UNITED STATES DEPARTMENT OF EDUCATION

OFFICE OF SPECIAL EDUCATION AND

REHABILITATIVE SERVICES

REHABILITATION SERVICES ADMINISTRATION

WASHINGTON, D.C. 20202-2531

[INFORMATION MEMORANDUM]{.underline}

RSA-IM-94-20

RSM-4585

DATE: 9/15/94

TO : STATE VOCATIONAL REHABILITATION AGENCIES (GENERAL) STATE VOCATIONAL
REHABILITATION AGENCIES (BLIND)

REGIONAL REHABILITATION CONTINUING EDUCATION

PROGRAMS

LONG-TERM TRAINING PROJECTS

RSA SENIOR MANAGEMENT TEAM

SUBJECT : RSA LONG-TERM TRAINING SCHOLARSHIP REQUIREMENT INFORMATION FOR
STUDENTS AND GRANTEES

CONTENT : Attached, for your information, are two handbooks addressing
RSA Long-Term Training scholarship requirements. One handbook has been
prepared to answer questions for students; the other is directed to
grantees. I hope these handbooks will help you, and the rehabilitation
scholars you assist, in understanding the training payback requirements.

If you need assistance with the information in this document or the
provisions of the Rehabilitation Training Program, you may contact
Richard Melia, Director, Division of Resource Development, Office of
Developmental Programs, Room 3324, Switzer building, 330 C Street, S.W.,
Washington, D.C. 20202-2469. Dr. Melia may be reached at 202-205-9400.
Additional points of contact are listed in the handbooks.

You should be aware that the payback provision changed as a result of
action by the 102nd Congress to amend the Rehabilitation Act of 1973.
These handbooks provide further information on the changes to the
payback provision in the 1992 amendments and the subsequent regulations
issued by the Education Department for the Rehabilitation Long-Term
Training program.

Commissioner, RSA

Attachments

**U.S. DEPARTMENT OF EDUCATION**

**OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES**

**REHABILITATION SERVICES ADMINISTRATION**

**RSA LONG-TERM TRAINING**

**SCHOLARSHIP REQUIREMENT INFORMATION**

**FOR STUDENTS**

**AUGUST, 1994**

**2nd Edition**

OSERS/REHABILITATION SERVICES ADMINISTRATION

Dear Prospective RSA Scholar:

The decision you make regarding your future career may well be one of
the most important decisions in your life. We are fortunate to be
citizens of this country where our society offers a wide array of
choices, rewards, and challenges.

Your choice of rehabilitation as a career offers wide opportunities, and
the satisfaction of knowing that your work will not only contribute to
our society, but will also assist and help other individuals. Personnel
employed in the State-Federal programs of vocational rehabilitation,
supported employment, and independent living have a number of career
choices, all of which help to enrich the lives of individuals with
disabilities.

There is an acute need for qualified personnel in the field of
rehabilitation. Specifically, State rehabilitation agencies, and the
nonprofit facilities with which the State rehabilitation agencies make
agreements to provide vocational, supported employment, and independent
living services, have critical personnel needs. To ensure that the RSA
Training Program helps State agencies in filling these jobs, Congress
added a \"payback\" provision for RSA scholars to the Rehabilitation
Act. This handbook explains the payback requirement.

**RSA SCHOLAR!** I hope that you will accept that designation proudly
and consider it a privilege and an honor to serve in this exciting
field. I also hope that the information in this handbook will be helpful
to you as you begin your career in rehabilitation.

Sincerely,

Fredric K. Schroeder, Ph.D.

Commissioner

**RSA LONG-TERM TRAINING**

**SCHOLARSHIP REQUIREMENT INFORMATION**

**FOR STUDENTS**

As an **RSA SCHOLAR**, you will be receiving support from a program with
a proud history of more than seventy years of cooperation between the
Federal government and the States in restoring hundreds of thousands of
persons with disabilities to productive lives. You will also be
preparing for a professional career in a dynamic field.

The **Rehabilitation Services Administration (RSA)**, a component of the
**U.S. Department of Education**, is the principal Federal agency
responsible for administering provisions of the Rehabilitation Act of
1973, as amended. RSA\'s major activities are to provide funds,
leadership, and technical assistance to States in the day to day
administration of vocational rehabilitation, supported employment, and
independent living programs.

Since 1954, RSA has provided grants to increase the numbers of personnel
trained to provide services to persons with severe disabilities, and to
improve the quality of professional rehabilitation services. Most grants
include scholarship funds to relieve the financial burden of students.

