NSF Federal Cyber Scholarship-for-Service Program (CyberCorps® SFS), 50044-50053 [2023-16009]

Agencies

• NATIONAL SCIENCE FOUNDATION

[Federal Register Volume 88, Number 146 (Tuesday, August 1, 2023)]
[Rules and Regulations]
[Pages 50044-50053]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-16009]


=======================================================================
-----------------------------------------------------------------------

NATIONAL SCIENCE FOUNDATION

45 CFR Part 620

RIN 3145-AA-64


NSF Federal Cyber Scholarship-for-Service Program 
(CyberCorps[supreg] SFS)

AGENCY: National Science Foundation (NSF).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The rule establishes repayment standards for 
CyberCorps[supreg] SFS scholarship recipients who fail to fulfill 
program requirements, and the process for requesting deferral or 
discharge of their service or repayment obligation, in whole or part. 
The rule also requires that, during the period that they are performing 
their service obligation under the program, scholarship recipients must 
provide annual documentation of their service employment and their 
current contact information.

DATES: This rule is effective August 31, 2023.

FOR FURTHER INFORMATION CONTACT: Victor Piotrowski, Lead Program 
Director, CyberCorps SFS, NSF, 2415 Eisenhower Avenue, Alexandria, VA 
22314, (703) 292-5141, [email protected].

SUPPLEMENTARY INFORMATION: On July 15, 2022, NSF published proposed 
regulations for its CyberCorps[supreg] Scholarship for Service (SFS) 
program, pursuant to the Cybersecurity Enhancement Act of 2014 (Pub. L. 
113-274, sec. 302, 15 U.S.C. 7442), as amended. See 87 FR 42431 
(proposing new 45 CFR part 620). The goal of the program, which is led 
and managed by NSF in coordination with the U.S. Office of Personnel 
Management (OPM) and Department of Homeland Security (DHS), is to 
recruit and train the next generation of information technology 
professionals, industrial control system security professionals, and 
security managers to meet the needs of the cybersecurity mission for 
Federal, State, local, and tribal governments.\1\
---------------------------------------------------------------------------

    \1\ See 15 U.S.C. 7442(a).
---------------------------------------------------------------------------

    Under the program, NSF makes grant awards to qualified institutions 
of higher education to provide scholarships to students pursuing 
degrees or specialized program certifications in the cybersecurity 
field and cybersecurity-related aspects of other related fields as 
appropriate, including artificial intelligence, quantum computing and 
aerospace, covering the student's tuition and fees for not more than 
three years, plus stipend.\2\ In return, scholarship recipients must 
agree that, after receiving their degree, they will work for a period 
equal to the length of their scholarship in the cybersecurity mission 
of a Federal executive agency or other qualifying entity (i.e., 
Congress, interstate agency, State, local, or tribal government or 
affiliated critical infrastructure non-profit, or as a cybersecurity 
educator in a qualified institution of higher education that provides 
SFS scholarships to students).\3\ Recipients must also agree to provide 
OPM (in coordination with NSF) and their qualified institution of 
higher education with ``annual verifiable documentation of post-award 
employment'' and ``up-to-date contact information'' while they are 
completing their service obligation.\4\
---------------------------------------------------------------------------

    \2\ See id. at 7442(b) (as amended by the CHIPS and Science Act, 
Public Law 117-167, sec. 10316 (2022)), (c). The program is also 
intended to provide summer internship opportunities or other 
meaningful temporary appointments in the Federal information 
technology and cybersecurity workforce, to prioritize the placement 
of scholarship recipients fulfilling their post-award employment 
obligation with executive agencies and other cybersecurity 
positions, and to provides award to promote cybersecurity education, 
such as awards for summer cybersecurity camps or teacher training, 
in each of the 50 states at the kindergarten through grade 12 level. 
Id. at 7442(b)(2), (4). A detailed summary of the program's 
activities and achievements can be found in the statement of basis 
and purpose (preamble) accompanying the proposed rule.
    \3\ Id. at 7442(d) (post-award employment obligation). The 
program is required to ``prioritize the placement of scholarship 
recipients fulfilling the post-award employment obligation . . . to 
ensure that--(A) not less than 70 percent of such recipients are 
placed in an executive agency . . . ; (B) not more than 10 percent 
of such recipients are placed as educators in the field of 
cybersecurity at qualified institutions of higher education that 
provide scholarships under this section; and (C) not more than 20 
percent of such recipients are placed'' in other qualifying 
cybersecurity positions. See 15 U.S.C. 7442(b)(3).
    \4\ Id. at 7442(g)(1); see also id. at 7442(h) (requiring that 
SFS institutions monitor their scholarship recipients' compliance 
with this service obligation, and also provide NSF and OPM with 
documentation of such service until it is completed).
---------------------------------------------------------------------------

    Scholarship recipients who fail to fulfill their service or 
reporting obligations, or other scholarship conditions required by the 
Cybersecurity Enhancement Act, become liable to the United States for 
repayment of the scholarship.\5\ In these cases, the Act provides that 
the recipient's institution shall be responsible for: (1) determining 
the repayment amount, based on how much of the post-award employment 
obligation the recipient has completed, if any; (2) notifying the 
recipient, OPM, and NSF; and (3) collecting repayment within a time 
period determined by the Director of NSF.\6\ The Act provides that such 
amounts ``shall . . . be repaid'' by the scholarship recipient 
``or[,]'' if not repaid, the repayment obligation ``shall be treated'' 
as a Federal Direct

[[Page 50045]]

Unsubsidized Loan, ``subject to repayment, together with interest 
thereon accruing from the date of the scholarship award, in accordance 
with terms and conditions specified by the Director of the National 
Science Foundation (in consultation with the Secretary of Education) in 
regulations promulgated to carry out this subsection.'' \7\
---------------------------------------------------------------------------

    \5\ See id. at 7442(g)(2) (imposing liability on a scholarship 
recipient who ``(A) fails to maintain an acceptable level of 
academic standing at the applicable institution of higher education, 
as determined by the Director of the National Science Foundation; 
(B) is dismissed from the applicable institution of higher education 
for disciplinary reasons; (C) withdraws from the eligible degree 
program before completing the program; (D) declares that the 
individual does not intend to fulfill the post-award employment 
obligation under this section; (E) fails to maintain or fulfill any 
of the post-graduation or post-award obligations or requirements of 
the individual; or (F) fails to fulfill the requirements of 
paragraph (1) [i.e., annual verifiable documentation of post-award 
employment and up-to-date contact information].'').
    \6\ Id. at 7442(i), (k).
    \7\ Id. at 7442(k); see also id. at 7442(i), (j) (requiring the 
repayment obligation to be treated as a Federal Direct Unsubsidized 
Loan under part D of title IV of the Higher Education Act of 1965 
(20 U.S.C. 1087a et seq.)).
---------------------------------------------------------------------------

