National Security Education Program (NSEP) and NSEP Service Agreement, 87448-87454 [2016-29023]

Agencies

• DEPARTMENT OF DEFENSE
• Office of the Secretary

[Federal Register Volume 81, Number 233 (Monday, December 5, 2016)]
[Rules and Regulations]
[Pages 87448-87454]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-29023]


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DEPARTMENT OF DEFENSE

Office of the Secretary

32 CFR Part 208

[Docket ID: DOD-2013-OS-0021]
RIN 0790-AJ01


National Security Education Program (NSEP) and NSEP Service 
Agreement

AGENCY: Under Secretary of Defense for Personnel and Readiness, DoD.

ACTION: Final rule.

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SUMMARY: This final rule implements the responsibilities of the 
Secretary of Defense for administering the National Security Education 
Program (NSEP) and explains the responsibilities of the Under Secretary 
of Defense for Personnel and Readiness (USD(P&R)) for policy and 
funding oversight for NSEP. It discusses requirements for administering 
and executing the NSEP service agreement and; and assigns oversight of 
NSEP to the Defense Language and National Security Education Office 
(DLNSEO).

DATES: This final rule is effective on January 4, 2017.

FOR FURTHER INFORMATION CONTACT: Alison Patz, 571-256-0771.

SUPPLEMENTARY INFORMATION:  On November 9, 2015, the Department of 
Defense published a proposed rule titled, ``National Security Education 
Program (NSEP) and NSEP Service Agreement,'' (80 FR 69166-69171) for a 
60-day public comment period. The public comment period closed on 
January 8, 2016. No public comments were received.
    After the 60-day public comment period for the proposed rule, minor 
administrative edits were made to provide clarity or remove outdated, 
unnecessary, or confusing language in the regulatory text due to an 
internal DoD re-organization. Offices and symbols have been updated to 
reflect the most current organizational structure.

Background

    The David L. Boren National Security Education Act of 1991 (Title 
VIII, Pub. L. 102-183), as amended, codified at 50 U.S.C. 1901 et seq. 
(NSEA), mandated that the Secretary of Defense create and sustain a 
program to award scholarships to U.S. undergraduate students, 
fellowships to U.S. graduate students, and grants to U.S. institutions 
of higher education.
    The NSEP is authorized through 50 U.S.C. 1901-1912 to award 
scholarships, fellowships, and grants to

[[Page 87449]]

institutions of higher education in order to increase the quantity, 
diversity, and quality of the teaching and learning of subjects in the 
fields of foreign languages, area studies, counterproliferation 
studies, and other international fields that are critical to the 
Nation's interest, as well as to produce an increased pool of 
applicants for working the departments and agencies of the United 
States Government with national security responsibilities.
    NSEP oversees nine national security language and culture 
initiatives designed to attract, recruit, and train a future federal 
workforce skilled in languages and cultures to work across all agencies 
involved in national security. These initiatives support professional 
proficiency language training at U.S. colleges and universities, as 
well as support students to study overseas in regions critical to U.S. 
national security through scholarships and fellowships.
    The final rule outlines requirements applicable to the NSEP office 
and NSEP award recipients. This includes information about the NSEP 
service agreement, which award recipients must adhere to as a condition 
of award. In exchange for support, NSEP awardees must work in 
qualifying national security positions in the U.S. federal government 
for at least one year.

