National Service Trust Education Awards, 44721-44735 [2023-14729]

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PART 83—[REMOVED AND RESERVED] For the reasons stated in the preamble, and under the authority of 42 U.S.C. 7601, the EPA removes and reserves 40 CFR part 83. ddrumheller on DSK120RN23PROD with RULES1 ■ [FR Doc. 2023–14707 Filed 7–12–23; 8:45 am] CORPORATION FOR NATIONAL AND COMMUNITY SERVICE 45 CFR Parts 2525, 2526, 2527, 2528, 2529, and 2530 RIN 3045–AA66 National Service Trust Education Awards Corporation for National and Community Service. ACTION: Final rule. AGENCY: The Corporation for National and Community Service (operating as AmeriCorps) is finalizing revisions to its National Service Trust regulations. The National Service Trust is an account from which AmeriCorps pays education awards to eligible AmeriCorps participants and interest on qualified student loans for AmeriCorps participants during their terms of service in approved national service positions. This rule improves the clarity of regulations applicable to education awards through use of consistent terminology and more transparent procedures for extensions, transfers, and revocations of education awards; and increases flexibility for those who earn education awards to use and transfer those awards. This rule also renumbers sections related to national service education awards to combine them all into one CFR part with subpart designations for easier navigation. DATES: This rule is effective August 14, 2023. FOR FURTHER INFORMATION CONTACT: Elizabeth Appel, Associate General Counsel, AmeriCorps, 250 E Street SW, Washington, DC 20525, (202) 967–5070, eappel@cns.gov. SUPPLEMENTARY INFORMATION: SUMMARY: I. Background II. Overview of Final Rule A. Renumbering To Combine Provisions Into One CFR Part B. Part-by-Part (New Subpart-by-Subpart) Summary of Changes 1. Changes to Current Part 2525 (New Subpart A) 2. Changes to Current Part 2526 (New Subpart B) 3. Changes to Current Part 2527 (New Subpart C) 4. Changes to Current Part 2528 (New Subpart D) 5. Changes to Current Part 2529 (New Subpart E) 6. Changes to Current Part 2530 (New Subpart F) III. Response to Public Comments IV. Regulatory Analyses I. Background BILLING CODE 6560–50–P The National and Community Service Act of 1990, as amended, 42 U.S.C. VerDate Sep<11>2014 15:36 Jul 12, 2023 Jkt 259001 PO 00000 Frm 00049 Fmt 4700 Sfmt 4700 44721 12501 et seq., aims to encourage United States citizens to engage in national service and to expand educational opportunity by rewarding individuals who participate in national service with an increased ability to pursue higher education or job training. Specifically, the Act establishes the National Service Trust and authorizes AmeriCorps to use funds from that Trust to provide education awards to eligible individuals who have fulfilled a term of service in an approved national service position and meet other applicable requirements. AmeriCorps’ regulations implementing the Act are within 45 CFR parts 2525 through 2530 and address the National Service Trust (the Trust), who is eligible to receive education awards from the Trust, how the amount of the education awards is determined, the purposes for which the education awards may be used, the circumstances under which AmeriCorps participants will receive forbearance and payment of interest expenses on qualified student loans, and the circumstances in which participants may transfer their educational awards. II. Overview of Final Rule Overall, this final rule is intended to improve clarity of the regulations through use of consistent terminology and plain language, improve the transparency of the criteria and procedures for extensions, transfers, and revocations of education awards; and increase flexibility for those who earn education awards to use and transfer those awards. To meet these objectives, this rule makes changes to the following CFR parts: • Part 2525—National Service Trust: Purpose and Definitions • Part 2526—Eligibility for an Education Award • Part 2527—Determining the Amount of an Education Award • Part 2528—Using an Education Award • Part 2529—Payment of Accrued Interest • Part 2530—Transfer of an Education Award Some changes apply to all these CFR parts, including updating references to the Corporation for National and Community Service to refer to it by its operating name, AmeriCorps, rather than ‘‘the Corporation.’’ Specific mentions of AmeriCorps programs, Silver Scholar, and Summer of Service positions were replaced with the term ‘‘national service position,’’ where appropriate. Other changes affect only one or some CFR parts. Substantive E:\FR\FM\13JYR1.SGM 13JYR1 44722 Federal Register / Vol. 88, No. 133 / Thursday, July 13, 2023 / Rules and Regulations changes specific to each CFR part are summarized here. The rule also renumbers sections, combining these CFR parts into one resulting CFR part, at part 2525, with different subparts. Combining these CFR parts into one allows readers to find regulations on education awards in a single CFR part, which improves navigability and prevents readers from having to switch back and forth between CFR parts for relevant provisions (for example, to refer back to part 2525 for definitions that apply to later CFR parts). A. Renumbering To Combine Provisions Into One CFR Part The final rule renumbers the provisions that currently appear in parts 2526 through 2530 to move them into part 2505, so that the regulatory provisions regarding the National Service Trust education awards can be found in one central CFR part. The following table shows where the provisions that fall under the current CFR parts will instead fall under subparts to part 2525. Current Final rule Part 2525—National Service Trust: Purpose and Definitions .................. Part Part Part Part Part 2526—Eligibility for an Education Award ......................................... 2527—Determining the Amount of an Education Award ................. 2528—Using an Education Award ................................................... 2529—Payment of Accrued Interest ................................................ 2530—Transfer of Education Awards .............................................. The following table provides a more detailed comparison of where current regulatory provisions are located, and Part 2525—National Service Trust. Subpart A—Purpose and Definitions. Subpart B—Eligibility for an Education Award. Subpart C—Determining the Amount of an Education Award. Subpart D—Using an Education Award. Subpart E—Payment of Accrued Interest. Subpart F—Transfer of Education Awards. where those provisions will be located under the final rule. This table also shows where new subpart headings and new sections are being finalized. Current Final rule Part 2525—National Service Trust: Purpose and Definitions ddrumheller on DSK120RN23PROD with RULES1 § 2525.10 What is the National Service Trust? § 2525.20 Definitions Part 2526—Eligibility for an Education Award § 2526.10 Who is eligible to receive an education award from the National Service Trust? § 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? § 2526.20 Is an AmeriCorps participant who does not complete an originally approved term of service eligible to receive a pro-rated education award? § 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? § 2526.30 How do convictions for the possession or sale of controlled substances affect an education award recipient’s ability to use their award? § 2526.40 What is the time period during which an individual may use an education award? § 2526.50 Is there a limit on the total amount of education awards an individual may receive? § 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? § 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? § 2526.70 What are the effects of an erroneous certification of successful completion of a term of service? Part 2527—Determining the Amount of an Education Award § 2527.10 What is the amount of an education award? Part 2528—Using an Education Award § 2528.10 For what purposes may an education award be used? VerDate Sep<11>2014 15:36 Jul 12, 2023 Jkt 259001 PO 00000 Frm 00050 Fmt 4700 Part 2525—National Service Trust. Subpart A—Purpose and Definitions. § 2525.1 What is the National Service Trust? § 2525.2 Definitions. Subpart B—Eligibility for an Education Award. § 2525.10 When can an Eligible Individual receive an education award from the National Service Trust? § 2525.15 Upon what basis may an entity responsible for the supervision of an Eligible Individual certify that the Eligible Individual successfully completed a term of service? § 2525.20 Is an AmeriCorps participant who does not complete an originally-approved term of service eligible to receive a pro-rated education award? § 2525.25 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? § 2525.30 How do convictions for the possession or sale of controlled substances affect an education award recipient’s ability to use their award? § 2525.40 How long is an education award available for use? § 2525.41 When must an application for extension be submitted? § 2525.42 Under what circumstances may AmeriCorps grant an extension? § 2525.43 What if the request for an extension is missing information or documentation? § 2525.44 How will AmeriCorps notify an Eligible Individual or Designated Recipient of its decision on the extension request? § 2525.45 Can an Eligible Individual or Designated Recipient appeal a denied request for an extension to the use period? § 2525.50 Is there a limit on the total amount of education awards an individual may receive? § 2525.55 What is the impact of the aggregate value of education awards received on an individual’s ability to serve in additional terms of service? § 2525.60 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 term of service? § 2525.70 What are the effects of an erroneous certification of successful completion of a term of service? Subpart C—Determining the Amount of an Education Award. § 2525.100 What is the amount of an education award? Subpart D—Using an Education Award. § 2525.210 For what purposes may an education award be used? Sfmt 4700 E:\FR\FM\13JYR1.SGM 13JYR1 Federal Register / Vol. 88, No. 133 / Thursday, July 13, 2023 / Rules and Regulations Current Final rule § 2528.20 What steps are necessary to use an education award to repay a qualified student loan? § 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? § 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 a given period of enrollment? § 2528.50 What happens if an individual withdraws or fails to complete the period of enrollment in an institution of higher education for which the Corporation has disbursed all or part of that individual’s education award? § 2528.60 Who may use the education award to pay expenses incurred in enrolling in a G.I. Bill approved program? § 2528.70 What steps are necessary to use an education award to pay expenses incurred in enrolling in a G.I. Bill approved program? § 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? § 2525.220 What steps are necessary to use an education award to repay a qualified student loan? § 2525.230 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? § 2525.240 Is there a limit on the amount of an Eligible Individual’s education award that AmeriCorps will disburse to an institution of higher education for a given period of enrollment? § 2525.250 What happens if an individual withdraws or fails to complete the period of enrollment in an institution of higher education for which AmeriCorps has disbursed all or part of that individual’s education award? § 2525.260 Who may use the education award to pay expenses incurred in enrolling in a G.I. Bill-approved program? § 2525.270 What steps are necessary to use an education award to pay expenses incurred in enrolling in a G.I. Bill-approved program? § 2525.280 What happens if an individual for whom AmeriCorps has disbursed education award funds withdraws or fails to complete the period of enrollment in a G.I. Bill approved program? § 2525.290 What happens to an education award upon divorce or death? Subpart E—Payment of Accrued Interest. § 2525.310 Under what circumstances will AmeriCorps pay interest that accrues on qualified student loans during an individual’s term of service in an approved position? Part 2529—Payment of Accrued Interest § 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? § 2529.20 What steps are necessary to obtain forbearance in the repayment of a qualified student loan during an individual’s term of service in an approved AmeriCorps position? § 2529.30 What steps are necessary for using funds in the National Service Trust to pay interest that has accrued on a qualified student loan during a term of service for which an individual has obtained forbearance? Part 2530—Transfer of Education Awards § 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? B. Part-by-Part (New Subpart-bySubpart) Summary of Changes 1. Changes to Current Part 2525 (New Subpart A) ddrumheller on DSK120RN23PROD with RULES1 44723 Under this rule, part 2525 is newly designated as subpart A of part 2525 and continues to set out the description of the National Service Trust and definitions. Changes ensure that definitions apply throughout the newly compiled CFR part 2525. For example, the changes delete the phrase ‘‘for the purposes of this section’’ for definitions of the following terms: ‘‘AmeriCorps VerDate Sep<11>2014 15:36 Jul 12, 2023 Jkt 259001 § 2525.320 What steps are necessary to obtain forbearance in the repayment of a qualified student loan during an individual’s term of service in an approved AmeriCorps position? § 2525.330 What steps are necessary for AmeriCorps to pay interest that has accrued on a qualified student loan in forbearance? Subpart F—Transfer of Education Awards. § 2525.410 Under what circumstances may an Eligible Individual transfer an education award? § 2525.420 For what purposes may a transferred award be used? § 2525.430 What steps are necessary to transfer an education award? § 2525.440 Is there a limit on the number of recipients an individual may designate to receive a transferred award? § 2525.450 Is there a limit on the amount of transferred education awards a Designated Recipient may receive? § 2525.460 What is the impact of transferring or receiving a transferred education award on an Eligible Individual’s eligibility to receive additional education awards? § 2525.470 Is a Designated Recipient required to accept a transferred education award? § 2525.480 Under what circumstances is a transfer revocable? § 2525.485 What steps are necessary to revoke a transfer? § 2525.487 What happens to a transferred education award upon divorce or death? § 2525.490 Is the recipient of a transferred education award eligible for the payment of accrued interest for their own student loans under subpart E? education award,’’ ‘‘economically disadvantaged youth,’’ ‘‘education award,’’ ‘‘G.I. Bill-approved program,’’ ‘‘Silver Scholar education award,’’ and ‘‘Summer of Service education award.’’ The changes to part 2525 add definitions for two terms and substantively revise two definitions. The newly added definitions are for the following terms: • ‘‘Eligible Individual’’ as the individual who is eligible for an education award; and PO 00000 Frm 00051 Fmt 4700 Sfmt 4700 • ‘‘Designated Recipient’’ as the person to whom an education award is transferred. The two definitions being revised are for ‘‘educational expenses’’ and ‘‘qualified student loan.’’ The changes revise the definition of ‘‘educational expenses’’ to: • Provide that costs of attendance are determined by the Title IV institution of higher education or G.I. Bill approved program; • Include tuition or associated costs as determined by the program offered by the institution or establishment E:\FR\FM\13JYR1.SGM 13JYR1 ddrumheller on DSK120RN23PROD with RULES1 44724 Federal Register / Vol. 88, No. 133 / Thursday, July 13, 2023 / Rules and Regulations approved for offering benefits for which educational assistance may be provided by the Secretary for Veterans Affairs; • Include expenses incurred participating in a school-to-work program approved by the Secretaries of Labor and Education; • Delete reference to the following, because they would be included in the category of ‘‘costs of attendance’’ as determined by the institution or G.I. Bill approved program: Æ Tuition and fees ‘‘normally assessed’’ by an institution; Æ Tuition and fees for students engaged in a course of study by correspondence; and Æ Expenses related to a student’s disability; and • Delete reference to costs associated with student engagement in a work experience under a cooperative education program or course because the costs would be included in the category for expenses incurred in participating in a school-to-work program. These changes will simplify the definition and do not affect what educational expenses an education award may be used for. Changes to the definition of ‘‘qualified student loan’’ delete the lists of specific federal family education loans, William D. Ford federal direct loans, Federal Perkins loans, and Public Health Service Act loans because they are included in the broad categories set out in the new definition. The changes also replace the category ‘‘any other loan designated as such by Congress’’ with the more specific category of loans determined by an institution of higher education or approved veterans’ benefits program to be necessary to cover a student’s educational expenses and made, insured, or guaranteed by certain listed entities. The changes also correct the crossreference to the Higher Education Act of 1965 to cite to the correct section defining ‘‘institution of higher education.’’ Other changes to this newly designed subpart A are non-substantive, such as adding the legal name of the education awards to the definition of ‘‘education award,’’ eliminating unnecessary verbiage in definitions that first state the term and then repeat the term to provide the meaning. 2. Changes to Current Part 2526 (New Subpart B) Current part 2526, which is newly designated as subpart B to part 2525, addresses eligibility for an education award. VerDate Sep<11>2014 15:36 Jul 12, 2023 Jkt 259001 Changes to current part 2526, which will now be located at subpart B to part 2525, incorporate the newly defined terms for ‘‘Eligible Individual’’ and ‘‘Designated Recipient’’ for clarity. Edits to § 2525.10 clarify when Eligible Individuals are entitled to receive an education award, and clarify that an Eligible Individual may receive a full education award for a full-time term of service, a partial education award for a less than full-time term of service, or a pro-rated education award if the Eligible Individual was granted a release from completing the term of service for compelling personal circumstances but completed at least 15 percent of the originally approved term of service and performed satisfactorily during that time. The final rule also moves to a separate section (§ 2525.15) the specifics for what the organization responsible for the individual’s supervision must certify. Section 2525.15 combines requirements for AmeriCorps State and National approved national service positions with other approved national service positions for consistency. Section 2525.20 clarifies that there is a requirement, in the cross-referenced § 2522.230(a)(3), for the program to document the basis for any determination that compelling personal circumstances prevent the Eligible Individual from completing their term of service. Section 2525.30 revises the factors that AmeriCorps considers when determining whether an Eligible Individual may be entitled to use their education award when the Eligible Individual has three or more convictions for possession or sale of a controlled substance. The final rule deletes factors relating to the nature and extent of any other criminal record, the nature and extent of any involvement in trafficking of controlled substances, and the length of time between offenses. AmeriCorps has determined that these factors are unnecessary considerations, given that the type and amount of controlled substance and whether firearms or dangerous weapons were involved in the offense are already considered, and there is already a catchall factor to allow for consideration of other relevant aggravating or ameliorating circumstances. Section 2525.40 revises the current section to separate information on extensions to the use period into new sections specific to various questions regarding extensions. Edits to this section also delete the specific reference to Summer of Service education awards. Section 2525.41 is a new section that specifically addresses when an PO 00000 Frm 00052 Fmt 4700 Sfmt 4700 application for an extension must be submitted and adds an exception to the requirement to submit a request for extension prior to the use period deadline for instances when the individual was unavoidably prevented from timely submitting their application. Section 2525.42 is a new section that specifically addresses the circumstances in which AmeriCorps will grant an extension. This section clarifies that AmeriCorps will automatically (upon receipt of an application) extend the use period when an individual served and successfully completed another term of service in an approved national service position during the use period. This section then clarifies that AmeriCorps treats all service in AmeriCorps and the Peace Corps as service in another approved national service position for the purposes of extensions, and specifies the documentation required to evidence service in the Peace Corps. Paragraph (b) of this section adds information on AmeriCorps’ discretion to grant an extension when an Eligible Individual or Designated Recipient is unavoidably prevented from using the education award during the use period. Paragraph (b) also adds examples of situations that may warrant an extension. Paragraph (b)(2) provides factors that AmeriCorps will consider in determining whether to grant an extension. Paragraph (c) adds examples of circumstances that do not warrant an extension, but removes the current example of an individual who cannot use the education award as a result of the individual’s conviction for possession or sale of a controlled substance, to allow AmeriCorps to examine the specific circumstances involved with the conviction under the factors. Section 2525.43 is a new section that specifies what will happen if a request for extension is missing information or documentation. Section 2525.44 is a new section that specifies how AmeriCorps will notify the Eligible Individual or Designated Recipient of its decision on the extension request. Section 2526.45 is a new section that provides new procedures for an Eligible Individual or Designated Recipient to appeal a denied request for extension. Section 2525.50 deletes information about the calculation of the value of each individual education award and instead focuses on how the aggregate value of awards is calculated, given that the limit is the aggregate value of two full-time education awards. Section 2525.55 also simplifies the section to convey the impact of the aggregate value of education awards on ability to serve E:\FR\FM\13JYR1.SGM 13JYR1 Federal Register / Vol. 88, No. 133 / Thursday, July 13, 2023 / Rules and Regulations and to receive additional education awards. Section 2525.70 adds a new paragraph (b) to state that AmeriCorps will disallow the education award and/or initiate debt collection if AmeriCorps determines the certification made by a national service program is knowingly false or inaccurate. ddrumheller on DSK120RN23PROD with RULES1 3. Changes to Current Part 2527 (New Subpart C) Current part 2527, which will now be subpart C to part 2525, addresses determining the amount of an education award. Section 2525.100 replaces the text on the education award amounts that may be earned for part-time and reduced part-time service with a table setting out amounts specifically for three quarters time, half-time, reduced half-time, quarter-time, minimal time and summer associate, and abbreviated time terms of service. These specifics better reflect the range of alternatives to full-time service and the accompanying partial education award amounts available. This section also labels as ‘‘pro-rated awards’’ those awards available to Eligible Individuals who are released from completing a term of service for compelling personal circumstances. This section also replaces the formula for discounted education award amounts (where discounting is required to ensure an Eligible Individual receives no more than the aggregate value of two awards) with a narrative explanation of how the award amounts are discounted, for clarity. 