Proposed Rule

    In support of the above requirements, NSF's proposed rule set forth 
repayment standards (terms and conditions) to be applied to recipients 
who fail to fulfill their service obligation. See proposed Sec.  620.6 
(obligation to repay). The proposed rule also set forth procedures by 
which scholarship recipients may request that the NSF Director defer or 
discharge their post-award employment or repayment obligation under the 
Director's legal authority to suspend or waive such obligations. See 
proposed Sec.  620.4 (deferral of obligation), Sec.  620.5 (discharge 
of agreement to serve or pay).\8\ In addition, the proposed rule 
included a provision reflecting the requirement that scholarship 
recipients provide annual post-award employment documentation and up-
to-date contact information while completing their service obligation. 
See proposed Sec.  620.3 (documenting the service obligation). The 
remaining provisions of the proposed rule explained the rule's scope 
and purpose (proposed Sec.  620.1), defined key terms used in the rule 
(proposed Sec.  620.2), and included a severability clause (i.e., if 
one provision of the rule is invalidated, its other provisions will 
remain in force) (proposed Sec.  620.7).
---------------------------------------------------------------------------

    \8\ The Cybersecurity Enhancement Act permits ``[t]he Director 
of the National Science Foundation [to] provide for the partial or 
total waiver or suspension of any service or payment obligation by 
an individual under this section whenever compliance by the 
individual with the obligation is impossible or would involve 
extreme hardship to the individual, or if enforcement of such 
obligation with respect to the individual would be unconscionable.'' 
See 15 U.S.C. 4772(l).
---------------------------------------------------------------------------

Public Comment

    In response to the proposed rule, NSF received one anonymous public 
comment, suggesting that the agency more clearly define the 
circumstances in which enforcement of a student's service obligation 
would be so ``impossible,'' ``unconscionable,'' or result in such 
``extreme hardship'' that a partial or complete waiver of the 
obligation would be justified. The commenter suggested that such a 
clarification would provide additional guidance to administrators 
advising students who might apply for a waiver, would allow agency 
decisionmakers to stand behind their waiver decisions more strongly, 
and would give students a level of confidence ``that each application 
for a waiver will be treated [the same] as the last, as much as that is 
possible.''
    The agency has determined that it is unnecessary to clarify these 
terms further. The rule (see Sec. Sec.  620.4 and 620.5) already sets 
forth several specific examples that provide meaningful and substantial 
guidance to students (i.e., scholarship recipients) potentially 
applying for a deferral (suspension) of the period to fulfill their 
service obligation or, if appropriate, a waiver (discharge) of the 
service or repayment obligation (e.g., death, total or permanent 
disability, financial or economic burden, other medical situations). At 
the same time, the rule preserves flexibility for students to 
demonstrate, and for the agency to determine, the circumstances under 
which a deferral or waiver, in whole or part, may be justified.
    Students will submit their waiver or deferral requests, for 
consideration by the Director (or other designated NSF official), 
through the program's official online portal, https://sfs.opm.gov/. As 
explained in the proposed rule, this portal is maintained and used by 
OPM's SFS program office to administer the scholarship program under 
reimbursable agreement with NSF.\9\ Students already use the portal to 
register with the program, to ask questions and obtain information, 
including about qualifying cybersecurity employment opportunities, to 
provide and update their current contact information, and to submit 
documentation of their post-graduation employment.\10\ As noted above, 
when requesting a waiver or deferral, students will have the 
opportunity to explain the specific reason or basis for their request, 
and to submit supporting information or documentation to justify the 
request, including why it would be impossible, unconscionable, or an 
extreme hardship for them to fulfill their service or repayment 
obligation.
---------------------------------------------------------------------------

    \9\ See 87 FR at 42432.
    \10\ Likewise, if a student has retained counsel or is deceased, 
the student's authorized legal representative (e.g., an attorney or 
relative serving as an executor of the student's estate) may also 
use the portal to contact the program and seek a waiver or deferral 
on the student's behalf. Alternatively, as discussed later in the 
``Paperwork Reduction Act'' section of this document, NSF is also 
providing an email address where such requests may be directed.
---------------------------------------------------------------------------

Final Rule Technical Amendments

    In adopting the proposed rule as final, the agency has made other 
technical clarifications and corrections.
    First, in Sec.  620.2 (definitions), it has removed the definitions 
of ``payment data'' and ``monitoring phase,'' since these terms are not 
used in the rule and are not needed to interpret or apply it. In 
addition, the definition of ``Scholarship Phase'' has been revised to 
reflect the statutory requirement that the individual be enrolled in a 
full-time program of study, except individuals in community college, 
who must be enrolled at least half-time.
    Second, in Sec.  620.1 (scope and purpose) and Sec.  620.2 
(definitions), the agency has corrected language stating that 
scholarship recipients shall fulfill their service obligation ``in a 
position related to cybersecurity'' for a Federal, state, local, or 
Tribal government organization. These rule provisions have been revised 
to conform to the language of the Cybersecurity Enhancement Act, which 
states that the scholarship recipient shall be employed ``in the 
cybersecurity mission'' of a Federal executive agency, Congress 
(including any agency, entity, office, or commission established in the 
legislative branch), an interstate agency, a state, local or Tribal 
government or government-affiliated non-profit considered to be 
critical infrastructure (as defined in 42 U.S.C. 5195c(e)), or as an 
educator in the field of cybersecurity at a qualified institution of 
higher education (as defined in 15 U.S.C. 7442(b)(3)(B)).\11\ 
Additionally, in Sec.  620.2, the agency has revised the definition of 
``service obligation'' by clarifying what employment may be credited 
towards that obligation,\12\ and requiring that scholarship recipients 
obtain prior approval of their proposed cybersecurity positions from 
the SFS program office. Such approval is necessary to ensure that the 
individual will be employed in a position that qualifies under the 
statute, and to prioritize the placement of certain percentages of 
scholarship recipients in various positions in Government and other 
organizations, as discussed earlier. See note 3. The definition of 
``agreement

[[Page 50046]]

to serve or repay'' in Sec.  620.2 has also been revised to make clear 
that a scholarship recipient who fails to fulfill the service 
obligation must repay the ``scholarship or'' the amount shall be 
treated as a Federal direct unsubsidized loan, and that the recipient 
must also comply with both the recipient's service agreement ``and 
these rules.'' Further, the definition of ``Commitment Phase'' (i.e., 
the five-year period within which the scholarship recipient must 
complete the service obligation and submit verifiable documentation of 
that service) has been revised to clarify that it begins immediately 
following the date when the Scholarship Phase ends, and not 18 months 
later, as the proposed rule might be read to suggest.\13\ The revised 
definition also makes clear that the duration of the Commitment Phase 
is subject to any deferral (extension) granted by the NSF Director 
under Sec.  620.4 (deferral of service obligation).
---------------------------------------------------------------------------