Benefits

    NSEP, as outlined in the David L. Boren National Security Education 
Act of 1991, oversees multiple critical initiatives. All of NSEP's 
programs are designed to complement one another, ensuring that the 
lessons learned in one program inform the approaches of the others. 
Congress specifically--and uniquely--structured NSEP to focus on the 
combined issues of language proficiency, national security, and the 
needs of the federal workforce.
    NSEA outlines five major purposes for NSEP, namely:
     To provide the necessary resources, accountability, and 
flexibility to meet the national security education needs of the United 
States, especially as such needs change over time;
     To increase the quantity, diversity, and quality of the 
teaching and learning of subjects in the fields of foreign languages, 
area studies, counterproliferation studies, and other international 
fields that are critical to the nation's interest;
     To produce an increased pool of applicants to work in the 
departments and agencies of the United States government with national 
security responsibilities;
     To expand, in conjunction with other federal programs, the 
international experience, knowledge base, and perspectives on which the 
United States citizenry, government employees, and leaders rely; and
     To permit the federal government to advocate on behalf of 
international education.
    As a result, NSEP is the only federally-funded effort focused on 
the combined issues of language proficiency, national security, and the 
needs of the federal workforce.
     Boren Scholarships are awarded to U.S. undergraduates for 
up to one academic year of overseas study of languages and cultures 
critical to national security. Boren Scholars demonstrate their merit 
for an award in part by agreeing to fulfill a one year (minimum) 
service commitment to the U.S. government. NSEP awards approximately 
150 Boren Scholarships annually.
     Boren Fellowships are awarded for up to two years to U.S. 
graduate students who develop independent projects that combine study 
of language and culture in areas critical to national security. Boren 
Fellows demonstrate their merit for an award in part by agreeing to 
fulfill a one year (minimum) service commitment to the U.S. government. 
NSEP awards approximately 100 Boren Fellowships annually.
     The Language Flagship supports students to achieve 
superior-level proficiency in critical languages including Arabic, 
Chinese, Hindi Urdu, Korean, Persian, Portuguese, Russian, Swahili, and 
Turkish. Flagship students combine language study with a major 
discipline of their choice and complete a year-long overseas program 
that includes intensive language study, direct enrollment in a local 
university, and a professional internship experience. In addition, The 
Language Flagship awards grants to U.S. universities recognized as 
leaders in the field of language education and supports new concepts in 
language education. More than 2,000 U.S. undergraduate students 
participate annually in The Language Flagship's programs, which are 
based at more than 20 U.S. institutions of higher education and 
multiple universities overseas.
     The Language Flagship also manages a Flagship/ROTC 
initiative, through which ROTC cadets and midshipmen are supported at 
Flagship institutions, thus building a cadre of students with 
professional-level proficiency and commitment to serve in the U.S. 
armed forces.
     The English for Heritage Language Speakers (EHLS) program 
provides professional English language instruction for U.S. citizens 
who are native speakers of critical languages. Participants receive 
scholarships to the EHLS program at Georgetown University, which 
provides eight months of instruction. This training allows participants 
to achieve professional-level proficiency in the English language and 
prepares them for key federal job opportunities. NSEP awards 
approximately 20 EHLS Scholarships annually.
     The African Flagship Languages Initiative (AFLI) is a 
Flagship language program, designed in cooperation with Boren 
Scholarships and Fellowships, to improve proficiency outcomes in a 
number of targeted African languages. The Intelligence Authorization 
Act for Fiscal Year 2010, Section 314 (Pub. L. 111-259) initially 
directed the establishment of a pilot program to build language 
capabilities in areas critical to U.S. national security interests, but 
where insufficient instructional infrastructure currently exists 
domestically. Based on the successes of its many critical language 
initiatives, NSEP was designated to spearhead the effort. All AFLI 
award recipients are funded through either a Boren Scholarship or Boren 
Fellowship. Participants complete eight weeks of domestic language 
study at the University of Florida prior to departure overseas, 
followed by intensive, semester-long study internationally. AFLI's 
current language offerings include Akan/Twi, French (for Senegal), 
Hausa, Portuguese (for Mozambique), Swahili, Wolof, and Zulu.
     The National Language Service Corps (NLSC) is a civilian 
corps of volunteers with certified proficiency in foreign languages. 
Its purpose is to support DoD or other U.S. departments or agencies in 
need of foreign language services, including surge or emergency 
requirements. NLSC capabilities include language support for 
interpretation, translation, analysis, training, logistics activities, 
and emergency relief activities. Members generally possess 
professional-level proficiency in a foreign language and in English, 
and may have clearances or may be clearable.
     Project GO provides grants to U.S. institutions of higher 
education with large ROTC student enrollments, including the Senior 
Military Colleges. In turn, these institutions provide language and 
culture training to ROTC students from across the nation, funding 
domestic and overseas ROTC language programs and scholarships. To

