer of Service education award
for successful completion of an
approved Summer of Service position.
Partial awards are described only in the
context of release for compelling
personal circumstances from an
approved national service position.
In describing types of service
positions in section 146, the Act
distinguishes between approved
national service positions (which are
described in section 123 to include
AmeriCorps State and National,
AmeriCorps VISTA, AmeriCorps NCCC,
and ServeAmerica Fellows), approved
Silver Scholar positions, and approved
Summer of Service positions. The Act
does not provide for a pro-rated award
for a release for compelling personal
circumstances from an approved Silver
Scholar or Summer of Service position.
This rule amends § 2526.20 and adds
a new § 2526.25 to clarify that partial
awards will not be available for
individuals who are released early from
Silver Scholar or Summer of Service
positions, even for compelling reasons.
We received several comments
recommending that a release for
compelling personal circumstances be
permitted for Silver Scholars and
Summer of Service positions. As stated
above, there is no authority for a partial
award for a release for compelling
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personal circumstances from a Silver
Scholar or Summer of Service position.
This rule also amends § 2526.20 to
reflect the statutory requirement that an
individual serving in an approved
AmeriCorps position must have
performed satisfactorily before being
released for compelling personal
circumstances in order to receive a
partial education award.
E. Limitation on Amount of Award
Disbursed to Institution of Higher
Education (§§ 2528.30–40)
Prior to the effective date of the Serve
America Act, under section 148(c)(6) of
the NCSA, the Corporation’s
disbursement from an individual’s
education award for any period of
enrollment at an institution of higher
education could not exceed the
difference between that individual’s
cost of attendance for that period of
enrollment and the sum of (1) the
individual’s estimated financial
assistance for that period under part A
of title IV of the Higher Education Act
and (2) the individual’s veterans’
benefits as defined under section 480(c)
of the Higher Education Act. The Serve
America Act amended section 148(c)(6)
to eliminate consideration of an
individual’s veterans’ benefits in this
manner. This rule amends §§ 2528.30
and 2528.40 to align with amended
section 148(c)(6) by removing any
consideration of an individual’s
veterans’ benefits when determining the
maximum amount of the individual’s
education award that may be disbursed
to an institution of higher education.
F. Use of Education Award for a
Program of Education Approved by the
Secretary of Veterans Affairs
(§§ 2528.10, 60–80)
The Serve America Act amended
section 148 of the NCSA to add a fifth
available use for an education award.
Under the amended law, the education
award is available ‘‘to pay expenses
incurred in enrolling in an educational
institution or training establishment that
is approved under chapter 36 of title 38,
United States Code, or other applicable
provisions of law, for offering programs
of education, apprenticeship, or on-job
training for which educational
assistance may be provided by the
Secretary of Veterans Affairs.’’ (42 U.S.C.
12604(a)(4)). This rule amends § 2528.10
to add this use to the list of available
uses, and adds rules on the process for
using the award for this purpose.
Benefits offered under chapter 36 of title
38, U.S.C., were authorized under the
Montgomery G.I. Bill and the Post 9/11
G.I. Bill. This rule adds a definition for
‘‘G.I. Bill approved programs.’’
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This rule requires that the institution
or training establishment at which an
individual requests to use an education
award certify under penalty of law that
the amount requested will be used to
pay all or part of the individual’s
expenses attributable to a course,
program of education, apprenticeship,
or job training program offered by that
institution or training establishment.
Further, the institution or training
establishment must certify under
penalty of law that the course or
program for which the individual is
requesting to use the education award is
currently approved by the State
approving agency for the State where
the institution or establishment is
located, or by the Secretary of Veterans
Affairs.
The Department of Veterans Affairs is
the agency responsible for approving
courses or programs of education under
chapter 36 of title 38, U.S. Code, and the
Corporation defers to the decisions
made by the State approving agencies
and the Secretary of Veterans Affairs
regarding approving—or withdrawing
approval—of a program of education.
The Corporation will only disburse
funds to an institution or establishment
if it verifies that a course or program of
education has received the requisite
approval.
Unlike G.I. education benefits, which
may be disbursed directly to an
individual, under this rule, the
education award will only be disbursed
directly to the educational institution or
training establishment.
If an individual for whom the
Corporation has disbursed an education
award withdraws or fails to complete
the period of enrollment at an
educational institution or training
establishment in a program of education
approved by the Secretary of Veterans
Affairs, this rule requires the
educational institution or training
establishment to provide a pro-rated
refund to the Corporation. The
Corporation will provide more detailed
guidance on the refund process during
implementation.
Please Note: An individual will begin
being able to use the Corporation’s online
systems to request the use of an award at a
G.I. Bill approved program beginning midAugust, 2010 or 30 days following the
publishing of this regulation, whichever is
later.
G. Payment of Accrued Interest
(§ 2529.10)
This rule amends § 2529.10, which
previously provided for interest
forbearance to individuals serving in
approved AmeriCorps positions, to
clarify that individuals who
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successfully complete terms of service
in approved Silver Scholar positions
may also be eligible for payments of
interest accrued on qualified student
loans while serving. The rule does not
include Summer of Service positions, as
Summer of Service positions are
reserved for rising 6th through 12th
graders who, having not yet enrolled in
an institution of higher education, will
not yet have incurred qualified student
loans.
The Serve America Act also amended
section 123 by expanding the list of
positions considered to be approved
national service positions to include
‘‘a position involving service in the
ServeAmerica Fellowship program.’’
The term ‘‘approved national service
position’’ is used interchangeably with
the term ‘‘approved AmeriCorps
position.’’ Therefore, an individual who
serves in a ServeAmerica Fellowship
position will be eligible for the payment
of accrued interest on qualified student
loans upon successful completion of a
term of service.
H. Amount of AmeriCorps Education
Award (§ 2527.10)
Upon successful completion of a term
of service in an approved AmeriCorps
position, including positions in
AmeriCorps State and National,
AmeriCorps VISTA, AmeriCorps NCCC,
and ServeAmerica Fellows, an
individual is eligible to receive an
AmeriCorps education award from the
National Service Trust. Prior to the
passage of the Serve America Act, the
amount of a full-time AmeriCorps
education award was set in law at
$4,725.
The Serve America Act amended
section 147 of the NCSA by changing
the amount of a full-time national
service education award to be ‘‘equal to
the maximum amount of a Federal Pell
Grant under section 401 of the Higher
Education Act of 1965 (20 U.S.C. 1071a)
that a student eligible for such Grant
may receive in the aggregate * * * for
the year for which the national service
position is approved by the
Corporation.’’ This rule amends
§ 2527.10 to conform to the changes in
the NCSA in the amount of the full-time
award.
The amount of the Pell Grant upon
which AmeriCorps education awards
will be based may change each year.
Thus, the amount of an AmeriCorps
education award may also change
annually. To determine the amount of
an AmeriCorps education award, the
Corporation will use the amount of the
Pell Grant as of October 1 (the first day
of the Federal fiscal year) in the fiscal
year in which the national service
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position is approved. For example, if a
national service position is approved in
September of 2010, the amount of the
education award will be based on a fulltime amount of $5,350—the amount of
the Pell Grant as of October 1, 2009 (the
first day of fiscal year 2010).
The trigger date for determining the
amount of an education award for a
particular national service position is
the date that position is approved—not
the date the individual begins serving in
a national service position. Not all
positions that begin in a fiscal year will
receive an education award based on the
amount of the Pell Grant in that fiscal
year.
In accordance with the national
service laws, funding for education
awards is obligated on a different
schedule for AmeriCorps VISTA,
AmeriCorps NCCC, and AmeriCorps
State and National. What follows is a
detailed discussion on how the approval
date for a national service position is
determined for the purposes of
establishing the amount of an education
award.
For AmeriCorps VISTA, a position is
considered to be approved at the time
the Corporation enters into an
enforceable agreement with an
individual, signified by the individual’s
taking the VISTA oath of service. (42
U.S.C. 4954(c)). For an AmeriCorps
VISTA position, the education award
amount is equal to the amount of a Pell
Grant on October 1 of the fiscal year in
which the VISTA takes the oath of
service. For example, a VISTA who
takes the oath on any date between
October 1, 2009, and September 30,
2010, is eligible for a full-time award
amount of $5,350—the amount of the
Pell Grant as of October 1, 2009.
For AmeriCorps NCCC, a position is
considered to be approved at the time
the Corporation enters into an
enforceable agreement with an
individual, signified by the individual’s
signing of an AmeriCorps NCCC
member agreement. (42 U.S.C.
12606(a)(1)(A)(i)). For an AmeriCorps
NCCC position, the education award
amount will be equal to the amount of
a Pell Grant on October 1 of the fiscal
year in which the AmeriCorps NCCC
member signs the member agreement.
Therefore, an individual who signs an
AmeriCorps NCCC member agreement
on any date between October 1, 2009,
and September 30, 2010, will receive an
award based on a full-time award
amount of $5,350—the amount of the
Pell Grant as of October 1, 2009.
For AmeriCorps State and National,
by law, a position is considered to be
approved at the time the Corporation
executes a grant used to support the
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AmeriCorps member—not the date an
AmeriCorps member takes an oath,
signs an agreement, or begins service.
(42 U.S.C. 12606(a)(1)(A)(ii)).
AmeriCorps State and National grants
are generally made during the spring
and summer, i.e., in the latter half of a
fiscal year. As a result, unlike
AmeriCorps NCCC and AmeriCorps
VISTA members (who are eligible for
the new amount of the award as of
October 1), the earliest point at which
an AmeriCorps member may begin
serving in a position funded by those
grants may be closer to the end of a
fiscal year.
For example, if an AmeriCorps State
program receives a grant and an
allotment of AmeriCorps positions on
August 1, 2010, and enrolls a member
using fiscal year 2010 grant funds on
August 3, 2010, that member will
receive an education award based on a
full-time amount of $5,350—the amount
of the Pell Grant on October 1, 2009, the
first day of the fiscal year in which the
August 2010 grant was made. If the
program then enrolls another member
on October 10, 2010, that member will
also receive an education award based
on the $5,350 amount—even though at
that point a new fiscal year has begun,
and the Pell Grant for fiscal year 2011
may have increased or decreased as of
October 1, 2010. The determining factor
is that the member position was
approved by the Corporation in a grant
awarded in fiscal year 2010.
Further, unlike an AmeriCorps NCCC
or AmeriCorps VISTA member, whose
approval date will closely correlate with
the day the individual begins service, it
is possible for an AmeriCorps State and
National member beginning service in
one fiscal year to be supported with
funds from a grant made in a prior fiscal
year. Therefore, it is possible for two
AmeriCorps members starting service on
the same day to be supported by two
different grant awards made in two
different fiscal years, resulting in two
different approval dates and two
different education award amounts.
For example, consider two programs
with different member enrollment
periods. Program A has an enrollment
period of September 1, 2010 to August
30, 2011. Program B’s enrollment period
is September 15, 2010 to September 14,
2011. Both programs receive a grant
award for the second year of their grant
in the summer of 2011, and each enrolls
a member on September 2, 2011. The
member enrolling in Program A will be
enrolling at the beginning of the
enrollment period for that program year,
and will receive an education award
based on the amount of a full-time
award on October 1, 2010. The member
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enrolling in Program B will be enrolling
at the end of the enrollment period for
the prior program year, and will receive
an education award based on the
amount of a full-time award on October
1, 2009.
The Corporation received several
comments expressing concern about the
possibility of two members serving
simultaneously but receiving different
education award amounts. Specifically,
these commenters noted that different
education award amounts may give the
appearance of inequity between
members.
In the proposed rule, the Corporation
included an example of a scenario
under which a program enrolls two
members on the same day using one slot
from the prior year grant and one slot
from the current year grant. While such
a scenario is possible, it is unlikely to
occur. However, it is likely that an
AmeriCorps State and National member
may start on the same day as an
AmeriCorps VISTA member at the same
service site. To mitigate a perception of
inequity among members in any case,
and to reduce confusion, it is essential
for AmeriCorps programs—particularly
those with AmeriCorps State and
National members—to clearly
communicate to each member, prior to
the commencement of service, the
amount of the education award being
offered to the individual for successful
completion of the term of service.
Beginning with grants made in 2010,
AmeriCorps State and National grant
provisions will direct grantees to specify
the amount of the education award
being offered for successful completion
of a term of service in the member
service agreement.
One commenter recommended that
the Corporation make the education
award amount for a particular
AmeriCorps position available to the
member and the program through the
MyAmeriCorps portal. The Corporation
is developing its systems to provide this
information through the MyAmeriCorps
portal in the near future, but will also
require programs to communicate this
information to the member in the
member service agreement.
It is important to remember that the
Serve America Act went into effect on
October 1, 2009. All positions approved
prior to that date are eligible for awards
based on a full-time amount of $4,725.
To learn more about the amount of the
education award and how it is
determined, visit the AmeriCorps Web
site at https://www.americorps.gov/
for_individuals/benefits/
benefits_ed_award.asp.
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I. Amount of Silver Scholar and
Summer of Service Education Awards
(§ 2527.10)
As previously discussed, the Serve
America Act created two new types of
education awards: Silver Scholar
education awards and Summer of
Service education awards. This rule
amends § 2527.10 to include the Silver
Scholar education award of $1,000,
available upon successful completion of
a term of service of at least 350 hours
in a Silver Scholar position.
This rule also amends § 2527.10 to
include the Summer of Service
education award of $500, available upon
successful completion of at least 100
hours in a Summer of Service position.
The Corporation may authorize a
Summer of Service education award of
$750 if the participant is an
economically disadvantaged youth.
In the proposed rule, we stated that in
order to authorize the increased award,
the Corporation must receive a
certification from the school with which
the participant served that the
participant meets the definition of
‘‘economically disadvantaged youth,’’
defined in this rule as a child that is
eligible for a free lunch or breakfast
under the Richard B. Russell National
School Lunch Act (42 U.S.C. 1758(b)).
Upon further consideration, the
Corporation is changing this
certification requirement in the final
rule, and will instead require
verification from the school or
organization with which the participant
served.
Pro-rated education awards for an
early release for compelling personal
circumstances from a Silver Scholar or
Summer of Service position are not
available. If an individual fails to
complete either type of term for any
reason, the individual will not receive
an award. And unlike the AmeriCorps
education award described in the
previous section, under the authorizing
statute Silver Scholar and Summer of
Service education awards will not vary
in amount from one year to the next.
Summer of Service and Silver Scholar
education awards may be used for the
same purposes as AmeriCorps education
awards, including paying for the cost of
attendance or other current educational
expenses at an institution of higher
education, to pay expenses incurred in
enrolling in an educational institution
or training establishment approved by
the Secretary of Veteran’s Affairs for
programs of education, apprenticeship,
or on the job training, and to repay
qualified student loans.
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J. Limitation on Value of Education
Awards Received (§ 2526.50)
Prior to the passage of the Serve
America Act, the national service laws
limited individuals to receive an
education award ‘‘only on the basis of
the first and second * * * terms of
service.’’ A term of service includes fulltime, part-time, or less-than-part-time
terms, terms in which the person served
at least 15 percent of the term of service,
and terms for which an individual was
released for misconduct regardless of
the amount of time served. Terms range
in service hour requirements from 300
hours to more than 1,700 hours, but
despite the contrast in the level of
commitment required or the service
opportunity presented, all terms were
previously considered of equal value for
the purposes of limiting the receipt of
education awards.
The Serve America Act amended the
national service laws to no longer limit
the receipt of education awards based
upon the number of terms served, but
rather place the limit on the aggregate
value of education awards received.
Section 146(c) now states: ‘‘An
individual may not receive, through
national service educational awards and
silver scholar educational awards, more
than an amount equal to the aggregate
value of [two] such awards for full-time
service.’’
The amended law allows for an
individual to earn more than two
education awards, so long as the
aggregate value of all awards received
does not exceed the aggregate value of
two full-time national service education
awards. Significantly, the law does not
create an entitlement to receive the
aggregate value of two full-time awards;
rather, it prohibits an individual from
receiving more than the aggregate value
of two full-time awards. This rule
amends § 2526.50 to align with the
amended statutory language.
As previously discussed, the amount
of a full-time education award is now
tied to the amount of a Pell Grant in the
year the position is awarded, and is
likely to change each year. The
Corporation does not interpret the
amended statute to provide that the
value of two full-time education awards
for the purposes of this section is equal
to the dollar amount of two full-time
awards and would thus similarly change
on an annual basis, providing a
potentially unlimited number of service
opportunities and education awards.
Nor does the Corporation interpret this
change as a means of ensuring that all
national service participants receive an
identical amount. Rather, the
Corporation interprets the change in
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51401
interprets the ‘‘value’’ of a full-time
education award to be representative of
the service opportunity upon which it is
based. Therefore, a limitation of two
full-time education awards can be
understood as a limitation of two fulltime service opportunities.
In order to attribute a value to an
award received on the basis of a static
service opportunity in an environment
in which the award amount may
fluctuate annually, the Corporation will
measure the value of any award amount
relative to the amount of a full-time
award in a given year. For the purposes
of this section, the value of an education
award will be considered equal to the
actual amount of the education award
received divided by the amount of a
full-time education award in the fiscal
year the AmeriCorps or Silver Scholar
position upon which the award is based
was approved. Using this calculation,
every award received will be considered
to have a value between 0 and 1.
Although the amount of a full-time
award may change, the value of a fulltime award will always be equal to 1.
For example, an individual who
completed a part-time position
approved in 2009 received an education
award of $2,362.50. The value of this
award is the amount received,
$2,362.50, divided by $4,725, the
amount of a full-time award in the year
the position was approved, or .5.
Another individual completes a parttime position approved in 2010 and
receives an education award of $2,675.
The value of this award is the amount
received, $2,675, divided by $5,350, the
amount of a full-time award in the year
the position was approved, or .5. Using
this calculation, the value of an award
received for part-time service will
always be equal to .5.
If an individual leaves a term of
service for compelling personal
circumstances and receives a pro-rated
award, the value attributed to that
award will be based on the amount
actually received. For example, an
individual was released for compelling
personal circumstances from a full-time
position approved in 2009 after serving
800 hours, and received a pro-rated
award of $2,223.52. The value of this
award is the amount of the award
received, $2,223.52, divided by, $4,725,
the amount of a full-time award in the
year the position was approved, or .47.
Another individual was released for
compelling personal circumstances from
a full-time position approved in 2010
after serving 800 hours, and received a
pro-rated award of $2,517.64. The value
of this award is the amount of the award
received, $2,517.64, divided by $5,350,
the amount of a full-time award in the
year the position was approved, or .47.
If an individual exits a term for cause
and does not receive an education
award, the amount received will be $0,
and therefore no value will be attributed
to the individual for purposes of this
section. However, an exit for cause will
have an impact on the individual’s
eligibility to serve subsequent terms of
service. A term exited for cause is
considered a term of service for the
purposes of term limitations for
individual programs. For example, if an
individual has already served one term
of service in AmeriCorps NCCC, and
exits a second term in AmeriCorps
NCCC for cause, the individual has
exhausted the two terms of service one
may serve in AmeriCorps NCCC.