The amendments to the Rehabilitation Act in 1986 and 1992 require
recipients of RSA scholarships for academic certificates or degrees to
\"payback\" their assistance through employment in a State
rehabilitation agency or nonprofit or related facility or agency
providing services under an agreement with a state rehabilitation
agency. This is to assure that when you graduate and enter employment,
you will work in programs that use RSA funds to provide services to
individuals with severe disabilities.

In other words, there are \"strings\" attached to the RSA support you
accept. As an **RSA Scholar**, you must sign an agreement with the
college or university that provides you with RSA training funds. The
agreement states that after completing your degree or certificate, you
will, on a full- or part-time basis, work for a State rehabilitation
agency, or a qualifying agency that provides services to individuals
with disabilities under an agreement with a State rehabilitation agency.
The agreement further states that you will work not less than the
full-time equivalent of two years for each academic year of RSA
supported study. If you attend school for only nine months, but that is
a full academic year at your institution, you will be responsible for
paying back two full years of employment. Any portions of time for
part-time support will be prorated. For example, if you were supported
only three months, your payback time would be six months.

After graduation, you must keep in touch with your college or
university, advising them of your place and duration of employment. The
terms of your agreement must be met within a period, beginning after you
complete 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. However, RSA has designated that, under certain
limited circumstances, the repayment requirements can be waived or
deferred.

If you do not work for one of the approved types of agencies, you will
be required to repay the RSA funds that you received. If you do not
complete your academic program, you still must work in a job as
specified, until your agreement is met. If you partially meet the
employment requirements, you must repay a prorated sum, based upon the
years of unmet employment in your repayment period.

It is important that you very carefully read your agreement, the
accompanying Federal regulations that define key terms, and this
handbook so that you understand your obligations in accepting RSA funds.
Your college or university advisors can assist you with any questions
concerning RSA support. Once you sign the agreement, however, you will
be legally bound to the RSA \"payback\" requirements.

According to follow-up surveys by the National Council on Rehabilitation
Education, well over 90 percent of the individuals receiving RSA
scholarship/traineeship assistance work in State agencies or
organizations that meet the requirements of the regulations. There are
many ways to legally meet your \"payback\" requirements. Be sure to
contact your academic advisor for examples of options open to
counselors, therapists, physicians, nurses, evaluators, psychologists,
administrators, and related specialists to meet the \"payback\"
requirements.

The questions and answers that follow provide additional information on
the \"payback\" requirements. If, after reading this booklet and
discussing your specific needs with your academic advisor, you still
have questions or concerns, please contact us at RSA. The names,
addresses, and phone numbers of RSA staff you may wish to contact are
listed in this handbook.

**[FREQUENTLY ASKED QUESTIONS]{.underline}**

**1.When in the scholarship award process must I sign the payback
agreement?**

You must sign and date the agreement **prior to** the initial
disbursement on your behalf of any scholarship funds, including the
payment or crediting of tuition. Your college or university should
provide you with the terms and conditions of the payback requirement in
the application for an RSA scholarship. The written agreement must
contain the terms and conditions required by the regulations. \[34 CFR
386.34\][^1]

**2.What financial aid is included in my payback requirement?**

The requirement applies to all RSA financial assistance to a scholar in
an area of long-term rehabilitation training and includes payments for
tuition, stipends, books, fees, and travel. The total to be repaid is
the cumulative amount of all scholarship assistance, plus interest. \[34
CFR 386.4\]

**3.How is an academic year defined for purposes of my payback
requirement?**

An academic year means a full time course of study (1) taken for a
period totaling at least 9 months; or (2) taken for the equivalent of at
least 2 semesters, 2 trimesters, or 3 quarters. The employment
obligation of a part-time scholar is based on the accumulated academic
years of training for which scholarship aid is received. If you attend
school from September to June, your payback obligation is two full
years. Work requirements for portions of an academic year are prorated.
\[34 CFR 386.4; 34 CFR 386.34\]

**4. I received partial funding. What are my payback requirements?**

The amount of financial assistance you receive, whether partial or full,
does not affect your obligation to meet your employment commitment. Your
employment obligation as a part-time scholar will be based on the
\"accumulated academic years\" of training for which you received
assistance. \[34 CFR 386.34\]. An \"accumulated academic year\" is the
equivalent of each period totaling at least nine months of full-time
study in a degree or certificate program.

**5. Why is June 1, 1992, a significant date in relation to the payback
requirement?**

The Rehabilitation Act Amendments of 1992 (Pub. L. 103-569) revised the
payback requirements that were enacted by the Rehabilitation Act
Amendments of 1986. The information in this handbook and the regulations
published on June 16, 1994, apply to individuals receiving scholarships
for any academic year beginning after June 1, 1992. Regulations
published on August 14, 1987 (52 FR 30558) describe the payback
requirements for individuals receiving scholarships for any academic
year before June 1, 1992.