4. Changes to Current Part 2528 (New Subpart D) Current part 2528, which will now be subpart D to part 2525, addresses using an education award. Sections 2525.210 and 2525.240 refer to the updated definition of ‘‘educational expenses’’ instead of repeating what the educational expenses include. Section 2525.250 specifies that the institution does not need to refund AmeriCorps for disbursed, but not used, education award funds if the Eligible Individual was charged for the uncompleted period of study or training. This section also clarifies that the institution must provide a pro-rata refund to AmeriCorps if the institution does not have a published refund policy. Section 2525.290, a new section, specifies that an education award is not to be treated as marital property and that, unless the listed circumstances are present, that an education award expires upon the Eligible Individual’s death. VerDate Sep<11>2014 15:36 Jul 12, 2023 Jkt 259001 5. Changes to Current Part 2529 (New Subpart E) Part 2529, which will now be subpart E to part 2525, addresses payment of accrued interest. Section 2525.310 adds that the loan holder specifies the period of forbearance during the term of service. Paragraph (b) of this section adds that the portion of accrued interest AmeriCorps will pay is based on the length of service. 6. Changes to Current Part 2530 (New Subpart F) Part 2530, which will now be subpart F to part 2525, addresses the transfer of education awards. Section 2530.10 deletes the provision regarding enrollment on or before 2010 because the final rule will apply only after the effective date, which is in 2023. This section also adds the stepchild of an Eligible Individual to the categories of Designated Recipients for transferred awards. Section 2530.30 breaks out procedures for a Designated Recipient to accept a transferred award into a new paragraph (c). This section also adds a new paragraph (e) to clarify that a Designated Recipient may refuse to accept a transferred education award, and an Eligible Individual may revoke the amount of transfer that has not been requested for use. Section 2530.40 allows Eligible Individuals to transfer their education award to one or two individuals, rather than just one individual. Paragraph (b) of this section allows Designated Recipients to reject part of the education award designated to be transferred to them. These provisions also clarify that the main restriction on transfer or retransfer of an education award to an eligible Designated Recipient is that the use period for the education award must not have expired. Section 2530.50 clarifies that any education awards the Designated Recipient may have earned through their own service term or that were previously been transferred to them are included in the calculation of the aggregate education award value limit. Paragraph (c) allows Eligible Individuals to re-transfer an education award if it is rejected in part by a Designated Recipient, allowing for more flexibility than the current regulation, which prohibits re-transfer of the rejected portion of the award. This final rule also adds a new paragraph to § 2540.70 to clarify that a Designated Recipient who originally accepted a transferred education award may rescind their acceptance of any PO 00000 Frm 00053 Fmt 4700 Sfmt 4700 44725 unused portion of the award at any time before the education award expires, and for any reason. Section 2540.80 removes the requirement for AmeriCorps to approve a re-transfer of an education award after an Eligible Individual revokes the award. Section 2530.85 deletes the paragraph regarding the mechanics of deducting and crediting the revoked amount because these functions are handled internally by AmeriCorps. Section 2530.87 is a new section that addresses what happens to a transferred education award upon divorce or death. III. Response to Public Comments AmeriCorps published the proposed rule on January 6, 2023 (88 FR 1021) and received two public comment submissions before the March 7, 2023, comment deadline. Summaries of the points raised in those comments and AmeriCorps’ responses are provided here. No changes to the proposed regulatory text were made in response to these comments or otherwise. One commenter was supportive of allowing those who earn education awards to spread the benefit to more than one beneficiary. This commenter stated that they have multiple grandchildren and would like to share their education award with as many of them as possible. They also stated they believe allowing sharing with multiple recipients would be an incentive for other older individuals to do more national service. Response: The final rule carries forward the proposal to increase the number of Designated Recipients to whom an Eligible Individual can transfer their earned award from one to two. The final rule does not increase the number of recipients to whom an education award may be transferred beyond two in order to best prevent fraud, waste, and abuse. Allowing transfers to more than two persons would substantially increase the level of internal controls needed and pose an undue administrative burden on the agency. The agency has determined that these risks can be more efficiently mitigated by limiting the number of transferees to two individuals. The other commenter stated their general support of the changes but provided the following suggestions and recommendations for additional changes. The commenter noted that § 2525.55 states that the aggregate value of education awards does not limit an individual’s ability to serve additional terms of service and requested that AmeriCorps leverage its waiver E:\FR\FM\13JYR1.SGM 13JYR1 ddrumheller on DSK120RN23PROD with RULES1 44726 Federal Register / Vol. 88, No. 133 / Thursday, July 13, 2023 / Rules and Regulations authority to allow commissions to request a waiver to the four-term limit on AmeriCorps members. Response: The general limitation on four terms of service in an AmeriCorps State and National program is set out in a different regulation than the one being revised by this final rule (see 45 CFR 2522.235); however, AmeriCorps will consider this comment as in any future updates to that regulation. This commenter also suggested that AmeriCorps should provide for an endof-service ‘‘cash stipend’’ in lieu of an education award for individuals that have already earned the maximum aggregate value of education awards. The commenter stated this change would create more equity among AmeriCorps programs and assist AmeriCorps in recruitment and retention efforts: Response: This comment is beyond the scope of this regulation, but AmeriCorps will take it under advisement. This commenter requested that § 2525.290 be revised so that, instead of an education award expiring upon an Eligible Individual’s death, it could be transferred to an eligible Designated Recipient at that time and allow an extension of time for the Designated Recipient to access the education award if needed, even if the recipient was not age-eligible at the time the Eligible Individual earned the education award. Response: The proposed and final § 2525.290 reflect the statutory limitation, which provides that the Eligible Individual must transfer the education award prior to death in order for the death not to affect the use of the education award by the Designated Recipient. See 42 U.S.C. 12604(f)(5). This commenter expressed their support of adding stepchild and stepgrandchild to the categories of Designated Recipients for transferred awards, allowing transfer to one or two individuals rather than just one, allowing the recipient to reject all of part of the education award, and allowing the re-transfer of the rejected portion of the education award to someone else. Response: The final rule carries forward these aspects of the proposed rule. The commenter suggested removing or lowering the age requirement for transferring the education award and encouraged AmeriCorps to work with Congress to remove the limitation that an individual must be age 55 or more the day service begins to be eligible to transfer the award, and instead allow anyone of any age to transfer their education award. VerDate Sep<11>2014 15:36 Jul 12, 2023 Jkt 259001 Response: The commenter is correct that the rule cannot remove or lower the age requirement for transferring an education award because the statute provides as a condition for transfer of an education award that the eligible individual is age 55 or older before beginning the term of service involved. See 42 U.S.C. 12604(f)(2)(A)(ii). The commenter recommended not having transferred education awards count as part of an individual’s aggregate value of education awards earned. Response: The current regulation provides that the amount received as a transferred education award is included in the aggregate value of awards received. See 45 CFR 2526.50(c)(4). The proposed rule did not propose any change to this requirement; however, AmeriCorps will take this recommendation under advisement for any future rulemaking. IV. Regulatory Analyses A. Executive Orders 12866 and 13563 Executive Orders 12866 and 13563 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, distributive 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. The Office of Information and Regulatory Affairs in the Office of Management and Budget has determined this is not a significant regulatory action, and therefore is not subject to review under Section 6(b) of Executive Order 12866, Regulatory Planning and Review. B. Congressional Review Act (Small Business Regulatory Enforcement Fairness Act of 1996, Title II, Subtitle E) As required by the Congressional Review Act (5 U.S.C. 801–808), before an interim or final rule takes effect, AmeriCorps will submit an interim or final rule report to the US House of Representatives, U.S. Senate, and to the Comptroller General of the U.S. A major rule cannot take effect until 60 days after it is published in the Federal Register. The Office of Information and Regulatory Affairs in the Office of Management and Budget anticipates that this will not be a major rule under 5 U.S.C. 804 because this rule will not result in (1) an annual effect on the economy of $100 million or more; (2) a PO 00000 Frm 00054 Fmt 4700 Sfmt 4700 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 US-based enterprises to compete with foreign-based enterprises in domestic and export markets. C. Regulatory Flexibility Act As required by the Regulatory Flexibility Act of 1980 (5 U.S.C. 601 et seq.), AmeriCorps certifies that this rule will not have a significant economic impact on a substantial number of small entities. Therefore, AmeriCorps has not performed the initial regulatory flexibility analysis that is required under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) for rules that are expected to have such results. D. Unfunded Mandates Reform Act of 1995 For purposes of Title II of the Unfunded Mandates Reform Act of 1995, 2 U.S.C. 1531–1538, as well as Executive Order 12875, this regulatory action does not contain any federal mandate that may result in increased expenditures in either federal, state, local, or tribal governments in the aggregate, or impose an annual burden exceeding $100 million on the private sector. E. Paperwork Reduction Act This rule requires a revision to one OMB Control Number, Education Award Transfer Forms, currently approved under OMB Control Number 3045–0136, which expires January 31, 2024. The other information collections in the rule are already authorized by another OMB Control Number. Specifically, the requirements for certifications referred to in §§ 2525.15 and 2525.20 restate requirements in other parts of title 45 (specifically §§ 2522.220 and 2522.230), which are authorized by OMB Control Number 3045–0006, Enrollment and Exit Forms, on which the sponsoring entity provides their certifications, and for which entities maintain supporting documentation as a usual and customary business practice. This final rule does not affect the information collections associated with parts 2528 and 2529 (other than affecting the CFR citations, which will be updated during routine renewals) that have been approved by OMB: • For 45 CFR 2528: Voucher and Payment Request Form—approved E:\FR\FM\13JYR1.SGM 13JYR1 ddrumheller on DSK120RN23PROD with RULES1 Federal Register / Vol. 88, No. 133 / Thursday, July 13, 2023 / Rules and Regulations under OMB Control Number 3045–0014, which expires March 31, 2026. • For 45 CFR 2529: Interest Accrual Form—currently approved under OMB Control Number 3045–0053, which expires March 31, 2026. Forbearance Request for National Service Form— approved under OMB Control Number 3045–0030, which expires March 31, 2026. This final rule affects the Education Award Transfer Forms because the Request to Transfer a Segal Education Award Amount form must be updated to clarify that an award may be transferred to no more than two individuals, that a transfer may be declined in part or in full or revoked in part or in full, and to delete the portion of the form requiring request of a waiver to re-transfer. The Accept/Decline Award Transfer Form requires a change to indicate that step-children and stepgrandchildren may accept the transfer of an education award. There is no change to the estimated time or hour or nonhour cost burdens resulting from these form changes. With this rulemaking, AmeriCorps is seeking to revise the following information collection: OMB Control Number: 3045–0136. Title: Education Award Transfer Forms. Brief Description of Collection: This information collection consists of the questions that AmeriCorps members answer to request a transfer of their education award or revoke a transfer, and that education award recipients answer to accept or decline the transfer or rescind their acceptance. The information collected identifies those qualified to transfer their award, the transfer award amount, and those qualified to receive the award transfer, as well as establish a National Service Trust account for the transfer recipient. Forms Affected: Transfer Application Form, Award Transfer Acceptance Form. Type of Review: Revision of a currently approved information collection: Respondents/Affected Public: Individuals. Total Estimated Number of Annual Respondents: 900. Total Estimated Number of Annual Responses: 900. Estimated Time per Response: 5 minutes. Estimated Total Annual Hour Burden: 75 hours. Respondents’ Obligation: Required to obtain a benefit. Frequency of Response: Occasional. Total Estimated Annual Non-Hour Burden Response: $0. As part of our continuing effort to reduce paperwork and respondent VerDate Sep<11>2014 15:36 Jul 12, 2023 Jkt 259001 burdens, we invite the public to comment on any aspect of this information collection, including: (1) Whether or not the collection of information is necessary for the proper performance of the functions of the agency, including whether or not the information will have practical utility; (2) The accuracy of our estimate of the burden for this collection of information, including the validity of the methodology and assumptions used; (3) Ways to enhance the quality, utility, and clarity of the information to be collected; and (4) Ways to minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g., permitting electronic submission of response. Written comments and recommendations for the information collection revision should be sent within 30 days of publication of this rulemaking to www.reginfo.gov/public/ do/PRAMain. Find this particular information collection by selecting ‘‘Currently under 30-day Review—Open for Public Comments’’ or by using the search function. Please provide a copy of your comments to the person listed in the FOR FURTHER INFORMATION CONTACT section. Please reference OMB Control Number 3045–0136 in the subject line of your comments. F. Federalism (Executive Order 13132) Executive Order 13132, Federalism, prohibits an agency from publishing any rule that has federalism implications if the rule imposes substantial direct compliance costs on state and local governments and is not required by statute, or the rule preempts state law, unless the agency meets the consultation and funding requirements of section 6 of the Executive Order. This rulemaking does not have any federalism implications, as described above. G. Takings (Executive Order 12630) This rule does not affect a taking of private property or otherwise have taking implications under Executive Order 12630 because this rule does not affect individual property rights protected by the Fifth Amendment or involve a compensable ‘‘taking.’’ A takings implication assessment is not required. PO 00000 Frm 00055 Fmt 4700 Sfmt 4700 44727 H. Civil Justice Reform (Executive Order 12988) This rule complies with the requirements of Executive Order 12988. Specifically, this rulemaking: (a) Meets the criteria of section 3(a) requiring that all regulations be reviewed to eliminate errors and ambiguity and be written to minimize litigation; and (b) Meets the criteria of section 3(b)(2) requiring that all regulations be written in clear language and contain clear legal standards. I. Consultation With Indian Tribes (Executive Order 13175) AmeriCorps recognizes the inherent sovereignty of Indian tribes and their right to self-governance. The agency has evaluated this rulemaking under the AmeriCorps consultation policy and the criteria in Executive Order 13175 and determined that this rule does not impose substantial direct effects on federally recognized tribes. List of Subjects in 45 CFR Part 2525 Grant programs—social programs, student aid, volunteers. For the reasons discussed in the preamble, under the authority of 42 U.S.C. 12651c(c), the Corporation for National and Community Service amends chapter XXV of title 45 of the Code of Federal Regulations as follows: ■ 1. Revise part 2525 to read as follows: PART 2525—NATIONAL SERVICE TRUST Subpart A—Purpose and Definitions Sec. 2525.1 What is the National Service Trust? 2525.2 Definitions. Subpart B—Eligibility for an Education Award 2525.10 When can an Eligible Individual receive an education award from the National Service Trust? 2525.15 Upon what basis may an entity responsible for the supervision of an Eligible Individual certify that the Eligible Individual successfully completed a term of service? 2525.20 Under what circumstances is an Eligible Individual who does not complete an approved term of service eligible to receive a pro-rated education award? 2525.25 If a participant in an approved Summer of Service or Silver Scholar position does not complete their term of service, are they eligible to receive a prorated education award? 2525.30 How do convictions for the possession or sale of controlled substances affect an Eligible Individual’s ability to use their award? 2525.40 How long is an education award available for use? E:\FR\FM\13JYR1.SGM 13JYR1 44728 Federal Register / Vol. 88, No. 133 / Thursday, July 13, 2023 / Rules and Regulations 2525.41 When must an application for an extension be submitted? 2525.42 Under what circumstances will AmeriCorps grant an extension? 2525.43 What if the request for an extension is missing information or documentation? 2525.44 How will AmeriCorps notify an Eligible Individual or Designated Recipient of its decision on the extension request? 2525.45 Can an Eligible Individual or Designated Recipient appeal a denied request for an extension? 2525.50 Is there a limit on the total amount of education awards an individual may receive? 2525.55 What is the impact of the aggregate value of education awards received on an individual’s ability to serve in additional terms of service? 2525.60 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 term of service? 2525.70 What are the effects of an erroneous certification of successful completion of a term of service? ddrumheller on DSK120RN23PROD with RULES1 Subpart C—Determining the Amount of an Education Award 2525.100 What is the amount of an education award? Subpart D—Using an Education Award 2525.210 For what purposes may an education award be used? 2525.220 What steps are necessary to use an education award to repay a qualified student loan? 2525.230 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? 2525.240 Is there a limit on the amount of an Eligible Individual’s education award that AmeriCorps will disburse to an institution for a given period of enrollment? 2525.250 What happens if an individual withdraws or fails to complete the period of enrollment in an institution of higher education for which AmeriCorps has disbursed all or part of that individual’s education award? 2525.260 Who may use the education award to pay expenses incurred in enrolling in a G.I. Bill-approved program? 2525.270 What steps are necessary to use an education award to pay expenses incurred in enrolling in a G.I. Billapproved program? 2525.280 What happens if an individual for whom AmeriCorps has disbursed education award funds withdraws or fails to complete the period of enrollment in a G.I. Bill-approved program? 2525.290 What happens to an education award upon divorce or death? Subpart E—Payment of Accrued Interest 2525.310 Under what circumstances will AmeriCorps pay interest that accrues on qualified student loans during an VerDate Sep<11>2014 15:36 Jul 12, 2023 Jkt 259001 individual’s term of service in an approved position? 2525.320 What steps are necessary to obtain forbearance in the repayment of a qualified student loan during an individual’s term of service in an approved AmeriCorps position? 2525.330 What steps are necessary for AmeriCorps to pay interest that has accrued on a qualified student loan in forbearance? Subpart F—Transfer of Education Awards 2525.410 Under what circumstances may an Eligible Individual transfer an education award? 2525.420 For what purposes may a transferred award be used? 2525.430 What steps are necessary to transfer an education award? 2525.440 Is there a limit on the number of recipients an individual may designate to receive a transferred award? 2525.450 Is there a limit on the amount of transferred education awards a Designated Recipient may receive? 2525.460 What is the impact of transferring or receiving a transferred education award on an Eligible Individual’s eligibility to receive additional education awards? 2525.470 Is a Designated Recipient required to accept a transferred education award? 2525.480 Under what circumstances is a transfer revocable? 2525.485 What steps are necessary to revoke a transfer? 2525.487 What happens to a transferred education award upon divorce or death? 