[[Page 87450]]

accomplish Project GO's mission, NSEP closely works with Army, Air 
Force, and Navy ROTC Headquarters, as well as with U.S. institutions of 
higher education. To date, institutions participating in the program 
have supported critical language study for over 3,000 ROTC students 
nationwide. More than 20 domestic institutions host Project GO programs 
serving ROTC students from across the country.
     Language Training Centers (LTC) are a collaborative 
initiative to develop expertise in critical languages, cultures and 
strategic regions for DoD personnel. Section 529(e) of the National 
Defense Authorization Act for Fiscal Year 2010 authorized the 
establishment of the program in 2011. The program's purpose is to 
leverage the expertise and infrastructure of higher education 
institutions to train DoD personnel in language, culture, and regional 
area studies. In 2010, NSEP funded the study ``Leveraging Language and 
Cultural Education and U.S. Higher Education'' to fulfill a 
Congressional request. Findings from the Leveraging report revealed 
that federal investments in language and culture at higher education 
institutions produced a group of universities with well-established 
programs and faculty expertise that are capable of supporting the 
military's needs for proficiency-based training in critical and less 
commonly taught languages at various levels of acquisition. Therefore, 
facilitating the establishment and continued growth of relationships 
among these institutions, military installations, and DoD entities is 
an integral part of the LTC program.

Costs

    To manage and run its initiatives, NSEP employs 8.78 full-time 
equivalents (FTE), ranging in salary from Federal General Schedule (GS) 
grade 6 through GS grade 15 (three employees devote partial time to 
NSEP initiatives, which equates to 0.78 FTE). Using the 2014 GS pay 
scale for the Washington, DC metro area, NSEP's 8.78 FTEs equate to 
approximately $795,154 in DoD expenditure annually. To calculate this 
figure, NSEP used GS step one wage rates for all employees.
    NSEA legislates $14,000,000 for Boren Scholarships, Boren 
Fellowships, and The Language Flagship programs annually (sec. 1910-
1911) and $2,000,000 for the EHLS program annually (sec. 1912). In 
addition, the Intelligence Authorization Act for Fiscal Year 2010, 
Section 314 (Pub. L. 111-259) directed the establishment of an African 
language program, a hybrid of Boren and Flagship, at $2,000,000. In 
addition to these amounts, NSEP receives $10,000,000 annually from DoD 
appropriations in support of Flagship program efforts.

Retrospective Review

    This final rule will be reported in future status updates of DoD's 
retrospective review in accordance with Executive Order 13563, 
``Improving Regulation and Regulatory Review.'' DoD's full plan can be 
accessed at: https://www.regulations.gov/#!docketDetail;D=DOD-2011-OS-
0036.

Executive Order 12866, ``Regulatory Planning and Review'' and Executive 
Order 13563, ``Improving Regulation and Regulatory Review''

    Executive Orders 13563 and 12866 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distribute impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule has not been designated a ``significant 
regulatory action'' under section 3(f) of Executive Order 12866.

Sec. 202, Public Law 104-4, ``Unfunded Mandates Reform Act''

    Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) 
(Pub. L. 104-4) requires agencies assess anticipated costs and benefits 
before issuing any rule whose mandates require spending in any 1 year 
of $100 million in 1995 dollars, updated annually for inflation. In 
2014, that threshold is approximately $141 million. This document will 
not mandate any requirements for State, local, or tribal governments, 
nor will it affect private sector costs.

Public Law 96-354, ``Regulatory Flexibility Act'' (5 U.S.C. 601)

    The Department of Defense certifies that this final rule is not 
subject to the Regulatory Flexibility Act (5 U.S.C. 601) because it 
would not, if promulgated, have a significant economic impact on a 
substantial number of small entities. Therefore, the Regulatory 
Flexibility Act, as amended, does not require us to prepare a 
regulatory flexibility analysis.

Public Law 96-511, ``Paperwork Reduction Act'' (44 U.S.C. Chapter 35)

    It has been certified that 32 CFR part 208 does impose reporting or 
recordkeeping requirements under the Paperwork Reduction Act of 1995. 
These requirements have been approved by OMB and assigned OMB Control 
Number 0704-0368, National Security Education Program (Service 
Agreement Report for Scholarship and Fellowship Awards).

Executive Order 13132, ``Federalism''

    Executive Order 13132 establishes certain requirements that an 
agency must meet when it promulgates a proposed rule (and subsequent 
final rule) that imposes substantial direct requirement costs on State 
and local governments, preempts State law, or otherwise has Federalism 
implications. This final rule will not have a substantial effect on 
State and local governments.

List of Subjects in 32 CFR Part 208

    Education, Languages, Service agreement.

0
Accordingly 32 CFR part 208 is added to read as follows:

PART 208--NATIONAL SECURITY EDUCATION PROGRAM (NSEP) AND NSEP 
SERVICE AGREEMENT

Sec.
208.1 Purpose.
208.2 Applicability.
208.3 Definitions.
208.4 Policy.
208.5 Responsibilities.
208.6 Procedures.