    \11\ See 15 U.S.C. 7442(d) (defining post-award employment 
obligation).
    \12\ In proposed Sec.  620.2, the definition of ``service 
obligation'' stated, ``All time at the agency that the recipient is 
considered an employee of the agency counts toward the service 
obligation.'' The final rule instead provides that, with respect to 
employment in the cybersecurity mission of a Federal executive 
agency, periods of employment in paid duty status will be credited 
towards the service obligation, while periods in unpaid nonduty 
status will not be credited.
    \13\ Scholarship recipients will have 18 months to submit 
documentation that they have begun the required post-award 
employment, as under current program practice and policy, which will 
not change and was the intent of the proposed rule language.
---------------------------------------------------------------------------

    Third, Sec.  620.6 (obligation to repay) has been revised in 
paragraph (a) to make clear that a scholarship recipient's obligation 
to repay may result not only from failure to fulfill the recipient's 
service obligation, but also failure to provide annual verifiable post-
award employment documentation and up-to-date contact information, or 
to fulfill any of the other terms and conditions of support imposed by 
the Cybersecurity Enhancement Act, as discussed earlier.\14\
---------------------------------------------------------------------------

    \14\ See 15 U.S.C. 7442(g)(2) (conditions of support), discussed 
supra note 5. In these cases, the NSF Director has the authority to 
suspend or waive the repayment obligation on the condition that the 
scholarship recipient complete some or all of the service 
obligation, even if the individual has not received a degree, as 
ordinarily contemplated under the program statute. See id. at 
7442(d) (requiring that a scholarship recipient agree to serve for a 
period equal to the length of the scholarship ``following receipt of 
the student's degree'').
---------------------------------------------------------------------------

    Fourth, Sec.  620.6 (obligation to repay) has been further revised 
in paragraph (a) to clarify that the amount of the scholarship for 
which the recipient shall be liable will be calculated in accordance 
with the formula set forth in the Cybersecurity Enhancement Act, at 15 
U.S.C. 7442(i), which depends on whether the recipient has completed 
less than one year of service, or one or more years of service.
    Fifth, in Sec.  620.4 (deferral of obligation) and Sec.  620.5 
(discharge of agreement to serve or repay), the agency has added 
language permitting a scholarship recipient to seek reconsideration if 
the NSF Director denies the recipient's request for a deferral or 
discharge under those sections. Although the Cybersecurity Enhancement 
Act does not provide for a right of appeal or any right to an oral 
hearing, the rule will provide an opportunity for a scholarship 
recipient to request reconsideration in written form where there may be 
new or additional facts or applicable law that the recipient believes 
should be considered. If reconsideration is requested, the Director's 
decision on that request shall be considered final, with no further 
reconsideration. Furthermore, the agency has revised Sec. Sec.  620.4 
and 620.5 to clarify the deadline for requesting a deferral or 
discharge. Specifically, a request for a deferral of the service 
obligation must be received before the period for completing that 
service has expired (i.e., Commitment Phase). Furthermore, NSF will not 
consider any request to defer or discharge any scholarship amounts that 
have already been repaid or referred to the Department of the Treasury 
for collection. In addition, the heading of Sec.  620.4 is amended to 
refer to deferral of the ``service'' obligation, in contrast to Sec.  
620.5, which pertains to the partial or total discharge (waiver) of 
either the service or repayment obligation.
    Sixth, in Sec.  620.6 (obligation to repay), the agency has deleted 
language from paragraph (c) that stated that, when a CyberCorps SFS 
scholarship is treated for repayment purposes as a Direct Unsubsidized 
Loan, it ``is not counted against the scholarship recipient's annual or 
aggregate loan limits under 34 CFR 685.203 [Department of Education 
loan limits].'' This language, which NSF included in consultation with 
the Department of Education, was intended to allow the full amount of a 
SFS scholarship to be treated as a Direct Unsubsidized Loan under NSF's 
regulations,\15\ regardless whether the total amount would exceed the 
limits normally applicable to such loans under the Department's loan 
regulations. To better reflect that intent, the final rule, now in 
paragraph (b), rather than paragraph (c), of Sec.  620.6, states that 
an SFS scholarship shall be repaid or treated as a Direct Unsubsidized 
Loan under NSF's rule, ``without regard to'' the annual or aggregate 
loan limits set forth in the Department of Education's loan 
regulations. Whether SFS scholarship amounts treated as a Direct 
Unsubsidized Loan will be ``counted'' or not against the Department's 
loan limits (i.e., if and when the individual applies for other Federal 
student loans) is a separate issue that falls outside the scope of 
these regulations and NSF's authority.\16\ In addition, paragraphs (b) 
and (c) have been revised to clarify that the interest rate applicable 
to SFS scholarship amounts treated as Direct Unsubsidized Loans is 
determined by the statute governing the terms and conditions of such 
loans (i.e., 20 U.S.C. 1078e), that such interest accrues from the date 
of the scholarship award, as specified in the Cybersecurity Enhancement 
Act (see supra note 7), and that, if the loan goes into default, the 
individual will also be liable for reasonable collection fees and costs 
(plus court costs and attorney fees, if the Government has to sue the 
individual to collect).\17\
---------------------------------------------------------------------------

    \15\ The statutory provision governing scholarship repayment 
contains no dollar limit on the amount that shall be repaid or 
treated as a Direct Unsubsidized Loan. See 15 U.S.C. 7442(i) (amount 
of repayment).
    \16\ NSF nonetheless notes that, when the Department of 
Education converts other Federal grants into Direct Unsubsidized 
Loans for repayment purposes, it expressly exempts those amounts 
from the annual and aggregate limits applicable to such loans. See 
34 CFR 685.203(k) (``Any TEACH Grants that have been converted to 
Direct Unsubsidized Loans are not counted against any annual or 
aggregate loan limits under this section.''). NSF believes it would 
be appropriate, as a matter of consistency and fairness, for the 
Department to provide the same exemption for any CyberCorps SFS 
scholarship amounts treated as Direct Unsubsidized Loans under this 
rule.
    \17\ Cf. https://fsapartners.ed.gov/sites/default/files/attachments/2020-04/SubUnsubMPN.pdf (master promissory note for 
Direct Unsubsidized Loans) at 11 (] 17) (indicating that the 
individual will be required to pay reasonable collection fees and 
costs, plus court costs and attorney fees, if the individual 
defaults on the loan).
---------------------------------------------------------------------------

    Seventh, other clarifications have been made to Sec.  620.6 
(obligation to repay), aside from those already discussed above. 
Paragraph (a) no longer contains a sentence stating that SFS 
scholarships treated as Direct Unsubsidized Loans will be repaid in 
accordance with terms and conditions prescribed by the Director of NSF. 
That sentence has been rendered unnecessary in light of paragraphs (b) 
and (g), which directly address such repayment terms and conditions. 
Paragraph (b), as proposed, allowed individuals to avoid repayment by 
submitting documentation showing that they have actually completed 
their service obligation. Additional language has been added to that 
paragraph in the final rule, to explain that individuals who have 
violated other scholarship terms and conditions and become liable for 
repayment may similarly submit documentation, if any, demonstrating 
that they have not in fact violated those terms and conditions, to 
avoid repayment. Paragraph (d) informs scholarship recipients that they 
will be sent notices during the Commitment Phase, prior to the 
deadlines for