2525.490 Is the recipient of a transferred education award eligible for the payment of accrued interest for their own student loans? Authority: 42 U.S.C. 12601–12606 Subpart A—Purpose and Definitions § 2525.1 Trust? What is the National Service The National Service Trust is an account in the Treasury of the United States from which AmeriCorps makes payments of education awards, pays interest that accrues on qualified student loans for AmeriCorps participants during terms of service in approved national service positions, and makes other payments authorized by Congress. § 2525.2 Definitions. In addition to the definitions in § 2510.20 of this chapter, the following definitions apply to terms used this part: AmeriCorps means the Corporation for National and Community Service. Cost of attendance has the same meaning as in Title IV of the Higher Education Act of 1965, as amended (20 U.S.C. 1070 et. seq.). Current educational expenses means the cost of attendance, or other costs PO 00000 Frm 00056 Fmt 4700 Sfmt 4700 attributable to an educational course offered by an institution of higher education that has in effect a program participation agreement under Title IV of the Higher Education Act, for a period of enrollment that begins after an individual enrolls in an approved national service position. Designated Recipient means the person to whom an earned education award is transferred. 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 means the Segal AmeriCorps Education Award of financial assistance available under this part, including the Silver Scholar education awards, and Summer of Service education awards. Educational expenses means— (1) Cost of attendance as determined by the Title IV institution of higher education or G.I. Bill-approved program as provided in 20 U.S.C. 1087ll; or (2) Tuition or associated costs as determined by a program offered by an educational institution or training establishment approved for educational benefits under 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; and (3) Expenses incurred participating in a school-to-work program approved by the Secretaries of Labor and Education. Eligible Individual means an individual who has enrolled in and successfully completed a term of service in an approved national service position, as certified under § 2525.15. 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. Holder means— (1) The original lender; or (2) Any other entity to which a loan is subsequently sold, transferred, or assigned if such entity acquires a legally enforceable right to receive payments from the borrower. Institution of higher education has the same meaning given the term in section 102 of the Higher Education Act of 1965, as amended (20 U.S.C. 1002). Period of enrollment means the period that the institution has established for which institutional charges are generally assessed (e.g., length of the E:\FR\FM\13JYR1.SGM 13JYR1 Federal Register / Vol. 88, No. 133 / Thursday, July 13, 2023 / Rules and Regulations student’s course, program, or academic year.) Qualified student loan means: (1) Any loan made, insured, or guaranteed under Title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), other than a loan to a parent of a student under section 428B of that Act (20 U.S.C. 1078–2); (2) Any loan made under Title VII or VIII of the Public Service Health Act (42 U.S.C. 292a et seq.); or (3) Any other loan determined by an institution of higher education or an approved veterans’ benefits program to be necessary to cover a student’s educational expenses and made, insured, or guaranteed by: (i) An eligible lender, as defined in section 435 of the Higher Education Act of 1965 (20 U.S.C. 1085); (ii) The direct student loan program under part D of Title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.); (iii) A State agency; or (iv) A lender otherwise determined by AmeriCorps to be eligible to receive disbursements from the National Service Trust. Silver Scholar education award means the financial assistance available under this part for which an individual in an approved Silver Scholar position may be eligible. Summer of Service education award means the financial assistance available under this part for which an individual in an approved Summer of Service position may be eligible. 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 (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. Subpart B—Eligibility for an Education Award ddrumheller on DSK120RN23PROD with RULES1 § 2525.10 When can an Eligible Individual receive an education award from the National Service Trust? (a) General. An Eligible Individual is entitled to receive an education award from the National Service Trust if that person: (1) Is a citizen or national of the United States or a lawful permanent resident alien of the United States; and, (2) Met the applicable eligibility requirements for the approved national service program as appropriate; and, VerDate Sep<11>2014 15:36 Jul 12, 2023 Jkt 259001 (3) Either: (i) Is certified by their supervising entity to have successfully completed a term of service—whether a full-time 1,700-hour term corresponding to a full education award or a less than full-time term of service with a corresponding partial award amount described in § 2525.100(b)—as certified under § 2525.15; or (ii) For a pro-rated education award amount described in § 2525.100(c), is certified by their supervising entity to have 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) of this chapter. (b) Prohibition on duplicate benefits. An Eligible Individual who receives a post-service benefit in lieu of an education award may not receive an education award for the same term of service. (c) Penalties for false information. Any individual who makes a materially false statement or representation in connection with the approval or disbursement of an education award or other payment from the National Service Trust may be liable for the recovery of funds and subject to civil and criminal sanctions. § 2525.15 Upon what basis may an entity responsible for the supervision of an Eligible Individual certify that the Eligible Individual successfully completed a term of service? (a) An Eligible Individual’s supervising entity must certify that the individual has successfully completed a term of service. The individual successfully completed a term of service if the individual has: (1) Completed the number of service hours required; (2) Satisfactorily performed on assignments, tasks, or projects; (3) Met any performance criteria as determined by the program and communicated to the member; and (4) Fulfilled any other enrollment and program requirements to earn an education award. (b) A certification by the supervising entity that an individual did or did not successfully complete a term of service will be deemed to incorporate an endof-term evaluation. § 2525.20 Under what circumstances is an Eligible Individual who does not complete an approved term of service eligible to receive a pro-rated education award? (a) Release for compelling personal circumstances. An Eligible Individual who is released before they complete an approved term of service is eligible for PO 00000 Frm 00057 Fmt 4700 Sfmt 4700 44729 a pro-rated education award if their supervising entity: (1) Released the Eligible Individual for compelling personal circumstances in accordance with the requirements of § 2522.230(a) of this chapter, including requirements for maintaining documentation of the basis for the entity’s decision; (2) Certifies that the Eligible Individual: (i) Performed satisfactorily before they were granted a release for compelling personal circumstances; and (ii) Completed at least 15 percent of the originally approved term of service. (b) Release for cause. An individual who is released for cause before they completed an originally approved term of service is not eligible for any portion of an education award. § 2525.25 If a participant in an approved Summer of Service or Silver Scholar position does not complete their term of service, are they eligible to receive a prorated education award? No. An individual released for any reason before they complete an approved term of service in a Silver Scholar or Summer of Service position is not eligible to receive a pro-rated award. § 2525.30 How do convictions for the possession or sale of controlled substances affect an Eligible Individual’s ability to use their award? (a) Except as provided in paragraph (b) of this section, an Eligible Individual who is convicted under Federal or State law of the possession or sale of a controlled substance is not eligible to use his or her education award from the date of the conviction until the end of a specified time period, which is determined based on the type of conviction as follows: (1) For conviction of the possession of a controlled substance, the individual is ineligible from the date of conviction for— (i) One year for a first conviction; (ii) Two years for a second conviction; and (iii) For a third or subsequent conviction, indefinitely, as determined by AmeriCorps according to the following factors: (A) Type and amount of controlled substance; (B) Whether firearms or other dangerous weapons were involved in the offense; (C) Employment history; (D) Service to the community; (E) Recommendations from community members and local officials, including experts in substance abuse and treatment; and E:\FR\FM\13JYR1.SGM 13JYR1 44730 Federal Register / Vol. 88, No. 133 / Thursday, July 13, 2023 / Rules and Regulations (F) Any other relevant aggravating or ameliorating circumstances. (2) For conviction of the sale of a controlled substance, the individual is ineligible from the date of conviction for— (i) Two years for a first conviction; and (ii) Two years plus any additional time AmeriCorps determines is appropriate for second and subsequent convictions, based on the factors set forth in paragraphs (a)(1)(iii)(A) through (F) of this section. (b) AmeriCorps will restore the Eligible Individual’s access to use the education award if AmeriCorps determines that the individual has successfully completed a legitimate drug rehabilitation program, or in the case of a first conviction that the individual has enrolled in a legitimate drug rehabilitation program and: (1) The drug rehabilitation program is recognized as legitimate by appropriate Federal, State, or local authorities; and (2) The Eligible Individual’s enrollment in or successful completion of the legitimate drug rehabilitation program has been certified by an appropriate official of that program. § 2525.40 How long is an education award available for use? Unless AmeriCorps approves an extension under § 2525.42, the use period for an education award is as follows: (a) An education award is available for an Eligible Individual to use until seven years from the date when they successfully completed the term of service for which the award was earned; (b) An education award that is transferred to a Designated Recipient under subpart F of this part may be used until 10 years from the date when the Eligible Individual who transferred the award successfully completed their term of national service. § 2525.41 When must an application for an extension be submitted? ddrumheller on DSK120RN23PROD with RULES1 An application for an extension must be submitted to AmeriCorps before the award use period ends, or the individual must have been unavoidably prevented from timely submitting the extension application. § 2525.42 Under what circumstances will AmeriCorps grant an extension? (a) AmeriCorps will automatically grant an extension to the use period of an education award if the individual served and successfully completed a term of service in an approved national service position that fell within the use period for that education award and VerDate Sep<11>2014 15:36 Jul 12, 2023 Jkt 259001 applies for an extension under § 2525.41. (1) The use period will be extended by the length of the individual’s additional approved and completed term of service at the time of the extension application. (2) For purposes of this extension, AmeriCorps will treat all service in AmeriCorps and the Peace Corps as service in another AmeriCorpsapproved national service position. (3) If the additional of service is in the Peace Corps, the individual requesting an extension will need to provide a Description of Service, signed by the country’s director or designee for the Peace Corps service. (b) If AmeriCorps determines that an Eligible Individual or Designated Recipient was unavoidably prevented from using the education award during the original use period, AmeriCorps may grant an extension for a period of time that AmeriCorps deems appropriate, but generally not for more than one year from the end of the original use period. Also, AmeriCorps will grant only one extension of the use period except in very limited circumstances, such as, for example, when the event preventing the member from timely using their education award is likely to exist for more than 12 months, such as active military duty. (1) Examples of situations that may warrant an extension if they hinder use of an education award may include, but are not limited to: (i) The Eligible Individual’s serious illness, injury, or disability; (ii) The death, serious illness, injury, or disability of someone in the Eligible Individual’s immediate family that occurs close to the end of the use period; (iii) The destruction or inaccessibility of important service records maintained by the program; (iv) Natural disasters; (v) Military service that prevents the use of an education award, such as active duty overseas (but a person in the reserves or National Guard who has not been called up on active duty, or who is enlisted in the military, is not necessarily unavoidably prevented from timely using their education award because of their military service). (2) When considering whether to grant an extension, AmeriCorps also will consider whether: (i) The extension is a result of the individual’s choices or actions or factors beyond the individual’s control; (ii) The need for the extension is in any part attributable to AmeriCorps’ or an AmeriCorps-funded entity’s actions; PO 00000 Frm 00058 Fmt 4700 Sfmt 4700 (iii) The lending institution or institution entitled to the payment failed to take an action, or took an action, that resulted in the individual needing/wanting the extension. (c) Examples of circumstances that do not meet the criteria for granting an extension may include but are not limited to: (1) Employment or unemployment, even in a position with a non-profit organization involved in community service. (2) Forgetting to use the education award, being unaware of the use-period restrictions, or not receiving his or her education award expiration notice. (3) Being too young to use a transferred education award. § 2525.43 What if the request for an extension is missing information or documentation? If the extension application lacks necessary information or documentation, AmeriCorps may request additional documentation. If the requested additional documentation is not provided to AmeriCorps within 30 days, AmeriCorps may close the request for an extension. § 2525.44 How will AmeriCorps notify the Eligible Individual or Designated Recipient of its decision on the extension request? AmeriCorps will notify the Eligible Individual or Designated Recipient in writing if the request for an extension has been granted or denied. The notification will advise the requester of the process for appealing the denial if the requester has a good-faith basis to believe their request was erroneously denied. § 2525.45 Can an Eligible Individual or Designated Recipient appeal a denied request for an extension? (a) If an Eligible Individual or Designated Recipient submits a timely application for an extension and the application is denied, the individual may file an appeal. The appeal must: (1) Be received within 30 days of the denial determination; (2) Be made in writing—either online through the My AmeriCorps portal if the education award has not expired—or through a submission to the National Service Hotline at 1–800–942–2677; (3) Explain why the initial determination was erroneous/should be reviewed; and, (4) Include supporting documentation, if applicable. (b) AmeriCorps may grant an appeal when, after review of all the information provided originally and on appeal, it appears that the extension should have been granted. AmeriCorps may ask for E:\FR\FM\13JYR1.SGM 13JYR1 Federal Register / Vol. 88, No. 133 / Thursday, July 13, 2023 / Rules and Regulations additional documentation to inform the appeal determination. (c) Individuals who submit appeals will be notified in writing of the final determination. § 2525.50 Is there a limit on the total amount of education awards an individual may receive? (a) General limitation. While there is no limit on the specific dollar amount, no individual may receive more than the amount equal to the aggregate value of two full-time education awards. (b) Calculation of aggregate value of awards received. The aggregate value of education awards received is the sum of: (1) The value of each education award received for successful completion of an approved national service position; (2) The value of each partial education award received upon release from an approved national service position for compelling personal circumstances; and (3) The value of any amount received from a transferred education award, except as provided in § 2525.460. (c) 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 use. § 2525.55 What is the impact of the aggregate value of education awards received on an individual’s ability to serve in additional terms of service? The aggregate value of education awards received does not limit an individual’s ability to serve in additional terms of service, but does impact the amount of the education award the individual may receive pursuant to § 2525.100(d) upon successful completion of any additional term of service. § 2525.60 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 term of service? 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. § 2525.70 What are the effects of an erroneous certification of successful completion of a term of service? (a) If AmeriCorps determines that the certification made by a national service program under § 2525.10(a)(2) is erroneous, AmeriCorps 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 that led to the erroneous or incorrect certification. (b) If AmeriCorps determines that the certification made is knowingly false or 44731 inaccurate, AmeriCorps will disallow the education award and/or initiate a debt collection process for any education award funds disbursed. (c) Nothing in this section prohibits AmeriCorps from taking any action authorized by law based upon any certification that is knowingly made in a false, materially misleading, or fraudulent manner. Subpart C—Determining the Amount of an Education Award § 2525.100 What is the amount of an education award? (a) Full-time term of service. Except as provided in paragraph (d) of this section, the education award for a fulltime term of service in an approved national service 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 that grant may receive in the aggregate for the award year in which the term of service is approved by AmeriCorps. (b) Less than full-time term of service. Except as provided in paragraph (d) of this section, the amount of an education award for an approved national service position for less than full-time term of service (i.e., partial award) is determined in accordance with the following table: TABLE 1 TO PARAGRAPH (b) In an approved position of at least: (hours) ddrumheller on DSK120RN23PROD with RULES1 For: Is equal to the following percentage of the amount of an education award for a full-time term of service described in paragraph (a) of this section: Three quarters time term of service (TQT) .......................................................... Half-time term of service (HT) .............................................................................. Reduced half-time term of service (RHT) ............................................................ Quarter-time term of service (QT) ........................................................................ Minimal time and summer associate (MT & SA) ................................................. Abbreviated time (AT) .......................................................................................... 1,200 900 675 450 300 100 (c) Calculating a pro-rated award following release for compelling personal circumstances. The education award for an Eligible Individual who is released from completing an approved term of service for compelling personal circumstances is equal to the product of: (1) The number of hours completed divided by the number of hours in the approved term of service; and (2) The amount of the education award for the approved term of service. (d) Calculating a discounted education award amount. To ensure Subpart D—Using an Education Award VerDate Sep<11>2014 15:36 Jul 12, 2023 Jkt 259001 that an Eligible Individual receives no more than the aggregate value of two awards, pursuant to § 2525.50, if the sum of the education award value offered for a term of service and the aggregate value of previously-received education awards exceeds the value of two awards, then the individual may receive only a portion of that offered education award, such that the aggregate value of the education awards is not greater than the value of two awards. PO 00000 Frm 00059 Fmt 4700 Sfmt 4700 70 percent. 50 percent. Approximately 39 percent. Approximately 26 percent. Approximately 21 percent. 