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[Federal Register Volume 75, Number 35 (Tuesday, February 23, 2010)]
[Proposed Rules]
[Pages 8013-8030]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-3385]

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CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

45 CFR Parts 2510, 2522, 2525, 2526, 2527, 2528, 2529, 2530, 2531, 
2532, 2533, 2550, 2551, and 2552

RIN 3045-AA51

Serve America Act Amendments to the National and Community 
Service Act of 1990

AGENCY: Corporation for National and Community Service.

ACTION: Proposed rule.

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SUMMARY: On April 21, 2009, President Obama signed into law the Edward 
M. Kennedy Serve America Act (``The Serve America Act'' or ``SAA''). 
The Serve America Act reauthorizes and expands national service 
programs administered by the Corporation for National and Community 
Service (``the Corporation'') by amending the National and Community 
Service Act of 1990 (``NCSA'' or ``the Act'') and the Domestic 
Volunteer Service Act of 1973 (``DVSA''). The Corporation publishes 
this proposed rule to implement changes to the operation of the 
National Service Trust under the Serve America Act. This proposed rule 
provides flexibility for exceptions to the 80 percent cost 
reimbursement requirement for Senior Companion and Foster Grandparent 
programs based on hardship. In addition, this proposed rule reorders 
and renumbers certain parts of the existing regulations, adds new 
definitions, and makes several minor technical edits.

DATES: To be sure your comments are considered, they must reach the 
Corporation or or before April 26, 2010.

ADDRESSES: You may send your comments electronically through the 
Federal government's one-stop rulemaking Web site at http://www.regulations.gov. You may also mail or deliver your comments to Amy

[[Page 8014]]

Borgstrom, Docket Manager, Corporation for National and Community 
Service, 1201 New York Ave., NW., Washington, DC 20525. Members of the 
public may review copies of all communications received on this 
rulemaking at http://www.regulations.gov or at the Corporation's 
Washington, DC headquarters.

FOR FURTHER INFORMATION CONTACT: Amy Borgstrom, Docket Manager, 
Corporation for National and Community Service, aborgstrom@cns.gov, TDD 
606-3472. Persons with visual impairments may request this rule in an 
alternate format.

SUPPLEMENTARY INFORMATION:

I. Invitation To Comment

    We invite you to submit comments about these proposed regulations. 
To ensure that your comments have maximum value in helping us develop 
the final regulations, we urge you to identify clearly the specific 
section or sections of the proposed regulations that each comment 
addresses and to arrange your comments in the same order as the 
proposed regulations. During and after the comment period, you may 
inspect all public comments about these proposed regulations on http://www.regulations.gov or by contacting the Docket Manager listed in this 
notice.

Assistance to Individuals With Disabilities in Reviewing the Rulemaking 
Record

    On request, we will supply an appropriate aid, such as a reader or 
print magnifier, to an individual with a disability who needs 
assistance to review the comments or other documents in the public 
rulemaking record for these proposed regulations. If you want to 
schedule an appointment for this type of aid, please contact Amy 
Borgstrom, Docket Manager, Corporation for National and Community 
Service, aborgstrom@cns.gov, TDD 606-3472.

II. Background

    On April 21, 2009, President Obama signed into law the Edward M. 
Kennedy Serve America Act (Serve America Act). The Serve America Act 
reauthorizes and expands national service programs administered by the 
Corporation by amending the NCSA and DVSA. The Corporation engages four 
million Americans in service each year, including approximately 75,000 
AmeriCorps members, 492,000 Senior Corps Volunteers, 1.1 million Learn 
and Serve America students, and 2.2 million additional community 
volunteers mobilized and managed through agency programs.
    Section 6101 of the Serve America Act authorizes the Chief 
Executive Officer of the Corporation to issue such regulations as may 
be necessary to carry out the amendments required under the Act. To 
fulfill that responsibility, on September 10, 2009, the Corporation 
issued an interim final rule to implement time-sensitive changes to the 
Corporation's AmeriCorps State and National, Senior Corps, and Learn 
and Serve America program regulations. (74 FR 46495). The changes 
resulting from the interim final rule were required as a result of 
amendments to the NCSA and DVSA by the Serve America Act, which took 
effect for most purposes on October 1, 2009.
    In that rule, we stated our intention to engage in full notice and 
comment rulemaking to implement those amendments mandated by the Serve 
America Act that did not require immediate regulatory action. This rule 
primarily proposes amendments and additions to existing regulations 
regarding the National Service Trust, including limitations on 
education award receipt, the available uses of education awards, 
eligibility to receive an education award, eligibility to transfer an 
education award, and the amount of an education award. This proposed 
rule also addresses the limitation on the number of terms an individual 
may serve in an AmeriCorps State and National program. The proposed 
rule allows flexibility in managing match requirements for Senior 
Companion and Foster Grandparent programs facing hardship. Finally, 
this rule makes several technical corrections inadvertently omitted 
from the interim final rule, including an amendment to the provision on 
pre-approval of Subtitle C formula programs, amendments to the 
AmeriCorps State and National selection criteria, and an amendment to 
include a reference to the Department of Education's new Public Service 
Loan Forgiveness Program. An overview of specific changes for each 
program is set out below.