[[Page 50047]]

beginning and completing their service obligation, reminding them that 
they must timely submit verifiable documentation of such service; the 
proposed rule mentioned only the latter notice. Paragraph (f) is 
revised to explicitly warn individuals that failure to receive these 
notices, or the annual notices described in paragraph (e), will not 
relieve them from liability for scholarship repayment. Paragraph (g) 
now emphasizes that all benefits and terms and conditions normally 
applicable to a borrower under the Direct Unsubsidized Loan program 
(e.g., interest rate, repayment schedule) will apply when a CyberCorps 
scholarship is treated as a Direct Unsubsidized Loan for repayment 
purposes, i.e., not only the initial six-month grace period mentioned 
in the proposed rule. Finally, paragraph (h) of Sec.  620.6 has been 
revised to make clear that, when an individual's repayment obligation 
is treated as a Direct Unsubsidized Loan, NSF cannot convert it back 
into a scholarship once it has been referred to the Department of the 
Treasury for debt collection.\18\
---------------------------------------------------------------------------

    \18\ For example, such a loan may be referred to Treasury's 
Bureau of Fiscal Service (BFS) Centralized Receivables Service 
(CRS), which collects current non-delinquent, non-tax accounts 
receivable on behalf of federal agencies. See https://www.fiscal.treasury.gov/crs/. Furthermore, if the loan (debt) 
becomes delinquent, it normally must be transferred no later than 
120 days to Treasury BFS's cross-servicing program, which will also 
submit the debt to the offset program. See https://fiscal.treasury.gov/cross-servicing/; https://fiscal.treasury.gov/top/how-top-works.html.
---------------------------------------------------------------------------

    Eighth, Sec.  620.3 (documenting the service obligation) and 
paragraph (e)(2) of Sec.  620.6 (obligation to repay) are revised to 
clarify that the recipient must provide the required post-award 
employment documentation and up-to-date contact information annually to 
both OPM and NSF in a ``form and manner'' (rather than a ``form'') 
approved by the SFS program office, to allow that office flexibility in 
determining the specific format in which such information shall be 
provided. For consistency, Sec.  620.3 and Sec.  620.6(e)(2) are 
revised to state that this documentation is to be provided to OPM and 
NSF via the ``SFS program office,'' rather than sent directly to the 
``Director,'' or the ``Director and OPM,'' as had been stated in the 
proposed rule. Furthermore, a sentence is added at the end of Sec.  
620.3 to reflect the Act's requirement that the recipient also provide 
this information to the recipient's SFS institution.\19\ Additionally, 
proposed Sec.  620.3 could be read to imply that this documentation 
must be submitted only ``if'' the individual is completing the service 
obligation. In the final rule, Sec.  620.3 states that this 
documentation must be submitted ``[t]o demonstrate'' that the 
individual is completing that obligation.
---------------------------------------------------------------------------

    \19\ See 15 U.S.C. 7442(g)(1).
---------------------------------------------------------------------------

    Ninth, the authority for the rule (following the table of contents) 
has been revised to include the Cybersecurity Enhancement Act, 15 
U.S.C. 7442, as authority and basis for the rule's requirements, in 
addition to the agency's general rulemaking authority under the NSF Act 
of 1950, 42 U.S.C. 1870.
    Tenth, the final rule has been revised throughout to remove 
references to SFS scholarships being ``converted'' into Direct 
Unsubsidized Loans for repayment purposes. The final rule reverts to 
the statutory language, which states that, when an individual fails to 
serve or otherwise violates the SFS scholarship's conditions of 
support, it must be repaid or ``shall be treated as'' a Direct 
Unsubsidized Loan. See 15 U.S.C. 7442(g), (i)-(k). For example, SFS 
scholarship repayment plans, agreements, or promissory notesshall be 
``treated [i.e., the same] as'' a Direct Unsubsidized Loan, and subject 
to repayment under the same terms and conditions that would apply to 
such loans, as NSF has stated in Sec.  620.6(g). By using the language 
expressly prescribed by Congress, the final rule conforms to the 
statute's requirements, without suggesting that SFS scholarships will 
be routinely ``converted'' into Direct Unsubsidized Loans (i.e., 
payable to the Department of Education). At the same time, the rule 
does not foreclose SFS institutions from utilizing that option, if it 
becomes available and feasible to do so.

Regulatory Analysis

    Consistent with requirements applicable to significant regulatory 
actions within the meaning of Executive Order 12866,\20\ the notice of 
the proposed rule included a regulatory analysis explaining the 
expected impact of the rule, including its impact on Federal agencies. 
See 87 FR at 42433. Although no public comments were received on the 
impact analysis, certain changes have been made to that analysis to 
reflect more accurately the anticipated impact of the revised rule.
---------------------------------------------------------------------------

    \20\ See section 3(f) of Exec. Order 12866 (defining significant 
regulatory action to include any regulatory action that is likely to 
result in a rule that may, among other things, ``(3) Materially 
alter the budgetary impact of entitlements, grants, user fees, or 
loan programs or the rights and obligations of recipients 
thereof''). Accordingly, pursuant to that Executive Order, NSF 
submitted the rule to OMB for its pre-publication review. See 87 FR 
at 42435 (also citing Executive Order 13563).
---------------------------------------------------------------------------

    There are three main reasons that the rule is needed. First, under 
the law, a scholarship recipient's obligation to repay ``shall be 
treated as'' a Direct Unsubsidized Loan in accordance with terms and 
conditions that the Director of the National Science Foundation (in 
consultation with the Secretary of Education) is required by law to be 
set forth in regulations promulgated to carry out subsection (j) of 15 
U.S.C. 7442. Second, without these regulations, current practice 
creates limited options for OPM, NSF, and SFS institutions, as well as 
potential hardship for students. In many cases, the participating 
CyberCorps[supreg] SFS institution is neither able to collect a 
repayment nor convert it to a loan due to lack of cooperation from a 
scholarship recipient, closing an NSF award at an institution, or the 
amounts exceeding annual or aggregate loan limits under 34 CFR 685.203. 
Thus, if the individual does not submit a one-time payment to the SFS 
institution or NSF, the matter has typically been referred to Treasury 
as a delinquent debt for collection purposes. Third, under current 
practice, students are not afforded the terms and conditions of a 
Direct Unsubsidized Loan if the scholarship is not treated as such a 
loan.
    Three groups will be affected by the final rule: Students (SFS 
scholars), universities (SFS institutions), and certain Federal 
agencies (OPM, NSF, and Treasury). Table 1, Table 2, and Table 3 
summarize expected impacts on those three groups.