5.6 percent. § 2525.210 For what purposes may an education award be used? (a) An education award may be used to pay educational expenses and/or to repay qualified student loans, as defined in § 2525.2; (b) An education award is divisible and may be applied to any combination of loans, costs, or expenses described in paragraph (a) of this section. E:\FR\FM\13JYR1.SGM 13JYR1 44732 Federal Register / Vol. 88, No. 133 / Thursday, July 13, 2023 / Rules and Regulations § 2525.220 What steps are necessary to use an education award to repay a qualified student loan? (a) Required information. Before disbursing an amount from an education award to repay a qualified student loan, AmeriCorps must receive: (1) An Eligible Individual’s written authorization and request for a specific payment amount; and (2) Any identifying and other information from the loan holder as requested by AmeriCorps. (b) Payment. When AmeriCorps receives the information required under paragraph (a) of this section, it will pay the loan holder and notify the Eligible Individual of the payment. (c) Aggregate payments. AmeriCorps may establish procedures to aggregate payments to holders of loans for more than a single individual. ddrumheller on DSK120RN23PROD with RULES1 § 2525.230 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) Required information. Before disbursing funds from an education award to pay all or part of the current educational expenses at an institution of higher education, AmeriCorps must receive: (1) An Eligible Individual’s written authorization and request for a specific payment amount; (2) Information from the institution of higher education as requested by AmeriCorps, including verification that— (i) It has in effect a program participation agreement under section 487 of the Higher Education Act of 1965 (20 U.S.C. 1094); (ii) Its eligibility to participate in any of the programs under Title IV of the Higher Education Act of 1965 has not been limited, suspended, or terminated; (iii) If an Eligible 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 of higher education will ensure an appropriate refund to AmeriCorps of the unused portion of the education award under its own published refund policy, or if it does not have one, provide a prorata refund to AmeriCorps of the unused portion of the education award; (iv) Individuals using education awards to pay for current educational expenses at that institution do not comprise more than 15 percent of the institution’s total student population; (v) The requested amount will be used to pay all or part of the Eligible Individual’s educational expenses attributable to a course offered by the institution; VerDate Sep<11>2014 15:36 Jul 12, 2023 Jkt 259001 (vi) The requested amount does not exceed the difference between: (A) The Eligible Individual’s cost of attendance and other educational expenses; and (B) The Eligible 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.). (b) Payment. When AmeriCorps receives the information required under paragraph (a) of this section, it will pay the institution and notify the Eligible Individual of the payment. (c) Installment payments. AmeriCorps will disburse the education award payment to the institution in at least two separate installments, none of which exceeds 50 percent of the total amount. The interval between installments may not be less than onehalf of the period of enrollment, except as necessary to permit the second installment to be paid at the beginning of the second semester, quarter, or other division of a period of enrollment. § 2525.240 Is there a limit on the amount of an Eligible Individual’s education award that AmeriCorps will disburse to an institution for a given period of enrollment? Yes. AmeriCorps’ disbursement from an Eligible Individual’s education award for any period of enrollment may not exceed the difference between: (a) The Eligible Individual’s educational expenses, determined by the institution; and (b) The Eligible Individual’s estimated financial assistance for that period under part A of Title IV of the Higher Education Act. § 2525.250 What happens if an individual withdraws or fails to complete the period of enrollment in an institution of higher education for which AmeriCorps has disbursed all or part of that individual’s education award? (a) If an Eligible Individual for whom AmeriCorps has disbursed education award funds withdraws or otherwise fails to complete a period of enrollment, then an institution that receives a disbursement of education award funds from AmeriCorps must: (1) Provide a refund to AmeriCorps in an amount determined under that institution’s published refund requirements, unless the institution charged the Eligible Individual for the uncompleted period of study or training. (2) Provide a pro-rata refund to AmeriCorps of the unused portion of the education award if the institution does not have a published refund policy. (b) AmeriCorps will credit any refund received for an Eligible Individual PO 00000 Frm 00060 Fmt 4700 Sfmt 4700 under paragraph (a) of this section to the individual’s education award allocation in the National Service Trust. § 2525.260 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 incurred in enrolling in a G.I. Bill-approved program, an Eligible Individual must have received an education award for successfully completing a term in an approved national service position, in which they enrolled on or after October 1, 2009. § 2525.270 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 funds from an education award for this purpose, AmeriCorps must receive: (1) An individual’s written authorization and request for a specific payment amount; (2) Verification from the individual that they meet the criteria in § 2525.260; and (3) Information from the educational institution or training establishment as requested by AmeriCorps, 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 AmeriCorps of the unused portion of the education award. (b) Payment. When AmeriCorps receives the information required under paragraph (a) of this section, it will pay the institution or establishment and notify the individual of the payment. § 2525.280 What happens if an individual for whom AmeriCorps 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 AmeriCorps has disbursed education award funds withdraws or otherwise E:\FR\FM\13JYR1.SGM 13JYR1 Federal Register / Vol. 88, No. 133 / Thursday, July 13, 2023 / Rules and Regulations fails to complete a period of enrollment, the approved educational institution or training establishment that received a disbursement of education award funds from AmeriCorps must provide a prorata refund to AmeriCorps of the unused portion of the education award. (b) AmeriCorps 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. § 2525.290 What happens to an education award upon divorce or death? (a) Prohibition on treatment of an education award as marital property. An education award may not be treated as marital property, or the asset of a marital estate, subject to division in a divorce or other civil proceeding. (b) Death of Eligible Individual. An educational award expires and is no longer available for any purpose upon the death of the Eligible Individual, except for: (1) Any award or portion of the educational award the Eligible Individual transferred prior to death; (2) Any amount for which the Eligible Individual submitted a request for disbursement prior to death that the National Service Trust had not yet either received or acted upon as of the date of death. Subpart E—Payment of Accrued Interest ddrumheller on DSK120RN23PROD with RULES1 § 2525.310 Under what circumstances will AmeriCorps pay interest that accrues on qualified student loans during an individual’s term of service in an approved position? (a) Eligibility. AmeriCorps will pay interest that accrues on an Eligible Individual’s qualified student loan, subject to the limitation on amount in paragraph (b) of this section, if: (1) The Eligible Individual successfully completes a term of national service in an approved position; and (2) The loan holder approves the Eligible Individual’s request for forbearance for a time period specified by the loan holder during the term of service. (b) Amount. The portion of accrued interest that AmeriCorps will pay is determined by the length of service. The percentage of accrued interest that AmeriCorps will pay is the lesser of— (1) The product of— (i) The number of completed service hours divided by the number of days for which forbearance was granted; and (ii) 365 divided by 17; and (2) One hundred (100). VerDate Sep<11>2014 15:36 Jul 12, 2023 Jkt 259001 (c) Supplemental to education award. A payment of accrued interest under this part is supplemental to an education award received by an Eligible Individual under this part. (d) Limitation. AmeriCorps is not responsible for the payment of any accrued interest in excess of the amount determined in accordance with paragraph (b) of this section. (e) Suspended service. AmeriCorps will not pay interest expenses that accrue on an Eligible Individual’s qualified student loan during a period of suspended service. § 2525.320 What steps are necessary to obtain forbearance in the repayment of a qualified student loan during an individual’s term of service in an approved AmeriCorps position? (a) An Eligible Individual seeking forbearance must submit a request to the loan holder. (b) If, before approving a request for forbearance, the loan holder requires verification that the Eligible Individual is serving in an approved national service position, AmeriCorps will provide verification upon a request from the Eligible Individual or the loan holder. § 2525.330 What steps are necessary for AmeriCorps to pay interest that has accrued on a qualified student loan in forbearance? (a) If an Eligible Individual has obtained forbearance on a qualified student loan, AmeriCorps will make payments from the National Service Trust for interest that has accrued on that student loan during the individual’s term of service, after: (1) The program verifies that the Eligible Individual has successfully completed the term of service and the dates when the term of service began and ended; (2) The holder of the loan verifies the amount of interest that has accrued during the term of service. (b) When AmeriCorps receives all necessary information from the program and the loan holder, it will pay the loan holder and notify the individual of the payment. Subpart F—Transfer of Education Awards § 2525.410 Under what circumstances may an Eligible Individual transfer an education award? An Eligible Individual may transfer an education award if— (a) The Eligible Individual was 55 or older on the day they began the term of service in an approved national service position; PO 00000 Frm 00061 Fmt 4700 Sfmt 4700 44733 (b) The Eligible Individual successfully completed a term of service in an approved national service position; (c) The education award the Eligible Individual is requesting to transfer has not expired, consistent with the period of availability set forth in § 2525.40(a); (d) The individual designated to receive the transferred education award (the Designated Recipient) is: (1) The Eligible Individual’s child, grandchild, stepchild, step-grandchild, or foster child; and (2) A citizen, national, or lawful permanent resident of the United States. (e) The Designated Recipient is not entitled to the education award until their citizenship status has been verified. Once citizenship is confirmed, the Designated Recipient has all the benefits of an Eligible Individual. § 2525.420 For what purposes may a transferred award be used? A transferred award may be used by the Designated Recipient to repay qualified student loans or to pay current educational expenses at an institution of higher education, as described in § 2525.210. § 2525.430 What steps are necessary to transfer an education award? (a) Request for transfer. Before transferring an education award to a Designated Recipient, AmeriCorps must receive a request from the transferring Eligible Individual, including: (1) The Eligible Individual’s written authorization to transfer the education award, the year in which the education award was earned, and the specific amount of the education award to be transferred; (2) Identifying information for the Designated Recipient who is to receive the transferred education award; (3) A certification that the transferring Eligible Individual and the Designated Recipient have completed or satisfy the requirements of § 2525.410. (b) Notification to Designated Recipient. Upon receipt of a request, including all required information listed in paragraph (a) of this section, AmeriCorps will contact the Designated Recipient to: (1) Notify the Designated Recipient, or their legal guardian, of the proposed transfer; (2) Confirm the Designated Recipient’s identity; (3) Confirm that the Designated Recipient is a citizen, national, or lawful permanent resident of the United States; and (4) Give the Designated Recipient the opportunity to accept or reject the proposed transferred education award. E:\FR\FM\13JYR1.SGM 13JYR1 44734 Federal Register / Vol. 88, No. 133 / Thursday, July 13, 2023 / Rules and Regulations (c) Acceptance by Designated Recipient. To accept an education award, a Designated Recipient, or their legal guardian, must certify that the Designated Recipient is eligible under § 2525.410. Upon receipt of the Designated Recipient’s acceptance and verification of the Designated Recipient’s eligibility, AmeriCorps will create an account in the National Service Trust for the Designated Recipient, if an account does not already exist, and the accepted amount will be deducted from the transferring Eligible Individual’s account and credited to the Designated Recipient’s account. (d) Timing of transfer. AmeriCorps must receive the request from the transferring Eligible Individual before the date the education award expires. (e) Refusal. The Designated Recipient can refuse to accept the transferred education award under § 2525.470. (f) Revocation. The Eligible Individual can revoke part or all of the remaining balance of the transfer that has not yet been requested for use under §§ 2525.480 and 2525.485. § 2525.440 Is there a limit on the number of recipients an individual may designate to receive a transferred award? (a) An Eligible Individual may transfer all or part of a non-expired education award to no more than two recipients. (b) If a Designated Recipient rejects, in whole or in part, a transferred education award, or a transfer was revoked in accordance with § 2525.480, the education award can be transferred to another Designated Recipient, so long as the education award has not yet expired. ddrumheller on DSK120RN23PROD with RULES1 § 2525.450 Is there a limit on the amount of transferred education awards a Designated Recipient may receive? (a) If the sum of the value of the requested transfer plus the aggregate value of education awards a Designated Recipient has previously earned or received, through the Designated Recipient’s own service term or having previously been transferred an education award, would exceed the aggregate value of two full-time education awards, as determined pursuant to § 2525.50(b), the Designated Recipient will be deemed to have rejected that portion of the education award that would result in the excess. (b) If a Designated Recipient has already received the aggregate value of two full-time education awards, they may not receive a transferred education award, and the Designated Recipient will be deemed to have rejected the education award in full. VerDate Sep<11>2014 15:36 Jul 12, 2023 Jkt 259001 § 2525.460 What is the impact of transferring or receiving a transferred education award on an Eligible Individual’s eligibility to receive additional education awards? (a) Impact on transferring individual. Pursuant to § 2525.50, an education award is considered to be received at the time it becomes available for a Designated Recipient’s 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 Recipient. For the purposes of determining the value of the transferred education award under § 2525.50, a Designated Recipient will be considered to have received a value equal to the amount received divided by the amount of a full-time education award in the year the transferring Eligible Individual’s position for that education award was approved. (c) Result of revocation on education award value. If the Eligible Individual revokes the transferred education award, in whole or in part, the value of the education award considered to have been received by the Designated Recipient for purposes of § 2525.50 will be reduced accordingly. § 2525.470 Is a Designated Recipient required to accept a transferred education award? (a) General rule. No. A Designated Recipient is not required to accept a transferred education award and may reject an education award in whole or in part. (b) Result of rejection in full. If the Designated Recipient rejects a transferred education award in whole, the amount is credited back to the transferring Eligible Individual’s account in the National Service Trust, and may be transferred to another individual, or may be used by the transferring Eligible Individual, consistent with the original period of availability set forth in § 2525.40(a). (c) Result of rejection in part. If the Designated Recipient rejects a transferred education award in part, the rejected portion is credited to the transferring Eligible Individual’s account in the National Service Trust for their use, including re-transfer of the education award, consistent with the original period of availability set forth in § 2525.40(a). (d) Rescission. A Designated Recipient who originally accepted a transferred education award may rescind their acceptance of any unused portion of the award at any time before the education award expires, and for any reason. PO 00000 Frm 00062 Fmt 4700 Sfmt 4700 § 2525.480 Under what circumstances is a transfer revocable? (a) Revocation. An Eligible Individual who transferred an award may revoke the transfer at any time and for any reason before the education award’s expiration and use by the Designated Recipient. (b) Use of award. Upon revocation, the revoked amount will be deducted from the Designated Recipient’s account and credited to the transferring Eligible Individual’s account. The transferring Eligible Individual may use the revoked transferred education award for any of the purposes described in § 2525.210, consistent with the original time period of availability set forth in § 2525.40(a). (c) Re-transfer. An Eligible Individual may re-transfer an education award to another qualifying individual after revoking the education award. § 2525.485 What steps are necessary to revoke a transfer? (a) Request for revocation. Before revoking a transfer, the transferring Eligible Individual must submit a request to AmeriCorps that includes: (1) The Eligible Individual’s written authorization to revoke the education award; (2) The year in which the education award was earned; (3) The specific amount to be revoked; and (4) The identity of the Designated Recipient. (b) Used education awards. A revocation may only apply to the portion of the transferred education award that has not been used by the Designated Recipient. If the Designated Recipient has used the entire transferred amount before AmeriCorps receives the revocation request, no amount will be returned to the transferring Eligible Individual. An amount is considered to be used when it is disbursed from the National Service Trust, not when a request is received for its use. (c) Notification to Designated Recipient. AmeriCorps will notify the Designated Recipient of the amount being revoked as of the date of its receipt of the revocation request. (d) Timing of revocation. AmeriCorps must receive the request to revoke the transfer from the transferring Eligible Individual before the education award’s expiration as calculated pursuant to § 2525.40(a)(2), from the date the education award was originally earned. § 2525.487 What happens to a transferred education award upon divorce or death? (a) Prohibition on treatment of a transferred education award as marital property. An education award E:\FR\FM\13JYR1.SGM 13JYR1 Federal Register / Vol. 88, No. 133 / Thursday, July 13, 2023 / Rules and Regulations transferred under this subsection may not be treated as marital property, or the asset of a marital estate, subject to division in a divorce or other civil proceeding. (b) Death of transferor. The death of an Eligible Individual who has transferred, or initiated the transfer of, an education award under this subsection does not affect the use of the education award by the Designated Recipient. § 2525.490 Is a recipient of a transferred education award eligible for the payment of accrued interest for their own student loans? No. The transfer of an education award does not convey eligibility for payment of accrued interest under subpart E of this part. PART 2526—[REMOVED AND RESERVED] ■ I. Procedural Matters A. Final Regulatory Flexibility Analysis 1. Section 603 of the Regulatory Flexibility Act, as amended, requires a regulatory flexibility analysis in notice and comment rulemaking proceedings. See 5 U.S.C. 603(a). As we are adopting these rules without notice and comment, no regulatory flexibility analysis is required. 2. Remove and reserve part 2526. PART 2527—[REMOVED AND RESERVED] ■ 3. Remove and reserve part 2527. PART 2528—[REMOVED AND RESERVED] ■ 4. Remove and reserve part 2528. B. Final Paperwork Reduction Act of 1995 Analysis 2. This document does not contain new or modified information collection requirements subject to the Paperwork Reduction Act of 1995 (PRA), Public Law 104–13. In addition, therefore, it does not contain any new or modified information collection burden for small business concerns with fewer than 25 employees, pursuant to the Small Business Paperwork Relief Act of 2002, Public Law 107–198, see 44 U.S.C. 3506(c)(4). PART 2529—[REMOVED AND RESERVED] ■ 5. Remove and reserve part 2529. PART 2530—[REMOVED AND RESERVED] ■ 6. Remove and reserve part 2530. Fernando Laguarda, General Counsel. [FR Doc. 2023–14729 Filed 7–12–23; 8:45 am] BILLING CODE 6050–28–P FEDERAL COMMUNICATIONS COMMISSION 47 CFR Parts 0, 1, and 80 ddrumheller on DSK120RN23PROD with RULES1 [MD Docket No. 23–156; FCC 23–39; FR ID 145447] Closure of FCC Lockbox 979097 Used To File Fees for Services Provided by the Wireless Telecommunications Bureau Federal Communications Commission. ACTION: Final rule. AGENCY: In this document, the Federal Communications Commission (FCC or Commission) adopts an Order that SUMMARY: VerDate Sep<11>2014 15:36 Jul 12, 2023 Jkt 259001 closes Lockbox 979097 and modifies the relevant rule provisions to require electronic filing and fee payments. DATES: Effective August 14, 2023. FOR FURTHER INFORMATION CONTACT: Warren Firschein, Office of Managing Director at (202) 418–2653 or Roland Helvajian, Office of Managing Director at (202) 418–0444. SUPPLEMENTARY INFORMATION: This is a summary of the Commission’s Order, FCC 23–39, MD Docket No. 23–156, adopted on May 17, 2023 and released on May 18, 2023, which is the subject of this rulemaking. The full text of this document is available for public inspection and copying by downloading the text from the Commission’s website at https://www.fcc.gov/document/ closure-lockbox-used-collect-feepayments-wtb. C. Congressional Review Act 3. The Commission will not send a copy of the Order pursuant to the Congressional Review Act, see 5 U.S.C. 801(a)(1)(A), because the adopted rules are rules of agency organization, procedure, or practice that do not ‘‘substantially affect the rights or obligations of non-agency parties. See 5 U.S.C. 804(3)(C). II. Introduction 4. In the Order, we reduce expenditures by the Federal Communications Commission (FCC or Commission) and modernize Commission procedures by amending § 1.1102 of our rules, 47 CFR 1.1102, which sets forth the fees for applications and other filings processed by the FCC’s PO 00000 Frm 00063 Fmt 4700 Sfmt 4700 44735 Wireless Telecommunications Bureau (WTB). The rule amendment reflects the closure of the P.O. Box 979097 (i.e., lockbox) 1 used for manual payment of filing fees for three different broad categories of filings: (1) Site-based license applications; (2) Personal license applications; and (3) Geographic-based license applications. We discontinue the option of manual fee payments and instead require the use of an electronic payment for each listing in this rule, and make conforming changes to other related provisions. 5. Section 1.1102 of the Commission’s rules, 47 CFR 1.1102, provides a schedule of fees for applications and other filings processed by WTB. The rule also directs filers that do not utilize the Commission’s on-line filing and fee payment systems to send manual filings and/or payments to the Commission at P.O. Box 979097 at U.S. Bank in St. Louis, Missouri. In recent years, there have been a decreasing number of lockbox payments, and, although paper filings are contemplated by the rule, WTB now requires electronic filing of all wireless radio service applications and pleadings. As a result, transition to all electronic payments is consistent with Commission-wide efforts to digitize our systems and create efficient and more accessible interactions with the agency. 6. The Commission has reduced its reliance on P.O. Boxes for the collection of fees, instead encouraging the use of electronic payment systems for all application and regulatory fees and closing certain lockboxes. We find that electronic payment of fees for the services processed by WTB reduces the agency’s expenditures (including eliminating the annual fee for the bank’s services) and the cost of manually processing each transaction, with little or no inconvenience to the Commission’s regulatees, applicants, and the public. As part of this effort, we are now closing P.O. Box 979097 and modifying the relevant rule provisions that permit manual filings and require payment of fees via the closed P.O. Box. Specifically, §§ 0.482, 1.1102, and 1.2107 are being modified to eliminate references to the lockbox at U.S. Bank. In addition, § 1.907 is being modified to eliminate references to applications submitted on paper, and the caption to § 1.913 is being adjusted to eliminate a reference to manual filing. In addition, we make minor modifications to our 1 Our rules and other Commission documents refer to a series of P.O. Boxes used for the collection of fees as ‘‘lockboxes.’’ These P.O. Boxes are located at U.S. Bank in St. Louis, Missouri. Once a payment is received, it is processed and recorded by the bank. E:\FR\FM\13JYR1.SGM 13JYR1