Additionally, if an individual is
released for cause from an approved
AmeriCorps position (including
positions in AmeriCorps State and
National, AmeriCorps VISTA,
AmeriCorps NCCC, and ServeAmerica
Fellows), and the program determines in
the end-of-term evaluation that the
individual served unsatisfactorily, the
individual may not serve a subsequent
term in an approved AmeriCorps
position.
For the purpose of transferred awards
(discussed further in the section in this
preamble on transfer), the value of the
award received by a transferee will be
the actual amount of the award received
divided by the amount of a full-time
award in the year the position for which
the transferring individual received the
award was approved. For example, if an
individual receives an education award
based on a term of service approved in
2010, and later transfers $1,000 of that
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focus from the number of terms served
to the value of education awards
received as a means of affording
individuals serving in less-than-fulltime terms more service opportunities.
In other words, for the purposes of the
limitation on education award receipt,
value is distinct from amount.
The Corporation considers an
education award to be the counterpart to
successful completion of a term of
service, and while the amount of that
award might change, the service
opportunity offered by a particular term
of service is constant. The Corporation
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award to a grandchild, the grandchild
will be considered to have received an
award value of .19, the result of dividing
the amount received, $1,000, by the
amount of a full-time award in 2010,
$5,350. If the transferring individual
revokes all or part of an award, the
value considered to be received by the
designated individual will be decreased
accordingly. An individual who
receives the aggregate value of two fulltime awards through transferred awards
may enroll in a national service
position, but will not be eligible to
receive any additional AmeriCorps or
Silver Scholar education awards.
For purposes of this section, an award
is considered to be received at the time
it becomes available for an individual’s
use, and the fact that an individual does
not use an award does not diminish its
value. In addition, an individual who
transfers an award will still be
considered to have received the award,
and the value of the award for the
purposes of this section will not be
decreased by the amount the individual
transfers to a designated individual. For
example, if an individual successfully
completes two full-time terms of
service, and the individual then
transfers both full-time awards to a
child, both the child and the
transferring individual will be
considered to have received two fulltime awards.
This rule states that an individual
may receive no more than the aggregate
value of two full-time education awards.
The aggregate value of awards received
will be equal to the sum of the value of
each national service education award
received (awards received from terms of
service in AmeriCorps State and
National, AmeriCorps VISTA,
AmeriCorps NCCC, or ServeAmerica
fellowships), including partial awards,
the value of each Silver Scholar award
received, and the value of each
transferred award received. The
calculation of the aggregate value does
not include Summer of Service
education awards, as these are excluded
by law.
For example, an individual served a
full-time term in 2008 and received an
award of $4,725. The same individual
served a part-time term in 2009 and
received an award of $2,362.50. The
individual enrolls in a minimum-time
term in 2010 and receives an award of
$1,132.60. The value of the first award
is 1 ($4,725 divided by $4,725), the
value of the second award is .5
($2,362.50 divided by $4,725), and the
value of the third award is .21
($1,132.60 divided by $5,350). The
aggregate value of awards received is
1.71 (1 + .5 + .21).
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The Corporation has received
questions about whether awards
received prior to the effective date of the
Serve America Act will be included in
determining the aggregate value of
education awards received. The national
service laws, as amended by the Serve
America Act, do not differentiate
between awards received prior to the
effective date and those received
subsequent to the effective date. All
awards earned in the past will have a
value attributed to them for the
purposes of this section. Thus, under
the proposed rule, if an individual has
received two full-time education awards
in the past, that individual is not
eligible to receive another education
award.
K. Impact of Aggregate Value of
Education Awards Received (§§ 2526.55,
2527.10)
The proposed rule included a
limitation that an individual would not
be permitted to enroll in a subsequent
term of service if successful completion
of that term would result in receipt of
an education award the value of which,
when added to the aggregate value of
awards previously received, would be
greater than 2. The proposed rule
provided that this would not prevent an
individual from enrolling in a term of
service for which the individual chooses
to waive receipt of the education award.
The Corporation received many
comments on this provision. Some
commenters requested additional
clarification on waiving an education
award. Other commenters questioned
the Corporation’s proposal to require an
individual who is not eligible to receive
an entire education award for a
particular term of service to waive the
entire award in order to enroll in the
term. Among the comments received,
there was broad support for permitting
an individual eligible to receive only a
portion of an award to receive that
portion upon successful completion of a
term of service.
After further consideration, the
Corporation agrees that an individual
who is eligible to receive a portion of an
education award should be able to
receive that portion upon successful
completion of the term of service. Under
this rule, if an amount offered for a term
of service has a value that, when added
to the aggregate value of awards
previously received, would exceed 2,
the individual will receive a discounted
award representing that portion of the
award having a value for which the
individual is eligible.
However, the Corporation will need
time to implement this policy properly,
including time to make necessary
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upgrades to our systems. We estimate
that our systems should be updated by
November 1, 2010. Prior to that date, the
Corporation will notify applicants in the
MyAmeriCorps portal of the new rule,
but will not provide individualized
notice to applicants of the amount of
award the individual may receive. Once
the system changes have been
implemented, an individual will be
notified upon enrollment in a particular
term of service of the aggregate value of
awards the individual has previously
received, and the maximum award
amount the individual is eligible to
receive for that term of service. The
maximum amount the individual will
receive upon successful completion will
be either the amount of the award
offered for that term of service, or a
discounted amount having a value that,
when added to the aggregate value of
awards previously received, does not
exceed 2—whichever is less. The
discounted amount is determined by
multiplying the value the individual is
eligible to receive by the amount of a
full-time award in the year the position
is approved, and may be equal to zero
dollars.
(2¥aggregate value of education awards
received)
×
(amount of full-time education award in
year position was approved)
This rule adds a new paragraph (g) to
§ 2527.10 describing how a discounted
award amount is determined.
For example, consider an individual
who has received an aggregate value of
1.26 awards who wishes to enroll in a
full-time term offering an award with a
value of 1. The individual is eligible to
receive an award with a value of .74,
and therefore upon successful
completion will receive a discounted
award amount of $3,959 ((2¥1.26) ×
$5,350).
If an individual had already received
the value of two full-time education
awards, the maximum discounted
amount the individual is eligible to
receive for successful completion of the
term of service is $0 ((2¥2) × $5,350).
An individual must successfully
complete the term of service in which
the individual enrolls in order to receive
the entire amount of the education
award for which the individual is
eligible. Section 147(c) of the Act states
that if ‘‘an individual serving in an
approved national service position is
released [for compelling personal
circumstances], the Corporation may
provide the individual with that portion
of the national service educational
award approved for the individual that
corresponds to the quantity of the term
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of service actually completed by the
individual.’’ An individual is only
approved to receive an award amount
for which the individual is eligible. If an
individual is eligible to receive a
discounted education award, and the
individual leaves a term of service for
compelling personal circumstances, the
individual will receive a corresponding
portion of the discounted award
amount.
For example, consider an individual
who enrolls in a term of service offering
an award amount of $5,350, but who is
only eligible to receive an amount of
$3,000 based on the aggregate value of
awards the individual had previously
received. If this individual exits the
term for compelling personal
circumstances after serving 50% of the
required service hours, the individual
will receive $1,500, or 50% of $3,000—
the discounted award amount for which
the individual was approved.
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Please Note: the option to elect to waive an
education award was proposed in order to
enable an individual to serve in a term of
service offering an education award amount
with a value exceeding the value for which
the individual is eligible. The Corporation is
not including a waiver requirement or option
in the final rule.
L. Transfer of Education Awards (Part
2530)
The Serve America Act amended
Subtitle D of title I of the NCSA to
authorize individuals to transfer an
education award, with limitations on
who can transfer an award, and who can
receive a transferred award. By statute,
to transfer an award, an individual
must: (1) Have successfully completed a
term of service in an approved
AmeriCorps State and National or Silver
Scholar position; and (2) have been age
55 or older before beginning that term
of service. To receive an award, an
individual must: (1) Be designated by a
qualifying transferring individual; (2) be
the child, grandchild, or foster child of
the transferring individual; and (3) be a
citizen, national, or lawful permanent
resident alien of the United States. The
effective date of this provision was
October 1, 2009; only individuals
beginning service on or after that date
will be eligible to transfer an education
award.
Section 148(f) specifies that the
‘‘designated individual,’’ meaning the
child, grandchild, or foster child
designated by the transferring
individual to receive the award, may
use the award for the purposes
described in paragraphs (b), (c), and (d)
of that section—i.e., to repay qualified
student loans, to pay for current
educational expenses at an institution of
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higher education, or to pay expenses
incurred in an approved school-to-work
program. The school-to-work program,
authorized under the School-to-Work
Opportunities Act of 1994, sunsetted in
2001; thus, in practice, the designated
individual would be able to use the
award only for current educational
expenses or to repay qualified student
loans. The NCSA as amended does not
extend the use of the transferred award
to pay expenses incurred in enrolling in
an institution or training establishment
approved under the G.I. Bill to
designated individuals, nor does it
permit designated individuals to receive
interest forbearance payments as
described in Section 148(e).
This section of the NCSA also permits
a transferring individual to, ‘‘on any date
on which a portion of the education
award remains unused, modify or
revoke the transfer of the educational
award with respect to that portion.’’
This rule adds a new part 2530 on
transfer, including rules reflecting
statutory guidelines, and details on the
processes for requesting transfers and
revocations of transferred awards. The
NCSA also includes a provision
requiring the Corporation to ‘‘establish
requirements to prevent waste, fraud, or
abuse in connection with the transfer of
an educational award and to protect the
integrity of the educational award under
this subsection.’’ This rule includes
several measures intended to prevent
waste, fraud, or abuse in connection
with the transfer of an education award.
First, as part of the process for the
transferring individual to request the
transfer and the process for the
designated individual to accept the
transfer, this rule requires both the
transferring individual and the
designated individual to provide a
certification under penalty of law that
each meets the criteria to transfer, or
receive, a transferred award. As with
any certification, an individual may be
required to produce verifying
documentation.
This rule specifies in § 2530.70 that
an individual is not required to accept
a transferred award. We received a
question regarding whether an
individual may reject an award at any
time, or must do so at the outset. An
individual may reject an award at the
outset, or at any point after acceptance.
Any award amount that has been
rejected will not be considered when
calculating the aggregate value of
education awards an individual has
received. A transferring individual may
re-transfer an award if the designated
individual rejects the transferred award
in full and the award has not yet
expired.
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Second, this rule limits an individual
to making a single transfer of an
education award that is attributable to a
single term of service. An individual
may transfer an award in whole or in
part; thus, the transferring individual
may keep a portion of an award for his
or her use and transfer a portion to a
designated individual. However, an
individual may not transfer a single
award attributable to completion of a
single term of service to more than one
designated individual.
The Corporation received several
comments opposing this limitation, and
one recommendation that the
Corporation increase the limit to two
designated individuals for each award.
Several commenters noted that the Act
does not specifically dictate this
limitation; however, the Act directs the
Corporation to establish rules to prevent
fraud, waste, and abuse in connection
with transferred awards, and this
limitation is designed to mitigate such
risks. Also, as stated in the proposed
rule, this provision limits, but does not
proscribe, an individual’s ability to
transfer to multiple individuals; in order
to transfer awards to more than one
designated individual, the transferring
individual will need to earn awards for
more than one term of service.
As stated above, a transferring
individual also has the authority to
revoke the transfer of any unused
portion of an education award. As
another measure to prevent waste,
fraud, or abuse, and in line with the
Corporation’s intent to limit individuals
to a single transfer from each award, a
transferring individual would not, as a
general rule, be permitted to re-transfer
a revoked award to another individual.
This rule includes an exception to
this general rule for those situations in
which the Corporation considers the
award to have been revoked for good
cause, as demonstrated by the
transferring individual. For example, if
a transferring individual revokes the full
amount transferred upon the death of a
designated individual, the Corporation
would permit the transferring
individual to re-transfer the award in
whole or in part.
The Corporation received several
requests for a definition of ‘‘good cause.’’
Beyond the death of a transferee or a
transferee’s rejection of an award in full,
the Corporation cannot speculate as to
the types of situations that may arise
that would necessitate an individual to
revoke an award, and thus is not
prepared to define ‘‘good cause’’ at this
time. The Corporation will make
determinations of whether there is good
cause to permit someone to re-transfer
an award in a consistent manner, and
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may develop a more formal policy in the
future based upon the types of requests
received.
This rule also includes several
clarifying provisions. As discussed in
the section in this rule on the limitation
on the value of education awards an
individual may receive, the NCSA
prohibits an individual from receiving
more than the aggregate value of two
education awards. Under this rule, an
award is considered to be ‘‘received’’ at
the time it becomes available for an
individual’s use. The fact that an
individual transfers an award to a
designated individual will not decrease
the value of awards the individual is
considered to have received.
Transferred awards a designated
individual receives will also be
considered when calculating the
aggregate value of awards received.
For example, if an individual receives
two full-time awards and transfers both
awards to a child, both the transferring
and designated individual will be
considered to have received the
aggregate value of two full-time awards,
and neither will be eligible to receive
additional AmeriCorps or Silver Scholar
awards from the National Service Trust.
As discussed in the section on
calculating the value of an education
award, a transferred award would have
a value based on the amount of a fulltime education award in the year the
position on which the transferring
individual’s award was based was
approved.
Under the national service laws, an
individual has seven years from the date
the individual completes a term of
service to use an award, and a
designated individual receiving a
transferred award has ten years from the
date the term of service is completed to
use the award. For example, if an
individual receives an award for a term
completed in 2010, and transfers the
award five years after receiving the
award, the designated individual would
have five years to use the award.
In accordance with these statutory
time frames, this rule permits an
individual to revoke the transfer of an
award at any point prior to its use, but
the individual may only use such an
award if the award has not expired. For
example, if an individual received an
award for a term completed in 2010,
transferred the award five years after
receiving the award, and then revoked
the transfer six years after receiving the
award, the transferring individual
would have only one year to use any
unused portion of the award. If,
however, the transferring individual had
revoked the transfer eight years after it
was originally earned, the award would
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expire immediately upon revocation,
because although the award had not yet
expired for use by the designated
individual, it would have expired for
the transferring individual a year earlier.
Several commenters suggested that, in
the event a person receiving a
transferred award does not or cannot
use it, the individual who originally
transferred the award should be
permitted to use the award beyond the
seven-year period specified in statute.
The Corporation will grant extensions to
the statutory seven-year period in
circumstances in which an individual
was unavoidably prevented from using
an education award. An individual who
does not use an award during its seven
year period of availability because the
individual transferred the award and
did not revoke the transfer prior to the
award’s expiration will not be
considered to have been unavoidably
prevented from using the award.
The Corporation received many
comments opposing elements of this
rulemaking that simply implement
provisions of the Serve America Act,
including: The provision that only an
individual who serves in an AmeriCorps
State and National or Silver Scholar
position may transfer an education
award, meaning that an individual who
serves in an AmeriCorps VISTA,
ServeAmerica Fellowship, or
AmeriCorps NCCC position cannot
transfer an award; the requirement that
an individual must have served in a
national service position in order to
transfer an award, meaning that an
individual who receives a transferred
award cannot transfer that award to
someone else; the provision that an
eligible individual may only transfer to
a child, grand-child, or foster child,
meaning an individual cannot transfer
an award to other family members,
mentored children, or scholarship
funds; the provision limiting the option
to transfer to individuals age 55 and
older; and the provision that education
awards received by transfer must be
considered when calculating the
aggregate value of awards received.
Expanding the types of individuals who
can transfer an award, the types of
individuals who may receive an award,
and the impact of receiving an
education award by transfer on an
individual’s eligibility to receive a
subsequent award would require
amendments to the statute, which can
be done only by Congress.
Many commenters expressed concern
that an individual who has received
education awards by transfer will be
ineligible to serve terms of service in
national service positions. If an
individual has received education
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awards by transfer, the individual’s
eligibility to receive additional
education awards may be limited,
however, receipt of awards by transfer
will not impact an individual’s ability to
serve in a national service position. The
fact that an individual has received the
maximum value of education awards
does not preclude the individual’s
future participation in a national service
position.
We received a question regarding the
tax implications for the recipient of a
transferred award. The Internal Revenue
Service previously ruled that an
education award is taxable to the person
using the award in the year that it is
used. The Corporation will notify
national service participants and
designated individuals should the
Corporation receive any guidance from
the Internal Revenue Service to the
contrary in connection with an
individual’s use of a transferred award.
One commenter asked whether an
individual could transfer a pro-rated
award received after leaving a term for
compelling personal circumstances. An
eligible individual may transfer a prorated award received after leaving a
term for compelling reasons.
Please note: an individual wishing to
transfer an award will be able to do so
using the Corporation’s online systems
beginning mid-October, 2010.
M. Periods of Availability for Silver
Scholar, Summer of Service, and
Transferred Education Awards
(§ 2526.40)
This rule amends section § 2526.40 to
include periods of availability for Silver
Scholar, Summer of Service, and
transferred education awards. Under
section 146 of the NCSA, the period of
availability for a Silver Scholar
education award is seven years from the
date the individual completes a term of
service. The period of availability for a
Summer of Service education award is
ten years from the date the individual
completes the term of service.
Individuals who receive a transferred
award may use the award within ten
years of the date the transferring
individual completes the term of service
that is the basis for the award—not the
date the designated individual receives
the transferred award. For example, if
an individual transfers an award five
years after the date the individual
completed the term of service, the
designated individual would have five
years to use the award—ten years from
the date the transferring individual
completed the term of service.
Similar to national service education
awards, section 146 authorizes the
Corporation to grant an extension to the
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period of availability for a Silver
Scholar education award, a Summer of
Service education award, or a
transferred award if the individual
requesting the extension ‘‘was
unavoidably prevented’’ from using the
education award or if the individual
‘‘performed another term of service in an
approved national service position,
approved summer of service position, or
approved silver scholar position during
that period.’’
Several commenters urged the
Corporation to grant extensions to
individuals who have received a
transferred award but are too young to
use the award by the expiration date,
noting that many individuals eligible to
transfer an award have very young
children or grandchildren. Indeed, it is
unlikely that any designated individual
under the age of 8 will have had an
opportunity to use an education award
by the 10-year expiration date.
As stated in the proposed rule, to
permit extensions for a designated
individual who is too young to use an
award would mean, in some cases,
extensions for up to nine years beyond
the original expiration date—nearly
twice the statutory period of
availability. The Corporation believes
that the longer the period of availability,
the greater the risk of fraud, waste, or
abuse. Further, Congress selected ten
years as a reasonable period of
availability for a transferred award.
Based upon these considerations, this
rule maintains that an individual who is
unable to use an education award as a
result of being too young will not be
considered to be unavoidably prevented
from using the education award.
Individuals wishing to transfer an award
will be reminded at the time they
request a transfer that, while there is no
minimum age for a designated
individual, extensions based on age will
not be granted.
