**Legislative and Regulatory Citations**

1.  **Legislative citations, Sections 13 and 14 of the Rehabilitation
    Act of 1973, as amended:**

**Reports**

Sec. 13. (a) Not later than one hundred and eighty days after the close
of each fiscal year, the Commissioner shall prepare and submit to the
President and to the Congress a full and complete report on the
activities carried out under this Act, including the activities and
staffing of the information clearinghouse under section 15.

\(b\) The Commissioner shall collect information to determine whether
the purposes of this Act are being met and to assess the performance of
programs carried out under this Act. The Commissioner shall take
whatever action is necessary to assure that the identity of each
individual for which information is supplied under this section is kept
confidential, except as otherwise required by law (including
regulation).

\(c\) In preparing the report, the Commissioner shall annually collect
and include in the report information based on the information submitted
by States in accordance with section 101(a)(10), including information
on administrative costs as required by section 101(a)(10)(D). The
Commissioner shall, to the maximum extent appropriate, include all
information that is required by section 136(d) of the Workforce
Investment Act of 1998 and that pertains to the employment of
individuals with disabilities.

**Evaluation**

Sec. 14. (a) For the purpose of improving program management and
effectiveness, the Secretary, in consultation with the Commissioner,
shall evaluate all the programs authorized by this Act, their general
effectiveness in relation to their cost, their impact on related
programs, and their structure and mechanisms for delivery of services,
using appropriate methodology and evaluative research designs. The
Secretary shall establish and use standards for the evaluations required
by this subsection. A person not immediately involved in the
administration of the program evaluated shall conduct such an
evaluation.

\(b\) In carrying out evaluations under this section, the Secretary
shall obtain the opinions of program and project participants about the
strengths and weaknesses of the programs and projects.

\(c\) The Secretary shall take the necessary action to assure that all
studies, evaluations, proposals, and data produced or developed with
Federal funds under this Act shall become the property of the United
States.

\(d\) Such information as the Secretary may determine to be necessary
for purposes of the evaluations conducted under this section shall be
made available upon request of the Secretary, by the departments and
agencies of the executive branch.

(e)(1) To assess the linkages between vocational rehabilitation services
and economic and economic outcomes, the Secretary shall continue to
conduct a longitudinal study of a national sample of applicants for the
services.

\(2\) The study shall address factors related to attrition and
completion of the program through which the services are provided and
factors within and outside the program affecting results. Appropriate
comparisons shall be used to contrast the experiences of similar persons
who do not obtain the services.

\(3\) The study shall be planned to cover the period beginning on the
application of individuals with disabilities for the services, through
the eligibility determination and provision of services for the
individuals, and a further period of not less than 2 years after the
termination of services.

(f)(1) The Commissioner shall identify and disseminate information on
exemplary practices concerning vocational rehabilitation.

\(2\) To facilitate compliance with paragraph (1), the Commissioner
shall conduct studies and analyses that identify exemplary practices
concerning vocational rehabilitation, including studies in areas
relating to providing informed choice in the rehabilitation process,
promoting consumer satisfaction, promoting job placement and retention,
providing supported employment, providing services to particular
disability populations, financing personal assistance services,
providing assistive technology devices and assistive technology
services, entering into cooperative agreements, establishing standards
and certification for community rehabilitation programs, converting from
nonintegrated to integrated employment, and providing caseload
management.

\(g\) There are authorized to be appropriated to carry out this section
such sums as may be necessary.

2.  **RSA Training Regulations: 34 CFR 386.33-35 and 40-44**

Sec. 386.33 What are the requirements for grantees in disbursing
scholarships?

\(a\) Before disbursement of scholarship assistance to an individual, a
grantee‑‑

(1)(I) Shall obtain documentation that the individual is‑‑

\(A\) A U.S. citizen or national; or

\(B\) A permanent resident of the Republic of the Marshall Islands,
Federated States of Micronesia, Republic of Palau, or the Commonwealth
of the Northern Mariana Islands; or

\(ii\) Shall confirm from documentation issued to the individual by the
U.S. Immigration and Naturalization Service that he or she‑‑

\(A\) Is a lawful permanent resident of the United States; or

\(B\) Is in the United States for other than a temporary purpose with
the intention of becoming a citizen or permanent resident; and