[[Page 50048]]



                            Table 1--Expected Impact of the Proposed Rule on Students
----------------------------------------------------------------------------------------------------------------
                                          Number per                                Expected impact of proposed
                                             year            Current practice                   rule
----------------------------------------------------------------------------------------------------------------
Students fulfilling obligation through             300  Students report            None.
 service.                                                completion to OPM.
Students fulfilling their repayment                  5  Repay to SFS institution   Participants could pay a lump
 obligation through lump-sum payment.                    or NSF.                    sum or the amount shall be
                                                                                    treated as a Direct
                                                                                    Unsubsidized Loan.
Students cooperating with the SFS                    8  Converted to a loan by     Student's obligation shall be
 institution and OPM, but not paying                     SFS Institution if         treated as a Direct
 lump sum.                                               possible, but if not       Unsubsidized Loan, subject
                                                         possible, transferred to   to repayment in accordance
                                                         Treasury for collection    with terms and conditions
                                                         action.                    prescribed by the NSF
                                                                                    Director in this rule.
Students not cooperating and not                     5  Transferred to Treasury    See above. Transferred to
 paying lump sum.                                        for collection action.     Treasury for collection if
                                                                                    student defaults on
                                                                                    repayment or their request
                                                                                    for deferral or discharge is
                                                                                    denied. May also be
                                                                                    transferred for collection
                                                                                    pre-delinquency.
----------------------------------------------------------------------------------------------------------------


                          Table 2--Expected Impact of the Proposed Rule on Universities
                                               [SFS institutions]
----------------------------------------------------------------------------------------------------------------
                                          Number per                                Expected impact of proposed
                                             year            Current practice                   rule
----------------------------------------------------------------------------------------------------------------
Universities..........................              15  SFS institutions may       The scholarship shall be
                                                         attempt to convert the     treated as a Direct
                                                         scholarship to a loan,     Unsubsidized Loan, without
                                                         which may be impossible    converting it to such a
                                                         due to loan limits, lack   loan, under repayment terms
                                                         of student cooperation.    and conditions established
                                                                                    by the NSF Director in the
                                                                                    final rule.
----------------------------------------------------------------------------------------------------------------


                        Table 3--Expected Impact of the Proposed Rule on Federal Agencies
----------------------------------------------------------------------------------------------------------------
                                           Number of                                Expected impact of proposed
                                        cases per year       Current practice                   rule
----------------------------------------------------------------------------------------------------------------
NSF...................................              18  Work with institutions to  NSF should see fewer cases
                                                         find a way to create       and higher likelihood of
                                                         payments or loan           repayment, because student
                                                         conversion. If             repayment obligations shall
                                                         impossible, refer to       be treated as Direct
                                                         Treasury for collection    Unsubsidized Loans under the
                                                         action.                    rule, without the need to
                                                                                    convert them to such loans.
                                                                                    This should reduce cases in
                                                                                    which scholarship recipients
                                                                                    seek repayment relief from
                                                                                    NSF (e.g., requests to
                                                                                    suspend or waive (discharge)
                                                                                    their obligation when they
                                                                                    are unable to pay in a lump
                                                                                    sum).
OPM...................................              18  Work with institutions to  See above. Scholarship
                                                         find a way to create       amounts are to be treated as
                                                         payments or loan.          a loan, subject to repayment
                                                         conversion. If             terms and conditions set
                                                         impossible, work with      forth by the NSF Director in
                                                         NSF to transfer to         the final rule, resulting in
                                                         Treasury for collection    fewer collection issues or
                                                         action.                    requests for relief from
                                                                                    repayment.
Treasury..............................               5  Handle repayment or        No automatic transfers to
                                                         collection; appeals;       Treasury, and NSF will
                                                         requests for additional    handle requests for deferral
                                                         evidence, etc.             or discharge of the service
                                                                                    or repayment obligation,
                                                                                    including reconsideration
                                                                                    requests.
Education.............................              20  Not involved.............  No change. Not involved,
                                                                                    since SFS institutions will
                                                                                    treat repayment obligations
                                                                                    as Direct Unsubsidized Loans
                                                                                    without necessarily
                                                                                    converting them to such
                                                                                    loans, which would require
                                                                                    coordination with Education.
----------------------------------------------------------------------------------------------------------------

Costs

    The vast majority of students who enroll in the CyberCorps[supreg] 
SFS program will complete their studies and will move into Federal, 
state, local, tribal government or other qualifying service, where the 
vast majority will complete their service obligations. Table 4 below 
summarizes the number of students released from obligations (granted a 
waiver or have a request pending) as of November 1, 2021.

[[Page 50049]]



                                Table 4--The Number of SFS Scholars Released From the Service Obligations From 2001-2021
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                              Partial         Waiver
                                           Scholarships    Full waiver:       Partial      Full waiver:       waiver:         request
                                              awarded     academic phase      waiver:       employment      employment        pending      Total waivers
                                                                          academic phase       phase           phase         decision
--------------------------------------------------------------------------------------------------------------------------------------------------------
2001....................................              31               0               0               6               0               0               6
2002....................................             115               2               0              16               0               0              18
2003....................................             219               1               0              16               0               0              17
2004....................................             185               0               0               3               0               0               3
2005....................................             182               4               0               2               0               0               6
2006....................................             133               1               0               0               0               0               1
2007....................................             111               1               0               0               0               0               1
2008....................................              94               0               0               0               0               0               0
2009....................................             133               4               0               1               0               0               5
2010....................................             181               2               0               1               0               0               3
2011....................................             195               2               0               1               0               1               4
2012....................................             186               2               0               0               0               0               2
2013....................................             268               1               0               1               0               0               2
2014....................................             277               0               0               2               0               1               3
2015....................................             277               0               0               0               0               0               0
2016....................................             313               0               0               0               0               3               3
2017....................................             357               0               0               0               2               0               2
2018....................................             339               0               0               0               1               1               2
2019....................................             384               1               0               0               0               1               2
2020....................................             375               0               0               0               0               0               0
2021....................................             354               0               0               0               0               0               0
                                         ---------------------------------------------------------------------------------------------------------------
    Total...............................           4,709              21               0              49               3               7              80
--------------------------------------------------------------------------------------------------------------------------------------------------------