    Authority:  50 U.S.C. 1901-1912, 50 U.S.C. 1903, 50 U.S.C. 
chapter 37.


Sec.    208.1 Purpose.

    This part:
    (a) Implements the responsibilities of the Secretary of Defense for 
administering NSEP.
    (b) Updates DoD policy, assigns responsibilities, and prescribes 
procedures and requirements for administering and executing the NSEP 
service agreement in accordance with 50 U.S.C. chapter 37.
    (c) Modifies requirements related to the NSEP service agreement.
    (d) Assigns oversight of NSEP to the Defense Language and National 
Security Education Office.


Sec.  208.2   Applicability.

    This part applies to:
    (a) The Office of the Secretary of Defense, the Military 
Departments, the Chairman of the Joint Chiefs of Staff and the Joint 
Staff, the Combatant Commands, the Office of the Inspector General of 
the Department of Defense, the Defense Agencies, the DoD Field 
Activities, and all other organizational entities in the DoD (referred 
to collectively in this part as the ``DoD Components'').

[[Page 87451]]

    (b) The administrative agent, and all recipients of awards by NSEP.


Sec.  208.3   Definitions.

    These terms and their definitions are for the purpose of this part.
    Administrative agent. Organization that will administer, direct, 
and manage resources for NSEP.
    Boren Fellowship. A competitive award granted for graduate study 
under NSEP.
    Boren Scholarship. A competitive award granted for undergraduate 
study abroad under NSEP.
    Critical area. Determined by the Secretary of Defense, in 
consultation with the members of the National Security Education Board, 
in accordance with 50 U.S.C. chapter 37 and 50 U.S.C. 1903.
    Critical foreign language. Determined by the Secretary of Defense, 
in consultation with the members of the National Security Education 
Board in accordance with 50 U.S.C. chapter 37.
    Deferral of the NSEP service agreement. Official NSEP documentation 
signed by the Director, NSEP, or his or her designee, by which an NSEP 
award recipient pursuing approved, qualified further education is 
allowed to postpone meeting the service deadline.
    (1) A deferral reschedules the date by which an NSEP award 
recipient must begin to fulfill service.
    (2) Qualified further education includes, but is not limited to, no 
less than half-time enrollment in any degree-granting, accredited 
institution of higher education worldwide or participation in an 
academic fellowship program (e.g., Fulbright Fellowship, Thomas R. 
Pickering Foreign Affairs Fellowship).
    (3) A deferral is calculated by first calculating the length of 
enrollment in the degree program from start date to anticipated 
graduation date, and then adding the length of enrollment in the degree 
program to the service deadline.
    (4) Approvals of deferrals will be considered on a case-by-case 
basis.
    Extension of the NSEP service agreement. Official NSEP 
documentation signed by the ASD(R), through the DASD(FE&T), by which an 
NSEP award recipient who has completed award requirements, reached the 
service deadline, and is actively seeking to fulfill the NSEP service 
agreement in a well-documented manner is allowed to extend the service 
deadline. An extension reschedules the date by which an NSEP award 
recipient must complete the service required in the NSEP service 
agreement.
    Intelligence Community. The U.S. Intelligence Community is a 
coalition of 17 agencies and organizations within the executive branch 
that work both independently and collaboratively to gather the 
intelligence necessary to conduct foreign relations and national 
security activities.
    Language proficiency. The U.S. Government relies on the Interagency 
Language Roundtable (ILR) scale to determine language proficiency. 
According to the ILR scale:
    (1) 0 is No Proficiency.
    (2) 0+ is Memorized Proficiency.
    (3) 1 is Elementary Proficiency.
    (4) 1+ is Elementary Proficiency, Plus.
    (5) 2 is Limited Working Proficiency.
    (6) 2+ is Limited Working Proficiency, Plus.
    (7) 3 is General Professional Proficiency.
    (8) 3+ is General Professional Proficiency, Plus.
    (9) 4 is Advanced Professional Proficiency.
    (10) 4+ is Advanced Professional Proficiency, Plus.
    (11) 5 is Functional Native Proficiency.
    NSEP Service Approval Committee. Committee of key NSEP staff 
members who review the merits of all requests for service credit, 
deferrals, extensions, or waivers of the NSEP service agreement, 
including adjudication of all cases involving award recipients who 
decline job offers, in order to provide recommendations to the 
Director, NSEP.
    Other federal agencies. Includes any federal government agency, 
department, bureau, office or any other federal government organization 
of any nature other than the Department of Defense or any component, 
agency, department, field activity or any other subcomponent of any 
kind within or subordinate to the Department of Defense.
    Program end date. Official end of an NSEP award recipient's 
program, as set forth within the individual's NSEP service agreement.
    Request of service credit in fulfillment of the NSEP service 
agreement. Written request made through submission of a DD Form 2753 to 
the NSEP office, documenting how employment an NSEP award recipient 
held or holds complies with fulfillment of the NSEP service agreement.
    Reserve Officer Training Corps (ROTC). College program offered at 
colleges and universities across the United States that prepares young 
adults to become officers in the U.S. Military. In exchange for a paid 
college education and a guaranteed post-college career, cadets commit 
to serve in the Military after graduation. Each Service branch has its 
own take on ROTC.
    Satisfactory academic progress. Maintenance of academic standards 
at both home and host institution(s) for every NSEP award recipient for 
the duration of the study program.
    Service deadline. Date by which NSEP award recipient must begin to 
fulfill the NSEP service agreement.
    Waiver of the NSEP service agreement. Official NSEP documentation, 
signed by the ASD(R), through the DASD(FE&T), by which an NSEP award 
recipient is relieved of responsibilities associated with the NSEP 
service agreement.
    Work in fulfillment of the NSEP service agreement. Upon completion 
of the NSEP award recipient's study program, such individual must seek 
employment in the DoD, Department of Homeland Security (DHS), 
Department of State (DOS), or the Intelligence Community, or if no 
suitable position is available, anywhere in the U.S. Government in a 
position with national security responsibilities. If such individual is 
unsuccessful in finding a federal position after making a good faith 
effort to do so, award recipient agrees to seek employment in the field 
of education in a position related to the study supported by such 
scholarship or fellowship. The award recipient further agrees to 
fulfill the service requirement, as described in this rule.