**6.If I am dismissed or drop out of my program for academic or
non-academic reasons, to what degree am I liable for payback?**

You are liable for repayment of the costs received if you are dismissed
or voluntarily leave the program for academic or non-academic reasons.
If you seek to meet the obligation through employment, the employment
must be in a position as defined in the regulations. Circumstances for
deferrals and exceptions are described in the regulations. \[34 CFR
386.41\]

**7.What information, in addition to this Handbook, will help me to
understand the payback requirement?**

It is strongly suggested that you become familiar with the final
regulations published in the [Federal Register]{.underline} on June 16,
1994. \[59 FR 31060\] The regulations should help you understand the
payback provision. Your college or university should have additional
program guidance information available, such as names and addresses of
qualifying employers.

**8.I am a Resident in Physical Medicine and Rehabilitation. Does the
payback requirement apply to residency programs in PM&R?**

Yes. Residency programs receiving grants under the Rehabilitation
Long-Term Training Program in the field of PM&R must adhere to the final
Rehabilitation Long-Term Training regulations published in the
[Federal]{.underline} [Register]{.underline} on August 14, 1987.
\[RSA-PPD-88-8, May 5, 1988\][^2]

**9. Must I work on a [full-time basis]{.underline} in a qualifying
agency?**

No. A scholar may work on a full- or part-time basis for either the
State rehabilitation agency or a related agency, facility, or qualifying
organization. If a scholar works part-time, he or she still has an
obligation to work the full-time equivalent of two years for each year
for which assistance was provided within a period of not more than the
sum of the number of years owed and two additional years. \[34 CFR
386.34\]

**10.Must I serve State rehabilitation clients exclusively in my full-
or part-time employment in a qualifying agency?**

If you work for a related agency, you are not required to serve only
rehabilitation clients of the State-Federal programs of vocational
rehabilitation, supported employment, or independent living in your job.
Rather, the requirement can be met if you are employed on a full- or
part-time basis by the qualifying organization, and your work is on a
continuing basis as a consultant or practitioner serving rehabilitation
clients under an agreement with a State vocational rehabilitation
agency. For example, if a rehabilitation physician works for a
qualifying organization whose clientele includes individuals receiving
services through programs funded under the Rehabilitation Act, the work
would meet payback requirements. \[34 CFR 386.4; 34 CFR 386.34\]

**11. What is meant by a \"related agency?\"**

The State-Federal programs of vocational rehabilitation, supported
employment, and independent living are the programs intended to benefit
from the payback provision. Congress recognized, however, that State
rehabilitation agencies often accomplish their mission through
agreements with other programs. Thus, the employment obligation may be
met by obtaining and maintaining employment, in the field in which you
were trained, in a nonprofit or related agency providing services under
an agreement with a State rehabilitation agency. State agencies maintain
lists of public agencies, non-profit organizations such as
rehabilitation facilities, and professional corporations or professional
practices with which the State agency maintains such services
agreements. If an organization is included on such lists, it is a
\"related agency.\" Confirmation may be required that the State
rehabilitation agency has an agreement with your employer in your area
of specialty. An agreement may be an arrangement by a related agency to
accept referrals and provide services to rehabilitation clients or a
purchase of service arrangement with a service provider. \[34 CFR 386.4;
34 CFR 386.34\]

**12. If I engage in employment for a State agency or related
rehabilitation agency while in training, will that count toward
payback?**

Rehabilitation employment while in training for which the scholarship
was awarded does not meet the work requirement. Regulations state that
the scholar will maintain employment in a qualifying agency \"beginning
[after]{.underline} the recipient completes the training for which the
scholarship was awarded\" (emphasis supplied) \[34 CFR 386.34\]

13. **What is the \"exit certification\" that I will provide in writing
    from my college**

> **or university when I complete my program?**

Your college or university is required to maintain the following
information on file:

(1)Your name and the identity of the Federal grant that provided you
with the scholarship;

(2)Your field of study.

(3)The number of years you need to work to satisfy the work requirements
in

\'386.34(c)(1)(i)(C).

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

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

(6)All the other obligations you must meet in \'386.34 such as the need
to inform your college or university of any change of name, address,
employment status, and information documenting how you have satisfied
the terms of your scholarship agreement.

The exit certification must include written verification from you that
the information in your file is accurate and that you are aware of your
work-or-repay obligation.