Agencies

Corporation for National and Community Service

[Federal Register Volume 88, Number 133 (Thursday, July 13, 2023)]
[Rules and Regulations]
[Pages 44721-44735]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-14729]


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CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

45 CFR Parts 2525, 2526, 2527, 2528, 2529, and 2530

RIN 3045-AA66


National Service Trust Education Awards

AGENCY: Corporation for National and Community Service.

ACTION: Final rule.

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SUMMARY: The Corporation for National and Community Service (operating 
as AmeriCorps) is finalizing revisions to its National Service Trust 
regulations. The National Service Trust is an account from which 
AmeriCorps pays education awards to eligible AmeriCorps participants 
and interest on qualified student loans for AmeriCorps participants 
during their terms of service in approved national service positions. 
This rule improves the clarity of regulations applicable to education 
awards through use of consistent terminology and more transparent 
procedures for extensions, transfers, and revocations of education 
awards; and increases flexibility for those who earn education awards 
to use and transfer those awards. This rule also renumbers sections 
related to national service education awards to combine them all into 
one CFR part with subpart designations for easier navigation.

DATES: This rule is effective August 14, 2023.

FOR FURTHER INFORMATION CONTACT: Elizabeth Appel, Associate General 
Counsel, AmeriCorps, 250 E Street SW, Washington, DC 20525, (202) 967-
5070, [email protected].

SUPPLEMENTARY INFORMATION: 
I. Background
II. Overview of Final Rule
    A. Renumbering To Combine Provisions Into One CFR Part
    B. Part-by-Part (New Subpart-by-Subpart) Summary of Changes
    1. Changes to Current Part 2525 (New Subpart A)
    2. Changes to Current Part 2526 (New Subpart B)
    3. Changes to Current Part 2527 (New Subpart C)
    4. Changes to Current Part 2528 (New Subpart D)
    5. Changes to Current Part 2529 (New Subpart E)
    6. Changes to Current Part 2530 (New Subpart F)
III. Response to Public Comments
IV. Regulatory Analyses

I. Background

    The National and Community Service Act of 1990, as amended, 42 
U.S.C. 12501 et seq., aims to encourage United States citizens to 
engage in national service and to expand educational opportunity by 
rewarding individuals who participate in national service with an 
increased ability to pursue higher education or job training. 
Specifically, the Act establishes the National Service Trust and 
authorizes AmeriCorps to use funds from that Trust to provide education 
awards to eligible individuals who have fulfilled a term of service in 
an approved national service position and meet other applicable 
requirements. AmeriCorps' regulations implementing the Act are within 
45 CFR parts 2525 through 2530 and address the National Service Trust 
(the Trust), who is eligible to receive education awards from the 
Trust, how the amount of the education awards is determined, the 
purposes for which the education awards may be used, the circumstances 
under which AmeriCorps participants will receive forbearance and 
payment of interest expenses on qualified student loans, and the 
circumstances in which participants may transfer their educational 
awards.

II. Overview of Final Rule

    Overall, this final rule is intended to improve clarity of the 
regulations through use of consistent terminology and plain language, 
improve the transparency of the criteria and procedures for extensions, 
transfers, and revocations of education awards; and increase 
flexibility for those who earn education awards to use and transfer 
those awards. To meet these objectives, this rule makes changes to the 
following CFR parts:

 Part 2525--National Service Trust: Purpose and Definitions
 Part 2526--Eligibility for an Education Award
 Part 2527--Determining the Amount of an Education Award
 Part 2528--Using an Education Award
 Part 2529--Payment of Accrued Interest
 Part 2530--Transfer of an Education Award

    Some changes apply to all these CFR parts, including updating 
references to the Corporation for National and Community Service to 
refer to it by its operating name, AmeriCorps, rather than ``the 
Corporation.'' Specific mentions of AmeriCorps programs, Silver 
Scholar, and Summer of Service positions were replaced with the term 
``national service position,'' where appropriate. Other changes affect 
only one or some CFR parts. Substantive

[[Page 44722]]

changes specific to each CFR part are summarized here.
    The rule also renumbers sections, combining these CFR parts into 
one resulting CFR part, at part 2525, with different subparts. 
Combining these CFR parts into one allows readers to find regulations 
on education awards in a single CFR part, which improves navigability 
and prevents readers from having to switch back and forth between CFR 
parts for relevant provisions (for example, to refer back to part 2525 
for definitions that apply to later CFR parts).

A. Renumbering To Combine Provisions Into One CFR Part

    The final rule renumbers the provisions that currently appear in 
parts 2526 through 2530 to move them into part 2505, so that the 
regulatory provisions regarding the National Service Trust education 
awards can be found in one central CFR part. The following table shows 
where the provisions that fall under the current CFR parts will instead 
fall under subparts to part 2525.

------------------------------------------------------------------------
                Current                             Final rule
------------------------------------------------------------------------
Part 2525--National Service Trust:       Part 2525--National Service
 Purpose and Definitions.                 Trust.
                                         Subpart A--Purpose and
                                          Definitions.
Part 2526--Eligibility for an Education  Subpart B--Eligibility for an
 Award.                                   Education Award.
Part 2527--Determining the Amount of an  Subpart C--Determining the
 Education Award.                         Amount of an Education Award.
Part 2528--Using an Education Award....  Subpart D--Using an Education
                                          Award.
Part 2529--Payment of Accrued Interest.  Subpart E--Payment of Accrued
                                          Interest.
Part 2530--Transfer of Education Awards  Subpart F--Transfer of
                                          Education Awards.
------------------------------------------------------------------------

    The following table provides a more detailed comparison of where 
current regulatory provisions are located, and where those provisions 
will be located under the final rule. This table also shows where new 
subpart headings and new sections are being finalized.

------------------------------------------------------------------------
                  Current                            Final rule
------------------------------------------------------------------------
Part 2525--National Service Trust: Purpose  Part 2525--National Service
 and Definitions                             Trust.
                                            Subpart A--Purpose and
                                             Definitions.
Sec.   2525.10 What is the National         Sec.   2525.1 What is the
 Service Trust?                              National Service Trust?
Sec.   2525.20 Definitions                  Sec.   2525.2 Definitions.
Part 2526--Eligibility for an Education     Subpart B--Eligibility for
 Award                                       an Education Award.
Sec.   2526.10 Who is eligible to receive   Sec.   2525.10 When can an
 an education award from the National        Eligible Individual receive
 Service Trust?                              an education award from the
                                             National Service Trust?
Sec.   2526.15 Upon what basis may an       Sec.   2525.15 Upon what
 organization responsible for the            basis may an entity
 supervision of a national service           responsible for the
 participant certify that the individual     supervision of an Eligible
 successfully completed a term of service?   Individual certify that the
                                             Eligible Individual
                                             successfully completed a
                                             term of service?
Sec.   2526.20 Is an AmeriCorps             Sec.   2525.20 Is an
 participant who does not complete an        AmeriCorps participant who
 originally approved term of service         does not complete an
 eligible to receive a pro-rated education   originally-approved term of
 award?                                      service eligible to receive
                                             a pro-rated education
                                             award?
Sec.   2526.25 Is a participant in an       Sec.   2525.25 Is a
 approved Summer of Service position or      participant in an approved
 approved Silver Scholar position who does   Summer of Service position
 not complete an approved term of service    or approved Silver Scholar
 eligible to receive a pro-rated education   position who does not
 award?                                      complete an approved term
                                             of service eligible to
                                             receive a pro-rated
                                             education award?
Sec.   2526.30 How do convictions for the   Sec.   2525.30 How do
 possession or sale of controlled            convictions for the
 substances affect an education award        possession or sale of
 recipient's ability to use their award?     controlled substances
                                             affect an education award
                                             recipient's ability to use
                                             their award?
Sec.   2526.40 What is the time period      Sec.   2525.40 How long is
 during which an individual may use an       an education award
 education award?                            available for use?
                                            Sec.   2525.41 When must an
                                             application for extension
                                             be submitted?
                                            Sec.   2525.42 Under what
                                             circumstances may
                                             AmeriCorps grant an
                                             extension?
                                            Sec.   2525.43 What if the
                                             request for an extension is
                                             missing information or
                                             documentation?
                                            Sec.   2525.44 How will
                                             AmeriCorps notify an
                                             Eligible Individual or
                                             Designated Recipient of its
                                             decision on the extension
                                             request?
                                            Sec.   2525.45 Can an
                                             Eligible Individual or
                                             Designated Recipient appeal
                                             a denied request for an
                                             extension to the use
                                             period?
Sec.   2526.50 Is there a limit on the      Sec.   2525.50 Is there a
 total amount of education awards an         limit on the total amount
 individual may receive?                     of education awards an
                                             individual may receive?
Sec.   2526.55 What is the impact of the    Sec.   2525.55 What is the
 aggregate value of education awards         impact of the aggregate
 received on an individual's ability to      value of education awards
 serve in subsequent terms of service?       received on an individual's
                                             ability to serve in
                                             additional terms of
                                             service?
Sec.   2526.60 May an individual receive    Sec.   2525.60 May an
 an education award and related interest     individual receive an
 benefits from the National Service Trust    education award and related
 as well as other loan cancellation          interest benefits from the
 benefits for the same service?              National Service Trust as
                                             well as other loan
                                             cancellation benefits for
                                             the same term of service?
Sec.   2526.70 What are the effects of an   Sec.   2525.70 What are the
 erroneous certification of successful       effects of an erroneous
 completion of a term of service?            certification of successful
                                             completion of a term of
                                             service?
Part 2527--Determining the Amount of an     Subpart C--Determining the
 Education Award                             Amount of an Education
                                             Award.
Sec.   2527.10 What is the amount of an     Sec.   2525.100 What is the
 education award?                            amount of an education
                                             award?
Part 2528--Using an Education Award         Subpart D--Using an
                                             Education Award.
Sec.   2528.10 For what purposes may an     Sec.   2525.210 For what
 education award be used?                    purposes may an education
                                             award be used?

[[Page 44723]]

 
Sec.   2528.20 What steps are necessary to  Sec.   2525.220 What steps
 use an education award to repay a           are necessary to use an
 qualified student loan?                     education award to repay a
                                             qualified student loan?
Sec.   2528.30 What steps are necessary to  Sec.   2525.230 What steps
 use an education award to pay all or part   are necessary to use an
 of the current educational expenses at an   education award to pay all
 institution of higher education?            or part of the current
                                             educational expenses at an
                                             institution of higher
                                             education?
Sec.   2528.40 Is there a limit on the      Sec.   2525.240 Is there a
 amount of an individual's education award   limit on the amount of an
 that the Corporation will disburse to an    Eligible Individual's
 institution of higher education for a       education award that
 given period of enrollment?                 AmeriCorps will disburse to
                                             an institution of higher
                                             education for a given
                                             period of enrollment?
Sec.   2528.50 What happens if an           Sec.   2525.250 What happens
 individual withdraws or fails to complete   if an individual withdraws
 the period of enrollment in an              or fails to complete the
 institution of higher education for which   period of enrollment in an
 the Corporation has disbursed all or part   institution of higher
 of that individual's education award?       education for which
                                             AmeriCorps has disbursed
                                             all or part of that
                                             individual's education
                                             award?
Sec.   2528.60 Who may use the education    Sec.   2525.260 Who may use
 award to pay expenses incurred in           the education award to pay
 enrolling in a G.I. Bill approved           expenses incurred in
 program?                                    enrolling in a G.I. Bill-
                                             approved program?
Sec.   2528.70 What steps are necessary to  Sec.   2525.270 What steps
 use an education award to pay expenses      are necessary to use an
 incurred in enrolling in a G.I. Bill        education award to pay
 approved program?                           expenses incurred in
                                             enrolling in a G.I. Bill-
                                             approved program?
Sec.   2528.80 What happens if an           Sec.   2525.280 What happens
 individual for whom the Corporation has     if an individual for whom
 disbursed education award funds withdraws   AmeriCorps has disbursed
 or fails to complete the period of          education award funds
 enrollment in a G.I. Bill approved          withdraws or fails to
 program?                                    complete the period of
                                             enrollment in a G.I. Bill
                                             approved program?
                                            Sec.   2525.290 What happens
                                             to an education award upon
                                             divorce or death?
Part 2529--Payment of Accrued Interest      Subpart E--Payment of
                                             Accrued Interest.
Sec.   2529.10 Under what circumstances     Sec.   2525.310 Under what
 will the Corporation pay interest that      circumstances will
 accrues on qualified student loans during   AmeriCorps pay interest
 an individual's term of service in an       that accrues on qualified
 approved AmeriCorps position or approved    student loans during an
 Silver Scholar position?                    individual's term of
                                             service in an approved
                                             position?
Sec.   2529.20 What steps are necessary to  Sec.   2525.320 What steps
 obtain forbearance in the repayment of a    are necessary to obtain
 qualified student loan during an            forbearance in the
 individual's term of service in an          repayment of a qualified
 approved AmeriCorps position?               student loan during an
                                             individual's term of
                                             service in an approved
                                             AmeriCorps position?
Sec.   2529.30 What steps are necessary     Sec.   2525.330 What steps
 for using funds in the National Service     are necessary for
 Trust to pay interest that has accrued on   AmeriCorps to pay interest
 a qualified student loan during a term of   that has accrued on a
 service for which an individual has         qualified student loan in
 obtained forbearance?                       forbearance?
Part 2530--Transfer of Education Awards     Subpart F--Transfer of
                                             Education Awards.
Sec.   2530.10 Under what circumstances     Sec.   2525.410 Under what
 may an individual transfer an education     circumstances may an
 award?                                      Eligible Individual
                                             transfer an education
                                             award?
Sec.   2530.20 For what purposes may a      Sec.   2525.420 For what
 transferred award be used?                  purposes may a transferred
                                             award be used?
Sec.   2530.30 What steps are necessary to  Sec.   2525.430 What steps
 transfer an education award?                are necessary to transfer
                                             an education award?
Sec.   2530.40 Is there a limit on the      Sec.   2525.440 Is there a
 number of individuals one may designate     limit on the number of
 to receive a transferred award?             recipients an individual
                                             may designate to receive a
                                             transferred award?
Sec.   2530.50 Is there a limit on the      Sec.   2525.450 Is there a
 amount of transferred awards a designated   limit on the amount of
 individual may receive?                     transferred education
                                             awards a Designated
                                             Recipient may receive?
Sec.   2530.60 What is the impact of        Sec.   2525.460 What is the
 transferring or receiving a transferred     impact of transferring or
 education award on an individual's          receiving a transferred
 eligibility to receive additional           education award on an
 education awards?                           Eligible Individual's
                                             eligibility to receive
                                             additional education
                                             awards?
Sec.   2530.70 Is a designated individual   Sec.   2525.470 Is a
 required to accept a transferred            Designated Recipient
 education award?                            required to accept a
                                             transferred education
                                             award?
Sec.   2530.80 Under what circumstances is  Sec.   2525.480 Under what
 a transfer revocable?                       circumstances is a transfer
                                             revocable?
Sec.   2530.85 What steps are necessary to  Sec.   2525.485 What steps
 revoke a transfer?                          are necessary to revoke a
                                             transfer?
                                            Sec.   2525.487 What happens
                                             to a transferred education
                                             award upon divorce or
                                             death?
Sec.   2530.90 Is a designated individual   Sec.   2525.490 Is the
 eligible for the payment of accrued         recipient of a transferred
 interest under Part 2529?                   education award eligible
                                             for the payment of accrued
                                             interest for their own
                                             student loans under subpart
                                             E?
------------------------------------------------------------------------

B. Part-by-Part (New Subpart-by-Subpart) Summary of Changes

1. Changes to Current Part 2525 (New Subpart A)
    Under this rule, part 2525 is newly designated as subpart A of part 
2525 and continues to set out the description of the National Service 
Trust and definitions. Changes ensure that definitions apply throughout 
the newly compiled CFR part 2525. For example, the changes delete the 
phrase ``for the purposes of this section'' for definitions of the 
following terms: ``AmeriCorps education award,'' ``economically 
disadvantaged youth,'' ``education award,'' ``G.I. Bill-approved 
program,'' ``Silver Scholar education award,'' and ``Summer of Service 
education award.''
    The changes to part 2525 add definitions for two terms and 
substantively revise two definitions. The newly added definitions are 
for the following terms:
     ``Eligible Individual'' as the individual who is eligible 
for an education award; and
     ``Designated Recipient'' as the person to whom an 
education award is transferred.
    The two definitions being revised are for ``educational expenses'' 
and ``qualified student loan.'' The changes revise the definition of 
``educational expenses'' to:
     Provide that costs of attendance are determined by the 
Title IV institution of higher education or G.I. Bill approved program;
     Include tuition or associated costs as determined by the 
program offered by the institution or establishment