N. Certifications of Successful
Completion of Terms of Service
(§ 2526.10)
The Serve America Act amended the
NCSA by adding a new section 146A,
which requires that a national service
program certify under penalty of law
that an individual successfully
completed an agreed-upon term of
service to be eligible to receive an
education award from the National
Service Trust. Specifically, section
146A(a) provides that, in making
disbursements from the National
Service Trust, the Corporation is
authorized to act on the basis of
certifications that individuals who
served in approved AmeriCorps
positions, approved Summer of Service
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positions, or approved Silver Scholar
positions, successfully completed the
term of service required to be eligible for
an education award. These certifications
must be made by the entity which
selected the individual to serve in the
position, and supervised the
individual’s performance of their
service. This rule implements section
146A(a) by including the certification
requirement in the determination of
who is eligible to receive an education
award under § 2526.10(a)(2)(i), (iii), and
(iv).
O. Effect of Erroneous Certifications of
Successful Completion of Terms of
Service (§ 2526.70)
Under section 146A(b) of the NCSA,
if the Corporation finds that a
certification made under section
146A(a) is erroneous or incorrect, the
Corporation shall assess a charge against
the national service program which
made the certification. The charge is to
be assessed for the amount of any
payment which the Corporation has or
may make from the National Service
Trust based on the erroneous
certification. In assessing the amount of
a charge, the Corporation is to consider
the full facts and circumstances
surrounding the erroneous or incorrect
certification.
This rule implements section 146A(b)
and specifies that any Corporation
determination in regard to a charge
under § 2526.70 will not preclude the
Corporation from taking any other
actions which may be warranted under
other applicable authorities, such as the
Program Fraud Civil Remedies Act.
One commenter noted that the
proposed rule does not describe the
factors which the Corporation will
consider in determining the amount it
will assess based on an erroneous or
incorrect certification. The commenter
noted that the Corporation could take a
number of different approaches which
could range from strict liability
standards to considerations of fault
(assessed against a specific evidentiary
standard) to assessing charges by a
formula based on the number of hours
appropriately served. The commenter
suggested that, if the Corporation
intends to use any such standards or
procedures, that they be set out by the
rule.
The authority granted in section
146A(b) of the National and Community
Service Act and implemented by
§ 2526.70 is broad. It grants to the
Corporation the authority to assess and
collect charges related to education
awards (or portions thereof) which have
not yet been disbursed from the
National Service Trust. This authority
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also requires the Corporation to
consider ‘‘the full facts and
circumstances surrounding the
erroneous or incorrect certification.’’
Because of the breadth of this authority
and the charge to consider the facts and
circumstances surrounding each
certification, the Corporation will make
its assessments of erroneous or incorrect
certifications on a case-by-case basis
consistent with its overriding
responsibility to treat similarly situated
entities in a consistent manner. Some
factors the Corporation may consider
include, but are not limited to: The
number of hours an individual fell short
from successful completion; the number
of members with hour shortfalls; and
the prevalence of programmatic
weaknesses.
One commenter noted that the term
‘‘national service program’’ is not
specifically defined in § 2526.70. The
commenter questioned whether the
Corporation would assess charges only
against ‘‘the certifying program’’ or may
also assess charges against ‘‘upstream
grantees.’’ The authority in section
146A(b) is to assess charges for
erroneous certifications made under
section 146A(a). Those certifications
must be made ‘‘by the entity that
selected the individual for and
supervised the individual in the
approved national service position.’’ The
Corporation expects that in many cases
those entities will be either subgrantees
of state service commissions or
AmeriCorps national grantees who
receive their awards directly from the
Corporation. However, the Corporation
reserves the right to collect erroneous
payments from the grantee or any other
entity with responsibility for the
program. The Corporation has not
modified the proposed rule in this
regard because it does not view the
proposed rule as inconsistent with the
authority given in section 146A(b).
One commenter asked whether the
Corporation will assess charges for
erroneous certifications only if an award
has been disbursed from the National
Service Trust. Section 146A(b) gives the
Corporation the authority to assess a
charge ‘‘for the amount of any associated
payment or potential payment from the
National Service Trust.’’ (Emphasis
added). As discussed above, this
authority is broad enough to encompass
an assessment before an education
award is disbursed. The Corporation’s
proposed regulation did not limit that
authority.
P. Public Service Loan Forgiveness and
AmeriCorps (§ 2526.20)
On September 27, 2007, President
Bush signed the College Cost Reduction
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and Access Act of 2007 (Pub. L. 110–84)
into law. The CCRAA created the Public
Service Loan Forgiveness Program. This
program offers forgiveness for
outstanding Federal Direct loans for
those individuals who make 120
qualifying payments after October 1,
2007, while working full-time in a
‘‘public service job.’’ In the Department
of Education’s implementing rules,
‘‘public service job’’ has been defined to
include ‘‘serving in a full-time
AmeriCorps * * * position.’’ (34 CFR
685.219(c); 73 FR 63527, Oct. 23, 2008).
‘‘AmeriCorps position’’ as defined in
that section would include full-time
service in AmeriCorps State and
National, AmeriCorps NCCC,
AmeriCorps VISTA, and ServeAmerica
Fellowships.
Generally, an individual cannot
receive an education award and related
interest benefits from the National
Service Trust as well as other loan
cancellation benefits for the same
service. For example, the law
authorizing the Teacher Loan
Forgiveness Program (TLFP) explicitly
states that ‘‘no borrower may, for the
same service, receive a benefit under
this [program] and subtitle D of title I of
the National and Community Service
Act of 1990.’’ (20 U.S.C. 1078–10(g)(2)).
Thus, an AmeriCorps member serving in
a teacher corps program would have to
choose whether to count the service
year towards TLFP or AmeriCorps, but
would not be able take both benefits for
the same period of service.
The Public Service Loan Forgiveness
Program is an exception to this general
rule. Service performed by an
individual serving in a full-time
AmeriCorps position may be credited to
both an education award and Public
Service Loan Forgiveness.
This rule amends § 2526.60 to include
an exception to the general prohibition
on an individual’s receiving an
education award and related interest
benefits from the National Service Trust
as well as other loan cancellation
benefits for the Public Service Loan
Forgiveness Program.
For more information on qualifying
for Public Service Loan Forgiveness
while serving in AmeriCorps, please
visit: https://www.nationalservice.gov/
for_organizations/highered/ccraa.asp.
Q. Term Limits for AmeriCorps State
and National (§ 2522.235)
AmeriCorps State and National is the
national service program funded under
Subtitle C of Title I of the NCSA. Prior
to passage of the Serve America Act,
section 140(h) of the NCSA included a
limitation that no program could use
any Federal funds to support an
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individual during a third term of service
in an AmeriCorps State and National
position. The Serve America Act
removed section 140(h) of the NCSA,
thereby eliminating the statutory
limitation on the number of terms in
which one could be supported with
Federal funds while serving in an
AmeriCorps State and National position.
The Serve America Act amended
section 146(c) by changing the
limitation from receiving awards for the
first two terms of service to receiving up
to the value of two full-time education
awards. As discussed in the section on
the limitation of education award
receipt, these amendments now give the
Corporation the flexibility to support a
single individual during more than two
terms of service in less-than-full-time
terms. The amendments do not
guarantee that an individual may serve
more than two terms of service, nor do
they direct the Corporation to provide
an individual with the opportunity to
serve more than two terms of service.
Rather, the amended provision
establishes a new limitation that the
Corporation must enforce.
By statute, one of the Corporation’s
guiding purposes is to ‘‘encourage
citizens of the United States * * * to
engage in full-time or part-time national
service.’’ In furtherance of this, the
Corporation’s longstanding policy is to
limit the number of terms an individual
may serve in an approved national
service position to ensure that there are
opportunities for all interested
Americans to serve. Increasingly,
applications for AmeriCorps far exceed
available positions. The Corporation’s
longstanding limitation of two terms of
service in AmeriCorps State and
National meant that, after a maximum of
two terms, a position was available for
a new individual to have an opportunity
to serve.
However, the Corporation appreciates
that the law as amended affords more
opportunities to serve for those
individuals who serve in less-than-fulltime positions. To balance the increased
flexibility afforded by the amended
statute with the Corporation’s interest in
providing more Americans an
opportunity to serve, this rule doubles
the number from two to four terms an
individual may serve in AmeriCorps
State and National and be supported
with federal funds. This will provide
twice as many opportunities as were
previously available, but will place a
reasonable limit in order to ensure
service opportunities are available for
other interested participants. This does
not mean that an individual is
guaranteed four terms of service in
AmeriCorps State and National.
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A term of service includes full-time,
part-time, reduced part-time, quartertime, and minimum-time terms, as well
as any term from which one exits after
serving 15 percent of the agreed term of
service, and any term from which one
is exited for misconduct. If a person
leaves for reasons other than
misconduct prior to serving 15 percent,
the term is not considered a term of
service for the purposes of this
limitation.
Exhaustion of the number of terms
one may serve in AmeriCorps State and
National would not necessarily prevent
an individual from enrolling in a
position in another national service
program, such as AmeriCorps NCCC,
AmeriCorps VISTA, or Silver Scholars.
The Corporation received many
comments expressing concern about the
proposed limit of four terms. These
comments generally fell into one of
three categories: (1) Those who opposed
any term limit for AmeriCorps; (2) those
who believe the limitation on education
award value received is a sufficient
limitation on the number of terms an
individual may serve; and (3) those who
agree that there should be a limit on the
number of terms an individual may
serve, but recommend expanding the
limit to 5 or more.
The Corporation does not agree that
an individual should be permitted to
serve in AmeriCorps indefinitely. As
discussed above, a limitation on terms
ensures that national service positions
will be available for more individuals to
serve.
Most commenters supported a
limitation to the number of terms, but
recommended an increase over the
proposed rule. Many encouraged the
Corporation to adopt a different
mechanism for limiting terms, or to rely
on the limitation of education award
receipt as a sufficient limitation. Based
upon the Corporation’s statement in the
proposed rule that a limitation of the
value of two full-time education awards
should be understood as ‘‘a limitation of
two full-time service opportunities,’’ one
commenter recommended that the term
limit approximate a limit of two fulltime service opportunities. One
commenter suggested using MSY’s
(member service years) served as a
possible mechanism for measuring the
value of service opportunities one has
had in AmeriCorps. Another commenter
recommended setting a limitation of
3,400 hours served, the equivalent of
two full-time terms of service.
The Corporation considered various
methodologies in implementing the
Serve America Act amendments, but
concluded that the number of possible
service opportunities afforded by such
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methodologies would be counter to
ensuring that opportunities to serve are
appropriately distributed among those
interested. A limit of up to two MSYs
would permit someone to serve up to 9
minimum time terms, and a limit of
3,400 hours would permit an individual
to serve up to 10 minimum time terms.
Further, developing separate value
systems for AmeriCorps terms of service
and education awards received presents
an additional challenge by making
AmeriCorps service overly complicated.
The Corporation did not consider
using the limitation on education
awards alone as a sufficient limit to the
number of terms an individual may
serve, as using such a limitation would
prevent an individual who received
education awards through transfer from
later serving in an approved
AmeriCorps position. To enable these
individuals to serve, the Corporation is
permitting individuals to enroll in
AmeriCorps without receiving an
education award. In short, the
Corporation believes it necessary to
have separate limitations on the number
of terms an individual may serve in
AmeriCorps State and National and on
the value of education awards an
individual may receive.
Many commenters offered arguments
in support of expanding the term limit,
including that participants want to
continue service beyond four terms, that
increasing the number of terms permits
the organization to benefit from a
participant’s cumulative experience, or
similarly that the organization could
benefit from the community
relationships the participant may have
developed over time.
The Corporation does not believe that
placing a limit on the number of terms
one may serve in AmeriCorps State and
National will prevent those individuals
interested in continued service from
serving, whether it be through their
careers, as volunteers, or as participants
in other programs such as AmeriCorps
NCCC, AmeriCorps VISTA, or a Senior
Corps program. Additionally, unlike
employment, AmeriCorps is not
intended to be a long-term arrangement.
If a program wishes to retain a particular
individual, the sponsoring organization
should consider developing a staff
position. In any event, a reasonable
limit on the terms of service advances
the overriding goal of having
meaningful opportunities to serve for all
those interested.
The Corporation also received
comments in opposition to the
Corporation’s justification for limiting
the number of terms. One commenter
noted that the appropriate remedy for
ensuring that there are sufficient
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AmeriCorps members is to increase
funding for AmeriCorps, not limit the
number of terms an individual may
serve. However, recent funding
increases have not kept up with the
increase in the number of Americans
applying to become AmeriCorps
members.
One commenter noted that while
applications for AmeriCorps service
may outnumber available positions
overall, this may not be true for
individual programs, and that the total
number of applicants is not
representative of the total number of
qualified applicants. This commenter
encouraged the Corporation to permit
organizations that are able to
demonstrate an inability to secure
qualified AmeriCorps members a waiver
to permit individuals to serve more than
four terms. In such cases, the
Corporation encourages programs to
strengthen their local recruitment
methods as well as use the
Corporation’s online recruitment
system.
R. Selection Criteria Sub-Categories for
AmeriCorps State and National (Part
2522)
The Serve America Act amended
Subtitle C of Title I of the NCSA by
placing greater emphasis on a grantee’s
impact. Programs are now described not
only in terms of their programmatic
activities and the unmet community
needs the programs are addressing, but
also in terms of ‘‘performance
indicators’’ that demonstrate the
program’s impact. Additionally, the
NCSA now requires the Corporation to
fund each year at least two of five
statutorily-described programs,
including programs that address unmet
education, health, economic
opportunity, veteran, and clean energy
needs. While the Corporation can
accommodate these changes in future
grant competitions without changing
our current published selection criteria,
the current ‘‘sub-categories’’ of the basic
selection criteria and the published
weights for the sub-categories are an
imperfect fit for the increased emphasis
on performance and funding of
programs addressing particular
community needs.
This rule removes §§ 2522.425–
2522.435, the sections that describe the
sub-categories of the three basic
selection criteria, as well as
§§ 2522.445–2522.448, the sections that
set out the weights given to the subcategories.
The Corporation may, in the future,
publish specific sub-categories for the
basic selection criteria in the Notice of
Funding Opportunity or Availability.
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51407
This will enable the Corporation to
adjust application components and the
weights given to sub-components. The
Corporation expects that future grant
applications will focus less on the
process through which grantees achieve
their outcomes and more on the
outcomes they produce. Additionally,
this will further the Corporation’s
continued efforts to simplify the
application process, as supported by the
Serve America Act.
The Corporation will continue to use
a multi-stage process, including review
by a panel of experts, and will continue
to make funding decisions based on the
same basic selection criteria of program
design, organizational capability, and
cost-effectiveness and budget adequacy.
The weights given to the basic selection
criteria—50% for program design, 25%
for organizational capability, and 25%
for cost-effectiveness and budget
adequacy—will not change. The change
in location of published sub-categories
and their respective weights does not
signify a change in the Corporation’s
standards for transparency, clarity, and
consistency in considering applications.
All applicants will be made aware of
any sub-categories of selection criteria
in advance of the application and
review process.
The Corporation received several
comments expressing concern that the
Corporation’s timeline for releasing
application instructions will arrive too
late for State Commissions to be able to
help sub-grantees prepare their
applications, for State Commissions to
operate their own grant competition,
and for programs to conduct the type of
community assessment and planning
necessary to formulate a potentially
successful program model. The
Corporation intends to release the
Notice of Funds Availability and
application instructions by late summer
each year. This will allow Commissions
and multi-state applicants the
opportunity to run their RFP processes
in the Fall in preparation for submitting
applications to the Corporation by its
due date the following winter.
S. Applications for the Same Project
(§ 2522.320)
The Serve America Act amended
section 130(g) of the NCSA, which
previously required the Corporation to
‘‘reject an application * * * if a project
proposed to be conducted using
assistance requested by the applicant is
already described in another application
pending before the Corporation.’’ As
amended, this section now prohibits the
Corporation from providing ‘‘more than
[one] grant under the national service
laws for a fiscal year to support the
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same project under the national service
laws.’’ This provision supports the
Corporation’s longstanding practice not
to provide more than one grant to the
same project. In addition, the revised
language increases the Corporation’s
flexibility in structuring its grant
application review process.
This rule aligns the regulations with
the amended statute by removing the
regulatory conditions under which an
applicant may submit multiple
applications for the same project. In the
future, the Corporation will include
guidance on applying for different funds
for the same project in the grant
application instructions. For the
purposes of preventing the same project
from receiving more than one grant
under the national service laws, the
Corporation will continue to use the
characteristics currently listed in
§ 2522.340 when determining whether
two projects are the same.
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T. Pre-Approval of Formula Programs
(§ 2550.80)
Section 130(f) of the NCSA was
amended by the Serve America Act by
removing the requirement that a State’s
application for Subtitle C (of title I of
the NCSA) formula funds include an
assurance that formula programs be
selected on a competitive basis prior to
submission of the application. This
amendment aligns with language from
the Corporation’s annual appropriations
and conforms to current practice. States
continue to be required to provide an
assurance that formula programs will be
selected on a competitive basis,
however, States may select these
programs after submitting the
application for Subtitle C formula funds.
This rule amends § 2550.80 to reflect
this change.
U. Hardship Waiver Permitted for Cost
Reimbursement Requirement for Senior
Companion and Foster Grandparent
Programs (§§ 2551.92, 2552.92)
Under past regulations, the total of
cost reimbursements attributable to
Senior Companions or Foster
Grandparents, including stipends,
insurance, transportation, meals,
physical examinations, and recognition,
may not exceed 80 percent of the
Federal share of the grant award.
Because of the financial challenges
faced by some organizations as a result
of the recent economic downturn and
the real potential for a decrease in nonFederal support, this rule permits the
Corporation to allow an exception to the
80 percent limit in cases of
demonstrated need. Demonstrated need
would include initial difficulties in
developing local funding sources in the
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first three years of operation; an
economic downturn, natural disaster, or
other similar event that severely reduces
sources of local funding support; or the
unexpected discontinuation of a longterm local funding source.
The Corporation received a total of 65
comments related to the proposed rule
change. One comment supported the
proposal as stated in the Proposed Rule;
one comment suggested the Corporation
eliminate the ‘‘may not exceed 80
percent of the Federal share’’ entirely; 3
comments suggested that the
Corporation change the ratio to ‘‘may not
exceed 60 percent’’; and 60 comments
suggested that the Corporation change
the ratio to ‘‘may not exceed 70 percent.’’
Implicit in these comments was the
concern that non-Federal sources of
funds are increasingly difficult to
secure, and that a proposal to waive the
requirement on a case-by-case basis may
not be applied consistently across all
grantees.
While the Corporation understands
the concerns expressed and is sensitive
to resource acquisition issues at the
grantee level, it believes that the
proposal put forth in the Proposed Rule
best serves the statutory intent related to
the programs. By allowing case-by-case
waivers, based on specific conditions
identified by grantees, the Corporation
can provide administrative relief when
warranted. The Corporation will
develop standard criteria for waivers
that will include economic downturn at
the local level.
IV. Summary of Redesignations
Previous location
New location
§ 2522.220(c)
§ 2522.220(d)
§ 2522.220(e)
§ 2522.220(f)
§ 2522.220(g)
Part 2530
Part 2531
Part 2532
§ 2522.220(b)
§ 2522.220(c)
§ 2522.220(d)
§ 2522.220(e)
§ 2522.220(f)
Part 2531
Part 2532
Part 2533
V. Effective Dates
Except for the amendments to
§§ 2522.220, 2522.230, 2522.235, and
2522.240, which are effective August 20,
2010, this rule is effective September 20,
2010.