**14.Does RSA specify the geographical location in which my work
requirement must be satisfied?**

Regulations implementing the payback requirement do not specify the
geographical location in which the work requirement must be satisfied.
You may select where you wish to seek and maintain employment, provided
that within the required period following the completion of your
training, your employment obligation is fulfilled with a State agency or
related program. \[34 CFR 386.34\]

**15.I\'m considering working for a private, for-profit rehabilitation
business. Will I be able to fulfill the payback employment requirement
if the business provides services to State agency rehabilitation
clients?**

A private, for profit, business is not a related agency as defined in
the regulations and hence such employment would not satisfy the
requirement. \[34 CFR 386.34\]

**16.Under what circumstances may I receive an exception to the repay
requirements?**

You are not required to repay if you are unable to continue your course
of study or complete your employment obligation due to a disability that
is expected to continue indefinitely or result in death, or if, in fact,
you should die. \[34 CFR 386.41 (a)\]

**17. Under what circumstances may repayment of my scholarship be
deferred?**

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 twelve
months. \[34 CFR 386.41(b)\]

**18.How would I obtain a deferral or exception for one of the reasons
listed above?**

You, or when necessary, the legally responsible person acting on your
behalf, must submit a written application and documentation as provided
in Section 386.42 to the Commissioner, Rehabilitation Services
Administration, Department of Education, Washington, D.C. 20202-2531.
\[34 CFR 386.42\]

**19.To whom must I report my whereabouts, jobs, or noncompliance with
the terms of my agreement?**

The academic institution where you were trained is responsible for
keeping track of you and your employment until the payback requirement
is met. Institutions will contact you by mail periodically, with a
follow-up mailing if you do not respond. Your agreement states that you
are responsible for notifying the institution about changes in your
address, employment, or other significant facts related to completion of
the payback requirement. \[34 CFR 386.34(c)(3) and 386.34(g)\]

**20.What types of reports will my college or university make to the
Education Department about me?**

Your college or university is required to provide statistical reports
periodically on the number of RSA scholars, amounts of financial
assistance, and related summary data. In addition, specific reports on
scholars are required when scholars fail to meet their payback
obligation, or do not begin employment by a date that would allow them
to complete their payback requirement. \[Approved by the Office of
Management and Budget under control number 1820-0018\]

**21. Who collects the funds if I do not fulfill the payback
requirement?**

The Secretary of the Department of Education is responsible for
collecting the funds if you do not comply with the regulations. \[34 CFR
386.43\]

**22.What happens if my employment obligation is not completed and I do
not repay my scholarship?**

According to the terms and conditions of your scholarship agreement, you
may be liable for interest, collection costs, and other penalties
established by law. The amounts and frequency of repayment are set forth
in regulations that apply to similar obligations of individuals to the
United States Government. \[34 CFR 386.34 and 34 CFR 386.43; 31 U.S.C.
3717 (collection costs)\]

**23.When will I enter repayment status?**

You enter repayment status on the first day of the first calendar month
after the earliest of the following dates, as applicable: (1) The date
you inform the Secretary that you do not plan to fulfill the employment
obligation under the agreement. (2) Any date when your failure to begin
or maintain employment makes it impossible for you to complete your
employment obligation within the number of years required in section
386.34(c)(1). You should send a notice pursuant to (1) to the
Commissioner, Rehabilitation Services Administration, Education
Department, Washington, D.C. 20202-2531. \[34 CFR 386.43(e)\]

**24.What recourse will I have to appeal a finding of non-compliance
with the regulations for the payback provision?**

Appeals should be directed to the Commissioner, Rehabilitation Services
Administration, Education Department, Washington, D.C. 20202-2531. The
Commissioner will acknowledge all such appeals in writing.

**NOTE:**If you need assistance with the information in this document or
the provisions of the Rehabilitation Training Program, you may contact
Dr. Richard Melia, Director, Division of Resource Development. Office of
Developmental Programs, Room 3324, Switzer Building, 330 C Street, S.W.,
Washington, DC 20202-2469. Dr. Melia may be reached at 202-205-9400. You
may also contact the RSA Regional Office nearest you for help. These
offices are listed in the Rehabilitation Services Administration
[Regional Office Directory]{.underline} reprinted below.

CITATIONS IN LAW: Sections 12 (c), 302 (b)(3)(A), and 302 (b)(3)(B) of
the Rehabilitation Act of 1973, as amended; 29 U.S.C. 711(c) and 771(a)

CITATIONS IN REGULATIONS: 34 CFR 386.4, 34 CFR 386.34, 34 CFR 386.40, 34
CFR 386.41, 34 CFR 386.42, 34 CFR 386.43

**U.S. DEPARTMENT OF EDUCATION**

**OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES**

**REHABILITATION SERVICES ADMINISTRATION**

**RSA LONG-TERM TRAINING**

**SCHOLARSHIP REQUIREMENT INFORMATION**

**FOR GRANTEES**

**AUGUST, 1994**

OSERS/REHABILITATION SERVICES ADMINISTRATION

Dear RSA Long-Term Training Program Grantee:

Your participation in the Rehabilitation Long-Term Training program is
very much appreciated. You have the satisfaction of knowing that your
work will not only contribute to our society, but will also assist and
help other individuals. Personnel employed in the State-Federal programs
of vocational rehabilitation, supported employment, and independent
living have a number of career choices, all of which help to enrich the
lives of individuals with disabilities.