III. Proposed Rule

Definitions (Sec. Sec.  2510.20, 2525.20)

    The National Service Trust is an account in the U.S. Treasury 
authorized to disburse education awards to national service 
participants. Prior to passage of the Serve America Act, the 
Corporation was authorized to disburse one type of education award from 
the National Service Trust--a national service education award, also 
known as a Segal AmeriCorps education award, available upon successful 
completion of a term of service in an approved AmeriCorps position. An 
``approved AmeriCorps position'' is one of the positions described in 
Sec. 123 of the Act, including a position in AmeriCorps State and 
National, AmeriCorps NCCC, AmeriCorps VISTA, and the newly authorized 
ServeAmerica Fellowship program.
    The Serve America Act authorizes two new types of education awards: 
(1) A Silver Scholar education award of $1,000, available upon 
successful completion of a term of service in an approved Silver 
Scholar position; and (2) a Summer of Service education award of 
between $500 and $750, available upon successful completion of a term 
of service in an approved Summer of Service position. To align with the 
amended statute, this proposed rule amends Sec.  2525.20 by adding 
three separate definitions for ``AmeriCorps education award,'' ``Silver 
Scholar education award,'' and ``Summer of Service education award.''
    Each of these awards is based upon successful completion of a term 
of service in an approved position. For a position of any type to be 
considered ``approved,'' the Corporation must have agreed to provide a 
corresponding education award upon successful completion of a term of 
service in that position. This proposed rule amends Sec.  2510.20 by 
adding definitions to clarify that in order for a Summer of Service or 
Silver Scholar position to be considered approved, it must be approved 
by the Corporation for the receipt of a Silver Scholar or Summer of 
Service education award, respectively.
    There are different service requirements for each type of education 
award. A term of service in an approved AmeriCorps position is for at 
least 1,700 hours during a period of not more than one year, with 
options for part-time or reduced part-time terms of service, as defined 
in Sec.  2522.220, for AmeriCorps State and National members. A term of 
service in an approved Silver Scholar position must be for at least 350 
hours during a period of one year. A term of service in an approved 
Summer of Service position must be for at least 100 hours ``during the 
summer months.'' To clarify that what constitutes a term of service 
will vary depending upon the program, this proposed rule amends the 
definition of ``term of service'' in Sec.  2525.20 to align with the 
NCSA by providing separate descriptions for terms of service in 
approved AmeriCorps, Silver Scholar, and Summer of Service positions.

[[Page 8015]]

    As stated above, a Summer of Service education award will generally 
be $500. However, the NCSA authorizes the Corporation to establish a 
Summer of Service award of $750 for ``economically disadvantaged 
youth.'' The Corporation proposes in this rule to define ``economically 
disadvantaged youth'' for the purposes of the larger Summer of Service 
education award as a child who is eligible for a free lunch and 
breakfast under the Richard B. Russell National School Lunch Act. This 
proposed rule amends Sec.  2525.20 to add this definition.