VI. Non-Regulatory Issues
Executive Order 12866
Under Executive Order 12866, the
Chief Executive Officer must determine
whether this regulatory action is
‘‘significant’’ and therefore subject to the
requirements of the Executive Order and
review by OMB. Section 3(f) of
Executive Order 12866 defines a
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‘‘significant regulatory action’’ as an
action likely to result in a rule that may
(1) Have an annual effect on the
economy of $100 million or more, or
adversely affect a sector of the economy,
productivity, competition, jobs, the
environment, public health or safety, or
State, local or tribal governments, or
communities in a material way (also
referred to as an ‘‘economically
significant’’ rule); (2) create serious
inconsistency or otherwise interfere
with an action taken or planned by
another agency; (3) materially alter the
budgetary impacts of entitlement grants,
user fees, or loan programs or the rights
and obligations of recipients thereof; or
(4) create novel legal or policy issues
arising out of legal mandates, the
President’s priorities, or the principles
set forth in the Executive Order. The
Chief Executive Officer has determined
that this regulatory action is not
significant under the Executive Order.
Regulatory Flexibility Act
The Corporation has determined that
the regulatory action will not result in
(1) An annual effect on the economy of
$100 million or more; (2) a major
increase in costs or prices for
consumers, individual industries,
Federal, State, or local government
agencies, or geographic regions; or
(3) significant adverse effects on
competition, employment, investment,
productivity, innovation, or on the
ability of United States-based
enterprises to compete with foreignbased enterprises in domestic and
export markets. Therefore, the
Corporation has not performed the
initial regulatory flexibility analysis that
is required under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.) for
major rules that are expected to have
such results.
Paperwork Reduction Act of 1995
Sections 2526.10, 2528.10, 2528.30,
2528.40, 2528.60, 2528.70, 2529.10,
2530.30, and 2530.85 contain
information collection requirements.
Under the Paperwork Reduction Act of
1995 (44 U.S.C. 3507(d)), the
Corporation has submitted a copy of
these sections to the Office of
Management and Budget (OMB) for its
review.
Section 2526.10 identifies two new
categories of individuals eligible to
receive education awards: Individuals
who have successfully completed terms
of service in Silver Scholar positions
and those who have successfully
completed terms of service in Summer
of Service positions. These additions
require the development of new
enrollment and exit forms for the
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National Service Trust for individuals
enrolling in and exiting from Silver
Scholar or Summer of Service positions.
The Corporation estimates the burden
associated with filling out a Silver
Scholar or Summer of Service
enrollment form to be 3 minutes and a
Silver Scholar or Summer of Service
exit form to be 3 minutes. Additionally,
§ 2526.10 requires the program
supervising the participant to certify
that the participant met eligibility
criteria and successfully completed the
required term of service. The proposed
change affects those programs that
supervise participants. The burden hour
estimate associated with the current exit
form reported under OMB Control
Number 3045–0015 is 3 minutes. The
Corporation does not expect the
proposed changes to increase the
burden for this collection.
Section 2528.10 expands the available
uses of an education award to include
use for current educational expenses
incurred in enrolling in an educational
institution or training establishment
approved for educational benefits under
the G.I. Bill for offering programs of
education, apprenticeship, or on-job
training for which educational
assistance may be provided by the
Secretary of Veterans Affairs. Sections
2528.60–70 lay out the processes for
requesting to use an award for this
purpose. These provisions affect
individuals who choose to use
education awards for this purpose, and
the educational institutions or training
establishments at which such
individuals elect to use their awards.
The burden hour estimate associated
with the current voucher and payment
request form reported under OMB
Control Number 3045–0014 is 5
minutes. The Corporation does not
expect these additions to increase the
burden for this collection.
Section 2529.10 expands the
availability of payments on accrued
interest to individuals who successfully
complete terms of service in Silver
Scholar positions. This affects those
individuals who serve in Silver Scholar
programs and elect to place qualified
student loans in forbearance, and
request accrued interest payments from
the National Service Trust. The burden
hour estimate associated with the
current forbearance request form and
interest accrual form, reported under
OMB Control Numbers 3045–0030 and
3045–0053 are 1 minute and 10
minutes, respectively. The Corporation
does not expect the changes to increase
the burdens for these collections.
Sections 2530.30 and 2530.85 set
forth the processes for requesting to
transfer an award, accepting a
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transferred award, and revoking a
transferred award. This affects those
individuals who choose to transfer their
education awards and those individuals
receiving awards via transfer. The
Corporation estimates the burden
associated with requesting to transfer an
award and accepting a transferred award
to be 5 minutes, and the burden
associated with revoking a transferred
award to be 5 minutes.
51409
45 CFR Part 2552
Grants administration, Grant
programs—social programs, Volunteers.
For the reasons stated in the preamble,
under the authority 42 U.S.C. 12651d,
the Corporation for National and
Community Service amends chapter
XXV, title 45 of the Code of Federal
Regulations as follows:
■
PART 2510—OVERALL PURPOSES
AND DEFINITIONS
List of Subjects
45 CFR Part 2510
Grant programs—social programs,
Volunteers.
1. The authority citation for part 2510
continues to read as follows:
■
Authority: 42 U.S.C. 12501 et seq.
45 CFR Part 2518
Grants administration, Grant
programs—social programs.
45 CFR Part 2522
2. Amend § 2510.20 by adding
definitions for ‘‘Approved Silver Scholar
position’’ and ‘‘Approved Summer of
Service position’’ in alphabetical order,
to read as follows:
■
Grants administration, Grant
programs—social programs, Volunteers.
§ 2510.20
45 CFR Part 2525
*
Grant programs—social programs,
Student aid, Volunteers.
45 CFR Part 2526
Education, Grant programs—social
programs, Student aid, Volunteers.
45 CFR Part 2527
Education, Grant programs—social
programs, Student aid, Volunteers.
45 CFR Part 2528
Education, Grant programs—social
programs, Student aid, Volunteers.
45 CFR Part 2529
Education, Grant programs—social
programs, Student aid, Volunteers.
PART 2518—SERVICE-LEARNING
CLEARINGHOUSE
3. The authority citation for part 2518
is amended to read as follows:
■
Authority: 42 U.S.C. 12653o.
45 CFR Part 2530
Education, Grant programs—social
programs, Student aid, Volunteers.
Grant programs—social programs.
45 CFR Part 2532
Grant programs—social programs,
Volunteers.
45 CFR Part 2533
Grants administration, Grant
programs—social programs.
45 CFR Part 2550
Grants administration, Grant
programs—social programs.
45 CFR Part 2551
Grants administration, Grant
programs—social programs, Volunteers.
Frm 00041
Fmt 4700
§ 2518.100
[Amended]
4. Amend § 2528.100 by removing the
reference ‘‘parts 2530 through 2533’’ and
adding ‘‘parts 2531 through 2534’’ in its
place.
■
45 CFR Part 2531
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Definitions
*
*
*
*
Approved Silver Scholar Position. The
term approved Silver Scholar position
means a Silver Scholar position for
which the Corporation has approved a
Silver Scholar education award.
Approved Summer of Service
Position. The term approved Summer of
Service position means a Summer of
Service position for which the
Corporation has approved a Summer of
Service education award.
*
*
*
*
*
Sfmt 4700
§ 2518.110
[Amended]
5. Amend § 2528.110 by removing the
reference ‘‘parts 2530 through 2533’’ in
the introductory text and adding ‘‘parts
2531 through 2534’’ in its place.
■
PART 2522—AMERICORPS
PARTICIPANTS, PROGRAMS, AND
APPLICANTS
6. The authority citation for part 2522
continues to read as follows:
■
Authority: 42 U.S.C. 12571–12595;
12651b–12651d; E.O. 13331, 69 FR 9911.
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§ 2522.100
Federal Register / Vol. 75, No. 161 / Friday, August 20, 2010 / Rules and Regulations
[Amended]
7. Amend § 2522.100 by removing the
reference ‘‘part 2532’’ in paragraph (g)(2)
and adding ‘‘part 2533’’ in its place.
■ 8. Amend § 2522.220 by:
■ a. Revising the heading;
■ b. Removing paragraph (b);
■ c. Redesignating paragraphs (c)
through (g) as (b) through (f),
respectively; and
■ d. Revising newly designated
paragraph (b).
The revisions read as follows:
■
§ 2522.220 What are the required terms of
service for AmeriCorps participants?
*
*
*
*
*
(b) Eligibility for subsequent term. A
participant will only be eligible to serve
a subsequent term of service if that
individual has received a satisfactory
performance review for any previous
term of service in an approved
AmeriCorps position, in accordance
with the requirements of paragraph (d)
of this section and § 2526.15. Mere
eligibility for a second or further term of
service in no way guarantees a
participant selection or placement.
*
*
*
*
*
■ 9. Amend § 2522.230 by:
■ a. Revising the heading;
■ b. Revising paragraphs (b)(6) and
(b)(7); and
■ c. Amending paragraph (e) by
removing the word ‘‘two’’.
The revisions will read as follows:
§ 2522.230 Under what circumstances may
an AmeriCorps participant be released from
completing a term of service, and what are
the consequences?
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*
*
*
*
*
(b) * * *
(6) An individual’s eligibility for a
subsequent term of service in
AmeriCorps will not be affected by
release for cause from a prior term of
service so long as the individual
received a satisfactory end-of-term
performance review as described in
§ 2522.220(c)(2) for the period served in
the prior term.
(7) Except as provided in paragraph
(e) of this section, a term of service from
which an individual is released for
cause counts as one of the terms of
service described in § 2522.235 for
which an individual may receive the
benefits described in §§ 2522.240
through 2522.250.
*
*
*
*
*
■ 10. Add § 2522.235 to read as follows:
§ 2522.235 Is there a limit on the number
of terms an individual may serve in an
AmeriCorps State and National program?
(a) General limitation. An individual
may receive the benefits described in
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§ 2522.240 through § 2522.250 for no
more than four terms of service in an
AmeriCorps State and National
program, regardless of whether those
terms were served on a full-, part-, or
reduced part-time basis, consistent with
the limitations in § 2526.50.
(b) Early release. Except as provided
in paragraph (c) of this section, a term
of service from which an individual is
released for compelling personal
circumstances or for cause counts as one
of the terms of service for which an
individual may receive the benefits
described in § 2522.240 through
§ 2522.250.
(c) Release prior to serving fifteen
percent of a term. If a person is released
for reasons other than misconduct prior
to completing fifteen percent of a term
of service, the term will not be
considered one of the terms of service
for which an individual may receive the
benefits described in §§ 2522.240
through 2522.250.
11. Amend § 2522.240 by:
a. Revising paragraph (a); and
b. Removing ‘‘§ 2522.220(g)’’ in
paragraph (c) and adding ‘‘§ 2522.220(f)’’
in its place.
The revision reads as follows:
■
■
■
§ 2522.240 What financial benefits do
AmeriCorps participants serving in
approved AmeriCorps positions receive?
(a) AmeriCorps education awards. An
individual serving in an approved
AmeriCorps State and National position
may receive an education award from
the National Service Trust upon
successful completion of each of no
more than four terms of service as
defined in § 2522.220, consistent with
the limitations in § 2526.50.
*
*
*
*
*
§§ 2522.320, 2522.330, 2522.425, 2522.430,
2522.435, 2522.445, and 2522.448
[Removed and Reserved]
12. Remove and reserve §§ 2522.320,
2522.330, 2522.425, 2522.430, 2522.435,
2522.445, and 2522.448.
■
PART 2525—NATIONAL SERVICE
TRUST: PURPOSE AND DEFINITIONS
13. The authority citation for part
2525 is amended to read as follows:
■
Authority: 42 U.S.C. 12601–12606.
14. Amend § 2525.20 by:
a. Removing the definition for
‘‘Approved school-to-work program’’;
■ b. Revising the definitions for
‘‘education award’’ and ‘‘term of service’’;
and
■ c. Adding definitions for ‘‘AmeriCorps
education award,’’ ‘‘economically
disadvantaged youth,’’ ‘‘G.I. Bill
■
■
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approved program,’’ ‘‘Silver Scholar
education award,’’ and ‘‘Summer of
Service education award’’ in
alphabetical order, to read as follows:
§ 2525.20
Definitions.
*
*
*
*
*
AmeriCorps education award. For the
purposes of this section, the term
AmeriCorps education award means the
financial assistance available under
parts 2526 through 2528 of this chapter
for which an individual in an approved
AmeriCorps position may be eligible.
*
*
*
*
*
Economically disadvantaged youth.
For the purposes of this section, the
phrase economically disadvantaged
youth means a child who is eligible for
a free lunch or breakfast under the
Richard B. Russell National School
Lunch Act (42 U.S.C. 1758(b)).
Education award. For the purposes of
this section, the term education award
refers to the financial assistance
available under parts 2526 through 2528
of this chapter, including AmeriCorps
education awards, Silver Scholar
education awards, and Summer of
Service education awards.
*
*
*
*
*
G.I. Bill approved program. For the
purposes of this section, a G.I. Bill
Approved Program is an educational
institution or training establishment
approved for educational benefits under
the Montgomery G.I. Bill (38 U.S.C.
3670 et seq.) for offering programs of
education, apprenticeship, or on-job
training for which educational
assistance may be provided by the
Secretary for Veterans Affairs.
*
*
*
*
*
Silver Scholar education award. For
the purposes of this section, the term
Silver Scholar education award means
the financial assistance available under
parts 2526 through 2528 of this chapter
for which an individual in an approved
Silver Scholar position may be eligible.
Summer of Service education award.
For the purposes this section, the term
Summer of Service education award
means the financial assistance available
under parts 2526 through 2528 of this
chapter for which an individual in an
approved Summer of Service position
may be eligible.
Term of service. The term term of
service means—
(1) For an individual serving in an
approved AmeriCorps position, one of
the terms of service specified in
§ 2522.220 of this chapter;
(2) For an individual serving in an
approved Silver Scholar position, not
less than 350 hours during a one-year
period; and
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(3) For an individual serving in an
approved Summer of Service position,
not less than 100 hours during the
summer months of a single year.
PART 2526—ELIGIBILITY FOR AN
EDUCATION AWARD
15. The authority citation for part
2526 is revised to read as follows:
■
Authority: 42 U.S.C. 12601–12604, 12606.
16. Amend § 2526.10 by revising
paragraph (a) to read as follows:
■
§ 2526.10 Who is eligible to receive an
education award from the National Service
Trust?
(a) General. An individual is eligible
to receive an education award from the
National Service Trust if the
organization responsible for the
individual’s supervision in a national
service program certifies that the
individual—
(1) Met the applicable eligibility
requirements for the approved
AmeriCorps position, approved Silver
Scholar position, or approved Summer
of Service position, as appropriate, in
which the individual served;
(2) (i) For an AmeriCorps education
award, successfully completed the
required term of service in the approved
national service position;
(ii) For a partial AmeriCorps
education award, completed at least 15
percent of the originally-approved term
of service, and performed satisfactorily
prior to being granted a release for
compelling personal circumstances
consistent with § 2522.230(a);
(iii) For a Summer of Service
education award, successfully
completed the required term of service
in a Summer of Service position; or
(iv) For a Silver Scholar education
award, successfully completed the
required term of service in a Silver
Scholar position; and
(3) Is a citizen, national, or lawful
permanent resident alien of the United
States.
*
*
*
*
*
■ 17. Add § 2526.15 to read as follows:
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§ 2526.15 Upon what basis may an
organization responsible for the
supervision of a national service participant
certify that the individual successfully
completed a term of service?
(a) An organization responsible for the
supervision of an individual serving in
an AmeriCorps State and National
position must determine whether an
individual successfully completed a
term of service based upon an end-ofterm evaluation conducted pursuant to
§ 2522.220(d).
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(b) An organization responsible for
the supervision of an individual serving
in a program other than AmeriCorps
State and National must determine
whether an individual successfully
completed a term of service based upon
an end-of-term evaluation that examines
whether the individual satisfies all of
the following conditions:
(1) Completed the required number of
service hours for the term of service;
(2) Satisfactorily performed on
assignments, tasks, or projects; and
(3) Met any performance criteria as
determined by the program and
communicated to the member.
(c) A certification by the organization
responsible for the supervision of an
individual that the individual did or did
not successfully complete a term of
service will be deemed to incorporate an
end-of-term evaluation.
■ 18. Amend § 2526.20 by revising
paragraph (a) to read as follows:
§ 2526.20 Is an AmeriCorps participant
who does not complete an originallyapproved term of service eligible to receive
a pro-rated education award?
(a) Compelling personal
circumstances. A participant in an
approved AmeriCorps position who is
released prior to completing an
approved term of service for compelling
personal circumstances in accordance
with § 2522.230(a) is eligible for a prorated education award if the
participant—
(1) Performed satisfactorily prior to
being granted a release for compelling
personal circumstances; and
(2) Completed at least 15 percent of
the originally-approved term of service.
*
*
*
*
*
■ 19. Add § 2526.25 to read as follows:
§ 2526.25 Is a participant in an approved
Summer of Service position or approved
Silver Scholar position who does not
complete an approved term of service
eligible to receive a pro-rated education
award?
No. An individual released for any
reason prior to completing an approved
term of service in a Silver Scholar or
Summer of Service position is not
eligible to receive a pro-rated award.
■ 20. Revise § 2526.40 to read as
follows:
§ 2526.40 What is the time period during
which an individual may use an education
award?
(a) General requirement. Unless the
Corporation approves an extension in
accordance with the requirements of
paragraph (b) of this section—
(1) An individual may use an
AmeriCorps education award or a Silver
Scholar education award within seven
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51411
years of the date on which the
individual successfully completed a
term of service in an approved
AmeriCorps or Silver Scholar position;
(2) An individual may use a Summer
of Service education award within ten
years of the date on which the
individual successfully completed a
term of service in an approved Summer
of Service position;
(3) A designated individual who
receives a transferred education award
in accordance with § 2530.10 may use
the transferred education award within
ten years of the date on which the
individual who transferred the award
successfully completed the term of
service in an approved AmeriCorps or
Silver Scholar position that is the basis
of the award.
(b) Extensions. In order to receive an
extension of the period of availability
specified in paragraph (a) of this section
for using an education award, an
individual must apply to the
Corporation for an extension prior to the
end of that time period. The Corporation
may grant an application for an
extension under the following
circumstances:
(1) If the Corporation determines that
an individual was performing another
term of service in an approved
AmeriCorps, Summer of Service, or
Silver Scholar position during the
original period of availability, the
Corporation may grant an extension for
a time period that is equivalent to the
time period during which the individual
was performing the other term of
service.
(2) If the Corporation determines that
an individual was unavoidably
prevented from using the education
award during the original period of
availability, the Corporation may grant
an extension for a period of time that
the Corporation deems appropriate. An
individual who is ineligible to use an
education award as a result of the
individual’s conviction of the
possession or sale of a controlled
substance is not considered to be
unavoidably prevented from using the
education award for the purposes of this
paragraph. In the case of a transferred
award, an individual who is unable to
use an education award as a result of
being too young to enroll in an
institution of higher education or other
training establishment is not considered
to be unavoidably prevented from using
the education award.