Sec.  208.4   Policy.

    It is DoD policy that:
    (a) NSEP assist in making available to DoD and other federal 
entities, as applicable, personnel possessing proficiency in languages 
and foreign regional expertise critical to national security by 
providing scholarships and fellowships pursuant to 50 U.S.C. 1902(a). 
These scholarships and fellowships will be awarded to:
    (1) Students who are U.S. citizens, to pursue qualifying 
undergraduate and graduate study in domestic and foreign education 
systems to assist in meeting national security needs for professionals 
with in-depth knowledge of world languages and cultures, and who enter 
into an NSEP service agreement as required by 50 U.S.C. 1902(b); or
    (2) Students who are U.S. citizens who are native speakers of a 
foreign language identified as critical to the national security of the 
United States, but who are not proficient at a professional level in 
the English language with respect to reading, writing, and other 
skills, to enable such students to pursue English language studies at 
institutions of higher education. Recipients must agree to enter into 
an NSEP service agreement as required by 50 U.S.C. 1902(b).

[[Page 87452]]

    (b) Grants will be awarded to institutions of higher education for 
programs in critical areas pursuant to 50 U.S.C. 1902(a) and 1902(f) to 
implement a national system of programs to produce advanced language 
expertise critical to the national security of the United States.
    (c) An NSEP award recipient must enter into an NSEP service 
agreement before receipt of an award as required by 50 U.S.C. chapter 
37. The award recipient must agree to maintain satisfactory academic 
progress and work in fulfillment of the NSEP service agreement until 
all service requirements are satisfied.
    (d) All NSEP award recipients who are government employees or 
members of the uniformed services at the time of award must confirm 
that they have resigned from such employment or service before 
receiving support for their NSEP-funded overseas study. These 
stipulations apply to all individuals, including employees of a 
department, agency, or entity of the U.S. Government and members of the 
uniformed services, including members of a Reserve Component of the 
uniformed services. ROTC participants who are also members of a Reserve 
Component must be in an inactive, non-drilling status during the course 
of their NSEP-funded overseas study.
    (e) Neither DoD nor the U.S. Government is obligated to provide, or 
offer work or employment to, award recipients as a result of 
participation in the program. All federal agencies are encouraged to 
assist in placing NSEP award recipients upon successful completion of 
the program.


Sec.  208.5   Responsibilities.