There is an acute need for qualified personnel in the field of
rehabilitation. Specifically, State rehabilitation agencies, and the
nonprofit facilities with which the State rehabilitation agencies make
agreements to provide vocational, supported employment, and independent
living services, have critical personnel needs. To ensure that the RSA
Training Program helps State agencies in filling these jobs, Congress
added a \"payback\" provision for RSA scholars to the Rehabilitation
Act. This handbook explains the responsibilities of grantees in
administering the payback requirement. A similar handbook has been
prepared for you to disseminate to RSA Scholars.

I congratulate you on winning an RSA Long-Term Training program award. I
also hope that the information in this handbook will be helpful to you
as you carry out your rehabilitation training program responsibilities.

Sincerely,

Fredric K. Schroeder, Ph.D.

Commissioner

**RSA LONG-TERM TRAINING**

**SCHOLARSHIP REQUIREMENT INFORMATION**

**FOR GRANTEES**

As an **RSA GRANTEE**, you will be receiving support from a program with
a proud history of fifty years of cooperation between the Federal
government, the States, and hundreds of educational institutions in
preparing thousands of individuals for professional careers in a dynamic
field.

The **Rehabilitation Services Administration (RSA)**, a component of the
**U.S. Department of Education**, is the principal Federal agency
responsible for administering provisions of the Rehabilitation Act of
1973, as amended. RSA\'s major activities are to provide funds,
leadership, and technical assistance to States in the day to day
administration of vocational rehabilitation, supported employment, and
independent living programs.

Since 1954, RSA has provided grants to increase the numbers of personnel
trained to provide services to persons with severe disabilities, and to
improve the quality of professional rehabilitation services. Most grants
include scholarship funds to relieve the financial burden of students.

The amendments to the Rehabilitation Act in 1986 and 1992 require
recipients of RSA scholarships for academic certificates or degrees to
\"payback\" their assistance through employment in a State
rehabilitation agency or nonprofit or related facility or agency
providing services under an agreement with a state rehabilitation
agency. This is to assure that when your students graduate and enter
employment, they will work in programs that use RSA funds to provide
services to individuals with severe disabilities.

In other words, if you accept and RSA grant, you must ensure that your
students meet all the payback requirements. The students that you assist
with grant funds (**RSA Scholars)** must sign a work-or-repay agreement
as a condition of receiving RSA training funds from your institution.
The agreement states that after completing their degree or certificate,
they will, on a full- or part-time basis, work for a State
rehabilitation agency, or a qualifying agency that provides services to
individuals with disabilities under an agreement with a State
rehabilitation agency. The agreement further states that they will work
not less than the full-time equivalent of two academic years for each
year of RSA supported study. If they attend school for only nine months,
but that is a full academic year at your institution, they will be
responsible for paying back two full years of employment. Any part-time
study supported by an RSA scholarship will be prorated in calculating
the work-or-repay obligation.

After graduation, your students must keep in touch with you, advising
you of their place and duration of employment. The terms of their
agreement must be met 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. However, RSA has designated that, under certain
limited circumstances, the repayment requirements can be waived or
deferred.

If a student provided an RSA scholarship does not work for one of the
approved types of agencies, you are required to report this to RSA so
that the funds that were disbursed may be repaid. If a student does not
complete his or her academic program, he or she still must work in a job
as specified, until the agreement is met. If the student partially meets
the employment requirements, he or she must repay a prorated sum, based
upon the years of unmet employment in the repayment period.

It is important that you very carefully read your grant award, the
accompanying Federal regulations that define key terms, and this
handbook so that you understand your obligations in accepting RSA funds.
Your RSA Regional Office can assist you with any questions concerning
RSA support. Once your institution accepts the grant, however, it will
be legally bound to the RSA \"payback\" requirements.

According to follow-up surveys by the National Council on Rehabilitation
Education, well over 90 percent of the individuals receiving RSA
scholarship/traineeship assistance work in State agencies or
organizations that meet the requirements of the regulations. There are
many ways to legally meet the \"payback\" requirements. Be sure to
contact the designated State rehabilitation agencies in your area for
examples of job options open to counselors, therapists, physicians,
nurses, evaluators, psychologists, administrators, and related
specialists to meet the \"payback\" requirements.