■ 21. Revise § 2526.50 to read as
follows:
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§ 2526.50 Is there a limit on the total
amount of education awards an individual
may receive?
■
(a) General Limitation. No individual
may receive more than an amount equal
to the aggregate value of two full-time
education awards.
(b) Calculation of the value of an
education award. For the purposes of
this section, the value of an education
award is equal to the actual amount of
the education award received divided
by the amount of a full-time education
award in the year the AmeriCorps or
Silver Scholar position to which the
award is attributed was approved. Each
award received will be considered to
have a value between 0 and 1. Although
the amount of a full-time award as
defined in § 2527.10(a) may change, the
value of a full-time award will always
be equal to 1.
(c) Calculation of aggregate value of
awards received. The aggregate value of
awards received is equal to the sum of:
(1) The value of each education award
received as a result of successful
completion of an approved AmeriCorps
position;
(2) The value of each partial
education award received as a result of
release from an approved AmeriCorps
position for compelling personal
circumstances;
(3) The value of each education award
received as a result of successful
completion of a term of service in an
approved Silver Scholar position; and
(4) The value of any amount received
as a transferred education award, except
as provided in § 2530.60(c).
(d) Determination of Receipt of
Award. For purposes of determining the
aggregate value of education awards, an
award is considered to be received at
the time it becomes available for an
individual’s use.
■ 22. Add § 2526.55 to read as follows:
§ 2526.60 May an individual receive an
education award and related interest
benefits from the National Service Trust as
well as other loan cancellation benefits for
the same service?
jdjones on DSK8KYBLC1PROD with RULES
§ 2526.55 What is the impact of the
aggregate value of education awards
received on an individual’s ability to serve
in subsequent terms of service?
The aggregate value of education
awards an individual has received will
not impact an individual’s ability to
serve in a subsequent term of service,
but will impact the amount of the
education award the individual may
receive upon successful completion of
that term of service. If the award amount
offered for the term of service has a
value that, when added to the aggregate
value of awards previously received,
would exceed 2, upon successful
completion of the term of service, the
individual will only receive that portion
of the award having a value for which
the individual is eligible pursuant to
§ 2527.10(g).
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23. Revise § 2526.60 to read as
follows:
An individual may not receive an
education award and related interest
benefits from the National Service Trust
for a term of service and have that same
service credited toward repayment,
discharge, or cancellation of other
student loans, except an individual may
credit the service toward the Public
Service Loan Forgiveness Program, as
provided under 34 CFR § 685.219.
■ 24. Add § 2526.70 to read as follows:
§ 2526.70 What are the effects of an
erroneous certification of successful
completion of a term of service?
(a) If the Corporation determines that
the certification made by a national
service program under § 2526.10(a)(2)(i),
(2)(iii), or (2)(iv) is erroneous, the
Corporation shall assess against the
national service program a charge for
the amount of any associated payment
or potential payment from the National
Service Trust, taking into consideration
the full facts and circumstances
surrounding the erroneous or incorrect
certification.
(b) Nothing in this section shall
prohibit the Corporation from taking
any action authorized by law based
upon any certification that is knowingly
made in a false, materially misleading,
or fraudulent manner.
PART 2527—DETERMINING THE
AMOUNT OF AN EDUCATION AWARD
25. The authority citation for part
2527 is amended to read as follows:
■
Authority: 42 U.S.C. 12601–12606.
26. Amend § 2527.10 by:
a. Revising the heading;
b. Revising paragraphs (a), (b), and (c);
and
■ c. Adding new paragraphs (e), (f), and
(g).
The revisions and additions read as
follows:
■
■
■
§ 2527.10 What is the amount of an
education award?
(a) Full-time term of service. Except as
provided in paragraph (g) of this
section, the education award for a fulltime term of service in an approved
AmeriCorps position of at least 1,700
hours will be equal to the maximum
amount of a Federal Pell Grant under
Section 401 of the Higher Education Act
of 1965 (20 U.S.C. 1070a) that a student
eligible for such grant may receive in
the aggregate for the award year in
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which the term of service is approved
by the Corporation.
(b) Part-time term of service. Except as
provided in paragraph (g), the education
award for a part-time term of service in
an approved AmeriCorps position of at
least 900 hours is equal to one half of
the amount of an education award
amount for a full-time term of service
described in paragraph (a) of this
section.
(c) Reduced part-time term of service.
Except as provided in paragraph (g), the
education award for a reduced part-time
term of service in an approved
AmeriCorps position of fewer than 900
hours is:
(1) An amount equal to the product of:
(i) The number of hours of service
required to complete the reduced parttime term of service divided by 900; and
(ii) The amount of the education
award for a part-time term of service
described in paragraph (b) of this
section; or
(2) An amount as determined
otherwise by the Corporation.
*
*
*
*
*
(e) Summer of Service Education
Award. (1) In general. The education
award for a term of service in an
approved Summer of Service position
for at least 100 hours is $500.
(2) Exception. The Corporation may
authorize a Summer of Service
education award of $750 if the
participant is economically
disadvantaged, as verified by the
organization or school operating the
Summer of Service program.
(f) Silver Scholar Education Award.
Except as provided in paragraph (g) of
this section, the education award for a
term of service in an approved Silver
Scholar position for at least 350 hours
is $1,000.
(g) Calculating discounted education
award amount. To ensure that an
individual receives no more than the
aggregate value of two awards, as
determined pursuant to § 2526.50, the
discounted amount an individual is
eligible to receive is determined by the
following formula:
(2¥aggregate value of awards the
individual has received) × (amount
of a full-time education award in
the year the position is approved)
PART 2528—USING AN EDUCATION
AWARD
27. The authority citation for part
2528 is revised to read as follows:
■
Authority: 42 U.S.C. 12601–12606.
28. Revise § 2528.10(a)(3) to read as
follows:
■
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§ 2528.10 For what purposes may an
education award be used?
(a) * * *
(3) To pay expenses incurred in
enrolling in a G.I. Bill approved
program, in accordance with
§§ 2528.60–80.
*
*
*
*
*
■ 29. Revise § 2528.30 (a)(2)(vi)(A) and
(B) to read as follows:
§ 2528.30 What steps are necessary to use
an education award to pay all or part of the
current educational expenses at an
institution of higher education?
(a) * * *
(2) * * *
(vi) * * *
(A) The individual’s cost of
attendance and other educational
expenses; and
(B) The individual’s estimated student
financial assistance for that period
under part A of title IV of the Higher
Education Act (20 U.S.C. 1070 et seq.).
*
*
*
*
*
■ 30. Revise § 2528.40(a) and (b) to read
as follows:
§ 2528.40 Is there a limit on the amount of
an individual’s education award that the
Corporation will disburse to an institution
of higher education for which the
Corporation has disbursed all or part of that
individual’s education award?
*
*
*
*
*
(a) The individual’s cost of attendance
and other educational expenses,
determined by the institution of higher
education in accordance with section
472 of the Higher Education Act of 1965
(20 U.S.C. 1987ll); and
(b) The individual’s estimated
financial assistance for that period
under part A of title IV of the Higher
Education Act.
■ 31. Revise § 2528.60 to read as
follows:
jdjones on DSK8KYBLC1PROD with RULES
§ 2528.60 Who may use the education
award to pay expenses incurred in enrolling
in a G.I. Bill approved program?
To use the education award to pay
expenses for this purpose, you must
have received an education award for
successfully completing a term in an
approved AmeriCorps position,
approved Summer of Service position,
or approved Silver Scholar position, in
which you enrolled on or after October
1, 2009.
■ 32. Revise § 2528.70 to read as
follows:
§ 2528.70 What steps are necessary to use
an education award to pay expenses
incurred in enrolling in a G.I. Bill approved
program?
(a) Required Information. Before
disbursing an amount from an education
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award for this purpose, the Corporation
must receive—
(1) An individual’s written
authorization and request for a specific
payment amount;
(2) Verification from the individual
that the individual meets the criteria in
§ 2528.60; and
(3) Information from the educational
institution or training establishment as
requested by the Corporation, including
verification that—
(i) The amount requested will be used
to pay all or part of the individual’s
expenses attributable to a course,
program of education, apprenticeship,
or job training offered by the institution
or establishment;
(ii) The course(s) or program(s) for
which the individual is requesting to
use the education award has been and
is currently approved by the State
approving agency for the State where
the institution or establishment is
located, or by the Secretary of Veterans
Affairs; and
(iii) If an individual who has used an
education award withdraws or
otherwise fails to complete the period of
enrollment for which the education
award was provided, the institution or
establishment will ensure a pro-rata
refund to the Corporation of the unused
portion of the education award.
(b) Payment. When the Corporation
receives the information required under
paragraph (a) of this section, the
Corporation will pay the institution or
establishment and notify the individual
of the payment.
■ 33. Add § 2528.80 to read as follows:
§ 2528.80 What happens if an individual
for whom the Corporation has disbursed
education award funds withdraws or fails to
complete the period of enrollment in a G.I.
Bill approved program?
(a) If an individual for whom the
Corporation has disbursed education
award funds withdraws or otherwise
fails to complete a period of enrollment,
the approved educational institution or
training establishment that receives a
disbursement of education award funds
from the Corporation must provide a
pro-rata refund to the Corporation of the
unused portion of the education award.
(b) The Corporation will credit any
refund received for an individual under
paragraph (a) of this section to the
individual’s education award allocation
in the National Service Trust.
PART 2529—PAYMENT OF ACCRUED
INTEREST
34. The authority citation of part 2529
is amended to read as follows:
■
Authority: 42 U.S.C. 12601–12606.
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51413
35. Amend § 2529.10 by revising the
heading and paragraph (a)(1) to read as
follows:
■
§ 2529.10 Under what circumstances will
the Corporation pay interest that accrues
on qualified student loans during an
individual’s term of service in an approved
AmeriCorps position or approved Silver
Scholar position?
(a) * * *
(1) The individual successfully
completes a term of service in an
approved AmeriCorps position or
approved Silver Scholar position; and
*
*
*
*
*
PARTS 2530, 2531, 2532, and 2533
[REDESIGNATED AS PARTS 2531,
2532, 2533, and 2534]
36. Under the authority of 42 U.S.C.
12651d, redesignate parts 2530, 2531,
and 2532 as parts 2531, 2532, and 2533,
respectively.
■ 37. Add a new part 2530 to read as
follows:
■
PART 2530—TRANSFER OF
EDUCATION AWARDS
Sec.
2530.10 Under what circumstances may an
individual transfer an education award?
2530.20 For what purposes may a
transferred award be used?
2530.30 What steps are necessary to transfer
an education award?
2530.40 Is there a limit on the number of
individuals one may designate to receive
a transferred award?
2530.50 Is there a limit on the amount of
transferred awards a designated
individual may receive?
2530.60 What is the impact of transferring
or receiving a transferred education
award on an individual’s eligibility to
receive additional education awards?
2530.70 Is a designated individual required
to accept a transferred education award?
2530.80 Under what circumstances is a
transfer revocable?
2530.85 What steps are necessary to revoke
a transfer?
2530.90 Is a designated individual eligible
for the payment of accrued interest
under Part 2529?
Authority: 42 U.S.C. 12601–12606.
§ 2530.10 Under what circumstances may
an individual transfer an education award?
An individual may transfer an
education award if—
(a) The individual enrolled in an
approved AmeriCorps State and
National position or approved Silver
Scholar position on or after October 1,
2009;
(b) The individual was age 55 or older
on the day the individual commenced
the term of service in an approved
AmeriCorps State and National position
or in approved Silver Scholar position;
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(c) The individual successfully
completed a term of service in an
approved AmeriCorps State and
National position or an approved Silver
Scholar position;
(d) The award the individual is
requesting to transfer has not expired,
consistent with the period of availability
set forth in § 2526.40(a);
(e) The individual designated to
receive the transferred award is the
transferring individual’s child,
grandchild, or foster child; and
(f) The individual designated to
receive the transferred award is a
citizen, national, or lawful permanent
resident alien of the United States.
of the designated individual’s
acceptance, the Corporation will create
or permit the creation of an account in
the National Service Trust for the
designated individual, if an account
does not already exist, and the accepted
amount will be deducted from the
transferring individual’s account and
credited to the designated individual’s
account.
(d) Timing of transfer. The
Corporation must receive the request
from the transferring individual prior to
the date the award expires.
§ 2530.20 For what purposes may a
transferred award be used?
(a) General Limitation. For each
award an individual earns as a result of
successfully completing a single term of
service, an individual may transfer all or
part of the award to a single designated
individual. An individual may not
transfer a single award attributable to
successful completion of a single term
of service to more than one designated
individual.
(b) Re-transfer. If a designated
individual rejects a transferred award in
full, or the Corporation otherwise
determines that a transfer was revoked
for good cause in accordance with
§ 2530.80(c), the transferring individual
may designate another individual to
receive the transferred award.
A transferred award may be used by
a designated individual to repay
qualified student loans or to pay current
educational expenses at an institution of
higher education, as described in
§ 2528.10.
jdjones on DSK8KYBLC1PROD with RULES
§ 2530.30 What steps are necessary to
transfer an education award?
(a) Request for Transfer. Before
transferring an award to a designated
individual, the Corporation must
receive a request from the transferring
individual, including—
(1) The individual’s written
authorization to transfer the award, the
year in which the award was earned,
and the specific amount of the award to
be transferred;
(2) Identifying information for the
individual designated to receive the
transferred award;
(3) A certification that the transferring
individual meets the requirements of
paragraphs (a) through (c) of § 2530.10;
and
(4) A certification that the designated
individual is the child, grandchild, or
foster child of the transferring
individual.
(b) Notification to Designated
Individual. Upon receipt of a request
including all required information listed
in paragraph (a) of this section, the
Corporation will contact the designated
individual to notify the individual of
the proposed transfer, confirm the
individual’s identity, and give the
individual the opportunity to accept or
reject the transferred award.
(c) Acceptance by Designated
Individual. To accept an award, a
designated individual must certify that
the designated individual is the child,
grandchild, or foster child of the
transferring individual and that the
designated individual is a citizen,
national, or lawful permanent resident
alien of the United States. Upon receipt
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§ 2530.40 Is there a limit on the number of
individuals one may designate to receive a
transferred award?
§ 2530.50 Is there a limit on the amount of
transferred awards a designated individual
may receive?
Consistent with § 2526.50, no
individual may receive more than an
amount equal to the value of two fulltime education awards. If the sum of the
value of the requested transfer plus the
aggregate value of education awards a
designated individual has previously
received would exceed the aggregate
value of two full-time education awards,
as determined pursuant to § 2526.50(b),
the designated individual will be
deemed to have rejected that portion of
the award that would result in the
excess. If a designated individual has
already received the aggregate value of
two full-time education awards, the
individual may not receive a transferred
education award, and the designated
individual will be deemed to have
rejected the award in full.
§ 2530.60 What is the impact of
transferring or receiving a transferred
education award on an individual’s
eligibility to receive additional education
awards?
(a) Impact on Transferring Individual.
Pursuant to § 2526.50, an award is
considered to be received at the time it
becomes available for an individual’s
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use. Transferring all or part of an award
does not reduce the aggregate value of
education awards the transferring
individual is considered to have
received.
(b) Impact on Designated Individual.
For the purposes of determining the
value of the transferred education award
under § 2526.50, a designated
individual will be considered to have
received a value equal to the amount
accepted divided by the amount of a
full-time award in the year the
transferring individual’s position was
approved.
(c) Result of revocation on award
value. If the transferring individual
revokes, in whole or in part, a transfer,
the value of the education award
considered to have been received by the
designated individual for purposes of
§ 2526.50 will be reduced accordingly.
§ 2530.70 Is a designated individual
required to accept a transferred education
award?
(a) General Rule. A designated
individual is not required to accept a
transferred education award, and may
reject an award in whole or in part.
(b) Result of rejection in full. If the
designated individual rejects a
transferred award in whole, the amount
is credited to the transferring
individual’s account in the National
Service Trust, and may be transferred to
another individual, or may be used by
the transferring individual for any of the
purposes listed in § 2528.10, consistent
with the original time period of
availability set forth in § 2526.40(a).
(c) Result of rejection in part. If the
designated individual rejects a
transferred award in part, the rejected
portion is credited to the transferring
individual’s account in the National
Service Trust, and may be used by the
transferring individual’s for any of the
purposes listed in § 2528.10, consistent
with the original time period of
availability set forth in § 2526.40(a). An
individual may not re-transfer the
rejected portion of the award to another
individual.
§ 2530.80 Under what circumstances is a
transfer revocable?
(a) Revocation. An individual may
revoke a transfer at any time and for any
reason prior to the award’s use by the
designated individual.
(b) Use of Award. Upon revocation,
the amount revoked will be deducted
from the designated individual’s
account and credited to the transferring
individual’s account. The transferring
individual may use the revoked
transferred education award for any of
the purposes described in § 2528.10,
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§ 2530.90 Is a designated individual
eligible for the payment of accrued interest
under Part 2529?
§ 2530.85 What steps are necessary to
revoke a transfer?
jdjones on DSK8KYBLC1PROD with RULES
consistent with the original time period
of availability set forth in § 2526.40(a).
(c) Re-transfer. Generally, an
individual may not re-transfer an award
to another individual after revoking the
same award from the original designated
individual. The Corporation may
approve re-transfer of an award for good
cause, including cases in which the
original designated individual was
unavoidably prevented from using the
award, as demonstrated by the
individual transferring the award.
■
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PART 2533—TECHNICAL
ASSISTANCE, TRAINING, AND OTHER
SERVICE INFRASTRUCTUREBUILDING ACTIVITIES
38. The authority for part 2533 is
revised to read as follows:
(a) Request for revocation. Before
revoking a transfer, the transferring
individual must submit a request to the
Corporation that includes —
(1) The individual’s written
authorization to revoke the award;
(2) The year in which the award was
earned;
(3) The specific amount to be revoked;
and
(4) The identity of the designated
individual.
(b) Credit to transferring individual.
Upon receipt of a request including all
required information listed in paragraph
(a) of this section, the Corporation will
deduct the amount specified in the
transferring individual’s request from
the designated individual’s account and
credit the amount to the account of the
transferring individual, except as
provided in paragraph (c) of this
section. The Corporation will notify the
transferring individual of the amount
revoked.
(c) Used awards. A revocation may
only apply to that portion of the
transferred award that has not been used
by the designated individual. If the
designated individual has used the
entire transferred amount prior to the
date the Corporation receives the
revocation request, no amount will be
returned to the transferring individual.
An amount is considered to be used
when it is disbursed from the National
Service Trust, not when a request is
received to use an award.
(d) Notification to designated
individual. The Corporation will notify
the designated individual of the amount
being revoked as of the date of the
Corporation’s receipt of the revocation
request.
(e) Timing of revocation. The
Corporation must receive the request to
revoke the transfer from the transferring
individual prior to the award’s
expiration ten years from the date the
award was originally earned.
VerDate Mar<15>2010
No, an individual must have
successfully completed a term of service
in an approved AmeriCorps position or
Silver Scholar position to be eligible for
the payment of accrued interest under
Part 2529.
Authority: 42 U.S.C. 12657.