[[Page 44724]]

approved for offering benefits for which educational assistance may be 
provided by the Secretary for Veterans Affairs;
     Include expenses incurred participating in a school-to-
work program approved by the Secretaries of Labor and Education;
     Delete reference to the following, because they would be 
included in the category of ``costs of attendance'' as determined by 
the institution or G.I. Bill approved program:
    [cir] Tuition and fees ``normally assessed'' by an institution;
    [cir] Tuition and fees for students engaged in a course of study by 
correspondence; and
    [cir] Expenses related to a student's disability; and
     Delete reference to costs associated with student 
engagement in a work experience under a cooperative education program 
or course because the costs would be included in the category for 
expenses incurred in participating in a school-to-work program.
    These changes will simplify the definition and do not affect what 
educational expenses an education award may be used for.
    Changes to the definition of ``qualified student loan'' delete the 
lists of specific federal family education loans, William D. Ford 
federal direct loans, Federal Perkins loans, and Public Health Service 
Act loans because they are included in the broad categories set out in 
the new definition. The changes also replace the category ``any other 
loan designated as such by Congress'' with the more specific category 
of loans determined by an institution of higher education or approved 
veterans' benefits program to be necessary to cover a student's 
educational expenses and made, insured, or guaranteed by certain listed 
entities.
    The changes also correct the cross-reference to the Higher 
Education Act of 1965 to cite to the correct section defining 
``institution of higher education.''
    Other changes to this newly designed subpart A are non-substantive, 
such as adding the legal name of the education awards to the definition 
of ``education award,'' eliminating unnecessary verbiage in definitions 
that first state the term and then repeat the term to provide the 
meaning.
2. Changes to Current Part 2526 (New Subpart B)
    Current part 2526, which is newly designated as subpart B to part 
2525, addresses eligibility for an education award.
    Changes to current part 2526, which will now be located at subpart 
B to part 2525, incorporate the newly defined terms for ``Eligible 
Individual'' and ``Designated Recipient'' for clarity. Edits to Sec.  
2525.10 clarify when Eligible Individuals are entitled to receive an 
education award, and clarify that an Eligible Individual may receive a 
full education award for a full-time term of service, a partial 
education award for a less than full-time term of service, or a pro-
rated education award if the Eligible Individual was granted a release 
from completing the term of service for compelling personal 
circumstances but completed at least 15 percent of the originally 
approved term of service and performed satisfactorily during that time. 
The final rule also moves to a separate section (Sec.  2525.15) the 
specifics for what the organization responsible for the individual's 
supervision must certify.
    Section 2525.15 combines requirements for AmeriCorps State and 
National approved national service positions with other approved 
national service positions for consistency. Section 2525.20 clarifies 
that there is a requirement, in the cross-referenced Sec.  
2522.230(a)(3), for the program to document the basis for any 
determination that compelling personal circumstances prevent the 
Eligible Individual from completing their term of service.
    Section 2525.30 revises the factors that AmeriCorps considers when 
determining whether an Eligible Individual may be entitled to use their 
education award when the Eligible Individual has three or more 
convictions for possession or sale of a controlled substance. The final 
rule deletes factors relating to the nature and extent of any other 
criminal record, the nature and extent of any involvement in 
trafficking of controlled substances, and the length of time between 
offenses. AmeriCorps has determined that these factors are unnecessary 
considerations, given that the type and amount of controlled substance 
and whether firearms or dangerous weapons were involved in the offense 
are already considered, and there is already a catch-all factor to 
allow for consideration of other relevant aggravating or ameliorating 
circumstances.
    Section 2525.40 revises the current section to separate information 
on extensions to the use period into new sections specific to various 
questions regarding extensions. Edits to this section also delete the 
specific reference to Summer of Service education awards.
    Section 2525.41 is a new section that specifically addresses when 
an application for an extension must be submitted and adds an exception 
to the requirement to submit a request for extension prior to the use 
period deadline for instances when the individual was unavoidably 
prevented from timely submitting their application.
    Section 2525.42 is a new section that specifically addresses the 
circumstances in which AmeriCorps will grant an extension. This section 
clarifies that AmeriCorps will automatically (upon receipt of an 
application) extend the use period when an individual served and 
successfully completed another term of service in an approved national 
service position during the use period. This section then clarifies 
that AmeriCorps treats all service in AmeriCorps and the Peace Corps as 
service in another approved national service position for the purposes 
of extensions, and specifies the documentation required to evidence 
service in the Peace Corps. Paragraph (b) of this section adds 
information on AmeriCorps' discretion to grant an extension when an 
Eligible Individual or Designated Recipient is unavoidably prevented 
from using the education award during the use period. Paragraph (b) 
also adds examples of situations that may warrant an extension. 
Paragraph (b)(2) provides factors that AmeriCorps will consider in 
determining whether to grant an extension. Paragraph (c) adds examples 
of circumstances that do not warrant an extension, but removes the 
current example of an individual who cannot use the education award as 
a result of the individual's conviction for possession or sale of a 
controlled substance, to allow AmeriCorps to examine the specific 
circumstances involved with the conviction under the factors.
    Section 2525.43 is a new section that specifies what will happen if 
a request for extension is missing information or documentation. 
Section 2525.44 is a new section that specifies how AmeriCorps will 
notify the Eligible Individual or Designated Recipient of its decision 
on the extension request. Section 2526.45 is a new section that 
provides new procedures for an Eligible Individual or Designated 
Recipient to appeal a denied request for extension.
    Section 2525.50 deletes information about the calculation of the 
value of each individual education award and instead focuses on how the 
aggregate value of awards is calculated, given that the limit is the 
aggregate value of two full-time education awards. Section 2525.55 also 
simplifies the section to convey the impact of the aggregate value of 
education awards on ability to serve

[[Page 44725]]

and to receive additional education awards.
    Section 2525.70 adds a new paragraph (b) to state that AmeriCorps 
will disallow the education award and/or initiate debt collection if 
AmeriCorps determines the certification made by a national service 
program is knowingly false or inaccurate.
3. Changes to Current Part 2527 (New Subpart C)
    Current part 2527, which will now be subpart C to part 2525, 
addresses determining the amount of an education award.
    Section 2525.100 replaces the text on the education award amounts 
that may be earned for part-time and reduced part-time service with a 
table setting out amounts specifically for three quarters time, half-
time, reduced half-time, quarter-time, minimal time and summer 
associate, and abbreviated time terms of service. These specifics 
better reflect the range of alternatives to full-time service and the 
accompanying partial education award amounts available. This section 
also labels as ``pro-rated awards'' those awards available to Eligible 
Individuals who are released from completing a term of service for 
compelling personal circumstances. This section also replaces the 
formula for discounted education award amounts (where discounting is 
required to ensure an Eligible Individual receives no more than the 
aggregate value of two awards) with a narrative explanation of how the 
award amounts are discounted, for clarity.
4. Changes to Current Part 2528 (New Subpart D)
    Current part 2528, which will now be subpart D to part 2525, 
addresses using an education award.
    Sections 2525.210 and 2525.240 refer to the updated definition of 
``educational expenses'' instead of repeating what the educational 
expenses include.
    Section 2525.250 specifies that the institution does not need to 
refund AmeriCorps for disbursed, but not used, education award funds if 
the Eligible Individual was charged for the uncompleted period of study 
or training. This section also clarifies that the institution must 
provide a pro-rata refund to AmeriCorps if the institution does not 
have a published refund policy.
    Section 2525.290, a new section, specifies that an education award 
is not to be treated as marital property and that, unless the listed 
circumstances are present, that an education award expires upon the 
Eligible Individual's death.
5. Changes to Current Part 2529 (New Subpart E)
    Part 2529, which will now be subpart E to part 2525, addresses 
payment of accrued interest.
    Section 2525.310 adds that the loan holder specifies the period of 
forbearance during the term of service. Paragraph (b) of this section 
adds that the portion of accrued interest AmeriCorps will pay is based 
on the length of service.
6. Changes to Current Part 2530 (New Subpart F)
    Part 2530, which will now be subpart F to part 2525, addresses the 
transfer of education awards.
    Section 2530.10 deletes the provision regarding enrollment on or 
before 2010 because the final rule will apply only after the effective 
date, which is in 2023. This section also adds the stepchild of an 
Eligible Individual to the categories of Designated Recipients for 
transferred awards.
    Section 2530.30 breaks out procedures for a Designated Recipient to 
accept a transferred award into a new paragraph (c). This section also 
adds a new paragraph (e) to clarify that a Designated Recipient may 
refuse to accept a transferred education award, and an Eligible 
Individual may revoke the amount of transfer that has not been 
requested for use.
    Section 2530.40 allows Eligible Individuals to transfer their 
education award to one or two individuals, rather than just one 
individual. Paragraph (b) of this section allows Designated Recipients 
to reject part of the education award designated to be transferred to 
them. These provisions also clarify that the main restriction on 
transfer or re-transfer of an education award to an eligible Designated 
Recipient is that the use period for the education award must not have 
expired.
    Section 2530.50 clarifies that any education awards the Designated 
Recipient may have earned through their own service term or that were 
previously been transferred to them are included in the calculation of 
the aggregate education award value limit. Paragraph (c) allows 
Eligible Individuals to re-transfer an education award if it is 
rejected in part by a Designated Recipient, allowing for more 
flexibility than the current regulation, which prohibits re-transfer of 
the rejected portion of the award.
    This final rule also adds a new paragraph to Sec.  2540.70 to 
clarify that a Designated Recipient who originally accepted a 
transferred education award may rescind their acceptance of any unused 
portion of the award at any time before the education award expires, 
and for any reason.
    Section 2540.80 removes the requirement for AmeriCorps to approve a 
re-transfer of an education award after an Eligible Individual revokes 
the award.
    Section 2530.85 deletes the paragraph regarding the mechanics of 
deducting and crediting the revoked amount because these functions are 
handled internally by AmeriCorps.
    Section 2530.87 is a new section that addresses what happens to a 
transferred education award upon divorce or death.

III. Response to Public Comments

    AmeriCorps published the proposed rule on January 6, 2023 (88 FR 
1021) and received two public comment submissions before the March 7, 
2023, comment deadline. Summaries of the points raised in those 
comments and AmeriCorps' responses are provided here. No changes to the 
proposed regulatory text were made in response to these comments or 
otherwise.
    One commenter was supportive of allowing those who earn education 
awards to spread the benefit to more than one beneficiary. This 
commenter stated that they have multiple grandchildren and would like 
to share their education award with as many of them as possible. They 
also stated they believe allowing sharing with multiple recipients 
would be an incentive for other older individuals to do more national 
service.
    Response: The final rule carries forward the proposal to increase 
the number of Designated Recipients to whom an Eligible Individual can 
transfer their earned award from one to two. The final rule does not 
increase the number of recipients to whom an education award may be 
transferred beyond two in order to best prevent fraud, waste, and 
abuse. Allowing transfers to more than two persons would substantially 
increase the level of internal controls needed and pose an undue 
administrative burden on the agency. The agency has determined that 
these risks can be more efficiently mitigated by limiting the number of 
transferees to two individuals.
    The other commenter stated their general support of the changes but 
provided the following suggestions and recommendations for additional 
changes.
    The commenter noted that Sec.  2525.55 states that the aggregate 
value of education awards does not limit an individual's ability to 
serve additional terms of service and requested that AmeriCorps 
leverage its waiver

[[Page 44726]]

authority to allow commissions to request a waiver to the four-term 
limit on AmeriCorps members.
    Response: The general limitation on four terms of service in an 
AmeriCorps State and National program is set out in a different 
regulation than the one being revised by this final rule (see 45 CFR 
2522.235); however, AmeriCorps will consider this comment as in any 
future updates to that regulation.
    This commenter also suggested that AmeriCorps should provide for an 
end-of-service ``cash stipend'' in lieu of an education award for 
individuals that have already earned the maximum aggregate value of 
education awards. The commenter stated this change would create more 
equity among AmeriCorps programs and assist AmeriCorps in recruitment 
and retention efforts:
    Response: This comment is beyond the scope of this regulation, but 
AmeriCorps will take it under advisement.
    This commenter requested that Sec.  2525.290 be revised so that, 
instead of an education award expiring upon an Eligible Individual's 
death, it could be transferred to an eligible Designated Recipient at 
that time and allow an extension of time for the Designated Recipient 
to access the education award if needed, even if the recipient was not 
age-eligible at the time the Eligible Individual earned the education 
award.
    Response: The proposed and final Sec.  2525.290 reflect the 
statutory limitation, which provides that the Eligible Individual must 
transfer the education award prior to death in order for the death not 
to affect the use of the education award by the Designated Recipient. 
See 42 U.S.C. 12604(f)(5).
    This commenter expressed their support of adding stepchild and 
step-grandchild to the categories of Designated Recipients for 
transferred awards, allowing transfer to one or two individuals rather 
than just one, allowing the recipient to reject all of part of the 
education award, and allowing the re-transfer of the rejected portion 
of the education award to someone else.
    Response: The final rule carries forward these aspects of the 
proposed rule.
    The commenter suggested removing or lowering the age requirement 
for transferring the education award and encouraged AmeriCorps to work 
with Congress to remove the limitation that an individual must be age 
55 or more the day service begins to be eligible to transfer the award, 
and instead allow anyone of any age to transfer their education award.
    Response: The commenter is correct that the rule cannot remove or 
lower the age requirement for transferring an education award because 
the statute provides as a condition for transfer of an education award 
that the eligible individual is age 55 or older before beginning the 
term of service involved. See 42 U.S.C. 12604(f)(2)(A)(ii).
    The commenter recommended not having transferred education awards 
count as part of an individual's aggregate value of education awards 
earned.
    Response: The current regulation provides that the amount received 
as a transferred education award is included in the aggregate value of 
awards received. See 45 CFR 2526.50(c)(4). The proposed rule did not 
propose any change to this requirement; however, AmeriCorps will take 
this recommendation under advisement for any future rulemaking.

IV. Regulatory Analyses

A. Executive Orders 12866 and 13563

    Executive Orders 12866 and 13563 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, distributive 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. The Office of Information and Regulatory Affairs in the 
Office of Management and Budget has determined this is not a 
significant regulatory action, and therefore is not subject to review 
under Section 6(b) of Executive Order 12866, Regulatory Planning and 
Review.

B. Congressional Review Act (Small Business Regulatory Enforcement 
Fairness Act of 1996, Title II, Subtitle E)

    As required by the Congressional Review Act (5 U.S.C. 801-808), 
before an interim or final rule takes effect, AmeriCorps will submit an 
interim or final rule report to the US House of Representatives, U.S. 
Senate, and to the Comptroller General of the U.S. A major rule cannot 
take effect until 60 days after it is published in the Federal 
Register. The Office of Information and Regulatory Affairs in the 
Office of Management and Budget anticipates that this will not be a 
major rule under 5 U.S.C. 804 because this rule 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 US-based enterprises to 
compete with foreign-based enterprises in domestic and export markets.

C. Regulatory Flexibility Act

    As required by the Regulatory Flexibility Act of 1980 (5 U.S.C. 601 
et seq.), AmeriCorps certifies that this rule will not have a 
significant economic impact on a substantial number of small entities. 
Therefore, AmeriCorps has not performed the initial regulatory 
flexibility analysis that is required under the Regulatory Flexibility 
Act (5 U.S.C. 601 et seq.) for rules that are expected to have such 
results.

D. Unfunded Mandates Reform Act of 1995

    For purposes of Title II of the Unfunded Mandates Reform Act of 
1995, 2 U.S.C. 1531-1538, as well as Executive Order 12875, this 
regulatory action does not contain any federal mandate that may result 
in increased expenditures in either federal, state, local, or tribal 
governments in the aggregate, or impose an annual burden exceeding $100 
million on the private sector.

E. Paperwork Reduction Act

    This rule requires a revision to one OMB Control Number, Education 
Award Transfer Forms, currently approved under OMB Control Number 3045-
0136, which expires January 31, 2024.
    The other information collections in the rule are already 
authorized by another OMB Control Number. Specifically, the 
requirements for certifications referred to in Sec. Sec.  2525.15 and 
2525.20 restate requirements in other parts of title 45 (specifically 
Sec. Sec.  2522.220 and 2522.230), which are authorized by OMB Control 
Number 3045-0006, Enrollment and Exit Forms, on which the sponsoring 
entity provides their certifications, and for which entities maintain 
supporting documentation as a usual and customary business practice.
    This final rule does not affect the information collections 
associated with parts 2528 and 2529 (other than affecting the CFR 
citations, which will be updated during routine renewals) that have 
been approved by OMB:
     For 45 CFR 2528: Voucher and Payment Request Form--
approved

[[Page 44727]]

under OMB Control Number 3045-0014, which expires March 31, 2026.
     For 45 CFR 2529: Interest Accrual Form--currently approved 
under OMB Control Number 3045-0053, which expires March 31, 2026. 
Forbearance Request for National Service Form--approved under OMB 
Control Number 3045-0030, which expires March 31, 2026.
    This final rule affects the Education Award Transfer Forms because 
the Request to Transfer a Segal Education Award Amount form must be 
updated to clarify that an award may be transferred to no more than two 
individuals, that a transfer may be declined in part or in full or 
revoked in part or in full, and to delete the portion of the form 
requiring request of a waiver to re-transfer. The Accept/Decline Award 
Transfer Form requires a change to indicate that step-children and 
step-grandchildren may accept the transfer of an education award. There 
is no change to the estimated time or hour or non-hour cost burdens 
resulting from these form changes. With this rulemaking, AmeriCorps is 
seeking to revise the following information collection:
    OMB Control Number: 3045-0136.
    Title: Education Award Transfer Forms.
    Brief Description of Collection: This information collection 
consists of the questions that AmeriCorps members answer to request a 
transfer of their education award or revoke a transfer, and that 
education award recipients answer to accept or decline the transfer or 
rescind their acceptance. The information collected identifies those 
qualified to transfer their award, the transfer award amount, and those 
qualified to receive the award transfer, as well as establish a 
National Service Trust account for the transfer recipient.
    Forms Affected: Transfer Application Form, Award Transfer 
Acceptance Form.
    Type of Review: Revision of a currently approved information 
collection:
    Respondents/Affected Public: Individuals.
    Total Estimated Number of Annual Respondents: 900.
    Total Estimated Number of Annual Responses: 900.
    Estimated Time per Response: 5 minutes.
    Estimated Total Annual Hour Burden: 75 hours.
    Respondents' Obligation: Required to obtain a benefit.
    Frequency of Response: Occasional.
    Total Estimated Annual Non-Hour Burden Response: $0.
    As part of our continuing effort to reduce paperwork and respondent 
burdens, we invite the public to comment on any aspect of this 
information collection, including:
    (1) Whether or not the collection of information is necessary for 
the proper performance of the functions of the agency, including 
whether or not the information will have practical utility;
    (2) The accuracy of our estimate of the burden for this collection 
of information, including the validity of the methodology and 
assumptions used;
    (3) Ways to enhance the quality, utility, and clarity of the 
information to be collected; and
    (4) Ways to minimize the burden of the collection of information on 
those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology, e.g., permitting 
electronic submission of response.
    Written comments and recommendations for the information collection 
revision should be sent within 30 days of publication of this 
rulemaking to www.reginfo.gov/public/do/PRAMain. Find this particular 
information collection by selecting ``Currently under 30-day Review--
Open for Public Comments'' or by using the search function. Please 
provide a copy of your comments to the person listed in the FOR FURTHER 
INFORMATION CONTACT section. Please reference OMB Control Number 3045-
0136 in the subject line of your comments.

F. Federalism (Executive Order 13132)

    Executive Order 13132, Federalism, prohibits an agency from 
publishing any rule that has federalism implications if the rule 
imposes substantial direct compliance costs on state and local 
governments and is not required by statute, or the rule preempts state 
law, unless the agency meets the consultation and funding requirements 
of section 6 of the Executive Order. This rulemaking does not have any 
federalism implications, as described above.

G. Takings (Executive Order 12630)

    This rule does not affect a taking of private property or otherwise 
have taking implications under Executive Order 12630 because this rule 
does not affect individual property rights protected by the Fifth 
Amendment or involve a compensable ``taking.'' A takings implication 
assessment is not required.

H. Civil Justice Reform (Executive Order 12988)

    This rule complies with the requirements of Executive Order 12988. 
Specifically, this rulemaking: (a) Meets the criteria of section 3(a) 
requiring that all regulations be reviewed to eliminate errors and 
ambiguity and be written to minimize litigation; and (b) Meets the 
criteria of section 3(b)(2) requiring that all regulations be written 
in clear language and contain clear legal standards.

I. Consultation With Indian Tribes (Executive Order 13175)

    AmeriCorps recognizes the inherent sovereignty of Indian tribes and 
their right to self-governance. The agency has evaluated this 
rulemaking under the AmeriCorps consultation policy and the criteria in 
Executive Order 13175 and determined that this rule does not impose 
substantial direct effects on federally recognized tribes.

List of Subjects in 45 CFR Part 2525

    Grant programs--social programs, student aid, volunteers.
    For the reasons discussed in the preamble, under the authority of 
42 U.S.C. 12651c(c), the Corporation for National and Community Service 
amends chapter XXV of title 45 of the Code of Federal Regulations as 
follows:

0
1. Revise part 2525 to read as follows:

PART 2525--NATIONAL SERVICE TRUST

Subpart A--Purpose and Definitions
Sec.
2525.1 What is the National Service Trust?
2525.2 Definitions.
Subpart B--Eligibility for an Education Award
2525.10 When can an Eligible Individual receive an education award 
from the National Service Trust?
2525.15 Upon what basis may an entity responsible for the 
supervision of an Eligible Individual certify that the Eligible 
Individual successfully completed a term of service?
2525.20 Under what circumstances is an Eligible Individual who does 
not complete an approved term of service eligible to receive a pro-
rated education award?
2525.25 If a participant in an approved Summer of Service or Silver 
Scholar position does not complete their term of service, are they 
eligible to receive a pro-rated education award?
2525.30 How do convictions for the possession or sale of controlled 
substances affect an Eligible Individual's ability to use their 
award?
2525.40 How long is an education award available for use?