Eligibility To Receive an Education Award (Sec.  2526.10)

    The Serve America Act created two new types of education awards: 
Silver Scholar education awards and Summer of Service education awards, 
for $1000 and $500 respectively, available upon successful completion 
of an approved Silver Scholar or Summer of Service position. This 
proposed rule amends Sec.  2526.10 to include individuals who 
successfully complete terms of service in approved Silver Scholar or 
Summer of positions as eligible to receive an education award from the 
National Service Trust.
    Previously, the list of eligibility criteria to receive an 
education award in Sec.  2526.10 has reflected the eligibility criteria 
to serve in AmeriCorps State and National, AmeriCorps NCCC, and 
AmeriCorps VISTA, including age and education criteria that would 
necessarily exclude individuals in Summer of Service positions, which 
are available for ``youth who will be enrolled in any of grades 6 
through 12 at the end of the summer'' (42 U.S.C. 12563(c)(8)). To align 
with the amended statute, this proposed rule amends Sec.  2526.10 to 
defer to the eligibility criteria of individual programs for program-
specific criteria.
    Under the proposed rule, for an individual to be eligible to 
receive an education award, the organization responsible for the 
individual's supervision must certify: (1) That the individual met the 
applicable eligibility requirements for the approved national service 
position, approved Silver Scholar position, or approved Summer of 
Service position, as appropriate; (2) that the individual successfully 
completed the term of service in the AmeriCorps, Silver Scholar, or 
Summer of Service program; and (3) that the individual is a citizen, 
national, or lawful permanent resident alien of the United States.

Successful Completion of a Term of Service (Sec.  2526.15)

    Sec. 146 of the NCSA directs the Corporation to determine a process 
by which an organization responsible for the supervision of a national 
service participant may determine whether the participant successfully 
completed a term of service. This proposed rule adds a new Sec.  
2526.15 specifying the process for determining whether an individual 
successfully completed a term of service for the purposes of receiving 
an education award from the National Service Trust. Under this rule, 
organizations supervising AmeriCorps State and National participants 
would continue to use the existing process detailed at Sec.  
2522.220(d). For all other programs, the organization would be required 
to conduct an end-of-term evaluation for each participant to determine 
whether: (1) The individual completed the required number of service 
hours for the respective term of service; (2) the individual performed 
satisfactorily on assignments, tasks, or projects; and (3) the 
individual met any other performance criteria as communicated to the 
member by the organization. What is considered ``satisfactory 
performance'' is within the discretion of the program. While the 
Corporation encourages programs to keep records of end-of-term 
evaluations of member performance for their own purposes, for the 
purpose of this requirement certification that an individual did or did 
not successfully complete a term of service will be deemed to 
incorporate an end-of-term evaluation. A certification will not, 
however, suffice as documentation of hours served.

Release for Compelling Personal Circumstances (Sec. Sec.  2526.20-25)

    Sec. 147 of the NCSA authorizes the Corporation to make education 
awards in five different amount categories: (1) An amount for 
successful completion of a full-time approved national service 
position; (2) an amount for successful completion of a part-time 
approved national service position; (3) an amount for partial 
completion of service, available upon release for compelling personal 
circumstances from an approved national service position; (4) an amount 
for a Silver Scholar education award for successful completion of an 
approved Silver Scholar position; and (5) an amount for a Summer of 
Service education award for successful completion of an approved Summer 
of Service position. Partial awards are described only in the context 
of release for compelling personal circumstances from an approved 
national service position. In describing types of service positions in 
Sec. 146, the Act distinguishes between approved national service 
positions (which are described in Sec. 123 to include AmeriCorps State 
and National, AmeriCorps VISTA, AmeriCorps NCCC, and ServeAmerica 
Fellows), approved Silver Scholar positions, and approved Summer of 
Service positions, and does not provide for a pro-rated award for a 
release for compelling personal circumstances from an approved Silver 
Scholar or Summer of Service position. In summary, there is no 
authority for a partial award for a release for compelling personal 
circumstances from a Silver Scholar or Summer of Service position.
    This proposed rule amends Sec.  2526.20 and adds a new Sec.  
2526.25 to clarify that partial awards will not be available for 
individuals who are released early from Silver Scholar or Summer of 
Service positions, even for compelling reasons.
    This proposed rule also amends Sec.  2526.20 to reflect the 
statutory requirement that an individual must have performed 
satisfactorily prior to being released for compelling personal 
circumstances in order to receive a partial education award.

Limitation on Amount of Award Disbursed to Institution of Higher 
Education (Sec. Sec.  2528.30-40)

    Prior to the effective date of the Serve America Act, under Sec. 
148(c)(6) of the NCSA, the Corporation's disbursement from an 
individual's education award for any period of enrollment at an 
institution of higher education could not exceed the difference between 
that individual's cost of attendance for that period of enrollment and 
the sum of (1) the individual's estimated financial assistance for that 
period under part A of title IV of the Higher Education Act and (2) the 
individual's veterans' benefits as defined under section 480(c) of the 
Higher Education Act. The Serve America Act amended Sec. 148(c)(6) to 
no longer consider an individual's veterans' benefits in this manner. 
This proposed rule amends Sec. Sec.  2528.30 and 40 to align with 
amended Sec. 148(c)(6) by removing any consideration of an individual's 
veterans' benefits when determining the maximum amount of the 
individual's education award that may be disbursed to an institution of 
higher education.