§ 2533.10
[Amended]
39. Amend newly redesignated
§ 2533.10 by removing the reference
‘‘part 2530’’ and adding ‘‘part 2531’’ in its
place in the following locations:
■ a. In the introductory text; and
■ b. In paragraph (p).
■
PART 2550—REQUIREMENTS AND
GENERAL PROVISIONS FOR STATE
COMMISSIONS AND ALTERNATIVE
ADMINISTRATIVE ENTITIES
40. The authority citation for part
2550 continues to read as follows:
■
Authority: 42 U.S.C. 12638.
41. Amend § 2550.80 by revising
paragraph (b) to read as follows:
■
§ 2550.80
entities?
What are the duties of the State
*
*
*
*
*
(b) Selection of subtitle C programs
and preparation of application to the
Corporation. Each State must:
(1) Prepare an application to the
Corporation to receive funding or
education awards for national service
programs operating in and selected by
the State.
(2) Administer a competitive process
to select national service programs for
funding. The State is not required to
select programs for funding prior to
submission of the application described
in paragraph (b)(1) of this section.
*
*
*
*
*
PART 2551—SENIOR COMPANION
PROGRAM
42. The authority citation for part
2551 continues to read as follows:
■
Authority: 42 U.S.C. 4950 et seq.; 42
U.S.C. 12651b–12651d; E.O. 13331, 69 FR
9911.
43. Amend § 2551.92 by revising
paragraph (e) to read as follows:
■
§ 2551.92 What are project funding
requirements?
*
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*
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*
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*
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51415
(e) How are Senior Companion cost
reimbursements budgeted? (1) Except as
provided in (e)(2) of this section, the
total of cost reimbursements for Senior
Companions, including stipends,
insurance, transportation, meals,
physical examinations, and recognition,
shall be a sum equal to at least 80
percent of the amount of the Federal
share of the grant award. Federal,
required non-Federal, and excess nonFederal resources can be used to make
up the amount allotted for cost
reimbursements.
(2) The Corporation may allow
exceptions to the 80 percent cost
reimbursement requirement in cases of
demonstrated need such as:
(i) Initial difficulties in the
development of local funding sources
during the first three years of
operations;
(ii) An economic downturn, the
occurrence of a natural disaster, or
similar events in the service area that
severely restrict or reduce sources of
local funding support; or
(iii) The unexpected discontinuation
of local support from one or more
sources that a project has relied on for
a period of years.
*
*
*
*
*
PART 2552—FOSTER GRANDPARENT
PROGRAM
44. The authority citation for Part
2552 continues to read as follows:
■
Authority: 42 U.S.C. 4950 et seq.; 42
U.S.C. 12651b–12651d; E.O. 13331, 69 FR
9911.
45. Amend § 2552.92 by revising
paragraph (e) to read as follows:
■
§ 2552.92 What are project funding
requirements?
*
*
*
*
*
(e) How are Foster Grandparent cost
reimbursements budgeted? (1) Except as
provided in (e)(2) of this section, the
total of cost reimbursements for Foster
Grandparents, including stipends,
insurance, transportation, meals,
physical examinations, and recognition,
shall be a sum equal to at least 80
percent of the amount of the Federal
share of the grant award. Federal,
required non-Federal, and excess nonFederal resources can be used to make
up the amount allotted for cost
reimbursements.
(2) The Corporation may allow
exceptions to the 80 percent cost
reimbursement requirement in cases of
demonstrated need such as:
(i) Initial difficulties in the
development of local funding sources
during the first three years of
operations; or
E:\FR\FM\20AUR1.SGM
20AUR1
51416
Federal Register / Vol. 75, No. 161 / Friday, August 20, 2010 / Rules and Regulations
(ii) An economic downturn, the
occurrence of a natural disaster, or
similar events in the service area that
severely restrict or reduce sources of
local funding support; or
(iii) The unexpected discontinuation
of local support from one or more
sources that a project has relied on for
a period of years.
*
*
*
*
*
Dated: August 13, 2010.
Tom Bryant,
Associate General Counsel.
[FR Doc. 2010–20525 Filed 8–19–10; 8:45 am]
BILLING CODE 6050–28–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 202, 212, and 234
[DFARS Case 2008–D011]
Defense Federal Acquisition
Regulation Supplement; Acquisition of
Commercial Items
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Final rule.
AGENCY:
DoD is adopting as final,
without change, the interim rule that
amended the Defense Federal
Acquisition Regulation Supplement
(DFARS) to implement sections 805 and
815 of the National Defense
Authorization Act for Fiscal Year 2008.
This rule specified when time-andmaterials or labor-hour contracts may be
used for the acquisition of commercial
items, and revised the language to
address the conditions under which
major weapon systems or subsystems
may be treated as commercial items.
DATES: Effective Date: August 20, 2010.
FOR FURTHER INFORMATION CONTACT: Ms.
Cassandra R. Freeman, Defense
Acquisition Regulations System, OUSD
(AT&L) DPAP/DARS, 3060 Defense
Pentagon, Room 3B855, Washington, DC
20301–3060. Telephone 703–602–8383;
facsimile 703–602–0350. Please cite
DFARS Case 2008–D011.
SUPPLEMENTARY INFORMATION:
SUMMARY:
July 21, 2009, to clarify the types of
services to which this rule applies,
consistent with subsections (c)(1)(A)
and (c)(1)(C)(i) of section 805 of the
NDAA for Fiscal Year 2008. Section 805
specified when time-and-materials or
labor-hour contracts may be used for
commercial item acquisitions. Section
815 of the NDAA for Fiscal Year 2008
provided clarification regarding
situations under which the procurement
of a major weapon system, subsystems
of major weapon systems, and
components and spare parts for major
weapon systems, may be acquired using
procedures established for the
acquisition of commercial items.
Section 815 also clarified that the terms
‘‘general public’’ and ‘‘non-governmental
entities’’ with regard to sales of
commercial items, do not include the
Federal Government or a State, local, or
foreign government.
This rule was not subject to Office of
Management and Budget review under
Executive Order 12866, dated
September 30, 1993.
B. Regulatory Flexibility Act
DoD certifies that this rule will not
have a significant economic impact on
a substantial number of small entities
within the meaning of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq.,
because the rule reinforces existing
requirements for the appropriate use of
commercial acquisition procedures and
for ensuring that contract prices are fair
and reasonable.
C. Paperwork Reduction Act
The Paperwork Reduction Act does
not apply because the rule does not
impose any information collection
requirements that require the approval
of the Office of Management and Budget
under 44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Parts 202,
212, and 234
Government procurement.
Ynette R. Shelkin,
Editor, Defense Acquisition Regulations
System.
Interim Rule Adopted as Final Without
Change
jdjones on DSK8KYBLC1PROD with RULES
A. Background
DoD published an interim rule at 74
FR 34263 on July 15, 2009, to
implement sections 805 and 815 of the
National Defense Authorization Act
(NDAA) for Fiscal Year 2008 (Pub. L.
110–181). A correction to the interim
rule was published at 74 FR 35825 on
VerDate Mar<15>2010
14:03 Aug 19, 2010
Jkt 220001
Accordingly, the interim rule
published at 74 FR 34263 on July 15,
2009, as corrected at 75 FR 35825 on
July 21, 2009, is adopted as final
without change.
■
[FR Doc. 2010–20436 Filed 8–19–10; 8:45 am]
BILLING CODE 5001–08–P
PO 00000
Frm 00048
Fmt 4700
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 247 and 252
Defense Federal Acquisition
Regulation Supplement;
Transportation (DFARS Case 2003–
D028)
Defense Acquisition
Regulations System. Department of
Defense (DoD).
ACTION: Final rule.
AGENCY:
DoD is issuing a final rule,
with changes, amending the Defense
Federal Acquisition Regulation
Supplement (DFARS) to update text on
transportation matters relating to DoD
contracts.
SUMMARY:
Effective Date: August 20, 2010.
Ms.
Mary Overstreet, Defense Acquisition
Regulations System, OUSD (AT&L)
DPAP (DARS), 3060 Defense Pentagon,
Room 3B855, Washington, DC 20301–
3060. Telephone 703–602–0311;
facsimile 703–602–0350. Please cite
DFARS Case 2003–D028.
SUPPLEMENTARY INFORMATION:
DATES:
FOR FURTHER INFORMATION CONTACT:
A. Background
In keeping with the DFARS
Transformation initiative objective of
improving the efficiency and
effectiveness of the acquisition process,
while allowing the acquisition
workforce the flexibility to innovate,
DoD issued a proposed rule at 70 FR
43109 on July 26, 2005, to update text
on transportation matters relating to
DoD contracts, including clarifying
certain shipping procedures and
offering additional guidance on their
use.
This final rule is a result of the
DFARS Transformation initiative. The
changes to the final rule—
Æ Delete text on transportation
matters that are sufficiently addressed
in the Federal Acquisition Regulation or
in DoD transportation regulations;
Æ Clarify requirements for inclusion
of shipping instructions in solicitations
and contracts; and
Æ Delete procedures for contracting
for the preparation of property for
shipment or storage; and for preparation
of consignment instructions. Text on
these subjects will be relocated to the
DFARS companion resource,
Procedures, Guidance, and Information
(PGI). Additional information on PGI is
available at https://www.acq.osd.mil/
dpap/dars/pgi.
E:\FR\FM\20AUR1.SGM
20AUR1
Agencies
[Federal Register Volume 75, Number 161 (Friday, August 20, 2010)]
[Rules and Regulations]
[Pages 51395-51416]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-20525]
=======================================================================
-----------------------------------------------------------------------
CORPORATION FOR NATIONAL AND COMMUNITY SERVICE
45 CFR Chapter XXV
RIN 3045-AA51
AmeriCorps National Service Program
AGENCY: Corporation for National and Community Service.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Corporation for National and Community Service (``the
Corporation'') is issuing rules to implement changes to the operation
of the National Service Trust as directed by the Edward M. Kennedy
Serve America Act (``the Serve America Act'' or ``SAA''). In addition,
this rule provides flexibility for exceptions to the 80 percent cost
reimbursement requirement for Senior Companion and Foster Grandparent
programs based on hardship. Finally, this rule reorders and renumbers
certain parts of the existing regulations, adds new definitions, and
makes several minor technical edits.
DATES: This final rule is effective September 20, 2010, except for the
amendments to Sec. Sec. 2522.220, 2522.230, 2522.235, and 2522.240,
which are effective August 20, 2010.
FOR FURTHER INFORMATION CONTACT: Amy Borgstrom, Docket Manager,
Corporation for National and Community Service, (202) 606-6930, TDD
(202) 606-3472. Persons with visual impairments may request this rule
in an alternate format.
SUPPLEMENTARY INFORMATION:
List of Topics
I. Background
II. Public Comments
III. Specifics of Final Rule and Analysis of Comments
A. Definitions
B. Eligibility to Receive an Education Award
C. Successful Completion of a Term of Service
D. Partial Awards for Release for Compelling Personal
Circumstances
E. Limitation on Amount of Award Disbursed to Institution of
Higher Education
F. Use of Education Award for a Program of Education Approved by
the Secretary of Veterans Affairs
G. Payment of Accrued Interest
H. Amount of AmeriCorps Education Award
I. Amount of Silver Scholar and Summer of Service Education
Awards
J. Limitation on Value of Education Awards Received
K. Impact of Aggregate Value of Education Awards Received
L. Transfer of Education Awards
M. Periods of Availability for Silver Scholar, Summer of
Service, and Transferred Education Awards
N. Certifications of Successful Completion of Terms of Service
O. Effect of Erroneous Certifications of Successful Completion
of Terms of Service
P. Public Service Loan Forgiveness and AmeriCorps
Q. Term Limits for AmeriCorps State and National
R. Selection Criteria Sub-Categories for AmeriCorps State and
National
S. Applications for the Same Project
T. Pre-Approval of Formula Programs
U. Hardship Waiver Permitted for Cost Reimbursement Requirement
for Senior Companion and Foster Grandparent Programs.
IV. Summary of Redesignations
V. Effective Dates
VI. Non-Regulatory Issues
I. Background
On April 21, 2009, President Obama signed into law the Edward M.
Kennedy Serve America Act (Serve America Act). The Serve America Act
reauthorizes and expands national service programs administered by the
Corporation by amending the National and Community Service Act of 1990
(42 U.S.C. 12501 et seq.) (NCSA) and the Domestic Volunteer Service Act
(42 U.S.C. 4950 et seq.) (DVSA). The Corporation engages more than five
million Americans of all ages and backgrounds in service each year,
including approximately 85,000 AmeriCorps members, nearly 500,000
Senior Corps volunteers, 1.5 million Learn and Serve America students,
and three million additional community volunteers mobilized and managed
through agency programs.
Section 6101 of the Serve America Act authorizes the Chief
Executive Officer of the Corporation to issue such regulations as may
be necessary to carry out the amendments required under the Act. To
fulfill that responsibility, on September 10, 2009, the Corporation
issued an interim final rule to implement time-sensitive changes to the
Corporation's AmeriCorps State and National, Senior Corps, and Learn
and Serve America program regulations. (74 FR 46495). The changes
resulting from the interim final rule were required as a result of
amendments to the NCSA and DVSA by the Serve America Act, which took
effect for most purposes on October 1, 2009.
In that rule, we stated our intention to engage in full notice and
comment rulemaking to implement those amendments mandated by the Serve
America Act that did not require immediate regulatory action. This
rulemaking is the Corporation's second in a series to implement the
amendments mandated by the Serve America Act. This rule primarily makes
amendments and additions to existing regulations regarding the National
Service Trust, including limitations on education award receipt, the
available uses of an education award, eligibility to receive an
education award, eligibility to transfer an education award, and the
amount of an education award. This rule also addresses the limitation
on the number of terms an individual may serve in an AmeriCorps State
and National program. This rule adds flexibility in managing match
requirements for Senior Companion and Foster Grandparent programs
facing hardship. Finally, this rule makes several technical corrections
inadvertently omitted from the interim final rule, including an
amendment to the provision on pre-approval of Subtitle C formula
programs, amendments to the AmeriCorps State and National selection
criteria, and an amendment to include a reference to the Department of
Education's new Public Service Loan Forgiveness Program.
II. Public Comments
On February 23, 2010, the Corporation published a proposed rule in
the Federal Register (75 FR 8013) with a 60-day comment period. In
addition to accepting comments in writing through e-mail and through
https://www.regulations.gov, the Corporation held four conference calls.
During the public comment period, the Corporation received over 400
comments on the proposed rule from grantees, the Corporation's
Inspector General, and other interested parties. Over half of the
comments received recommended changes to the rule that are not
currently authorized by statute, including expanding the types of
people who can transfer and receive education
[[Page 51396]]
awards. The Corporation also received numerous comments on items not
within the scope of this rulemaking, such as comments on the Silver
Scholar program and the amount of the Foster Grandparent stipend. While
these comments are not addressed here, the Corporation will take them
under consideration in the future.
The remaining comments expressed views on the merits of particular
sections of the proposed regulations, as well as some broader policy
statements and issues. Acknowledging that there are strong views on,
and competing legitimate public policy interests relating to, issues in
this rulemaking, the Corporation has carefully considered all of the
comments on the proposed regulations.
The Corporation has summarized below the major comments received on
the proposed regulatory changes, and has described the changes we made
in the final regulatory text in response to the comments received. In
addition to the more substantive comments below, the Corporation
received some editorial suggestions, some of which we have adopted. The
Corporation has also made minor editorial changes to better organize
the regulatory text.
III. Specifics of the Final Rule and Analysis of Comments
As discussed in more detail below, the final rule:
Amends the definitions of ``education award'' and ``term
of service,'' and adds definitions for ``AmeriCorps education award,''
``Silver Scholar education award,'' ``Summer of Service education
award,'' ``approved Silver Scholar position,'' ``approved Summer of
Service position,'' ``G.I. Bill approved program,'' and ``economically
disadvantaged youth'';
Adds individuals who complete approved Silver Scholar and
Summer of Service positions as eligible to receive an education award;
Adds a requirement for programs to complete an end-of-term
evaluation to determine whether an individual successfully completed
the term of service;
Clarifies that an individual must have served
satisfactorily prior to being released for compelling personal
circumstances in order to receive a partial award;
Removes consideration of an individual's veterans'
benefits when determining the maximum amount of an individual's
education award that may be disbursed to an institution of higher
education;
Adds to the list of uses for an education award use to pay
expenses incurred in enrolling in an educational institution or
training establishment approved by the Secretary of Veterans Affairs
for offering programs of education, apprenticeship, or on-the-job
training for which educational assistance may be provided by the
Secretary of Veterans Affairs;
Includes individuals who successfully complete service in
a Silver Scholar program as eligible for the payment of accrued
interest on qualified student loans;
Amends the amount of a full-time AmeriCorps education
award to be equal to the maximum amount of a Federal Pell Grant for the
year in which the AmeriCorps position is approved;
Adds sections stating the amount of a Silver Scholar
education award ($1,000) and Summer of Service education award ($500);
Adds limitation that no individual may receive more than
the aggregate value of two full-time education awards and describes how
an education award's value is determined;
Adds a new part on transferring education awards,
including limitations on who may transfer, who may receive a
transferred award, and the processes for transferring, accepting,
rejecting, and revoking a transferred award;
Clarifies the periods of availability for Silver Scholar
education awards (7 years), Summer of Service education awards (10
years), and transferred education awards (10 years);
Adds a requirement for programs to certify that an
individual successfully completed a term of service in order to receive
an education award;
Adds a section on the Corporation's recourses in cases
where a grantee makes an erroneous certification that an individual
successfully completed a term of service;
Adds flexibility to permit an individual to credit service
time towards receiving an education award and earning Public Service
Loan Forgiveness through the Department of Education;
Increases the limit of terms one may serve in AmeriCorps
State and National from two to four;
Removes selection criteria sub-categories and relative
weights for AmeriCorps State and National grant competitions;
Removes the restriction on submitting more than one
application for the same project at the same time and clarifies that
the Corporation will not provide more than one grant to the same
project in the same fiscal year;
Removes the requirement that State Commissions pre-select
formula programs prior to submitting a formula application; and
Adds an option for a hardship waiver for the Senior
Companion and Foster Grandparent cost-reimbursement requirement.
A. Definitions (Sec. Sec. 2510.20, 2525.20)
The National Service Trust is an account in the U.S. Treasury
authorized to disburse education awards to national service
participants. Prior to passage of the Serve America Act, the
Corporation was authorized to disburse one type of education award from
the National Service Trust--a national service education award, also
known as a Segal AmeriCorps Education Award, available upon successful
completion of a term of service in an approved AmeriCorps position. An
``approved AmeriCorps position'' is one of the positions described in
Section 123 of the Act, including a position in AmeriCorps State and
National, AmeriCorps NCCC, AmeriCorps VISTA, and the newly authorized
ServeAmerica Fellowship program.
The Serve America Act authorizes two new types of education awards:
(1) A Silver Scholar education award of $1,000, available upon
successful completion of a term of service in an approved Silver
Scholar position; and (2) a Summer of Service education award of $500
(with authority for awards up to $750 for economically disadvantaged
youth), available upon successful completion of a term of service in an
approved Summer of Service position. Silver Scholar and Summer of
Service education awards are available for use for the same purposes as
AmeriCorps education awards: to repay qualified student loans, to pay
for current educational expenses at an institution of higher education,
and to pay for the cost of attending a program of education approved by
the Secretary of Veterans Affairs.