The questions and answers that follow provide additional information on
the \"payback\" requirements. If, after reading this booklet and
reviewing your specific needs, you still have questions or concerns,
please contact us at RSA. The names, addresses, and phone numbers of RSA
staff you may wish to contact are listed in this handbook.

**[FREQUENTLY ASKED QUESTIONS]{.underline}**

**1.When in the scholarship award process must I require a scholar to
sign the payback agreement?**

You must ensure that any student receiving scholarship assistance from
your grant signs and dates the agreement **prior to** the initial
disbursement of any scholarship funds on his or her behalf, including
the payment or crediting of tuition. You must fully disclose to the
scholar the terms and conditions of the payback requirement in the
application for an RSA scholarship. The written agreement must contain
the terms and conditions required by the regulations. \[34 CFR
386.34\][^3]

**2.What financial aid is included in the payback requirement?**

The requirement applies to all RSA financial assistance to a scholar in
an area of long-term rehabilitation training and includes payments for
tuition, stipends, books, fees, and travel. The total to be repaid is
the cumulative amount of all scholarship assistance, plus interest. \[34
CFR 386.4\]

**3.How is an academic year defined for purposes of the payback
requirement?**

An academic year means a full time course of study (1) taken for a
period totaling at least 9 months; or (2) taken for the equivalent of at
least 2 semesters, 2 trimesters, or 3 quarters. The employment
obligation of a part-time scholar is based on the accumulated academic
years of training for which scholarship aid is received. If a scholar
attends school from September to June, his or her payback obligation is
two full years. Work requirements for portions of an academic year are
prorated. \[34 CFR 386.4; 34 CFR 386.34\]

**4. One of my students received partial funding. What are the payback
requirements?**

The amount of financial assistance disbursed, whether partial or full,
does not affect the obligation to meet your employment commitment. The
employment obligation as a part-time scholar will be based on the
\"accumulated academic years\" of training for which the scholar
received assistance. \[34 CFR 386.34\]. An \"accumulated academic year\"
is the equivalent of each period totaling at least nine months of
full-time study in a degree or certificate program.

**5. Why is June 1, 1992, a significant date in relation to the payback
requirement?**

The Rehabilitation Act Amendments of 1992 (Pub. L. 103-569) revised the
payback requirements that were enacted by the Rehabilitation Act
Amendments of 1986. The information in this handbook and the regulations
published on June 16, 1994, apply to individuals receiving scholarships
for any academic year beginning after June 1, 1992. Regulations
published on August 14, 1987 (52 FR 30558) describe the payback
requirements for individuals receiving scholarships for any academic
year before June 1, 1992.

**6.If a scholar is dismissed or drops out of our program for academic
or non-academic reasons, to what degree will he or she be liable for
payback?**

The scholar is liable for repayment of the costs received if he or she
is dismissed or voluntarily leaves the program for academic or
non-academic reasons. If he or she seeks to meet the obligation through
employment, the employment must be in a position as defined in the
regulations. Circumstances for deferrals and exceptions are described in
the regulations. \[34 CFR 386.41\]

**7.What information, in addition to this Handbook, will help me to
understand the payback requirement?**

It is strongly suggested that you become familiar with the final
regulations published in the [Federal Register]{.underline} on June 16,
1994. \[59 FR 31060\] The regulations should help you understand the
payback provision. You should identify additional rehabilitation
information, such as names and addresses of qualifying employers, for
use in assisting scholars.

**8.Does the payback requirement apply to residency programs in PM&R?**

Yes. Residency programs receiving grants under the Rehabilitation
Long-Term Training Program in the field of PM&R must adhere to the final
Rehabilitation Long-Term Training regulations published in the
[Federal]{.underline} [Register]{.underline} on August 14, 1987.
\[RSA-PPD-88-8, May 5, 1988\][^4]

**9. Must scholars work on a [full-time basis]{.underline} in a
qualifying agency?**

No. A scholar may work on a full- or part-time basis for either the
State rehabilitation agency or a related agency, facility, or qualifying
organization. If a scholar works part-time, he or she still has an
obligation to work the full-time equivalent of two years for each year
for which assistance was provided within a period of not more than the
sum of the number of years owed and two additional years. \[34 CFR
386.34\]

**10.Must scholars serve State rehabilitation clients exclusively in
full- or part-time employment in a qualifying agency?**