Use of Education Award for a Program of Education Approved by the 
Secretary of Veterans Affairs (Sec. Sec.  2528.10, 60-80)

    The Serve America Act amended Sec. 148 of the NCSA to add a fifth 
available

[[Page 8016]]

use for an education award. Under the amended law, the education award 
is available ``to pay expenses incurred in enrolling in an educational 
institution or training establishment that is approved under chapter 36 
of title 38, United States Code, or other applicable provisions of law, 
for offering programs of education, apprenticeship, or on-job training 
for which educational assistance may be provided by the Secretary of 
Veterans Affairs.'' (42 U.S.C. 12604(a)(4)). This proposed rule amends 
Sec.  2528.10 to add this use to the list of available uses, and adds 
rules on the process for using the award for this purpose. Benefits 
offered under chapter 36 of title 38, U.S.C., were authorized under the 
Montgomery G.I. Bill and the Post 9/11 G.I. Bill, and will be referred 
to hereinafter as ``G.I. Bill education benefits.'' Likewise, courses 
and programs approved under that chapter will be referred to as ``G.I.-
approved.''
    This proposed rule would require that the institution or training 
establishment at which an individual requests to use an education award 
certify under penalty of law that the amount requested would be used to 
pay all or part of the individual's expenses attributable to a course, 
program of education, apprenticeship, or job training program offered 
by that institution or training establishment, and certify under 
penalty of law that the course or program for which the individual is 
requesting to use the education award has been and is currently 
approved by the State approving agency for the State where the 
institution or establishment is located, or by the Secretary of 
Veterans Affairs. The Department of Veterans Affairs is the agency 
responsible for approving courses or programs of education under 
chapter 36 of title 38, U.S. Code, and the Corporation defers to the 
decisions made by the State approving agencies and the Secretary of 
Veterans Affairs regarding approving--or withdrawing approval--of a 
program of education; if an institution or establishment cannot verify 
that a course or program of education has received the requisite 
approval, the Corporation will not disburse the funds to the school.
    Unlike G.I. education benefits, which may be disbursed directly to 
an individual, under this proposed rule, the education award would be 
disbursed directly to the educational institution or training 
establishment.
    If an individual for whom the Corporation has disbursed an 
education award withdraws or fails to complete the period of enrollment 
at an educational institution or training establishment in a program of 
education approved by the Secretary of Veterans Affairs, this proposed 
rule would require the educational institution or training 
establishment to provide a pro-rated refund to the Corporation.

Payment of Accrued Interest (2529.10)

    This proposed rule amends Sec.  2529.10, which currently provides 
for interest forbearance to individuals serving in approved AmeriCorps 
positions, to clarify that individuals who successfully complete terms 
of service in approved Silver Scholar positions may also be eligible 
for payments of interest accrued on qualified student loans while 
serving. The proposed rule does not include Summer of Service 
positions, as Summer of Service positions are reserved for rising 6th 
through 12th graders who, having not yet enrolled in an institution of 
higher education, will not yet have incurred qualified students loans.
    The Serve America Act also amended Sec. 123 by expanding the list 
of positions considered to be approved national service positions to 
include ``a position involving service in the ServeAmerica Fellowship 
program.'' The term ``approved national service position'' is used 
interchangeably with the term ``approved AmeriCorps position.'' Thus, 
although this proposed rule does not explicitly amend Sec.  2529.10 to 
include ServeAmerica Fellows, they are incorporated by definition.