Several commenters sought clarification regarding the nature of the
Summer of Service program, as the Corporation has supported multiple
initiatives referred to as ``Summers of Service.'' To clarify, an
approved Summer of Service position is one supported through a Learn
and Serve America grant authorized and funded under Subtitle B of Title
I of the NCSA. For more information on the Summer of Service program,
see https://www.learnandserve.gov/about/programs/community_based.asp.
To align with the amended statute, this rule amends Sec. 2525.20
by adding three separate definitions for ``AmeriCorps education
award,'' ``Silver
[[Page 51397]]
Scholar education award,'' and ``Summer of Service education award.''
Each of these awards is based upon successful completion of a term
of service in an approved position. For a position of any type to be
considered ``approved,'' the Corporation must have agreed to provide a
corresponding education award upon successful completion of a term of
service in that position. This rule amends Sec. 2510.20 by adding
definitions to clarify that in order for a Summer of Service or Silver
Scholar position to be considered approved, it must be approved by the
Corporation for the receipt of a Silver Scholar or Summer of Service
education award, respectively.
A term of service in an approved Silver Scholar position must be
for at least 350 hours during a period of one year. A term of service
in an approved Summer of Service position must be for at least 100
hours ``during the summer months.'' To clarify that what constitutes a
term of service will vary depending upon the program, this rule amends
the definition of ``term of service'' in Sec. 2525.20 to align with
the NCSA by providing separate descriptions for terms of service in
approved AmeriCorps, Silver Scholar, and Summer of Service positions.
We received many requests for additional clarification on the
Silver Scholar and Summer of Service programs, including whether there
will be limitations on the number of terms an individual may serve in
each program and how the Silver Scholar program will interact with
other programs. Specific rules for these programs were not a part of
this rulemaking; the Corporation may undertake separate rulemakings on
these topics in the future.
As stated above, a Summer of Service education award will generally
be $500. However, the NCSA authorizes the Corporation to establish a
Summer of Service award of $750 for ``economically disadvantaged
youth.'' The Corporation defines ``economically disadvantaged youth''
for the purposes of the larger Summer of Service education award as a
child who is eligible for a free lunch or breakfast under the Richard
B. Russell National School Lunch Act. This rule amends Sec. 2525.20 to
add this definition.
The Corporation received several comments questioning the
Corporation's definition of ``economically disadvantaged youth,''
including comments that such a definition would exclude home-schooled
children and middle school youth who do not sign up for free lunch.
Using the eligibility guidelines for participation in a free lunch or
breakfast program under the Richard B. Russell National School Lunch
would not exclude home-schooled students or students who do not sign up
for a free lunch or breakfast. A child need not actually be enrolled in
a school-based free lunch or breakfast program to qualify for the
larger Summer of Service education award. The definition means only
that the eligibility standards of such a program will be used to
determine whether a child qualifies for a larger education award.
The proposed rule defined an ``economically disadvantaged youth''
as one who is eligible for free or reduced lunch and breakfast. Upon
further consideration, the Corporation has amended the definition in
the final rule to an individual who is eligible for free or reduced
lunch or breakfast.
While the Corporation has the authority to establish a larger award
for economically disadvantaged youth, the Corporation has not elected
to use this authority in the first year of funding Summer of Service
programs.
B. Eligibility To Receive an Education Award (Sec. 2526.10)
The Serve America Act created two new types of education awards:
Silver Scholar education awards and Summer of Service education awards,
for $1,000 and $500 respectively, available upon successful completion
of an approved Silver Scholar or Summer of Service position. This rule
amends Sec. 2526.10 to include individuals who successfully complete
terms of service in approved Silver Scholar or Summer of Service
positions as eligible to receive an education award from the National
Service Trust.
Previously, the list of eligibility criteria to receive an
education award in Sec. 2526.10 described the eligibility criteria to
serve in AmeriCorps State and National, AmeriCorps NCCC, and AmeriCorps
VISTA, including age and education criteria that would exclude
individuals in Summer of Service positions, which are available for
``youth who will be enrolled in any of grades 6 through 12 at the end
of the summer'' (42 U.S.C. 12563(c)(8)). To align with the amended
statute, this rule amends Sec. 2526.10 to defer to the eligibility
criteria of individual programs for program-specific criteria.
Under this rule, for an individual to be eligible to receive an
education award, the organization responsible for the individual's
supervision must certify that the individual: (1) Met the applicable
eligibility requirements for the approved national service position,
approved Silver Scholar position, or approved Summer of Service
position, as appropriate; (2) successfully completed the term of
service in the AmeriCorps, Silver Scholar, or Summer of Service
program; and (3) is a citizen, national, or lawful permanent resident
alien of the United States.
C. Successful Completion of a Term of Service (Sec. 2526.15)
Section 146 of the NCSA directs the Corporation to determine a
process by which an organization responsible for the supervision of a
national service participant may determine whether the participant
successfully completed a term of service. This rule adds a new Sec.
2526.15 describing that process. Under this rule, organizations
supervising AmeriCorps State and National participants will continue to
use the existing process detailed at Sec. 2522.220(d).
For Summer of Service and Silver Scholar programs, the organization
is required to conduct an end-of-term evaluation for each participant
to determine whether the individual successfully completed the term of
service. To determine whether an individual successfully completed a
term, the program must examine whether: (1) The individual completed
the required number of service hours for the respective term of
service; (2) the individual performed satisfactorily on assignments,
tasks, or projects; and (3) the individual met any other performance
criteria as communicated to the member by the organization. What is
considered ``satisfactory performance'' is within the discretion of the
program.
For the purpose of this requirement, certification that an
individual did or did not successfully complete a term of service will
be deemed to incorporate an end-of-term evaluation. A certification of
successful completion will not, however, suffice as documentation of
hours served.
One commenter noted that the proposed language of Sec. 2526.15 is
not explicit that an individual must satisfy all three elements of the
evaluation in order to be considered to have successfully completed a
term of service.
The Corporation has amended Sec. 2526.15 to clarify that a
certification of successful completion necessarily encompasses a
determination that the individual completed the service hour
requirement, performed satisfactorily, and met any other performance
criteria set by the program.
The Corporation received several requests for standard definitions
of ``satisfactory'' and ``unsatisfactory.'' To
[[Page 51398]]
afford programs the necessary flexibility to supervise and manage their
members, the Corporation declines to set a standard for what is
considered ``satisfactory.''
The proposed rule inadvertently included AmeriCorps VISTA and
AmeriCorps NCCC in the above certification process. The Corporation
uses its own process to determine whether a VISTA or NCCC member has
successfully completed a term of service; the above rules do not apply
to VISTA or NCCC.
D. Partial Awards for Release for Compelling Personal Circumstances
(Sec. Sec. 2526.20-25)
Section 147 of the NCSA authorizes the Corporation to make
education awards in five different amount categories: (1) An amount for
successful completion of a full-time approved national service
position; (2) an amount for successful completion of a part-time
approved national service position; (3) an amount for partial
completion of service, available upon release for compelling personal
circumstances from an approved national service position; (4) an amount
for a Silver Scholar education award for successful completion of an
approved Silver Scholar position; and (5) an amount for a Summer of
Service education award for successful completion of an approved Summer
of Service position. Partial awards are described only in the context
of release for compelling personal circumstances from an approved
national service position.
In describing types of service positions in section 146, the Act
distinguishes between approved national service positions (which are
described in section 123 to include AmeriCorps State and National,
AmeriCorps VISTA, AmeriCorps NCCC, and ServeAmerica Fellows), approved
Silver Scholar positions, and approved Summer of Service positions. The
Act does not provide for a pro-rated award for a release for compelling
personal circumstances from an approved Silver Scholar or Summer of
Service position.
This rule amends Sec. 2526.20 and adds a new Sec. 2526.25 to
clarify that partial awards will not be available for individuals who
are released early from Silver Scholar or Summer of Service positions,
even for compelling reasons. We received several comments recommending
that a release for compelling personal circumstances be permitted for
Silver Scholars and Summer of Service positions. As stated above, there
is no authority for a partial award for a release for compelling
personal circumstances from a Silver Scholar or Summer of Service
position.
This rule also amends Sec. 2526.20 to reflect the statutory
requirement that an individual serving in an approved AmeriCorps
position must have performed satisfactorily before being released for
compelling personal circumstances in order to receive a partial
education award.
E. Limitation on Amount of Award Disbursed to Institution of Higher
Education (Sec. Sec. 2528.30-40)
Prior to the effective date of the Serve America Act, under section
148(c)(6) of the NCSA, the Corporation's disbursement from an
individual's education award for any period of enrollment at an
institution of higher education could not exceed the difference between
that individual's cost of attendance for that period of enrollment and
the sum of (1) the individual's estimated financial assistance for that
period under part A of title IV of the Higher Education Act and (2) the
individual's veterans' benefits as defined under section 480(c) of the
Higher Education Act. The Serve America Act amended section 148(c)(6)
to eliminate consideration of an individual's veterans' benefits in
this manner. This rule amends Sec. Sec. 2528.30 and 2528.40 to align
with amended section 148(c)(6) by removing any consideration of an
individual's veterans' benefits when determining the maximum amount of
the individual's education award that may be disbursed to an
institution of higher education.
F. Use of Education Award for a Program of Education Approved by the
Secretary of Veterans Affairs (Sec. Sec. 2528.10, 60-80)
The Serve America Act amended section 148 of the NCSA to add a
fifth available use for an education award. Under the amended law, the
education award is available ``to pay expenses incurred in enrolling in
an educational institution or training establishment that is approved
under chapter 36 of title 38, United States Code, or other applicable
provisions of law, for offering programs of education, apprenticeship,
or on-job training for which educational assistance may be provided by
the Secretary of Veterans Affairs.'' (42 U.S.C. 12604(a)(4)). This rule
amends Sec. 2528.10 to add this use to the list of available uses, and
adds rules on the process for using the award for this purpose.
Benefits offered under chapter 36 of title 38, U.S.C., were authorized
under the Montgomery G.I. Bill and the Post 9/11 G.I. Bill. This rule
adds a definition for ``G.I. Bill approved programs.''
This rule requires that the institution or training establishment
at which an individual requests to use an education award certify under
penalty of law that the amount requested will be used to pay all or
part of the individual's expenses attributable to a course, program of
education, apprenticeship, or job training program offered by that
institution or training establishment. Further, the institution or
training establishment must certify under penalty of law that the
course or program for which the individual is requesting to use the
education award is currently approved by the State approving agency for
the State where the institution or establishment is located, or by the
Secretary of Veterans Affairs.
The Department of Veterans Affairs is the agency responsible for
approving courses or programs of education under chapter 36 of title
38, U.S. Code, and the Corporation defers to the decisions made by the
State approving agencies and the Secretary of Veterans Affairs
regarding approving--or withdrawing approval--of a program of
education. The Corporation will only disburse funds to an institution
or establishment if it verifies that a course or program of education
has received the requisite approval.
Unlike G.I. education benefits, which may be disbursed directly to
an individual, under this rule, the education award will only be
disbursed directly to the educational institution or training
establishment.
If an individual for whom the Corporation has disbursed an
education award withdraws or fails to complete the period of enrollment
at an educational institution or training establishment in a program of
education approved by the Secretary of Veterans Affairs, this rule
requires the educational institution or training establishment to
provide a pro-rated refund to the Corporation. The Corporation will
provide more detailed guidance on the refund process during
implementation.
Please Note: An individual will begin being able to use the
Corporation's online systems to request the use of an award at a
G.I. Bill approved program beginning mid-August, 2010 or 30 days
following the publishing of this regulation, whichever is later.
G. Payment of Accrued Interest (Sec. 2529.10)
This rule amends Sec. 2529.10, which previously provided for
interest forbearance to individuals serving in approved AmeriCorps
positions, to clarify that individuals who
[[Page 51399]]
successfully complete terms of service in approved Silver Scholar
positions may also be eligible for payments of interest accrued on
qualified student loans while serving. The rule does not include Summer
of Service positions, as Summer of Service positions are reserved for
rising 6th through 12th graders who, having not yet enrolled in an
institution of higher education, will not yet have incurred qualified
student loans.
The Serve America Act also amended section 123 by expanding the
list of positions considered to be approved national service positions
to include ``a position involving service in the ServeAmerica
Fellowship program.'' The term ``approved national service position''
is used interchangeably with the term ``approved AmeriCorps position.''
Therefore, an individual who serves in a ServeAmerica Fellowship
position will be eligible for the payment of accrued interest on
qualified student loans upon successful completion of a term of
service.
H. Amount of AmeriCorps Education Award (Sec. 2527.10)
Upon successful completion of a term of service in an approved
AmeriCorps position, including positions in AmeriCorps State and
National, AmeriCorps VISTA, AmeriCorps NCCC, and ServeAmerica Fellows,
an individual is eligible to receive an AmeriCorps education award from
the National Service Trust. Prior to the passage of the Serve America
Act, the amount of a full-time AmeriCorps education award was set in
law at $4,725.
The Serve America Act amended section 147 of the NCSA by changing
the amount of a full-time national service education award to be
``equal to the maximum amount of a Federal Pell Grant under section 401
of the Higher Education Act of 1965 (20 U.S.C. 1071a) that a student
eligible for such Grant may receive in the aggregate * * * for the year
for which the national service position is approved by the
Corporation.'' This rule amends Sec. 2527.10 to conform to the changes
in the NCSA in the amount of the full-time award.
The amount of the Pell Grant upon which AmeriCorps education awards
will be based may change each year. Thus, the amount of an AmeriCorps
education award may also change annually. To determine the amount of an
AmeriCorps education award, the Corporation will use the amount of the
Pell Grant as of October 1 (the first day of the Federal fiscal year)
in the fiscal year in which the national service position is approved.
For example, if a national service position is approved in September of
2010, the amount of the education award will be based on a full-time
amount of $5,350--the amount of the Pell Grant as of October 1, 2009
(the first day of fiscal year 2010).
The trigger date for determining the amount of an education award
for a particular national service position is the date that position is
approved--not the date the individual begins serving in a national
service position. Not all positions that begin in a fiscal year will
receive an education award based on the amount of the Pell Grant in
that fiscal year.
In accordance with the national service laws, funding for education
awards is obligated on a different schedule for AmeriCorps VISTA,
AmeriCorps NCCC, and AmeriCorps State and National. What follows is a
detailed discussion on how the approval date for a national service
position is determined for the purposes of establishing the amount of
an education award.
For AmeriCorps VISTA, a position is considered to be approved at
the time the Corporation enters into an enforceable agreement with an
individual, signified by the individual's taking the VISTA oath of
service. (42 U.S.C. 4954(c)). For an AmeriCorps VISTA position, the
education award amount is equal to the amount of a Pell Grant on
October 1 of the fiscal year in which the VISTA takes the oath of
service. For example, a VISTA who takes the oath on any date between
October 1, 2009, and September 30, 2010, is eligible for a full-time
award amount of $5,350--the amount of the Pell Grant as of October 1,
2009.
For AmeriCorps NCCC, a position is considered to be approved at the
time the Corporation enters into an enforceable agreement with an
individual, signified by the individual's signing of an AmeriCorps NCCC
member agreement. (42 U.S.C. 12606(a)(1)(A)(i)). For an AmeriCorps NCCC
position, the education award amount will be equal to the amount of a
Pell Grant on October 1 of the fiscal year in which the AmeriCorps NCCC
member signs the member agreement. Therefore, an individual who signs
an AmeriCorps NCCC member agreement on any date between October 1,
2009, and September 30, 2010, will receive an award based on a full-
time award amount of $5,350--the amount of the Pell Grant as of October
1, 2009.
For AmeriCorps State and National, by law, a position is considered
to be approved at the time the Corporation executes a grant used to
support the AmeriCorps member--not the date an AmeriCorps member takes
an oath, signs an agreement, or begins service. (42 U.S.C.
12606(a)(1)(A)(ii)). AmeriCorps State and National grants are generally
made during the spring and summer, i.e., in the latter half of a fiscal
year. As a result, unlike AmeriCorps NCCC and AmeriCorps VISTA members
(who are eligible for the new amount of the award as of October 1), the
earliest point at which an AmeriCorps member may begin serving in a
position funded by those grants may be closer to the end of a fiscal
year.
For example, if an AmeriCorps State program receives a grant and an
allotment of AmeriCorps positions on August 1, 2010, and enrolls a
member using fiscal year 2010 grant funds on August 3, 2010, that
member will receive an education award based on a full-time amount of
$5,350--the amount of the Pell Grant on October 1, 2009, the first day
of the fiscal year in which the August 2010 grant was made. If the
program then enrolls another member on October 10, 2010, that member
will also receive an education award based on the $5,350 amount--even
though at that point a new fiscal year has begun, and the Pell Grant
for fiscal year 2011 may have increased or decreased as of October 1,
2010. The determining factor is that the member position was approved
by the Corporation in a grant awarded in fiscal year 2010.
Further, unlike an AmeriCorps NCCC or AmeriCorps VISTA member,
whose approval date will closely correlate with the day the individual
begins service, it is possible for an AmeriCorps State and National
member beginning service in one fiscal year to be supported with funds
from a grant made in a prior fiscal year. Therefore, it is possible for
two AmeriCorps members starting service on the same day to be supported
by two different grant awards made in two different fiscal years,
resulting in two different approval dates and two different education
award amounts.
For example, consider two programs with different member enrollment
periods. Program A has an enrollment period of September 1, 2010 to
August 30, 2011. Program B's enrollment period is September 15, 2010 to
September 14, 2011. Both programs receive a grant award for the second
year of their grant in the summer of 2011, and each enrolls a member on
September 2, 2011. The member enrolling in Program A will be enrolling
at the beginning of the enrollment period for that program year, and
will receive an education award based on the amount of a full-time
award on October 1, 2010. The member
[[Page 51400]]
enrolling in Program B will be enrolling at the end of the enrollment
period for the prior program year, and will receive an education award
based on the amount of a full-time award on October 1, 2009.
The Corporation received several comments expressing concern about
the possibility of two members serving simultaneously but receiving
different education award amounts. Specifically, these commenters noted
that different education award amounts may give the appearance of
inequity between members.
In the proposed rule, the Corporation included an example of a
scenario under which a program enrolls two members on the same day
using one slot from the prior year grant and one slot from the current
year grant. While such a scenario is possible, it is unlikely to occur.
However, it is likely that an AmeriCorps State and National member may
start on the same day as an AmeriCorps VISTA member at the same service
site. To mitigate a perception of inequity among members in any case,
and to reduce confusion, it is essential for AmeriCorps programs--
particularly those with AmeriCorps State and National members--to
clearly communicate to each member, prior to the commencement of
service, the amount of the education award being offered to the
individual for successful completion of the term of service. Beginning
with grants made in 2010, AmeriCorps State and National grant
provisions will direct grantees to specify the amount of the education
award being offered for successful completion of a term of service in
the member service agreement.