[[Page 44728]]

2525.41 When must an application for an extension be submitted?
2525.42 Under what circumstances will AmeriCorps grant an extension?
2525.43 What if the request for an extension is missing information 
or documentation?
2525.44 How will AmeriCorps notify an Eligible Individual or 
Designated Recipient of its decision on the extension request?
2525.45 Can an Eligible Individual or Designated Recipient appeal a 
denied request for an extension?
2525.50 Is there a limit on the total amount of education awards an 
individual may receive?
2525.55 What is the impact of the aggregate value of education 
awards received on an individual's ability to serve in additional 
terms of service?
2525.60 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 term of service?
2525.70 What are the effects of an erroneous certification of 
successful completion of a term of service?
Subpart C--Determining the Amount of an Education Award
2525.100 What is the amount of an education award?
Subpart D--Using an Education Award
2525.210 For what purposes may an education award be used?
2525.220 What steps are necessary to use an education award to repay 
a qualified student loan?
2525.230 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?
2525.240 Is there a limit on the amount of an Eligible Individual's 
education award that AmeriCorps will disburse to an institution for 
a given period of enrollment?
2525.250 What happens if an individual withdraws or fails to 
complete the period of enrollment in an institution of higher 
education for which AmeriCorps has disbursed all or part of that 
individual's education award?
2525.260 Who may use the education award to pay expenses incurred in 
enrolling in a G.I. Bill-approved program?
2525.270 What steps are necessary to use an education award to pay 
expenses incurred in enrolling in a G.I. Bill-approved program?
2525.280 What happens if an individual for whom AmeriCorps has 
disbursed education award funds withdraws or fails to complete the 
period of enrollment in a G.I. Bill-approved program?
2525.290 What happens to an education award upon divorce or death?
Subpart E--Payment of Accrued Interest
2525.310 Under what circumstances will AmeriCorps pay interest that 
accrues on qualified student loans during an individual's term of 
service in an approved position?
2525.320 What steps are necessary to obtain forbearance in the 
repayment of a qualified student loan during an individual's term of 
service in an approved AmeriCorps position?
2525.330 What steps are necessary for AmeriCorps to pay interest 
that has accrued on a qualified student loan in forbearance?
Subpart F--Transfer of Education Awards
2525.410 Under what circumstances may an Eligible Individual 
transfer an education award?
2525.420 For what purposes may a transferred award be used?
2525.430 What steps are necessary to transfer an education award?
2525.440 Is there a limit on the number of recipients an individual 
may designate to receive a transferred award?
2525.450 Is there a limit on the amount of transferred education 
awards a Designated Recipient may receive?
2525.460 What is the impact of transferring or receiving a 
transferred education award on an Eligible Individual's eligibility 
to receive additional education awards?
2525.470 Is a Designated Recipient required to accept a transferred 
education award?
2525.480 Under what circumstances is a transfer revocable?
2525.485 What steps are necessary to revoke a transfer?
2525.487 What happens to a transferred education award upon divorce 
or death?
2525.490 Is the recipient of a transferred education award eligible 
for the payment of accrued interest for their own student loans?

    Authority: 42 U.S.C. 12601-12606

Subpart A--Purpose and Definitions


Sec.  2525.1  What is the National Service Trust?

    The National Service Trust is an account in the Treasury of the 
United States from which AmeriCorps makes payments of education awards, 
pays interest that accrues on qualified student loans for AmeriCorps 
participants during terms of service in approved national service 
positions, and makes other payments authorized by Congress.


Sec.  2525.2  Definitions.

    In addition to the definitions in Sec.  2510.20 of this chapter, 
the following definitions apply to terms used this part:
    AmeriCorps means the Corporation for National and Community 
Service.
    Cost of attendance has the same meaning as in Title IV of the 
Higher Education Act of 1965, as amended (20 U.S.C. 1070 et. seq.).
    Current educational expenses means the cost of attendance, or other 
costs attributable to an educational course offered by an institution 
of higher education that has in effect a program participation 
agreement under Title IV of the Higher Education Act, for a period of 
enrollment that begins after an individual enrolls in an approved 
national service position.
    Designated Recipient means the person to whom an earned education 
award is transferred.
    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 means the Segal AmeriCorps Education Award of 
financial assistance available under this part, including the Silver 
Scholar education awards, and Summer of Service education awards.
    Educational expenses means--
    (1) Cost of attendance as determined by the Title IV institution of 
higher education or G.I. Bill-approved program as provided in 20 U.S.C. 
1087ll; or
    (2) Tuition or associated costs as determined by a program offered 
by an educational institution or training establishment approved for 
educational benefits under 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; and
    (3) Expenses incurred participating in a school-to-work program 
approved by the Secretaries of Labor and Education.
    Eligible Individual means an individual who has enrolled in and 
successfully completed a term of service in an approved national 
service position, as certified under Sec.  2525.15.
    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.
    Holder means--
    (1) The original lender; or
    (2) Any other entity to which a loan is subsequently sold, 
transferred, or assigned if such entity acquires a legally enforceable 
right to receive payments from the borrower.
    Institution of higher education has the same meaning given the term 
in section 102 of the Higher Education Act of 1965, as amended (20 
U.S.C. 1002).
    Period of enrollment means the period that the institution has 
established for which institutional charges are generally assessed 
(e.g., length of the

[[Page 44729]]

student's course, program, or academic year.)
    Qualified student loan means:
    (1) Any loan made, insured, or guaranteed under Title IV of the 
Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), other than a 
loan to a parent of a student under section 428B of that Act (20 U.S.C. 
1078-2);
    (2) Any loan made under Title VII or VIII of the Public Service 
Health Act (42 U.S.C. 292a et seq.); or
    (3) Any other loan determined by an institution of higher education 
or an approved veterans' benefits program to be necessary to cover a 
student's educational expenses and made, insured, or guaranteed by:
    (i) An eligible lender, as defined in section 435 of the Higher 
Education Act of 1965 (20 U.S.C. 1085);
    (ii) The direct student loan program under part D of Title IV of 
the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.);
    (iii) A State agency; or
    (iv) A lender otherwise determined by AmeriCorps to be eligible to 
receive disbursements from the National Service Trust.
    Silver Scholar education award means the financial assistance 
available under this part for which an individual in an approved Silver 
Scholar position may be eligible.
    Summer of Service education award means the financial assistance 
available under this part for which an individual in an approved Summer 
of Service position may be eligible.
    Term of service means--
    (1) For an individual serving in an approved AmeriCorps position, 
one of the terms of service specified in Sec.  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
    (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.

Subpart B--Eligibility for an Education Award


Sec.  2525.10  When can an Eligible Individual receive an education 
award from the National Service Trust?

    (a) General. An Eligible Individual is entitled to receive an 
education award from the National Service Trust if that person:
    (1) Is a citizen or national of the United States or a lawful 
permanent resident alien of the United States; and,
    (2) Met the applicable eligibility requirements for the approved 
national service program as appropriate; and,
    (3) Either:
    (i) Is certified by their supervising entity to have successfully 
completed a term of service--whether a full-time 1,700-hour term 
corresponding to a full education award or a less than full-time term 
of service with a corresponding partial award amount described in Sec.  
2525.100(b)--as certified under Sec.  2525.15; or
    (ii) For a pro-rated education award amount described in Sec.  
2525.100(c), is certified by their supervising entity to have 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 Sec.  2522.230(a) of 
this chapter.
    (b) Prohibition on duplicate benefits. An Eligible Individual who 
receives a post-service benefit in lieu of an education award may not 
receive an education award for the same term of service.
    (c) Penalties for false information. Any individual who makes a 
materially false statement or representation in connection with the 
approval or disbursement of an education award or other payment from 
the National Service Trust may be liable for the recovery of funds and 
subject to civil and criminal sanctions.


Sec.  2525.15  Upon what basis may an entity responsible for the 
supervision of an Eligible Individual certify that the Eligible 
Individual successfully completed a term of service?

    (a) An Eligible Individual's supervising entity must certify that 
the individual has successfully completed a term of service. The 
individual successfully completed a term of service if the individual 
has:
    (1) Completed the number of service hours required;
    (2) Satisfactorily performed on assignments, tasks, or projects;
    (3) Met any performance criteria as determined by the program and 
communicated to the member; and
    (4) Fulfilled any other enrollment and program requirements to earn 
an education award.
    (b) A certification by the supervising entity that an individual 
did or did not successfully complete a term of service will be deemed 
to incorporate an end-of-term evaluation.


Sec.  2525.20  Under what circumstances is an Eligible Individual who 
does not complete an approved term of service eligible to receive a 
pro-rated education award?

    (a) Release for compelling personal circumstances. An Eligible 
Individual who is released before they complete an approved term of 
service is eligible for a pro-rated education award if their 
supervising entity:
    (1) Released the Eligible Individual for compelling personal 
circumstances in accordance with the requirements of Sec.  2522.230(a) 
of this chapter, including requirements for maintaining documentation 
of the basis for the entity's decision;
    (2) Certifies that the Eligible Individual:
    (i) Performed satisfactorily before they were granted a release for 
compelling personal circumstances; and
    (ii) Completed at least 15 percent of the originally approved term 
of service.
    (b) Release for cause. An individual who is released for cause 
before they completed an originally approved term of service is not 
eligible for any portion of an education award.


Sec.  2525.25  If a participant in an approved Summer of Service or 
Silver Scholar position does not complete their term of service, are 
they eligible to receive a pro-rated education award?

    No. An individual released for any reason before they complete an 
approved term of service in a Silver Scholar or Summer of Service 
position is not eligible to receive a pro-rated award.


Sec.  2525.30  How do convictions for the possession or sale of 
controlled substances affect an Eligible Individual's ability to use 
their award?

    (a) Except as provided in paragraph (b) of this section, an 
Eligible Individual who is convicted under Federal or State law of the 
possession or sale of a controlled substance is not eligible to use his 
or her education award from the date of the conviction until the end of 
a specified time period, which is determined based on the type of 
conviction as follows:
    (1) For conviction of the possession of a controlled substance, the 
individual is ineligible from the date of conviction for--
    (i) One year for a first conviction;
    (ii) Two years for a second conviction; and
    (iii) For a third or subsequent conviction, indefinitely, as 
determined by AmeriCorps according to the following factors:
    (A) Type and amount of controlled substance;
    (B) Whether firearms or other dangerous weapons were involved in 
the offense;
    (C) Employment history;
    (D) Service to the community;
    (E) Recommendations from community members and local officials, 
including experts in substance abuse and treatment; and

[[Page 44730]]

    (F) Any other relevant aggravating or ameliorating circumstances.
    (2) For conviction of the sale of a controlled substance, the 
individual is ineligible from the date of conviction for--
    (i) Two years for a first conviction; and
    (ii) Two years plus any additional time AmeriCorps determines is 
appropriate for second and subsequent convictions, based on the factors 
set forth in paragraphs (a)(1)(iii)(A) through (F) of this section.
    (b) AmeriCorps will restore the Eligible Individual's access to use 
the education award if AmeriCorps determines that the individual has 
successfully completed a legitimate drug rehabilitation program, or in 
the case of a first conviction that the individual has enrolled in a 
legitimate drug rehabilitation program and:
    (1) The drug rehabilitation program is recognized as legitimate by 
appropriate Federal, State, or local authorities; and
    (2) The Eligible Individual's enrollment in or successful 
completion of the legitimate drug rehabilitation program has been 
certified by an appropriate official of that program.


Sec.  2525.40  How long is an education award available for use?

    Unless AmeriCorps approves an extension under Sec.  2525.42, the 
use period for an education award is as follows:
    (a) An education award is available for an Eligible Individual to 
use until seven years from the date when they successfully completed 
the term of service for which the award was earned;
    (b) An education award that is transferred to a Designated 
Recipient under subpart F of this part may be used until 10 years from 
the date when the Eligible Individual who transferred the award 
successfully completed their term of national service.


 Sec.  2525.41  When must an application for an extension be submitted?

    An application for an extension must be submitted to AmeriCorps 
before the award use period ends, or the individual must have been 
unavoidably prevented from timely submitting the extension application.


Sec.  2525.42  Under what circumstances will AmeriCorps grant an 
extension?

    (a) AmeriCorps will automatically grant an extension to the use 
period of an education award if the individual served and successfully 
completed a term of service in an approved national service position 
that fell within the use period for that education award and applies 
for an extension under Sec.  2525.41.
    (1) The use period will be extended by the length of the 
individual's additional approved and completed term of service at the 
time of the extension application.
    (2) For purposes of this extension, AmeriCorps will treat all 
service in AmeriCorps and the Peace Corps as service in another 
AmeriCorps-approved national service position.
    (3) If the additional of service is in the Peace Corps, the 
individual requesting an extension will need to provide a Description 
of Service, signed by the country's director or designee for the Peace 
Corps service.
    (b) If AmeriCorps determines that an Eligible Individual or 
Designated Recipient was unavoidably prevented from using the education 
award during the original use period, AmeriCorps may grant an extension 
for a period of time that AmeriCorps deems appropriate, but generally 
not for more than one year from the end of the original use period. 
Also, AmeriCorps will grant only one extension of the use period except 
in very limited circumstances, such as, for example, when the event 
preventing the member from timely using their education award is likely 
to exist for more than 12 months, such as active military duty.
    (1) Examples of situations that may warrant an extension if they 
hinder use of an education award may include, but are not limited to:
    (i) The Eligible Individual's serious illness, injury, or 
disability;
    (ii) The death, serious illness, injury, or disability of someone 
in the Eligible Individual's immediate family that occurs close to the 
end of the use period;
    (iii) The destruction or inaccessibility of important service 
records maintained by the program;
    (iv) Natural disasters;
    (v) Military service that prevents the use of an education award, 
such as active duty overseas (but a person in the reserves or National 
Guard who has not been called up on active duty, or who is enlisted in 
the military, is not necessarily unavoidably prevented from timely 
using their education award because of their military service).
    (2) When considering whether to grant an extension, AmeriCorps also 
will consider whether:
    (i) The extension is a result of the individual's choices or 
actions or factors beyond the individual's control;
    (ii) The need for the extension is in any part attributable to 
AmeriCorps' or an AmeriCorps-funded entity's actions;
    (iii) The lending institution or institution entitled to the 
payment failed to take an action, or took an action, that resulted in 
the individual needing/wanting the extension.
    (c) Examples of circumstances that do not meet the criteria for 
granting an extension may include but are not limited to:
    (1) Employment or unemployment, even in a position with a non-
profit organization involved in community service.
    (2) Forgetting to use the education award, being unaware of the 
use-period restrictions, or not receiving his or her education award 
expiration notice.
    (3) Being too young to use a transferred education award.


Sec.  2525.43  What if the request for an extension is missing 
information or documentation?

    If the extension application lacks necessary information or 
documentation, AmeriCorps may request additional documentation. If the 
requested additional documentation is not provided to AmeriCorps within 
30 days, AmeriCorps may close the request for an extension.


Sec.  2525.44  How will AmeriCorps notify the Eligible Individual or 
Designated Recipient of its decision on the extension request?

    AmeriCorps will notify the Eligible Individual or Designated 
Recipient in writing if the request for an extension has been granted 
or denied. The notification will advise the requester of the process 
for appealing the denial if the requester has a good-faith basis to 
believe their request was erroneously denied.


Sec.  2525.45  Can an Eligible Individual or Designated Recipient 
appeal a denied request for an extension?

    (a) If an Eligible Individual or Designated Recipient submits a 
timely application for an extension and the application is denied, the 
individual may file an appeal. The appeal must:
    (1) Be received within 30 days of the denial determination;
    (2) Be made in writing--either online through the My AmeriCorps 
portal if the education award has not expired--or through a submission 
to the National Service Hotline at 1-800-942-2677;
    (3) Explain why the initial determination was erroneous/should be 
reviewed; and,
    (4) Include supporting documentation, if applicable.
    (b) AmeriCorps may grant an appeal when, after review of all the 
information provided originally and on appeal, it appears that the 
extension should have been granted. AmeriCorps may ask for

[[Page 44731]]

additional documentation to inform the appeal determination.
    (c) Individuals who submit appeals will be notified in writing of 
the final determination.


Sec.  2525.50  Is there a limit on the total amount of education awards 
an individual may receive?

    (a) General limitation. While there is no limit on the specific 
dollar amount, no individual may receive more than the amount equal to 
the aggregate value of two full-time education awards.
    (b) Calculation of aggregate value of awards received. The 
aggregate value of education awards received is the sum of:
    (1) The value of each education award received for successful 
completion of an approved national service position;
    (2) The value of each partial education award received upon release 
from an approved national service position for compelling personal 
circumstances; and
    (3) The value of any amount received from a transferred education 
award, except as provided in Sec.  2525.460.
    (c) 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 use.


Sec.  2525.55  What is the impact of the aggregate value of education 
awards received on an individual's ability to serve in additional terms 
of service?

    The aggregate value of education awards received does not limit an 
individual's ability to serve in additional terms of service, but does 
impact the amount of the education award the individual may receive 
pursuant to Sec.  2525.100(d) upon successful completion of any 
additional term of service.


Sec.  2525.60  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 term of service?

    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.


Sec.  2525.70  What are the effects of an erroneous certification of 
successful completion of a term of service?

    (a) If AmeriCorps determines that the certification made by a 
national service program under Sec.  2525.10(a)(2) is erroneous, 
AmeriCorps 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 that led to the erroneous or incorrect certification.
    (b) If AmeriCorps determines that the certification made is 
knowingly false or inaccurate, AmeriCorps will disallow the education 
award and/or initiate a debt collection process for any education award 
funds disbursed.
    (c) Nothing in this section prohibits AmeriCorps from taking any 
action authorized by law based upon any certification that is knowingly 
made in a false, materially misleading, or fraudulent manner.

Subpart C--Determining the Amount of an Education Award


Sec.  2525.100  What is the amount of an education award?