    The costs resulting from the rule include one-time costs and 
recurring costs. The one-time costs consist of time needed for 
universities and affected students to read and understand the rule and 
time for students to learn about, decide, and complete paperwork to 
have the scholarship treated as a Direct Unsubsidized Loan if 
scholarship repayment is required. The recurring costs consist of the 
time needed by the university and the student to complete any 
additional paperwork or tasks associated with the repayment of such a 
loan.
    SFS scholars (students), SFS institutions (universities), and three 
Federal agencies (NSF, OPM, and Treasury) will benefit from the NPRM. 
First, SFS institutions will save their time from responding to SFS 
scholars seeking information about their repayment options when they 
are not completing the service obligation. This information will be 
provided in the rule and in the SFS scholarship agreement, which 
specifically includes the option to repay an SFS scholarship by having 
it treated as a Direct Unsubsidized Loan. The estimated saving will be 
20 hours per year. The total estimated saving will be $24,000 if the 
estimated number of cases is 20 per year with $60 per hour as a wage 
rate.\21\ Second, SFS scholars who do not fulfill their obligation by 
service will save time from communicating with SFS institutions and OPM 
about options before being transferred to Treasury. The estimated time 
saving is 30 hours per case per year. The SFS scholars who do not 
fulfill their service obligation will be eligible for benefits 
available to Direct Unsubsidized Loan borrowers when their repayment 
obligation is treated as such a loan. The benefits include: (1) 
Entering a six-month grace period prior to entering repayment, and (2) 
Eligibility for all the benefits of the Direct Unsubsidized Loan 
program. These benefits are not currently available to individuals 
whose debts have been referred to Treasury. Three Federal agencies will 
save time from handling repayment cases, since the final rule makes 
clear that SFS institutions will be able to treat and manage an 
individual's repayment obligation as a Direct Unsubsidized Loan, 
without referring it to NSF, OPM, or Treasury for collection (or a 
request for a waiver or discharge) if the individual is unable or 
unwilling to make a lump-sum payment. The estimated time saving for NSF 
is 30 hours per case for about 20 cases per year for personnel whose 
wage rate is estimated at $84.48 \22\ per hour, based on OPM 2022 
salary and wages. The estimated saving for NSF is $50,688. The 
estimated time savings for OPM is 15 hours per case for about 20 cases 
per year for personnel whose wage rate is estimated at $56.30 per hour, 
based on OPM 2022 salary and wages.\23\ Treasury will save time for 
handling at least five cases per year because they will not handle 
payment agreement or student information, other than cases where the 
student is liable for repayment and their case is referred to Treasury 
for collection. There remains no direct benefit for or burden upon the 
Department of Education.
---------------------------------------------------------------------------

    \21\ Computer Science Professor Salary (June 2022)--Zippia 
[verbar] Average Computer Science Professor Salaries Hourly And 
Annual. SFS institutions remain responsible for notifying 
individuals if they become liable for repaying the scholarship and 
for collecting such payment with a time period specified by NSF. See 
15 U.S.C. 7442(k). That existing burden remains unchanged, although 
the collection burden may be reduced if individuals become more 
willing to cooperate with the institution on repayment if their 
scholarship is treated as a Direct Unsubsidized Loan, rather than 
being referred to Treasury for debt collection as under current 
practice, when a scholarship cannot be converted to such a loan.
    \22\ GS-15 Step 10: Pay & Leave: Salaries & Wages--OPM.gov.
    \23\ GS-13 Step 4: Pay & Leave: Salaries & Wages--OPM.gov.
---------------------------------------------------------------------------

    Alternatives to this rule could be continuing with the current 
practice of an ad-hoc payment plan between the scholarship recipient 
and their SFS institutions, or referral of the case to Treasury for 
collection if the individual is unwilling or unable to pay in a lump 
sum, without treating the repayment amount as a Direct Unsubsidized 
Loan. This alternative would not provide the benefits to scholarship 
recipients, SFS institutions, and agencies that the rule is intended to 
address. Another alternative is to extend the window for individuals to 
complete their service

[[Page 50050]]

obligation, which might result in a larger share of SFS scholars 
fulfilling their service obligations and avoiding repayment. However, 
this action would not eliminate the need to improve the efficiency and 
fairness of the process for SFS scholars who do not fulfill their 
service obligations, and some SFS scholars might use the extra time to 
delay the start or completion of their service obligation, thereby 
undercutting the purpose of the program, which was to increase the 
cybersecurity workforce as quickly as possible. As a result, we believe 
the chosen proposal, which enables individuals who fail to fulfill 
their service obligation or who violate other scholarship terms and 
conditions to have the scholarship treated as a Direct Unsubsidized 
Loan for repayment purposes, to be the most appropriate approach. In 
addition, the rule is necessary for NSF to comply with the requirements 
of the program statute, as the General Accountability Office has noted 
in previously examining the program.

Executive Order 13132, Federalism

    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. The final rule, like the proposed 
rule, does not have any federalism implications, as described above.

Congressional Review Act

    A major rule cannot take effect until 60 days after it is published 
in the Federal Register. The final rule is not a major rule under 5 
U.S.C. 801.

Paperwork Reduction Act

    Notwithstanding any other provision of law, no person is required 
to respond to, nor shall any person be subject to a penalty for failure 
to comply with, a collection of information subject to the requirements 
of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), 
unless that collection of information displays a currently valid Office 
of Management and Budget (OMB) Control Number.
    As discussed earlier in this document, pursuant to a reimbursable 
agreement with NSF, OPM operates a Web portal to administer the 
CyberCorps[supreg] SFS program, through which registration and other 
required information (including the annual contact and employment 
required by the Cybersecurity Enhancement Act and this rule) is 
collected from and maintained on scholarship recipients. See OMB 
Control No. 3260-0246, Scholarship For Service (SFS) Program internet 
Site, https://omb.report/omb/3206-0246. In addition, NSF also has OMB 
Control Number 3145-0058, National Science Foundation Proposal and 
Award Policies and Procedures Guide for information collected from 
institutions that seek or receive NSF CyberCorps[supreg] funding 
pursuant to a formal NSF solicitation, including information collected 
by such institutions on behalf of NSF. See https://omb.report/omb/3145-0058.
    In its proposed rule, NSF had indicated that it was seeking PRA 
clearance for additional information collection activities contained in 
the rule. For example, clearance would be required for NSF to use a 
standardized form, questionnaire, or other set of identical questions 
to collect relevant information from scholarship recipients requesting 
the deferral or discharge of their service or repayment obligations 
under Sec.  620.4 and Sec.  620.5 of the rule, respectively. Instead, 
at this time, scholarship recipients who fail to fulfill the terms of 
their scholarship regarding scholarship repayment or conversion, may 
elect to submit at request to NSF by sending an email to [email protected]. 
No specific form or format is required. Upon receipt of the request, 
NSF may request additional information related to the discharge or 
deferral of the obligation, including supporting documentation. As 
discussed earlier (see note 10), an authorized representative may make 
a request on your behalf if you are deceased or incapacitated. NSF will 
acknowledge receipt of your request via the contact information 
provided in your request. If you have an attorney, you need to include 
in your request an affidavit confirming that you have authorized the 
attorney to represent you. If NSF or the SFS program office, in the 
future, develops and intends as part of the deferral or discharge 
process to use an information collection instrument that is subject to 
PRA requirements, additional public comment shall be solicited and OMB 
clearance shall be requested, as required by the PRA.