Amount of AmeriCorps Education Award (Sec.  2527.10)

    Upon successful completion of a term of service in an approved 
AmeriCorps position, including positions in AmeriCorps State and 
National, AmeriCorps VISTA, AmeriCorps NCCC, and Serve America Fellows, 
an individual is eligible to receive an AmeriCorps education award from 
the National Service Trust. Prior to the passage of the Serve America 
Act, the amount of a full-time AmeriCorps education award was set in 
law at $4,725.
    The Serve America Act amended Sec. 147 of the NCSA by changing the 
amount of a full-time national service education award to be ``equal to 
the maximum amount of a Federal Pell Grant under section 401 of the 
Higher Education Act of 1965 (20 U.S.C. 1071a) that a student eligible 
for such Grant may receive in the aggregate * * * for the year for 
which the national service position is approved by the Corporation.'' 
This proposed rule amends Sec.  2527.10 to conform to the changes in 
the NCSA in the amount of the full-time award.
    The amount of the Pell Grant upon which AmeriCorps education awards 
will be based may change each year, thus, the amount of an AmeriCorps 
education award may also change annually. To determine the amount of an 
AmeriCorps education award, the Corporation will use the amount of the 
Pell Grant as of October 1 (the first day of the Federal fiscal year) 
in the fiscal year in which the national service position is approved. 
For example, if a national service position is approved in September of 
2010, the amount of the education award will be based on a full-time 
amount of $5,350--the amount of the Pell Grant as of October 1, 2009 
(the first day of fiscal year 2010).
    The trigger date for determining the amount of an education award 
for a particular national service position is the date that position is 
approved--not the date the individual begins serving in a national 
service position. Not all positions that begin in a fiscal year will 
receive an education award based on the amount of the Pell Grant in 
that fiscal year.
    In accordance with the national service laws, funding for education 
awards are obligated on a different schedule for AmeriCorps VISTA, 
AmeriCorps NCCC, and AmeriCorps State and National. What follows is a 
detailed discussion on how the approval date for a national service 
position is determined for the purposes of establishing the amount of 
an education award.
    For AmeriCorps VISTA, a position is considered to be approved at 
the time the Corporation enters into an enforceable agreement with an 
individual, signified by the individual's taking the VISTA oath of 
service. (42 U.S.C. 4954(c)). For an AmeriCorps VISTA position, the 
education award amount is equal to the amount of a Pell Grant on 
October 1 of the fiscal year in which the VISTA takes the oath of 
service. For example, a VISTA who takes the oath on any date between 
October 1, 2009, and September 30, 2010, is eligible for a full-time 
award amount of $5,350--the amount of the Pell Grant as of October 1, 
2009.
    For AmeriCorps NCCC, a position is considered to be approved at the 
time the Corporation enters into an enforceable agreement with an 
individual, signified by the individual's signing of an AmeriCorps NCCC 
member agreement. For an AmeriCorps NCCC position, the education award 
amount will be equal to the amount of a Pell Grant on October 1 of the 
fiscal year in which the AmeriCorps NCCC member signs the member 
agreement. Therefore, an individual who signs an

[[Page 8017]]