If a scholar works for a related agency, he or she is not required to
serve only rehabilitation clients of the State-Federal programs of
vocational rehabilitation, supported employment, or independent living
in his or her job. Rather, the requirement can be met if he or she is
employed on a full- or part-time basis by the qualifying organization,
and the work is on a continuing basis as a consultant or practitioner
serving rehabilitation clients under an agreement with a State
Vocational rehabilitation agency. For example, if a rehabilitation
physician works for a qualifying organization whose clientele includes
individuals receiving services through programs funded under the
Rehabilitation Act, the work would meet payback requirements. \[34 CFR
386.4; 34 CFR 386.34\]

**11. What is meant by a \"related agency?\"**

The State-Federal programs of vocational rehabilitation, supported
employment, and independent living are the programs intended to benefit
from the payback provision. Congress recognized, however, that State
rehabilitation agencies often accomplish their mission through
agreements with other programs. Thus, the employment obligation may be
met by obtaining and maintaining employment, in the field in which the
scholar was trained, in a nonprofit or related agency providing services
under an agreement with a State rehabilitation agency. State agencies
maintain lists of public agencies, non-profit organizations such as
rehabilitation facilities, and professional corporations or professional
practices with which the State agency maintains such services
agreements. If an organization is included on such lists, it is a
\"related agency.\" Your are required to document that the State
rehabilitation agency has an agreement with the scholar\'s employer in
the area of specialty. An agreement may be an arrangement by a related
agency to accept referrals and provide services to rehabilitation
clients or a purchase of service arrangement with a service provider.
\[34 CFR 386.4; 34 CFR 386.34\]

**12. If a scholar engages in employment for a State agency or related
rehabilitation agency while in training, will that count toward
payback?**

Rehabilitation employment while in training for which the scholarship
was awarded does not meet the work requirement. Regulations state that
the scholar will maintain employment in a qualifying agency \"beginning
[after]{.underline} the recipient completes the training for which the
scholarship was awarded\" (emphasis supplied) \[34 CFR 386.34\]

**13.What is the \"exit certification\" that the grantee must provide in
writing from when a scholar completes his or her program?**

According to \'386.34(f), you are required to maintain the following
information on file for each scholarship:

(1)The scholar\'s name and identifying information on 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 \'386.34(c)(1)(i)(C).

(4)The total amount of scholarship assistance you provided subject to
the work-or-repay provision in \'386.34(c)(1)(ii).

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

(6)All the other obligations the scholar must meet in \'386.34 such as
the need to inform your college or university of any change of name,
address, employment status, and information documenting how he or she
has satisfied the terms of your scholarship agreement.

The exit certification must include written verification from the
scholar acknowledging that the information in his or her file is
accurate and that he or she is aware of his or her work-or-repay
obligation.

**14.Does RSA specify the geographical location in which the work
requirement must be satisfied?**

Regulations implementing the payback requirement do not specify the
geographical location in which the work requirement must be satisfied. A
scholar may select where he or she wishes to seek and maintain
employment, provided that within the required period following the
completion of his or her training, the employment obligation is
fulfilled with a State agency or related program. \[34 CFR 386.34\]

**15.Will a scholar be able to fulfill the payback employment
requirement if the private, for profit, business he or she works for
provides services to State agency rehabilitation clients?**

A private, for profit, business is not a related agency as defined in
the regulations and hence such employment would not satisfy the
requirement. \[34 CFR 386.34\]

**16.Under what circumstances may a scholar receive an exception to the
repay requirements?**

Scholars are not required to repay if they are unable to continue their
course of study or complete their employment due to a disability that is
expected to continue indefinitely or result in death, or if, in fact,
they should die. \[34 CFR 386.41 (a)\]

**17. Under what circumstances may repayment of a scholarship be
deferred?**

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 twelve
months. \[34 CFR 386.41(b)\]

**18.How would a scholar obtain a deferral or exception for one of the
reasons listed above?**

The scholar, or when necessary, the legally responsible person acting on
his or her behalf, must submit a written application and documentation
as provided in Section 386.42 to the Commissioner, Rehabilitation
Services Administration, Department of Education, Washington, D.C.
20202-2531. \[34 CFR 386.42\]

**19.To whom must the scholar report his or her whereabouts, jobs, or
noncompliance with the terms of his or her agreement?**

You, as the academic institution which administered the RSA training
grant, are responsible for keeping track of the location of scholars
supported under the grant and their employment until the payback
requirement is met. Regulations state that individual scholars are
responsible for notifying you about changes in their address,
employment, or other significant facts related to completion of the
payback requirement. A reasonable approach that would comply with your
tracking responsibility would be to contact former students once a year,
with a follow-up mailing if they do not respond. If you experience
difficulty in locating a scholar, you are required to check with
existing tracking systems operated by alumni organizations. \[34 CFR
386.34(c)(3) and 386.34(g)\]