\(2\) Shall confirm that the applicant has expressed interest in a
career in clinical practice, administration, supervision, teaching, or
research in the vocational rehabilitation, supported employment, or
independent living rehabilitation of individuals with disabilities,
especially individuals with severe disabilities;

\(3\) Shall have documentation that the individual expects to maintain
or seek employment in a designated State rehabilitation agency or in a
nonprofit rehabilitation, professional corporation, professional
practice group, or related agency providing services to individuals with
disabilities or

individuals with severe disabilities under an agreement with a
designated State agency;

\(4\) Shall reduce the scholarship by the amount in which the combined
awards would be in excess of the cost of attendance, if a scholarship,
when added to the amount the scholar is to receive for the same academic
year under Title IV of the Higher Education Act, would otherwise exceed
the scholar\'s cost of attendance;

\(5\) Shall limit scholarship assistance to the individual\'s cost of
attendance at the institution for no more than four academic years
except that the grantee may provide an extension consistent with the
institution\'s accommodations under section 504 of the Act if the
grantee determines that an individual has a disability that seriously
affects the completion of the course of study; and

\(6\) Shall obtain a Certification of Eligibility for Federal Assistance
from each scholar as prescribed in 34 CFR 75.60, 75.61, and 75.62.

(Approved by the Office of Management and Budget under control number
1820‑0018.)

(Authority: 29 U.S.C. 711(C) and 771a(b))

Sec. 386.34 What assurances must be provided by a grantee that intends
to provide scholarships?

A grantee under this part that intends to grant scholarships for any
academic year beginning after June 1, 1992, shall provide the following
assurances before an award is made:

\(a\) Requirement for agreement.

No individual will be provided a scholarship without entering into a
written agreement containing the terms and conditions

required by this section. An individual will sign and date the agreement
prior to the initial disbursement of scholarship funds to the individual
for payment of the individual\'s expenses, such as tuition.

\(b\) Disclosure to applicants.

The terms and conditions of the agreement that the grantee enters into
with a scholar will be fully disclosed in the application for
scholarship.

\(c\) Form and terms of agreement.

Each scholarship agreement with a grantee will be in the form and
contain the terms that the Secretary requires, including at a minimum
the following provisions:

\(1\) The scholar will‑‑

\(I\) Maintain employment‑‑

\(A\) In a nonprofit rehabilitation agency or related agency or in a
State rehabilitation agency or related agency, including a professional
corporation or professional practice group through which the individual
has a service arrangement with the designated State agency;

\(B\) On a full‑ or part‑time basis; and

\(c\) For a period of not less than the full‑time equivalent of two
years for each year for which assistance under this section was
received, within a period, beginning after the recipient completes the
training for which the scholarship was awarded, of not more than the sum
of the number of years required in this paragraph and two additional
years; and

\(ii\) Repay all or part of any scholarship received, plus interest, if
the individual does not fulfill the requirements of paragraph (c)(1(I)
of this section, except as the Secretary by regulations may provide for
repayment exceptions and deferrals.

\(2\) The employment obligation in paragraph (c)(1) of this section as
applied to a part‑time scholar will be based on the accumulated academic
years of training for which the scholarship is received.

\(3\) Until the scholar has satisfied the employment obligation
described in paragraph (c)(1) of this section, the scholar will inform
the grantee of any change of name, address, or employment status and
will document employment satisfying the terms of the agreement.

\(4\) Subject to the provisions in Sec. 386.41 regarding a deferral or
exception, when the scholar enters repayment status under Sec.
386.43(e), the amount of the scholarship that has not been retired
through eligible employment will constitute a debt owed to the United
States that‑‑

\(I\) Will be repaid by the scholar, including interest and costs of
collection as provided in Sec. 386.43; and

\(ii\) May be collected by the Secretary in accordance with 34 CFR Part
30, in the case of the scholar\'s failure to meet the obligation of Sec.
386.43.

\(d\) Executed agreement.

The grantee will provide an original executed agreement upon request to
the Secretary.

\(e\) Standards for satisfactory progress.