    (a) Full-time term of service. Except as provided in paragraph (d) 
of this section, the education award for a full-time term of service in 
an approved national service 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 that grant may receive in the aggregate for the award year 
in which the term of service is approved by AmeriCorps.
    (b) Less than full-time term of service. Except as provided in 
paragraph (d) of this section, the amount of an education award for an 
approved national service position for less than full-time term of 
service (i.e., partial award) is determined in accordance with the 
following table:

                        Table 1 to Paragraph (b)
------------------------------------------------------------------------
                                                        Is equal to the
                                                           following
                                                       percentage of the
                                                          amount of an
                                    In an approved      education award
              For:                  position of at      for a full-time
                                    least: (hours)      term of service
                                                          described in
                                                        paragraph (a) of
                                                         this section:
------------------------------------------------------------------------
Three quarters time term of                     1,200  70 percent.
 service (TQT).
Half-time term of service (HT).                   900  50 percent.
Reduced half-time term of                         675  Approximately 39
 service (RHT).                                         percent.
Quarter-time term of service                      450  Approximately 26
 (QT).                                                  percent.
Minimal time and summer                           300  Approximately 21
 associate (MT & SA).                                   percent.
Abbreviated time (AT)..........                   100  5.6 percent.
------------------------------------------------------------------------

    (c) Calculating a pro-rated award following release for compelling 
personal circumstances. The education award for an Eligible Individual 
who is released from completing an approved term of service for 
compelling personal circumstances is equal to the product of:
    (1) The number of hours completed divided by the number of hours in 
the approved term of service; and
    (2) The amount of the education award for the approved term of 
service.
    (d) Calculating a discounted education award amount. To ensure that 
an Eligible Individual receives no more than the aggregate value of two 
awards, pursuant to Sec.  2525.50, if the sum of the education award 
value offered for a term of service and the aggregate value of 
previously-received education awards exceeds the value of two awards, 
then the individual may receive only a portion of that offered 
education award, such that the aggregate value of the education awards 
is not greater than the value of two awards.

Subpart D--Using an Education Award


Sec.  2525.210  For what purposes may an education award be used?

    (a) An education award may be used to pay educational expenses and/
or to repay qualified student loans, as defined in Sec.  2525.2;
    (b) An education award is divisible and may be applied to any 
combination of loans, costs, or expenses described in paragraph (a) of 
this section.

[[Page 44732]]

Sec.  2525.220  What steps are necessary to use an education award to 
repay a qualified student loan?

    (a) Required information. Before disbursing an amount from an 
education award to repay a qualified student loan, AmeriCorps must 
receive:
    (1) An Eligible Individual's written authorization and request for 
a specific payment amount; and
    (2) Any identifying and other information from the loan holder as 
requested by AmeriCorps.
    (b) Payment. When AmeriCorps receives the information required 
under paragraph (a) of this section, it will pay the loan holder and 
notify the Eligible Individual of the payment.
    (c) Aggregate payments. AmeriCorps may establish procedures to 
aggregate payments to holders of loans for more than a single 
individual.


Sec.  2525.230  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) Required information. Before disbursing funds from an education 
award to pay all or part of the current educational expenses at an 
institution of higher education, AmeriCorps must receive:
    (1) An Eligible Individual's written authorization and request for 
a specific payment amount;
    (2) Information from the institution of higher education as 
requested by AmeriCorps, including verification that--
    (i) It has in effect a program participation agreement under 
section 487 of the Higher Education Act of 1965 (20 U.S.C. 1094);
    (ii) Its eligibility to participate in any of the programs under 
Title IV of the Higher Education Act of 1965 has not been limited, 
suspended, or terminated;
    (iii) If an Eligible 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 of higher 
education will ensure an appropriate refund to AmeriCorps of the unused 
portion of the education award under its own published refund policy, 
or if it does not have one, provide a pro-rata refund to AmeriCorps of 
the unused portion of the education award;
    (iv) Individuals using education awards to pay for current 
educational expenses at that institution do not comprise more than 15 
percent of the institution's total student population;
    (v) The requested amount will be used to pay all or part of the 
Eligible Individual's educational expenses attributable to a course 
offered by the institution;
    (vi) The requested amount does not exceed the difference between:
    (A) The Eligible Individual's cost of attendance and other 
educational expenses; and
    (B) The Eligible 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.).
    (b) Payment. When AmeriCorps receives the information required 
under paragraph (a) of this section, it will pay the institution and 
notify the Eligible Individual of the payment.
    (c) Installment payments. AmeriCorps will disburse the education 
award payment to the institution in at least two separate installments, 
none of which exceeds 50 percent of the total amount. The interval 
between installments may not be less than one-half of the period of 
enrollment, except as necessary to permit the second installment to be 
paid at the beginning of the second semester, quarter, or other 
division of a period of enrollment.


 Sec.  2525.240  Is there a limit on the amount of an Eligible 
Individual's education award that AmeriCorps will disburse to an 
institution for a given period of enrollment?

    Yes. AmeriCorps' disbursement from an Eligible Individual's 
education award for any period of enrollment may not exceed the 
difference between:
    (a) The Eligible Individual's educational expenses, determined by 
the institution; and
    (b) The Eligible Individual's estimated financial assistance for 
that period under part A of Title IV of the Higher Education Act.


Sec.  2525.250  What happens if an individual withdraws or fails to 
complete the period of enrollment in an institution of higher education 
for which AmeriCorps has disbursed all or part of that individual's 
education award?

    (a) If an Eligible Individual for whom AmeriCorps has disbursed 
education award funds withdraws or otherwise fails to complete a period 
of enrollment, then an institution that receives a disbursement of 
education award funds from AmeriCorps must:
    (1) Provide a refund to AmeriCorps in an amount determined under 
that institution's published refund requirements, unless the 
institution charged the Eligible Individual for the uncompleted period 
of study or training.
    (2) Provide a pro-rata refund to AmeriCorps of the unused portion 
of the education award if the institution does not have a published 
refund policy.
    (b) AmeriCorps will credit any refund received for an Eligible 
Individual under paragraph (a) of this section to the individual's 
education award allocation in the National Service Trust.


Sec.  2525.260  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 incurred in enrolling in 
a G.I. Bill-approved program, an Eligible Individual must have received 
an education award for successfully completing a term in an approved 
national service position, in which they enrolled on or after October 
1, 2009.


Sec.  2525.270  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 funds from an education 
award for this purpose, AmeriCorps must receive:
    (1) An individual's written authorization and request for a 
specific payment amount;
    (2) Verification from the individual that they meet the criteria in 
Sec.  2525.260; and
    (3) Information from the educational institution or training 
establishment as requested by AmeriCorps, 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 AmeriCorps of the unused portion of the 
education award.
    (b) Payment. When AmeriCorps receives the information required 
under paragraph (a) of this section, it will pay the institution or 
establishment and notify the individual of the payment.


Sec.  2525.280  What happens if an individual for whom AmeriCorps 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 AmeriCorps has disbursed education 
award funds withdraws or otherwise

[[Page 44733]]

fails to complete a period of enrollment, the approved educational 
institution or training establishment that received a disbursement of 
education award funds from AmeriCorps must provide a pro-rata refund to 
AmeriCorps of the unused portion of the education award.
    (b) AmeriCorps 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.


Sec.  2525.290  What happens to an education award upon divorce or 
death?

    (a) Prohibition on treatment of an education award as marital 
property. An education award may not be treated as marital property, or 
the asset of a marital estate, subject to division in a divorce or 
other civil proceeding.
    (b) Death of Eligible Individual. An educational award expires and 
is no longer available for any purpose upon the death of the Eligible 
Individual, except for:
    (1) Any award or portion of the educational award the Eligible 
Individual transferred prior to death;
    (2) Any amount for which the Eligible Individual submitted a 
request for disbursement prior to death that the National Service Trust 
had not yet either received or acted upon as of the date of death.

Subpart E--Payment of Accrued Interest


Sec.  2525.310  Under what circumstances will AmeriCorps pay interest 
that accrues on qualified student loans during an individual's term of 
service in an approved position?

    (a) Eligibility. AmeriCorps will pay interest that accrues on an 
Eligible Individual's qualified student loan, subject to the limitation 
on amount in paragraph (b) of this section, if:
    (1) The Eligible Individual successfully completes a term of 
national service in an approved position; and
    (2) The loan holder approves the Eligible Individual's request for 
forbearance for a time period specified by the loan holder during the 
term of service.
    (b) Amount. The portion of accrued interest that AmeriCorps will 
pay is determined by the length of service. The percentage of accrued 
interest that AmeriCorps will pay is the lesser of--
    (1) The product of--
    (i) The number of completed service hours divided by the number of 
days for which forbearance was granted; and
    (ii) 365 divided by 17; and
    (2) One hundred (100).
    (c) Supplemental to education award. A payment of accrued interest 
under this part is supplemental to an education award received by an 
Eligible Individual under this part.
    (d) Limitation. AmeriCorps is not responsible for the payment of 
any accrued interest in excess of the amount determined in accordance 
with paragraph (b) of this section.
    (e) Suspended service. AmeriCorps will not pay interest expenses 
that accrue on an Eligible Individual's qualified student loan during a 
period of suspended service.


Sec.  2525.320  What steps are necessary to obtain forbearance in the 
repayment of a qualified student loan during an individual's term of 
service in an approved AmeriCorps position?

    (a) An Eligible Individual seeking forbearance must submit a 
request to the loan holder.
    (b) If, before approving a request for forbearance, the loan holder 
requires verification that the Eligible Individual is serving in an 
approved national service position, AmeriCorps will provide 
verification upon a request from the Eligible Individual or the loan 
holder.


Sec.  2525.330  What steps are necessary for AmeriCorps to pay interest 
that has accrued on a qualified student loan in forbearance?

    (a) If an Eligible Individual has obtained forbearance on a 
qualified student loan, AmeriCorps will make payments from the National 
Service Trust for interest that has accrued on that student loan during 
the individual's term of service, after:
    (1) The program verifies that the Eligible Individual has 
successfully completed the term of service and the dates when the term 
of service began and ended;
    (2) The holder of the loan verifies the amount of interest that has 
accrued during the term of service.
    (b) When AmeriCorps receives all necessary information from the 
program and the loan holder, it will pay the loan holder and notify the 
individual of the payment.

Subpart F--Transfer of Education Awards


Sec.  2525.410  Under what circumstances may an Eligible Individual 
transfer an education award?

    An Eligible Individual may transfer an education award if--
    (a) The Eligible Individual was 55 or older on the day they began 
the term of service in an approved national service position;
    (b) The Eligible Individual successfully completed a term of 
service in an approved national service position;
    (c) The education award the Eligible Individual is requesting to 
transfer has not expired, consistent with the period of availability 
set forth in Sec.  2525.40(a);
    (d) The individual designated to receive the transferred education 
award (the Designated Recipient) is:
    (1) The Eligible Individual's child, grandchild, stepchild, step-
grandchild, or foster child; and
    (2) A citizen, national, or lawful permanent resident of the United 
States.
    (e) The Designated Recipient is not entitled to the education award 
until their citizenship status has been verified. Once citizenship is 
confirmed, the Designated Recipient has all the benefits of an Eligible 
Individual.


Sec.  2525.420  For what purposes may a transferred award be used?

    A transferred award may be used by the Designated Recipient to 
repay qualified student loans or to pay current educational expenses at 
an institution of higher education, as described in Sec.  2525.210.


Sec.  2525.430  What steps are necessary to transfer an education 
award?

    (a) Request for transfer. Before transferring an education award to 
a Designated Recipient, AmeriCorps must receive a request from the 
transferring Eligible Individual, including:
    (1) The Eligible Individual's written authorization to transfer the 
education award, the year in which the education award was earned, and 
the specific amount of the education award to be transferred;
    (2) Identifying information for the Designated Recipient who is to 
receive the transferred education award;
    (3) A certification that the transferring Eligible Individual and 
the Designated Recipient have completed or satisfy the requirements of 
Sec.  2525.410.
    (b) Notification to Designated Recipient. Upon receipt of a 
request, including all required information listed in paragraph (a) of 
this section, AmeriCorps will contact the Designated Recipient to:
    (1) Notify the Designated Recipient, or their legal guardian, of 
the proposed transfer;
    (2) Confirm the Designated Recipient's identity;
    (3) Confirm that the Designated Recipient is a citizen, national, 
or lawful permanent resident of the United States; and
    (4) Give the Designated Recipient the opportunity to accept or 
reject the proposed transferred education award.

[[Page 44734]]

    (c) Acceptance by Designated Recipient. To accept an education 
award, a Designated Recipient, or their legal guardian, must certify 
that the Designated Recipient is eligible under Sec.  2525.410. Upon 
receipt of the Designated Recipient's acceptance and verification of 
the Designated Recipient's eligibility, AmeriCorps will create an 
account in the National Service Trust for the Designated Recipient, if 
an account does not already exist, and the accepted amount will be 
deducted from the transferring Eligible Individual's account and 
credited to the Designated Recipient's account.
    (d) Timing of transfer. AmeriCorps must receive the request from 
the transferring Eligible Individual before the date the education 
award expires.
    (e) Refusal. The Designated Recipient can refuse to accept the 
transferred education award under Sec.  2525.470.
    (f) Revocation. The Eligible Individual can revoke part or all of 
the remaining balance of the transfer that has not yet been requested 
for use under Sec. Sec.  2525.480 and 2525.485.


Sec.  2525.440  Is there a limit on the number of recipients an 
individual may designate to receive a transferred award?

    (a) An Eligible Individual may transfer all or part of a non-
expired education award to no more than two recipients.
    (b) If a Designated Recipient rejects, in whole or in part, a 
transferred education award, or a transfer was revoked in accordance 
with Sec.  2525.480, the education award can be transferred to another 
Designated Recipient, so long as the education award has not yet 
expired.


Sec.  2525.450  Is there a limit on the amount of transferred education 
awards a Designated Recipient may receive?

    (a) If the sum of the value of the requested transfer plus the 
aggregate value of education awards a Designated Recipient has 
previously earned or received, through the Designated Recipient's own 
service term or having previously been transferred an education award, 
would exceed the aggregate value of two full-time education awards, as 
determined pursuant to Sec.  2525.50(b), the Designated Recipient will 
be deemed to have rejected that portion of the education award that 
would result in the excess.
    (b) If a Designated Recipient has already received the aggregate 
value of two full-time education awards, they may not receive a 
transferred education award, and the Designated Recipient will be 
deemed to have rejected the education award in full.


Sec.  2525.460  What is the impact of transferring or receiving a 
transferred education award on an Eligible Individual's eligibility to 
receive additional education awards?

    (a) Impact on transferring individual. Pursuant to Sec.  2525.50, 
an education award is considered to be received at the time it becomes 
available for a Designated Recipient's 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 Recipient. For the purposes of determining 
the value of the transferred education award under Sec.  2525.50, a 
Designated Recipient will be considered to have received a value equal 
to the amount received divided by the amount of a full-time education 
award in the year the transferring Eligible Individual's position for 
that education award was approved.
    (c) Result of revocation on education award value. If the Eligible 
Individual revokes the transferred education award, in whole or in 
part, the value of the education award considered to have been received 
by the Designated Recipient for purposes of Sec.  2525.50 will be 
reduced accordingly.


Sec.  2525.470  Is a Designated Recipient required to accept a 
transferred education award?

    (a) General rule. No. A Designated Recipient is not required to 
accept a transferred education award and may reject an education award 
in whole or in part.
    (b) Result of rejection in full. If the Designated Recipient 
rejects a transferred education award in whole, the amount is credited 
back to the transferring Eligible Individual's account in the National 
Service Trust, and may be transferred to another individual, or may be 
used by the transferring Eligible Individual, consistent with the 
original period of availability set forth in Sec.  2525.40(a).
    (c) Result of rejection in part. If the Designated Recipient 
rejects a transferred education award in part, the rejected portion is 
credited to the transferring Eligible Individual's account in the 
National Service Trust for their use, including re-transfer of the 
education award, consistent with the original period of availability 
set forth in Sec.  2525.40(a).
    (d) Rescission. A Designated Recipient who originally accepted a 
transferred education award may rescind their acceptance of any unused 
portion of the award at any time before the education award expires, 
and for any reason.


Sec.  2525.480  Under what circumstances is a transfer revocable?

    (a) Revocation. An Eligible Individual who transferred an award may 
revoke the transfer at any time and for any reason before the education 
award's expiration and use by the Designated Recipient.
    (b) Use of award. Upon revocation, the revoked amount will be 
deducted from the Designated Recipient's account and credited to the 
transferring Eligible Individual's account. The transferring Eligible 
Individual may use the revoked transferred education award for any of 
the purposes described in Sec.  2525.210, consistent with the original 
time period of availability set forth in Sec.  2525.40(a).
    (c) Re-transfer. An Eligible Individual may re-transfer an 
education award to another qualifying individual after revoking the 
education award.


Sec.  2525.485  What steps are necessary to revoke a transfer?

    (a) Request for revocation. Before revoking a transfer, the 
transferring Eligible Individual must submit a request to AmeriCorps 
that includes:
    (1) The Eligible Individual's written authorization to revoke the 
education award;
    (2) The year in which the education award was earned;
    (3) The specific amount to be revoked; and
    (4) The identity of the Designated Recipient.
    (b) Used education awards. A revocation may only apply to the 
portion of the transferred education award that has not been used by 
the Designated Recipient. If the Designated Recipient has used the 
entire transferred amount before AmeriCorps receives the revocation 
request, no amount will be returned to the transferring Eligible 
Individual. An amount is considered to be used when it is disbursed 
from the National Service Trust, not when a request is received for its 
use.
    (c) Notification to Designated Recipient. AmeriCorps will notify 
the Designated Recipient of the amount being revoked as of the date of 
its receipt of the revocation request.
    (d) Timing of revocation. AmeriCorps must receive the request to 
revoke the transfer from the transferring Eligible Individual before 
the education award's expiration as calculated pursuant to Sec.  
2525.40(a)(2), from the date the education award was originally earned.


Sec.  2525.487  What happens to a transferred education award upon 
divorce or death?

    (a) Prohibition on treatment of a transferred education award as 
marital property. An education award

[[Page 44735]]

transferred under this subsection may not be treated as marital 
property, or the asset of a marital estate, subject to division in a 
divorce or other civil proceeding.
    (b) Death of transferor. The death of an Eligible Individual who 
has transferred, or initiated the transfer of, an education award under 
this subsection does not affect the use of the education award by the 
Designated Recipient.


Sec.  2525.490  Is a recipient of a transferred education award 
eligible for the payment of accrued interest for their own student 
loans?

    No. The transfer of an education award does not convey eligibility 
for payment of accrued interest under subpart E of this part.

PART 2526--[REMOVED AND RESERVED]

0
2. Remove and reserve part 2526.

PART 2527--[REMOVED AND RESERVED]

0
3. Remove and reserve part 2527.

PART 2528--[REMOVED AND RESERVED]

0
4. Remove and reserve part 2528.

PART 2529--[REMOVED AND RESERVED]

0
5. Remove and reserve part 2529.

PART 2530--[REMOVED AND RESERVED]

0
6. Remove and reserve part 2530.

Fernando Laguarda,
General Counsel.
[FR Doc. 2023-14729 Filed 7-12-23; 8:45 am]
BILLING CODE 6050-28-P

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