    (a) Under the authority, direction, and control of the Under 
Secretary of Defense for Personnel and Readiness (USD(P&R)), the 
ASD(R):
    (1) Develops programs, processes, and policies to support NSEP 
award recipients in fulfilling their NSEP service agreement through 
internships or employment in federal service pursuant to 50 U.S.C. 
chapter 37.
    (2) Determines, pursuant to 50 U.S.C. 1902(a), after consultation 
with the National Security Education Board, which countries, languages, 
and disciplines are critical and in which there are deficiencies of 
knowledgeable personnel within federal entities.
    (b) Under the authority, direction, and control of the USD(P&R) 
through the ASD(R), and in coordination with the Director, Department 
of Defense Human Resources Activity (DoDHRA), the DASD(FE&T), or his or 
her designee:
    (1) Makes available competitive scholarship, fellowship, and 
English for Heritage Language Speakers (EHLS) awards to U.S. citizens 
who wish to engage in study for the purposes of national security in 
accordance with 50 U.S.C. chapter 37.
    (2) Manages, oversees, and monitors compliance of NSEP service 
agreements on behalf of the Secretary of Defense.
    (3) Advises NSEP award recipients who are seeking federal or 
national security positions on how to fulfill their NSEP service 
agreement in national security positions.
    (4) Maintains documentation of successful completion of federal 
service or initiates debt collection procedures for those NSEP 
recipients who fail to comply with the NSEP service agreement.
    (5) Works with agencies or offices in the U.S. Government to 
identify potential employment opportunities for NSEP award recipients 
and make employment opportunities and information readily available to 
all award recipients.
    (6) Approves or disapproves all DD Form 2573 written requests for 
service credit, deferrals, extensions, or waivers of the NSEP service 
agreement, including adjudication of all cases involving award 
recipients who decline job offers.
    (c) Under the authority, direction, and control of the USD(P&R), 
and in coordination with the DASD(FE&T), the Director, DoDHRA:
    (1) Provides administrative and operational support to NSEP.
    (2) Provides fiscal management and oversight to ensure all funds 
provided for NSEP are separately and visibly accounted for in the DoD 
budget.


Sec.  208.6   Procedures.

    (a) NSEP award recipients. The award recipient of any scholarship 
or fellowship award through NSEP will:
    (1) Maintain satisfactory academic progress in the course of study 
for which assistance is provided, according to the regularly prescribed 
standards and practices of the institution in which the award recipient 
is matriculating.
    (2) As a condition of receiving an award, sign an NSEP service 
agreement as required by 50 U.S.C. chapter 37, which among other 
requirements, must acknowledge an understanding and agreement by the 
award recipient that failure to maintain satisfactory academic progress 
constitutes grounds upon which the award may be terminated and trigger 
the mandatory requirement to return to the U.S. Treasury the 
scholarship, fellowship, or EHLS funds provided to the award recipient.
    (3) Notify the DASD(FE&T) within ten business days if advised of 
failure to maintain academic progress by the institution of 
matriculation.
    (4) Notify the DASD(FE&T) in a timely manner and in advance of the 
service deadline should any request for deferral, extension, or waiver 
become necessary.
    (i) Deferrals. NSEP award recipients actively seeking to fulfill 
the NSEP service agreement in a well-documented manner may request 
approval of a one-year extension of their service deadline. Approvals 
of deferrals for pursuit of education will be considered on a case-by-
case basis. Renewal of a deferral may be granted if adequately 
justified.
    (ii) Extensions. A thorough outline describing all further plans to 
complete the NSEP service agreement must accompany all extension 
requests. No more than two extensions may be granted to an NSEP award 
recipient.
    (iii) Waivers. (A) In extraordinary circumstances, an NSEP award 
recipient may be relieved of responsibilities associated with the NSEP 
service agreement. As a result of receiving a waiver, the award 
recipient will no longer receive job search assistance from NSEP; is no 
longer a beneficiary of the special hiring advantages available to 
award recipients who have a service requirement; and will not be 
eligible to receive NSEP letters of certification, or endorsements or 
recommendations. Upon request, the NSEP office will continue to certify 
that the award recipient received an NSEP scholarship or fellowship.
    (B) The DASD(FE&T), will consider requests for extensions and 
waivers of the NSEP service agreement only under special circumstances 
as defined in paragraph (b) of this section. The request must set forth 
the basis, situation, and causes which support the requested action. 
The award recipient must submit requests electronically on 
www.nsepnet.org or to nsep@nsep.gov. Final approval of work in 
fulfillment of the NSEP service agreement, deferrals, extensions, and 
waivers rest with, and are at the discretion of, the DASD(FE&T).
    (5) Immediately upon successful completion of the award program and 
either completion of the degree for which the award recipient is 
matriculated or withdrawal from such degree program, begin the federal 
job search. Award recipients should concurrently seek positions within 
DoD, any element of the Intelligence Community, the DHS, or DOS.
    (6) Work to satisfy all service requirements in accordance with 
applicable NSEP service agreements until all NSEP service requirements 
are