AmeriCorps NCCC member agreement on any date between October 1, 2009, 
and September 10, 2010, will receive an award based on a full-time 
award amount of $5,350--the amount of the Pell Grant as of October 1, 
2009.
    For AmeriCorps State and National, by law, a position is considered 
to be approved at the time the Corporation executes a grant used to 
support the AmeriCorps member--not the date an AmeriCorps member takes 
an oath, signs an agreement, or begins service. As discussed above, the 
day an individual enters service in AmeriCorps NCCC or AmeriCorps VISTA 
may make a significant difference in the amount of the education award, 
as the award for a position will likely be larger if the individual 
takes an oath of office or signs an agreement on October 1, as opposed 
to September 30. The same will not be true for AmeriCorps State and 
National members. AmeriCorps State and National grants are generally 
made during the Spring and Summer, i.e., in the latter half of a fiscal 
year. As a result, unlike AmeriCorps NCCC and AmeriCorps VISTA members 
who are eligible for the new amount of the award as of October 1, the 
earliest point at which an AmeriCorps member may begin serving in a 
position funded by those grants may be closer to the end of a fiscal 
year.
    As an example, if an AmeriCorps State program receives a grant on 
August 1, 2010, and enrolls a member using fiscal year 2010 grant funds 
on August 3, 2010, that member will receive an education award based on 
a full-time amount of $5,350--the amount of the Pell Grant on October 
1, 2009, the first day of the fiscal year in which the August 2010 
grant was made. If the program then enrolls another member on October 
10, 2010, that member will also receive an education award based on the 
$5,350 amount--even though at that point a new fiscal year has begun, 
and the Pell Grant for fiscal year 2011 may have increased as of 
October 1, 2010. The determining factor is that the member position was 
approved by the Corporation in fiscal year 2010.
    Further, unlike an AmeriCorps NCCC or AmeriCorps VISTA member, 
whose approval date will closely correlate with the day the individual 
begins service, it is possible for an AmeriCorps State and National 
member beginning service in one fiscal year to be supported with funds 
from a grant made in a prior fiscal year. Therefore, it is possible for 
two AmeriCorps members starting service on the same day to be supported 
by two different grant awards made in two different fiscal years, 
resulting in two different approval dates and two different education 
award amounts.
    For example, a program might receive a continuation grant on August 
1, 2011, but still have grant funds carried over from a grant made in 
2010. If the program enrolls two members on August 1, 2011--one 
supported with the 2010 grant and one supported with the 2011 grant--
the one supported with the 2010 grant will be eligible for an award 
based on a full-time award of $5,350--the amount of the Pell Grant on 
October 1, 2009, the first day of the fiscal year in which the 2010 
grant was made. The member who is being supported with 2011 funds will 
be eligible for an award based on whatever the amount of the Pell Grant 
is on October 1, 2010.
    The Corporation recognizes the possibility for confusion among 
AmeriCorps State and National members, who, unlike AmeriCorps NCCC and 
AmeriCorps VISTA members, will not be able to rely on their service 
start dates to figure out the amount of the award they are eligible to 
receive. To reduce confusion, it is essential for AmeriCorps programs--
particularly those with AmeriCorps State and National members--to 
clearly communicate to each member, prior to the commencement of 
service, the amount of the education award the individual will receive 
upon successful completion of the term of service. Beginning with 
grants made in 2010, AmeriCorps State and National grant provisions 
will direct grantees to specify the amount of the education award of 
the funds being used to support the position in the member service 
agreement.
    It is important to remember that the Serve America Act went into 
effect on October 1, 2009. All positions approved prior to that date 
are eligible for awards based on a full-time amount of $4,725. This 
includes all AmeriCorps State and National positions, even those that 
began after October 1, 2009, since no AmeriCorps State and National 
positions have been approved with fiscal year 2010 funds to date.
    To learn more about the amount of the education award and how it is 
determined, visit the AmeriCorps Web site at http://www.americorps.gov/for_individuals/benefits/benefits_ed_award.asp.

Amount of Silver Scholar and Summer of Service Education Awards (Sec.  
2527.10)

    As previously discussed, the Serve America Act created two new 
types of education awards: Silver Scholar education awards and Summer 
of Service education awards. This proposed rule amends Sec.  2527.10 to 
include the Silver Scholar education award of $1000, available upon 
successful completion of a term of service of at least 350 hours in a 
Silver Scholar position.
    This proposed rule also amends Sec.  2527.10 to include the Summer 
of Service education award of $500, available upon successful 
completion of at least 100 hours in a Summer of Service position. The 
Corporation may authorize a Summer of Service education award of $750 
if the participant is economically disadvantaged. In order to authorize 
the increased award, the Corporation must receive a certification from 
the school with which the participant served that the participant meets 
the definition of ``economically disadvantaged,'' defined in this rule 
as a child that is eligible for a free lunch and breakfast under the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1758(b)).
    Pro-rated education awards for an early release for compelling 
personal circumstances from a Silver Scholar or Summer of Service 
position are not available. If an individual fails to complete either 
type of term for any reason, the individual will not receive any award. 
And unlike the AmeriCorps education award described in the previous 
section, Silver Scholar and Summer of Service education awards will not 
vary in amount from one year to the next.

Limitation on Value of Education Awards Received (Sec. Sec.  2526.50-
55)

    Prior to the passage of the Serve America Act, the national service 
laws limited individuals to receiving an education award ``only on the 
basis of the first and second * * * terms of service.'' A term of 
service includes full-time, part-time, or less-than-part-time terms, 
terms in which the person served at least 15 percent of the term of 
service, and terms for which an individual was released for misconduct 
regardless of the amount of time served. Terms range in service hour 
requirements from 300 hours to more than 1,700 hours, but despite the 
contrast in the level of commitment required or the service opportunity 
presented, all terms were previously considered of equal value for the 
purposes of limiting the receipt of education awards.
    The Serve America Act amended the national service laws to no 
longer limit the receipt of education awards based upon the number of 
terms served, but rather place the limit on the value of education 
awards received. Sec. 146(c) now states: ``An individual may not 
receive, through national service educational awards and silver scholar