Regulatory Flexibility Act

    Pursuant to the Regulatory Flexibility Act of 1980 (5 U.S.C. 
605(b)), to the extent, if any, that it applies to this rulemaking (see 
``Administrative Procedure Act'' below), NSF certifies that this final 
rule is not expected to have a significant economic impact on a 
substantial number of small entities. The rule applies to individual 
scholarship recipients who, by definition, do not constitute ``small 
entities'' (e.g., businesses).

Unfunded Mandates

    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.

Administrative Procedure Act

    As noted earlier, the amendments reflected in the final rule are 
technical, in the nature of clarifications and corrections, to conform 
the rule to the language and authority of Cybersecurity Enhancement 
Act, as needed, or to further explain the meaning or effect of the 
rule. They do not alter the proposed intent or operation of the rule. 
Furthermore, to the extent that this rule involves a matter relating to 
loans, grants, benefits, or contracts, it is exempt from notice-and-
comment requirements. See Administrative Procedure Act (APA), 5 U.S.C. 
553(a)(2). In accordance with the APA, this rule shall be final and 
effective 30 days following its publication in the Federal Register. 
See 5 U.S.C. 553(d) (publication of a substantive rule shall not be 
less than 30 days before its effective date).

Executive Order 12866

    Executive Order 12866 directs 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). See ``Regulatory Analysis'' 
section earlier in this document. In accordance with the provisions of 
Executive Order 12866, this rule was reviewed by the Office of 
Management and Budget as a significant rule. See supra note 20.

List of Subjects in 45 CFR Part 620

    Administrative practice and procedure; Colleges and universities; 
Grant programs; Reporting and recordkeeping; Scholarships and 
fellowships.


0
For the reasons stated above, NSF adds part 620 to 45 CFR chapter VI, 
to read as follows:

[[Page 50051]]

PART 620--CYBERCORPS[supreg] SCHOLARSHIP FOR SERVICE (SFS) PROGRAM

Sec.
620.1 Scope and purpose.
620.2 Definitions.
620.3 Documenting the service obligation.
620.4 Deferral of service obligation.
620.5 Discharge of agreement to serve or repay.
620.6 Obligation to repay the CyberCorps SFS scholarship.
620.7 Severability.

    Authority: 15 U.S.C. 7442; 42 U.S.C. 1870.


Sec.  620.1  Scope and purpose.

    The CyberCorps SFS Scholarship for Service (SFS) program provides 
funds to institutions of higher education that award scholarships to 
students who agree to work after graduation in the cybersecurity 
mission of a Federal executive agency, Congress (including any agency, 
entity, office, or commission established in the legislative branch), 
an interstate agency, a state, local or Tribal government or 
government-affiliated non-profit considered to be critical 
infrastructure, or as an educator in the field of cybersecurity at a 
qualified institution of higher education, as defined in 15 U.S.C. 
7442(b)(3)(B). The employment will be for a period equal to the 
duration of the scholarship and to be started within 18 months and to 
be completed within five years of entering the Commitment Phase of the 
SFS program. Failure to satisfy the academic requirements of the 
program or to complete the service obligation results in forfeiture of 
the scholarship award, which must either be repaid or shall be treated 
as a Direct Unsubsidized Loan subject to repayment under the terms and 
conditions described in Sec.  620.6 of this part.


Sec.  620.2  Definitions.

    Agreement to serve or repay means an agreement under which the 
individual receiving a CyberCorps SFS scholarship commits to meet the 
service requirement or to repay the scholarship or the loan as 
described in Sec.  620.6, and to comply with notification and other 
provisions of the agreement and these rules.
    Commitment Phase means the period, immediately following the date 
on which the Scholarship Phase ends, within which SFS recipients must 
complete their service obligation (employment). The SFS recipient must 
begin such employment within 18 months and it must be completed, 
including submission of all required verifiable employment 
documentation, within 5 years from the date that the Commitment Phase 
begins. The Commitment Phase is limited to a maximum of five years, 
unless extended by the Director under Sec.  620.4 of this part.
    CyberCorps SFS scholarship recipient (scholarship recipient) means 
a student who is selected by an SFS institution for a CyberCorps SFS 
scholarship and agrees to work after graduation in the cybersecurity 
mission of a Federal executive agency, Congress (including any agency, 
entity, office, or commission established in the legislative branch), 
an interstate agency, a state, local or Tribal government or 
government-affiliated non-profit considered to be critical 
infrastructure (as defined in 42 U.S.C. 5195c(e)), or as an educator in 
the field of cybersecurity at a qualified institution of higher 
education (as defined in 15 U.S.C. 7442(b)(3)(B)).
    Deferral means an approved extension of the Commitment Phase.
    Director means the Director of the National Science Foundation 
(NSF) or an NSF official or employee acting for the Director under a 
delegation of authority.
    Scholarship Phase means a period when scholarship recipients are 
enrolled full-time (or, if enrolled in community college, at least 
half-time) in an approved SFS academic program in cybersecurity.
    Service obligation means the time period the recipient is required 
to work in the cybersecurity mission of a Federal executive agency, 
Congress (including any agency, entity, office, or commission 
established in the legislative branch), an interstate agency, a state, 
local or Tribal government or government-affiliated non-profit 
considered to be critical infrastructure (as defined in 42 U.S.C. 
5195c(e)), or as an educator in the field of cybersecurity at a 
qualified institution of higher education (as defined in 15 U.S.C. 
7442(b)(3)(B)). The recipient must also obtain prior approval of such 
employment from the SFS program office. Under this definition, as 
applied to employment in the cybersecurity mission of a Federal 
executive agency, creditable service includes periods of employment in 
paid duty status and excludes periods in unpaid nonduty status.
    SFS institution means a higher education institution that receives 
an SFS grant from NSF to recruit, train, and graduate scholarship 
recipients.
    SFS program office means an office managing the SFS program through 
partnership between NSF and the Office of Personnel Management (OPM).


Sec.  620.3  Documenting the service obligation.

    To demonstrate that a scholarship recipient is performing service 
in accordance with the agreement to serve or repay, the scholarship 
recipient must, within 30 days of the beginning of the service and upon 
completion of each year of such service, provide to the SFS program 
office documentation of that service in a form and manner approved by 
the SFS program office with all required information, including up-to-
date contact information, and certifications. The scholarship recipient 
must also provide the recipient's SFS institution with this annual 
verifiable documentation of post-award employment and up-to-date 
contact information.


Sec.  620.4  Deferral of service obligation.