[[Page 87453]]

satisfied. Work in fulfillment of the NSEP service agreement must be 
wholly completed within five years of the award recipient's first date 
of service unless an approved deferral or extension has been granted.
    (7) Work for the total period of time specified in the NSEP service 
agreement either consecutively in one organization, or through follow-
on employment in two or more organizations.
    (8) Repay the U.S. Treasury the award funds provided to the award 
recipient if the requirements of the NSEP service agreement are not 
met.
    (9) Submit DD Form 2753 to NSEP no later than one month after 
termination of the period of study funded by NSEP and annual reports 
thereafter until the NSEP service requirement is satisfied. The DD Form 
2753 will include:
    (i) Any requests for deferrals, extensions, or waivers with 
adequate support for such requests.
    (ii) The award recipient's current status (e.g., not yet graduated 
from, or terminated enrollment in, the degree program pursued while 
receiving NSEP support; engaged in work in fulfillment of the 
requirement.)
    (iii) Updated contact information.
    (10) Notify the ASD(R), through the DASD(FE&T), within ten business 
days of any changes to the award recipient's mailing address.
    (b) Procedures and requirements applicable to NSEP aard 
recipients--(1) NSEP service agreement. Award recipients of any 
scholarship, fellowship, or EHLS award through this program must comply 
with the terms of the NSEP service agreement they signed. NSEP awards 
entered into before the date of this part will be governed by the laws, 
regulations, and policies in effect at the time that the award was 
made. The NSEP service agreement for recipients awarded as of the date 
of this part will:
    (i) In accordance with 50 U.S.C. 1902(b) outlines requirements for 
NSEP award recipients to fulfill their federal service requirement 
through work in positions that contribute to the national security of 
the United States. An emphasis is placed on work within one of four 
organizations: DoD, any element of the Intelligence Community, DHS, or 
DOS. On a case-by-case basis, NSEP may consider employment with a 
federal contractor of one of these four priority organizations as 
meeting the service requirement should the award recipient provide 
adequate documentary evidence that the salary for the position is 
funded by the U.S. Government.
    (ii) Stipulate that absent the availability of a suitable position 
in the four priority organizations or a contractor thereof, award 
recipients may satisfy the service requirement by serving in any 
federal agency or office in a position with national security 
responsibilities. It will also stipulate that absent the availability 
of a suitable position in DoD, any element of the Intelligence 
Community, DHS, DOS, a contractor thereof, or any federal agency with 
national security responsibilities, award recipients may satisfy the 
service requirement by working in the field of education in a 
discipline related to the study supported by the program if the 
recipient satisfactorily demonstrates to the Secretary of Defense 
through the Director, NSEP, that no position is available in the 
departments, agencies, and offices covered by paragraph (b)(1)(i) of 
this section.
    (2) Implementation. The NSEP service agreement will be implemented 
as follows:
    (i) Prior to receiving assistance, the award recipient must sign an 
NSEP service agreement. The award recipient will submit to the NSEP 
Administrative Agent, in advance of program of study start date, any 
proposed changes to the approved award program (i.e., course and 
schedule changes, withdrawals, course or program incompletions, 
unanticipated or increased costs).
    (ii) The minimum length of service requirement for undergraduate 
scholarship, graduate fellowship, and EHLS award recipients is one 
year. The duration of the service requirement for graduate fellowship 
award recipients is equal to the duration of assistance provided by 
NSEP.
    (iii) In accordance with 50 U.S.C. 1902(b), undergraduate 
scholarship students must begin fulfilling the NSEP service agreement 
within three years of completion or termination of their undergraduate 
degree program.
    (iv) In accordance with 50 U.S.C. 1902(b), graduate fellowship 
students must begin fulfilling the NSEP service agreement within two 
years of completion or termination of their graduate degree program.
    (v) In accordance with 50 U.S.C. 1902(b), EHLS award recipients 
must begin fulfilling the service requirement within three years of 
completion of their program.
    (vi) The award recipient must accept a reasonable offer of 
employment, as defined by the Director, NSEP, or his or her designee, 
in accordance with the NSEP service agreement, at a salary deemed by 
the hiring organization as commensurate with the award recipient's 
education level, and consistent with the terms and conditions of the 
NSEP service agreement.
    (vii) The award recipient will annually submit a DD Form 2753 to 
NSEP until all NSEP service agreement requirements are satisfied. The 
DD Form 2753 must be received and reviewed by the NSEP Service Approval 
Committee. The receipt of a completed DD Form 2753 will be acknowledged 
through official correspondence from NSEP. Award recipients who do not 
submit the DD Form 2753 as required will be notified by NSEP of the 
intent to pursue collection action.
    (viii) If the award recipient fails to maintain satisfactory 
academic progress for any term in which assistance is provided, 
probationary measures of the host institution will apply to the award 
recipient. Failure to meet the institution's requirements to resume 
satisfactory academic progress within the prescribed guidelines of the 
institution will result in the termination of assistance to the award 
recipient.
    (ix) Extenuating circumstances, such as illness of the award 
recipient or a close relative, death of a close relative, or an 
interruption of study caused by the host institution, may be considered 
acceptable reasons for non-satisfactory academic progress. The award 
recipient must notify the NSEP Administrative Agent of any extenuating 
circumstances within 10 business days of occurrence. The NSEP 
Administrative Agent will review these requests to determine what 
course of action is appropriate and make a recommendation to NSEP for 
final determination. The DASD(FE&T) will upon receipt of the NSEP 
Administrative Agent recommendation, determine by what conditions to 
terminate or reinstate the award to the award recipient.
    (x) NSEP award recipients may apply to the DASD(FE&T) for a 
deferral of the NSEP service agreement requirement if pursuing 
qualified further education.
    (xi) NSEP award recipients may apply to the DASD(FE&T), to receive 
an extension of the NSEP service agreement requirement if actively 
seeking to fulfill the NSEP service agreement in a well-documented 
manner.
    (xii) In extraordinary circumstances an NSEP award recipient may 
request a waiver to be relieved of responsibilities associated with the 
NSEP service agreement. Conditions for requesting a waiver to the NSEP 
service agreement may include:
    (A) Situations in which compliance is either impossible or would 
involve extreme hardship to the award recipient.