[[Page 8018]]

educational awards, more than an amount equal to the aggregate value of 
[two] such awards for full-time service.''
    The amended law allows for an individual to earn more than two 
education awards, so long as the aggregate value of all awards received 
does not exceed the aggregate value of two full-time national service 
education awards. Significantly, the law does not create an entitlement 
to receive the aggregate value of two full-time awards; rather, it 
prohibits an individual from receiving more than the aggregate value of 
two full-time awards. This proposed rule amends Sec.  2526.50 to align 
with the amended statutory language.
    As previously discussed, the amount of a full-time education award 
is now tied to the amount of a Pell Grant in the year the position is 
awarded, and is likely to change each year. The Corporation does not 
interpret the amended statute to suggest that the value of two full-
time education awards for the purposes of this section is equal to the 
dollar amount of two full-time awards and would thus similarly change 
on an annual basis, providing a potentially unlimited number of service 
opportunities and education awards. Nor does the Corporation interpret 
this change as a means of ensuring that all national service 
participants receive an identical amount of money. Rather, the 
Corporation interprets the change in focus from the number of terms 
served to the value of education awards received as a means of 
addressing the inequity of limiting individuals to two terms of service 
when not all terms offer an equivalent service opportunity. In other 
words, for the purposes of the limitation on education award receipt, 
value is distinct from amount.
    The Corporation considers an education award to be the counterpart 
to successful completion of a term of service, and while the amount of 
that award might change, the service opportunity offered by a 
particular term of service is constant. The Corporation interprets the 
``value'' of a full-time education award to be representative of the 
service opportunity upon which it is based, therefore, a limitation of 
two full-time education awards can be understood as a limitation of two 
full-time service opportunities.
    In order to attribute a value to an award received on the basis of 
a static service opportunity in an environment in which the award 
amount may fluctuate annually, the Corporation proposes to measure the 
value of any award amount relative to the amount of a full-time award 
in a given year. In this rule, the Corporation proposes, for the 
purposes of this section, that the value of an education award is equal 
to the actual amount of the education award received divided by the 
amount of a full-time education award in the year the AmeriCorps or 
Silver Scholar position upon which the award is based was approved. 
Using this calculation, every award received will be considered to have 
a value between 0 and 1. Although the amount of a full-time award may 
change, the value of a full-time award will always be equal to 1.
[GRAPHIC] [TIFF OMITTED] TP23FE10.000

     For example, an individual who completed a part-time position 
approved in 2009 received an education award of $2362.50. The value of 
this award is the amount received, $2,362.50, divided by $4,725, the 
amount of a full-time award in the year the position was approved, or 
.5. Another individual completes a part-time position approved in 2010 
and receives an education award of $2,675. The value of this award is 
the amount received, $2,675, divided by $5,350, the amount of a full-
time award in the year the position was approved, or .5. Using this 
calculation, the value of an award received for part-time service will 
always be equal to .5.
    If an individual leaves a term of service for compelling personal 
circumstances and receives a pro-rated award, the value attributed to 
that award will be based on the amount actually received. For example, 
an individual was released for compelling personal circumstances from a 
full-time position approved in 2009 after serving 800 hours, and 
received a pro-rated award of $2,223.52. The value of this award is the 
amount of the award received, $2,223.52, divided by, $4,725, the amount 
of a full-time award in the year the position was approved, or .47. 
Another individual was released for compelling personal circumstances 
from a full-time position approved in 2010 after serving 800 hours, and 
received a pro-rated award of $2,517.64. The value of this award is the 
amount of the award received, $2,517.64, divided by, $5,350, the amount 
of a full-time award in the year the position was approved, or .47.
    If an individual exits a term for cause and does not receive an 
education award, the amount received will be $0, and therefore no value 
will be attributed to the individual for purposes of this section. 
However, an exit for cause will have an impact on the individual's 
eligibility to serve subsequent terms of service. A term exited for 
cause is considered a term of service for the purposes of term 
limitations for individual programs. For example, if an individual has 
already served one term of service in AmeriCorps NCCC, and exits a 
second term in AmeriCorps NCCC for cause, the individual has exhausted 
the two terms of service one may serve in AmeriCorps NCCC. 
Additionally, if an individual is released for cause from an approved 
AmeriCorps position (including positions in AmeriCorps State and 
National, AmeriCorps VISTA, AmeriCorps NCCC, and Serve America 
Fellows), and the program determines in the end-of-term evaluation that 
the individual served unsatisfactorily, the individual may not be 
permitted to serve a subsequent term in an approved AmeriCorps 
position.
    For the purpose of transferred awards (discussed further in the 
section in this preamble on transfer), this rule proposes that the 
value of the award received by a transferee will be the actual amount 
of the award received divided by the amount of a full-time award in the 
year the position for which the transferring individual received the 
award was approved. For example, if an individual receives an education 
award based on a term of service approved in 2010, and later transfers 
$1,000 of that award to a grandchild, the grandchild will be considered 
to have received an award value of .19, the result of dividing the 
amount received, $1,000, by the amount of a full-time award in 2010, 
$5,350. If the transferring individual revokes all or part of an award, 
this rule proposes that the value considered to be received by the 
designated individual will be decreased accordingly. An individual who 
receives the aggregate value of two full-time awards through 
transferred awards will not be eligible to enroll in a term of service 
the successful completion of which would result in the receipt of an 
education award.