**20.What types of reports must colleges or universities that accept RSA
training grants make to the Education Department about scholars?**

RSA Long-Term Training program grantees are required to provide
statistical reports periodically on the number of RSA scholars, amounts
of financial assistance, and related summary data on the RSA Training
Payback Reporting Form that is included in the Rehabilitation Long-Term
Training program application kit. In addition, specific reports on
scholars are required when scholars fail to meet their payback
obligation, or do not begin employment by a date that would allow them
to complete their payback requirement. RSA will be issuing instructions
for these reports in the near future. \[Approved by the Office of
Management and Budget under control number 1820-0018\]

**21. Who collects the funds if a scholar does not fulfill the payback
requirement through qualifying employment?**

The Secretary of the Department of Education is responsible for
collecting the funds if you do not comply with the regulations. \[34 CFR
386.43\]

**22.What happens if a scholar\'s employment obligation is not completed
and he or she does not repay his or her scholarship?**

According to the terms and conditions of a scholar\'s agreement, he or
she may be liable for interest, collection costs, and other penalties
established by law. The amounts and frequency of repayment are set forth
in regulations that apply to similar obligations of individuals to the
United States Government. \[34 CFR 386.34 and 34 CFR 386.43; 31 U.S.C.
3717 (collection costs)\]

**23.When does a scholar enter 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 a scholar informs the Secretary that 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 him or her to complete his or her employment obligation
within the number of years required in section 386.34(c)(1). The scholar
should send a notice pursuant to (1) to the Commissioner, Rehabilitation
Services Administration, Education Department, Washington, D.C.
20202-2531. \[34 CFR 386.43(e)\]

**24.What recourse will a scholar have to appeal a finding of
non-compliance with the regulations for the payback provision?**

Appeals should be directed to the Commissioner, Rehabilitation Services
Administration, Education Department, Washington, D.C. 20202-2531. The
Commissioner will acknowledge all such appeals in writing.

**NOTE:**If you need assistance with the information in this document or
the provisions of the Rehabilitation Training Program, you may contact
Dr. Richard Melia, Director, Division of Resource Development. Office of
Developmental Programs, Room 3324, Switzer Building, 330 C Street, S.W.,
Washington, DC 20202-2469. Dr. Melia may be reached at 202-205-9400. You
may also contact the RSA Regional Office nearest you for help. These
offices are listed in the Rehabilitation Services Administration
[Regional Office Directory]{.underline} reprinted below.

CITATIONS IN LAW: Sections 12 (c), 302 (b)(3)(A), and 302 (b)(3)(B) of
the Rehabilitation Act of 1973, as amended; 29 U.S.C. 711(c) and 771(a)

CITATIONS IN REGULATIONS: 34 CFR 386.4, 34 CFR 386.34, 34 CFR 386.40, 34
CFR 386.41, 34 CFR 386.42, 34 CFR 386.43

[^1]:     ^?^ CFR is a citation for [Code of Federal
    Regulations]{.underline}. General and permanent rules published in
    the [Federal]{.underline} [Register]{.underline} are codified in the
    CFR. The CFR is kept up to date by the individual issues of the
    [Federal]{.underline} [Register]{.underline}. Title 34 is presently
    composed of volumes addressing education, including rehabilitation.
    Regulations are cited by volume title, part, and section number.

[^2]:     ^?^ RSA-PPD-88-8 is a citation for RSA Program Policy
    Directive number 8 in FY 1988. The Program Policy Directive provides
    additional information on the application of the payback provision
    to residency programs. Contact your residency training advisor or
    your appropriate RSA Regional Office (see attached listing) for
    further information on this PPD or ways that you may satisfy the
    payback provision when you are a practicing rehabilitation
    physician.

[^3]:     ^?^ CFR is a citation for [Code of Federal
    Regulations]{.underline}. General and permanent rules published in
    the [Federal]{.underline} [Register]{.underline} are codified in the
    CFR. The CFR is kept up to date by the individual issues of the
    [Federal]{.underline} [Register]{.underline}. Title 34 is presently
    composed of volumes addressing education, including rehabilitation.
    Regulations are cited by volume title, part, and section number.

[^4]:     ^?^ RSA-PPD-88-8 is a citation for RSA Program Policy
    Directive number 8 in FY 1988. The Program Policy Directive provides
    additional information on the application of the payback provision
    to residency programs. Contact your residency training advisor or
    your appropriate RSA Regional Office (see attached listing) for
    further information on this PPD or ways that you may satisfy the
    payback provision when you are a practicing rehabilitation
    physician.