[[Page 87454]]

    (B) Interruptions in service due to temporary physical or medical 
disability or other causes beyond the award recipient's control.
    (C) Unreasonable delays in the hiring process not caused by the 
award recipient, including delays in obtaining a security clearance if 
required for employment.
    (D) Hiring freezes that adversely affect award recipients who are 
seeking positions with the U.S. Government.
    (E) Permanent physical or medical disability that prevent the award 
recipient from fulfilling the obligation.
    (F) Inability to complete the NSEP service agreement due to 
terminations or interruptions of work beyond the award recipient's 
control.
    (G) Death of the award recipient.
    (xiii) In cases where assistance to the award recipient is 
terminated, the amount owed to the U.S. Government is equal to the 
support received from NSEP. Repayment to the U.S. Treasury must be made 
within a period not to exceed six months from expiration of the service 
deadline. Noncompliance with repayment requirements will result in the 
initiation of standard U.S. Government collection procedures to obtain 
payment for overdue indebtedness, unless a waiver is specifically 
granted by the DASD(FE&T). Further job search assistance to an award 
recipient will be denied if any outstanding debt remains unpaid as a 
result of an award termination.
    (A) Repayment to the U.S. Treasury for the amount of assistance 
provided becomes due, either in whole or in part, if the award 
recipient fails to fulfill the NSEP service agreement. Award recipients 
who do not submit the SAR as required will be notified by NSEP of the 
intent to pursue collection action. Noncompliance with repayment 
requirements will result in the initiation of standard U.S. Government 
collection procedures to obtain payment for overdue indebtedness, 
unless a waiver is specifically granted by the DASD(FE&T).
    (B) Repayment recovery procedures will include one or a combination 
of the following:
    (1) Voluntary repayment schedule arranged between the award 
recipient and the administrative agent.
    (2) Deduction from accrued pay, compensation, amount of retirement 
credit, or any other amount due the employee from the U.S. Government.
    (3) Such other methods as are provided by law for recovery of 
amounts owed to the U.S. Government.

    Dated: November 29, 2016.
Morgan Park,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2016-29023 Filed 12-2-16; 8:45 am]
BILLING CODE 5001-06-P