    (a) A scholarship recipient whose CyberCorps SFS Scholarship Phase 
has ended may request, from the Director, a deferral of the five-year 
Commitment Phase for completion of the service obligation based on--
    (1) Enrollment in a program of study or engagement in approved 
professional activity that would contribute to further professional 
development and/or cybersecurity workforce readiness for the 
scholarship recipient;
    (2) A condition that is a qualifying reason for leave under the 
Family and Medical Leave Act (FMLA);
    (3) A call to order to Federal or state active duty or active 
service as a member of a Reserve Component of the Armed Forces named in 
10 U.S.C. 10101, or service as a member of the National Guard on full-
time National Guard duty, as defined in 10 U.S.C. 101(d)(5); or
    (4) Other exceptional circumstances significantly affecting the 
scholarship recipient's ability to serve as determined by the Director.
    (b) A scholarship recipient must apply for a deferral, by 
submitting a written request via the SFS program office, before the 
scholarship recipient's Commitment Phase has expired.
    (c) A scholarship recipient who applies for deferral must provide 
documentation supporting the request as well as current contact 
information including home address, email address, and telephone 
number.
    (d) The Director, or other official designated by the Director, 
will notify the scholarship recipient on the outcome of the application 
for deferral. If the deferral is denied, the scholarship recipient may 
submit a written request for reconsideration to the SFS program office. 
The request must be received no later than 30 calendar days after NSF

[[Page 50052]]

sent notice of the denial to the recipient. The request must explain 
why the recipient believes the denial is based on an error or mistake 
of fact or law, or if there are any new facts or law that should be 
considered. The Director's determination on the request shall be final, 
with no further reconsideration.


Sec.  620.5  Discharge of agreement to serve or repay.

    (a) Discharge conditions. The Director may provide for the partial 
or total waiver or suspension of any service or repayment obligation by 
a scholarship recipient under the SFS program, including but not 
limited to the following circumstances:
    (1) Death. If a scholarship recipient dies, the Director discharges 
the obligation to complete the agreement to serve or repay based on a 
certified copy of the death certificate or verification of the 
scholarship recipient's death through an authoritative Federal or state 
electronic database approved for use by the Director.
    (2) Total and permanent disability. A scholarship recipient's 
agreement to serve or repay is discharged if the scholarship recipient 
becomes totally and permanently disabled. This is the condition of an 
individual who:
    (i) Is unable to engage in any substantial gainful activity by 
reason of any medically determinable physical or mental impairment 
that--
    (A) Can be expected to result in death;
    (B) Has lasted for a continuous period of not less than 60 months; 
or
    (C) Can be expected to last for a continuous period of not less 
than 60 months; or
    (ii) Has been determined by the Secretary of Veterans Affairs to be 
unemployable due to a service-connected disability.
    (3) Extreme hardship. Whenever compliance by the scholarship 
recipient with the obligation is impossible or would involve extreme 
hardship to the scholarship recipient, or if enforcement of such 
obligation with respect to the scholarship recipient would be 
unconscionable. Extreme hardship could include but is not limited to 
financial or economic burden, medical situations, or other situations 
as determined by the Director of NSF.
    (b) Written request. (1) A scholarship recipient must submit a 
written application to the SFS program office, requesting a discharge 
from the Director of NSF in accordance with this section. Requests to 
discharge and refund amounts already repaid or referred to Treasury 
will not be considered or granted.
    (2) A scholarship recipient who applies for discharge must provide 
the Director with documentation supporting the request as well as 
current contact information including home address, email address, and 
telephone number.
    (3) The Director, or other official designated by the Director, 
will notify the scholarship recipient on the outcome of the application 
for discharge. If the discharge is denied, the scholarship recipient 
may submit a written request for reconsideration to the SFS program 
office. The request must be received no later than 30 calendar days 
after NSF sent notice of the denial to the recipient. The request must 
explain why the recipient believes the denial is based on an error or 
mistake of fact or law, or if there are any new facts or law that 
should be considered. The Director's determination on the request shall 
be final, with no further reconsideration.


Sec.  620.6  Obligation to repay the CyberCorps SFS scholarship.

    (a) A scholarship recipient who fails to complete the service 
obligation, as evidenced by documentation of that service with all 
required information and certifications, or fails to comply with any 
other conditions of support set forth in 15 U.S.C. 7442(g), must repay 
the scholarship to the United States in an amount calculated in 
accordance with 15 U.S.C. 7442(i).
    (b) If not repaid, the CyberCorps SFS scholarship amounts paid to 
the scholarship recipient, together with interest accruing from the 
date of the scholarship award, at the interest rate determined under 20 
U.S.C. 1087e, shall be treated as a Direct Unsubsidized Loan, without 
regard to any annual or aggregate loan limits under 34 CFR 685.203, and 
subject to the repayment terms and conditions set forth in paragraph 
(g) of this section, unless the scholarship recipient submits required 
documentation to prove the qualified employment within the timeframe 
required by the agreement to serve or repay (or, if the recipient has 
violated any other conditions of support, verifiable documentation 
demonstrating that the recipient has not violated such conditions).
    (c) The scholarship recipient remains liable for any amounts 
calculated in accordance with paragraph (a) that are not repaid, 
including any amounts treated a Direct Unsubsidized Loan as described 
in paragraph (b) of this section. Such amounts, if not repaid, shall be 
referred to the United States Department of the Treasury for 
collection, and, if the individual defaults on the loan, shall also 
include reasonable collection fees and costs (plus court costs and 
attorney fees, if any).
    (d) During the Commitment Phase, approximately 90 days before the 
date that the scholarship recipient must begin performing the service 
obligation (employment) and approximately 90 days before the Commitment 
Phase is scheduled to expire, the scholarship recipient will be 
notified of the date by which they must submit verifiable documentation 
showing that they are satisfying the service obligation.
    (e) At least annually during the service obligation period, the 
scholarship recipient shall be notified of--
    (1) The terms and conditions that the scholarship recipient must 
meet to satisfy the service obligation;
    (2) The requirement for the scholarship recipient to provide to the 
SFS program office, upon completion of each of the required service 
year, verifiable documentation of that service in a form and manner 
approved by that office and the need for scholarship recipients to keep 
copies of this information and copies of their own employment 
documentation; and
    (3) The conditions under which the scholarship recipient may 
request a deferral of the period for completing the service obligation 
or the discharge of the service obligation.
    (f) A scholarship recipient remains obligated to meet all 
requirements of the service obligation, even if the recipient does not 
receive the notices described in paragraphs (d) and (e) of this 
section.
    (g) A scholarship recipient whose CyberCorps SFS scholarship is 
treated as a Direct Unsubsidized Loan--
    (1) Enters a six-month grace period prior to entering repayment, 
and
    (2) Is eligible for all other benefits of and subject to all other 
terms and conditions of the Direct Unsubsidized Loan Program.
    (h) If a scholarship recipient's repayment obligation is treated as 
a Direct Unsubsidized Loan under this part, the loan may not be 
converted back to a CyberCorps SFS scholarship if it has been referred 
to the United States Department of the Treasury for collection.


Sec.  620.7  Severability.

    If any provision of this part or its application to any person, 
act, or practice is held invalid, the remainder of the part or the 
application of its provisions to any person, act, or practice shall not 
be affected thereby.


[[Page 50053]]


    Dated: July 24, 2023.
Suzanne H. Plimpton,
Reports Clearance Officer, National Science Foundation.
[FR Doc. 2023-16009 Filed 7-31-23; 8:45 am]
BILLING CODE 7555-01-P