The grantee will establish, publish, and apply reasonable standards for
measuring whether a scholar is maintaining satisfactory progress in the
scholar\'s course of study. The

Secretary considers an institution\'s standards to be reasonable if the
standards‑‑

\(1\) Conform to the standards of satisfactory progress of the
nationally recognized accrediting agency that accredits the
institution\'s program of study, if the institution\'s program of study
is accredited by such an agency, and if the agency has those standards;

\(2\) For a scholar enrolled in an eligible program who is to receive
assistance under the Rehabilitation Act, are the same as or stricter
than the institution\'s standards for a student enrolled in the same
academic program who is not receiving assistance under the
Rehabilitation Act; and

\(3\) Include the following elements:

\(I\) Grades, work projects completed, or comparable factors that are
measurable against a norm.

\(ii\) A maximum time frame in which the scholar shall complete the
scholar\'s educational objective, degree, or certificate.

\(iii\) Consistent application of standards to all scholars within
categories of students; e.g., full‑time, part‑time, undergraduates,
graduate students, and students attending programs established by the
institution.

\(iv\) Specific policies defining the effect of course incompletes,
withdrawals, repetitions, and noncredit remedial courses on satisfactory
progress.

\(v\) Specific procedures for appeal of a determination that a scholar
is not making satisfactory progress and for reinstatement of aid.

\(f\) Exit certification.

The grantee has established policies and procedures for receiving
written certification from scholars at the time of exit from the program
acknowledging the following:

\(1\) The name of the institution and the number of the Federal grant
that provided the scholarship.

\(2\) The scholar\'s field of study.

\(3\) The number of years the scholar needs to work to satisfy the work
requirements in Sec. 386.34(c)(1)(i)(C).

\(4\) The total amount of scholarship assistance received subject to the
work‑or‑repay provision in Sec. 386.34(c)(1)(ii).

\(5\) The time period during which the scholar must satisfy the work
requirements in Sec. 386.34(c)(1)(i)(C).

\(6\) All other obligations of the scholar in Sec. 386.34.

\(g\) Tracking system.

The grantee has established policies and procedures to determine
compliance of the scholar with the terms of the agreement. In order to
determine whether a scholar has met the work‑or‑repay provision in Sec.
386.34(c)(1)(i), the tracking system must include for each employment
position maintained by the scholar‑‑

\(1\) Documentation of the employer\'s name, address, dates of the
scholar\'s employment, and the position the scholar maintained;

\(2\) Documentation of how the employment meets the requirements in Sec.
386.34(c)(1)(i); and

\(3\) Documentation that the grantee, if experiencing difficulty in
locating a scholar, has checked with existing tracking systems operated
by alumni organizations.

\(h\) Reports.

The grantee shall make reports to the Secretary that is necessary to
carry out the Secretary\'s functions under this part.

\(i\) Records.

The grantee shall maintain the information obtained in paragraphs (g)
and (h) of this section for a period of time equal to the time required
to fulfill the obligation under Sec. 386.34(c)(1)(i)(C).

(Approved by the Office of Management and Budget under control number
1820‑0018.)

(Authority: 29 U.S.C. 711(c) and 771a(b))

Sec. 386.35 What information must be provided by a grantee that is an
institution of higher education to assist designated State agencies?

A grantee that is an institution of higher education provided assistance
under this part shall cooperate with the following requests for
information from a designated State agency:

\(a\) Information required by section 101(a)(7) of the Act which may
include, but is not limited to‑‑

\(1\) The number of students enrolled by the grantee in rehabilitation
training programs; and

\(2\) The number of rehabilitation professionals trained by the grantee
who graduated with certification or licensure, or with credentials to
qualify for certification or licensure, during the past year.

\(b\) Information on the availability of rehabilitation courses leading
to certification or licensure, or the credentials to qualify for
certification or licensure, to assist State agencies in the planning of
a program of staff development for all classes of positions that are
involved in the administration and operation of the State agency\'s
vocational rehabilitation program.

(Approved by the Office of Management and Budget under control number
1820‑0018.)

(Authority: 29 U.S.C. 711(c) and 771a)

Subpart E‑‑What Conditions Must Be Met by a Scholar?

Sec. 386.40 What are the requirements for scholars?

A scholar‑‑

\(a\) Shall receive the training at the educational institution or
agency designated in the scholarship; and

\(b\) Shall not accept payment of educational allowances from any other
Federal, State, or local public or private nonprofit agency if that
allowance conflicts with the individual\'s obligation under Sec.
386.33(a)(4) or Sec. 386.34(c)(1).