One commenter recommended that the Corporation make the education
award amount for a particular AmeriCorps position available to the
member and the program through the MyAmeriCorps portal. The Corporation
is developing its systems to provide this information through the
MyAmeriCorps portal in the near future, but will also require programs
to communicate this information to the member in the member service
agreement.
It is important to remember that the Serve America Act went into
effect on October 1, 2009. All positions approved prior to that date
are eligible for awards based on a full-time amount of $4,725. To learn
more about the amount of the education award and how it is determined,
visit the AmeriCorps Web site at https://www.americorps.gov/for_individuals/benefits/benefits_ed_award.asp.
I. Amount of Silver Scholar and Summer of Service Education Awards
(Sec. 2527.10)
As previously discussed, the Serve America Act created two new
types of education awards: Silver Scholar education awards and Summer
of Service education awards. This rule amends Sec. 2527.10 to include
the Silver Scholar education award of $1,000, available upon successful
completion of a term of service of at least 350 hours in a Silver
Scholar position.
This rule also amends Sec. 2527.10 to include the Summer of
Service education award of $500, available upon successful completion
of at least 100 hours in a Summer of Service position. The Corporation
may authorize a Summer of Service education award of $750 if the
participant is an economically disadvantaged youth.
In the proposed rule, we stated that in order to authorize the
increased award, the Corporation must receive a certification from the
school with which the participant served that the participant meets the
definition of ``economically disadvantaged youth,'' defined in this
rule as a child that is eligible for a free lunch or breakfast under
the Richard B. Russell National School Lunch Act (42 U.S.C. 1758(b)).
Upon further consideration, the Corporation is changing this
certification requirement in the final rule, and will instead require
verification from the school or organization with which the participant
served.
Pro-rated education awards for an early release for compelling
personal circumstances from a Silver Scholar or Summer of Service
position are not available. If an individual fails to complete either
type of term for any reason, the individual will not receive an award.
And unlike the AmeriCorps education award described in the previous
section, under the authorizing statute Silver Scholar and Summer of
Service education awards will not vary in amount from one year to the
next.
Summer of Service and Silver Scholar education awards may be used
for the same purposes as AmeriCorps education awards, including paying
for the cost of attendance or other current educational expenses at an
institution of higher education, to pay expenses incurred in enrolling
in an educational institution or training establishment approved by the
Secretary of Veteran's Affairs for programs of education,
apprenticeship, or on the job training, and to repay qualified student
loans.
J. Limitation on Value of Education Awards Received (Sec. 2526.50)
Prior to the passage of the Serve America Act, the national service
laws limited individuals to receive an education award ``only on the
basis of the first and second * * * terms of service.'' A term of
service includes full-time, part-time, or less-than-part-time terms,
terms in which the person served at least 15 percent of the term of
service, and terms for which an individual was released for misconduct
regardless of the amount of time served. Terms range in service hour
requirements from 300 hours to more than 1,700 hours, but despite the
contrast in the level of commitment required or the service opportunity
presented, all terms were previously considered of equal value for the
purposes of limiting the receipt of education awards.
The Serve America Act amended the national service laws to no
longer limit the receipt of education awards based upon the number of
terms served, but rather place the limit on the aggregate value of
education awards received. Section 146(c) now states: ``An individual
may not receive, through national service educational awards and silver
scholar educational awards, more than an amount equal to the aggregate
value of [two] such awards for full-time service.''
The amended law allows for an individual to earn more than two
education awards, so long as the aggregate value of all awards received
does not exceed the aggregate value of two full-time national service
education awards. Significantly, the law does not create an entitlement
to receive the aggregate value of two full-time awards; rather, it
prohibits an individual from receiving more than the aggregate value of
two full-time awards. This rule amends Sec. 2526.50 to align with the
amended statutory language.
As previously discussed, the amount of a full-time education award
is now tied to the amount of a Pell Grant in the year the position is
awarded, and is likely to change each year. The Corporation does not
interpret the amended statute to provide that the value of two full-
time education awards for the purposes of this section is equal to the
dollar amount of two full-time awards and would thus similarly change
on an annual basis, providing a potentially unlimited number of service
opportunities and education awards. Nor does the Corporation interpret
this change as a means of ensuring that all national service
participants receive an identical amount. Rather, the Corporation
interprets the change in
[[Page 51401]]
focus from the number of terms served to the value of education awards
received as a means of affording individuals serving in less-than-full-
time terms more service opportunities. In other words, for the purposes
of the limitation on education award receipt, value is distinct from
amount.
The Corporation considers an education award to be the counterpart
to successful completion of a term of service, and while the amount of
that award might change, the service opportunity offered by a
particular term of service is constant. The Corporation interprets the
``value'' of a full-time education award to be representative of the
service opportunity upon which it is based. Therefore, a limitation of
two full-time education awards can be understood as a limitation of two
full-time service opportunities.
In order to attribute a value to an award received on the basis of
a static service opportunity in an environment in which the award
amount may fluctuate annually, the Corporation will measure the value
of any award amount relative to the amount of a full-time award in a
given year. For the purposes of this section, the value of an education
award will be considered equal to the actual amount of the education
award received divided by the amount of a full-time education award in
the fiscal year the AmeriCorps or Silver Scholar position upon which
the award is based was approved. Using this calculation, every award
received will be considered to have a value between 0 and 1. Although
the amount of a full-time award may change, the value of a full-time
award will always be equal to 1.
[GRAPHIC] [TIFF OMITTED] TR20AU10.013
For example, an individual who completed a part-time position
approved in 2009 received an education award of $2,362.50. The value of
this award is the amount received, $2,362.50, divided by $4,725, the
amount of a full-time award in the year the position was approved, or
.5. Another individual completes a part-time position approved in 2010
and receives an education award of $2,675. The value of this award is
the amount received, $2,675, divided by $5,350, the amount of a full-
time award in the year the position was approved, or .5. Using this
calculation, the value of an award received for part-time service will
always be equal to .5.
If an individual leaves a term of service for compelling personal
circumstances and receives a pro-rated award, the value attributed to
that award will be based on the amount actually received. For example,
an individual was released for compelling personal circumstances from a
full-time position approved in 2009 after serving 800 hours, and
received a pro-rated award of $2,223.52. The value of this award is the
amount of the award received, $2,223.52, divided by, $4,725, the amount
of a full-time award in the year the position was approved, or .47.
Another individual was released for compelling personal circumstances
from a full-time position approved in 2010 after serving 800 hours, and
received a pro-rated award of $2,517.64. The value of this award is the
amount of the award received, $2,517.64, divided by $5,350, the amount
of a full-time award in the year the position was approved, or .47.
If an individual exits a term for cause and does not receive an
education award, the amount received will be $0, and therefore no value
will be attributed to the individual for purposes of this section.
However, an exit for cause will have an impact on the individual's
eligibility to serve subsequent terms of service. A term exited for
cause is considered a term of service for the purposes of term
limitations for individual programs. For example, if an individual has
already served one term of service in AmeriCorps NCCC, and exits a
second term in AmeriCorps NCCC for cause, the individual has exhausted
the two terms of service one may serve in AmeriCorps NCCC.
Additionally, if an individual is released for cause from an approved
AmeriCorps position (including positions in AmeriCorps State and
National, AmeriCorps VISTA, AmeriCorps NCCC, and ServeAmerica Fellows),
and the program determines in the end-of-term evaluation that the
individual served unsatisfactorily, the individual may not serve a
subsequent term in an approved AmeriCorps position.
For the purpose of transferred awards (discussed further in the
section in this preamble on transfer), the value of the award received
by a transferee will be the actual amount of the award received divided
by the amount of a full-time award in the year the position for which
the transferring individual received the award was approved. For
example, if an individual receives an education award based on a term
of service approved in 2010, and later transfers $1,000 of that
[[Page 51402]]
award to a grandchild, the grandchild will be considered to have
received an award value of .19, the result of dividing the amount
received, $1,000, by the amount of a full-time award in 2010, $5,350.
If the transferring individual revokes all or part of an award, the
value considered to be received by the designated individual will be
decreased accordingly. An individual who receives the aggregate value
of two full-time awards through transferred awards may enroll in a
national service position, but will not be eligible to receive any
additional AmeriCorps or Silver Scholar education awards.
For purposes of this section, an award is considered to be received
at the time it becomes available for an individual's use, and the fact
that an individual does not use an award does not diminish its value.
In addition, an individual who transfers an award will still be
considered to have received the award, and the value of the award for
the purposes of this section will not be decreased by the amount the
individual transfers to a designated individual. For example, if an
individual successfully completes two full-time terms of service, and
the individual then transfers both full-time awards to a child, both
the child and the transferring individual will be considered to have
received two full-time awards.
This rule states that an individual may receive no more than the
aggregate value of two full-time education awards. The aggregate value
of awards received will be equal to the sum of the value of each
national service education award received (awards received from terms
of service in AmeriCorps State and National, AmeriCorps VISTA,
AmeriCorps NCCC, or ServeAmerica fellowships), including partial
awards, the value of each Silver Scholar award received, and the value
of each transferred award received. The calculation of the aggregate
value does not include Summer of Service education awards, as these are
excluded by law.
For example, an individual served a full-time term in 2008 and
received an award of $4,725. The same individual served a part-time
term in 2009 and received an award of $2,362.50. The individual enrolls
in a minimum-time term in 2010 and receives an award of $1,132.60. The
value of the first award is 1 ($4,725 divided by $4,725), the value of
the second award is .5 ($2,362.50 divided by $4,725), and the value of
the third award is .21 ($1,132.60 divided by $5,350). The aggregate
value of awards received is 1.71 (1 + .5 + .21).
The Corporation has received questions about whether awards
received prior to the effective date of the Serve America Act will be
included in determining the aggregate value of education awards
received. The national service laws, as amended by the Serve America
Act, do not differentiate between awards received prior to the
effective date and those received subsequent to the effective date. All
awards earned in the past will have a value attributed to them for the
purposes of this section. Thus, under the proposed rule, if an
individual has received two full-time education awards in the past,
that individual is not eligible to receive another education award.
K. Impact of Aggregate Value of Education Awards Received (Sec. Sec.
2526.55, 2527.10)
The proposed rule included a limitation that an individual would
not be permitted to enroll in a subsequent term of service if
successful completion of that term would result in receipt of an
education award the value of which, when added to the aggregate value
of awards previously received, would be greater than 2. The proposed
rule provided that this would not prevent an individual from enrolling
in a term of service for which the individual chooses to waive receipt
of the education award.
The Corporation received many comments on this provision. Some
commenters requested additional clarification on waiving an education
award. Other commenters questioned the Corporation's proposal to
require an individual who is not eligible to receive an entire
education award for a particular term of service to waive the entire
award in order to enroll in the term. Among the comments received,
there was broad support for permitting an individual eligible to
receive only a portion of an award to receive that portion upon
successful completion of a term of service.
After further consideration, the Corporation agrees that an
individual who is eligible to receive a portion of an education award
should be able to receive that portion upon successful completion of
the term of service. Under this rule, if an amount offered for a term
of service has a value that, when added to the aggregate value of
awards previously received, would exceed 2, the individual will receive
a discounted award representing that portion of the award having a
value for which the individual is eligible.
However, the Corporation will need time to implement this policy
properly, including time to make necessary upgrades to our systems. We
estimate that our systems should be updated by November 1, 2010. Prior
to that date, the Corporation will notify applicants in the
MyAmeriCorps portal of the new rule, but will not provide
individualized notice to applicants of the amount of award the
individual may receive. Once the system changes have been implemented,
an individual will be notified upon enrollment in a particular term of
service of the aggregate value of awards the individual has previously
received, and the maximum award amount the individual is eligible to
receive for that term of service. The maximum amount the individual
will receive upon successful completion will be either the amount of
the award offered for that term of service, or a discounted amount
having a value that, when added to the aggregate value of awards
previously received, does not exceed 2--whichever is less. The
discounted amount is determined by multiplying the value the individual
is eligible to receive by the amount of a full-time award in the year
the position is approved, and may be equal to zero dollars.
(2-aggregate value of education awards received)
x
(amount of full-time education award in year position was approved)
This rule adds a new paragraph (g) to Sec. 2527.10 describing how
a discounted award amount is determined.
For example, consider an individual who has received an aggregate
value of 1.26 awards who wishes to enroll in a full-time term offering
an award with a value of 1. The individual is eligible to receive an
award with a value of .74, and therefore upon successful completion
will receive a discounted award amount of $3,959 ((2-1.26) x $5,350).
If an individual had already received the value of two full-time
education awards, the maximum discounted amount the individual is
eligible to receive for successful completion of the term of service is
$0 ((2-2) x $5,350).
An individual must successfully complete the term of service in
which the individual enrolls in order to receive the entire amount of
the education award for which the individual is eligible. Section
147(c) of the Act states that if ``an individual serving in an approved
national service position is released [for compelling personal
circumstances], the Corporation may provide the individual with that
portion of the national service educational award approved for the
individual that corresponds to the quantity of the term
[[Page 51403]]
of service actually completed by the individual.'' An individual is
only approved to receive an award amount for which the individual is
eligible. If an individual is eligible to receive a discounted
education award, and the individual leaves a term of service for
compelling personal circumstances, the individual will receive a
corresponding portion of the discounted award amount.
For example, consider an individual who enrolls in a term of
service offering an award amount of $5,350, but who is only eligible to
receive an amount of $3,000 based on the aggregate value of awards the
individual had previously received. If this individual exits the term
for compelling personal circumstances after serving 50% of the required
service hours, the individual will receive $1,500, or 50% of $3,000--
the discounted award amount for which the individual was approved.
Please Note: the option to elect to waive an education award
was proposed in order to enable an individual to serve in a term of
service offering an education award amount with a value exceeding
the value for which the individual is eligible. The Corporation is
not including a waiver requirement or option in the final rule.
L. Transfer of Education Awards (Part 2530)
The Serve America Act amended Subtitle D of title I of the NCSA to
authorize individuals to transfer an education award, with limitations
on who can transfer an award, and who can receive a transferred award.
By statute, to transfer an award, an individual must: (1) Have
successfully completed a term of service in an approved AmeriCorps
State and National or Silver Scholar position; and (2) have been age 55
or older before beginning that term of service. To receive an award, an
individual must: (1) Be designated by a qualifying transferring
individual; (2) be the child, grandchild, or foster child of the
transferring individual; and (3) be a citizen, national, or lawful
permanent resident alien of the United States. The effective date of
this provision was October 1, 2009; only individuals beginning service
on or after that date will be eligible to transfer an education award.
Section 148(f) specifies that the ``designated individual,''
meaning the child, grandchild, or foster child designated by the
transferring individual to receive the award, may use the award for the
purposes described in paragraphs (b), (c), and (d) of that section--
i.e., to repay qualified student loans, to pay for current educational
expenses at an institution of higher education, or to pay expenses
incurred in an approved school-to-work program. The school-to-work
program, authorized under the School-to-Work Opportunities Act of 1994,
sunsetted in 2001; thus, in practice, the designated individual would
be able to use the award only for current educational expenses or to
repay qualified student loans. The NCSA as amended does not extend the
use of the transferred award to pay expenses incurred in enrolling in
an institution or training establishment approved under the G.I. Bill
to designated individuals, nor does it permit designated individuals to
receive interest forbearance payments as described in Section 148(e).
This section of the NCSA also permits a transferring individual to,
``on any date on which a portion of the education award remains unused,
modify or revoke the transfer of the educational award with respect to
that portion.''
This rule adds a new part 2530 on transfer, including rules
reflecting statutory guidelines, and details on the processes for
requesting transfers and revocations of transferred awards. The NCSA
also includes a provision requiring the Corporation to ``establish
requirements to prevent waste, fraud, or abuse in connection with the
transfer of an educational award and to protect the integrity of the
educational award under this subsection.'' This rule includes several
measures intended to prevent waste, fraud, or abuse in connection with
the transfer of an education award.
First, as part of the process for the transferring individual to
request the transfer and the process for the designated individual to
accept the transfer, this rule requires both the transferring
individual and the designated individual to provide a certification
under penalty of law that each meets the criteria to transfer, or
receive, a transferred award. As with any certification, an individual
may be required to produce verifying documentation.
This rule specifies in Sec. 2530.70 that an individual is not
required to accept a transferred award. We received a question
regarding whether an individual may reject an award at any time, or
must do so at the outset. An individual may reject an award at the
outset, or at any point after acceptance. Any award amount that has
been rejected will not be considered when calculating the aggregate
value of education awards an individual has received. A transferring
individual may re-transfer an award if the designated individual
rejects the transferred award in full and the award has not yet
expired.
Second, this rule limits an individual to making a single transfer
of an education award that is attributable to a single term of service.
An individual may transfer an award in whole or in part; thus, the
transferring individual may keep a portion of an award for his or her
use and transfer a portion to a designated individual. However, an
individual may not transfer a single award attributable to completion
of a single term of service to more than one designated individual.
The Corporation received several comments opposing this limitation,
and one recommendation that the Corporation increase the limit to two
designated individuals for each award. Several commenters noted that
the Act does not specifically dictate this limitation; however, the Act
directs the Corporation to establish rules to prevent fraud, waste, and
abuse in connection with transferred awards, and this limitation is
designed to mitigate such risks. Also, as stated in the proposed rule,
this provision limits, but does not proscribe, an individual's ability
to transfer to multiple individuals; in order to transfer awards to
more than one designated individual, the transferring individual will
need to earn awards for more than one term of service.
As stated above, a transferring individual also has the authority
to revoke the transfer of any unused portion of an education award. As
another measure to prevent waste, fraud, or abuse, and in line with the
Corporation's intent to limit individuals to a single transfer from
each award, a transferring individual would not, as a general rule, be
permitted to re-transfer a revoked award to another individual.
This rule includes an exception to this general rule for those
situations in which the Corporation considers the award to have been
revoked for good cause, as demonstrated by the transferring individual.
For example, if a transferring individual revokes the full amount
transferred upon the death of a designated individual, the Corporation
would permit the transferring individual to re-transfer the award in
whole or in part.
The Corporation received several requests for a definition of
``good cause.'' Beyond the death of a transferee or a transferee's
rejection of an award in full, the Corporation cannot speculate as to
the types of situations that may arise that would necessitate an
individual to revoke an award, and thus is not prepared to define
``good cause'' at this time. The Corporation will make determinations
of whether there is good cause to permit someone to re-transfer an
award in a consistent manner, and
[[Page 51404]]
may develop a more formal policy in the future based upon the types of
requests received.
This rule also includes several clarifying provisions. As discussed
in the section in this rule on the limitation on the value of education
awards an individual may receive, the NCSA prohibits an individual from
receiving more than the aggregate value of two education awards. Under
this rule, an award is considered to be ``received'' at the time it
becomes available for an individual's use. The fact that an individual
transfers an award to a designated individual will not decrease the
value of awards the individual is considered to have received.
Transferred awards a designated individual receives will also be
considered when calculating the aggregate value of awards received.
For example, if an individual receives two full-time awards and
transfers both awards to a child, both the transferring and designated
individual will be considered to have received the aggregate value of
two full-time awards, and neither will be eligible to receive
additional AmeriCorps or Silver Scholar awards from the National
Service Trust. As discussed in the section on calculating the value of
an education award, a transferred award would have a value based on the
amount of a ful