\(c\) Shall enter into a written agreement with the grantee, before
starting training, that meets the terms and conditions required in Sec.
386.34;

\(d\) Shall be enrolled in a course of study leading to a certificate or
degree in one of the fields designated in Sec. 386.1(b); and

\(e\) Shall maintain satisfactory progress toward the certificate or
degree as determined by the grantee.

(Authority: 29 U.S.C. 711(c) and 771a(b))

Sec. 386.41 Under what circumstances does the Secretary grant a deferral
or exception to performance or repayment under a scholarship agreement?

A deferral or repayment exception to the requirements of Sec.
386.34(c)(1) may be granted, in whole or part, by the Secretary as
follows:

\(a\) Repayment is not required if the scholar‑‑

\(1\) Is unable to continue the course of study or perform the work
obligation because of a disability that is expected to continue
indefinitely or result in death; or

\(2\) Has died.

\(b\) Repayment of a scholarship may be deferred during the time the
scholar is‑‑

\(1\) Engaging in a full‑time course of study at an institution of
higher education;

\(2\) Serving, not in excess of three years, on active duty as a member
of the armed services of the United States;

\(3\) Serving as a volunteer under the Peace Corps Act;

\(4\) Serving as a full‑time volunteer under Title I of the Domestic
Volunteer Service Act of 1973;

\(5\) Temporarily totally disabled, for a period not to exceed three
years; or

\(6\) Unable to secure employment as required by the agreement by reason
of the care provided to a disabled spouse for a period not to exceed 12
months.

(Authority: 29 U.S.C. 771(c) and 771a(b))

Sec. 386.42 What must a scholar do to obtain a deferral or exception to
performance or repayment under a scholarship agreement?

To obtain a deferral or exception to performance or repayment under a
scholarship agreement, a scholar shall provide the following:

\(a\) Written application.

A written application must be made to the Secretary to request a
deferral or an exception to performance or repayment of a scholarship.

\(b\) Documentation.

\(1\) Documentation must be provided to substantiate the grounds for a
deferral or exception.

\(2\) Documentation necessary to substantiate an exception under Sec.
386.41(a)(1) or a deferral under Sec. 386.41(b)(5) must include a sworn
affidavit from a qualified physician or other evidence of disability
satisfactory to the Secretary.

\(3\) Documentation to substantiate an exception under Sec. 386.41(a)(2)
must include a death certificate or other evidence conclusive under
State law.

(Approved by the Office of Management and Budget under control number
1820‑0018.)

(Authority: 29 U.S.C. 711(c) and 771a)

Sec. 386.43 What are the consequences of a scholar\'s failure to meet
the terms and conditions of a scholarship agreement?

In the event of a failure to meet the terms and conditions of a
scholarship agreement or to obtain a deferral or an exception as
provided in Sec. 386.41, the scholar shall repay all or part of the
scholarship as follows:

\(a\) Amount.

The amount of the scholarship to be repaid is proportional to the
employment obligation not completed.

\(b\) Interest rate.

The Secretary charges the scholar interest on the unpaid balance owed in
accordance with 31 U.S.C. 3717.

\(c\) Interest accrual.

\(1\) Interest on the unpaid balance accrues from the date the scholar
is determined to have entered repayment status under

paragraph (e) of this section.

\(2\) Any accrued interest is capitalized at the time the scholar\'s
repayment schedule is established.

\(3\) No interest is charged for the period of time during which
repayment has been deferred under Sec. 386.41.

\(d\) Collection costs.

Under the authority of 31 U.S.C. 3717, the Secretary may impose
reasonable collection costs.

\(e\) Repayment status.

A scholar enters repayment status on the first day of the first calendar
month after the earliest of the following dates, as applicable:

\(1\) The date the scholar informs the Secretary he or she does not plan
to fulfill the employment obligation under the agreement.

\(2\) Any date when the scholar\'s failure to begin or maintain
employment makes it impossible for that individual to complete the
employment obligation within the number of years required in Sec.
386.34(c)(1).

\(f\) Amounts and frequency of payment.

The scholar shall make payments to the Secretary that cover principal,
interest, and collection costs according to a schedule established by
the Secretary.

(Authority: 29 U.S.C. 711(c) and 771a(b))