[[Page 8019]]

    Under the proposed rule, an award is considered to be received at 
the time it becomes available for an individual's use, and the fact 
that an individual does not use an award does not diminish its value 
for the purposes of this section. In addition, under the proposed rule 
an individual who transfers an award will still be considered to have 
received the award, and the value of the award for the purposes of this 
section will not be decreased by the amount the individual transfers to 
a designated individual. For example, if an individual successfully 
completes two full-time terms of service, and the individual then 
transfers both full-time awards to a child, both the child and the 
transferring individual will be considered to have received two full-
time awards.
    The proposed rule states that an individual may receive no more 
than the aggregate value of two full-time education awards. In this 
rule, the Corporation proposes that the aggregate value of awards 
received will be equal to the sum of the value of each national service 
education award received (awards received from terms of service in 
AmeriCorps State and National, AmeriCorps VISTA, AmeriCorps NCCC, or 
ServeAmerica fellowships), including partial awards, the value of each 
Silver Scholar award received, and the value of each transferred award 
received. The calculation of the aggregate value does not include 
Summer of Service education awards, as these are explicitly excluded by 
law.
    For example, an individual served a full-time term in 2008 and 
received an award of $4,725. The same individual served a part-time 
term in 2009 and received an award of $2,362.50. The individual enrolls 
in a minimum-time term in 2010 and receives an award of $1,132.60. The 
value of the first award is 1 ($4,725 divided by $4,725), the value of 
the second award is .5 ($2,362.50 divided by $4,725), and the value of 
the third award is .21 ($1,132.60 divided by $5,350). The aggregate 
value of awards received is 1.71 (1 + .5 + .21).
    While the amended law separates the previously indivisible 
limitations on number of terms served and education awards received, 
the limitation on education awards an individual is eligible to receive 
may impact an individual's eligibility to enroll in a subsequent term 
of service. The proposed rule states that an individual may not enroll 
in a subsequent term of service if successful completion of that term 
of service would result in receipt of an education award the value of 
which, when added to the aggregate value of awards previously received, 
would be greater than 2. This limitation would not, however, prevent an 
individual from enrolling in a term of service for which the individual 
chooses to waive receipt of an education award, including a VISTA term 
of service for which the individual elects to receive an end-of-service 
stipend.
    Using the example above, if an individual had received an aggregate 
value of 1.71 awards in the past, that individual may be eligible to 
enroll in a quarter-time, minimum-time, reduced part-time, or Silver 
Scholar position, but would not be eligible to enroll in a part-time or 
full-time position, since the value of a part-time award, .5, plus 
1.71, is greater than 2.
    The Corporation has received questions regarding whether an 
individual could enroll in a term of service, and exit for compelling 
personal circumstances in order to receive a pro-rated award that, when 
added to other awards received, would not exceed the aggregate value of 
two full-time education awards. Exiting in order to receive an 
education award of a particular amount would not be considered to be a 
compelling personal circumstance. The proposed rule is based upon the 
assumption that every individual who enrolls in a term of service does 
so with the intention of successfully completing that term. Therefore, 
an individual would not be permitted to enroll in a term with the 
intention of leaving early in order to receive a pro-rated award of a 
lesser value.
    The Corporation has received questions about whether awards 
received prior to the effective date of the Serve America Act will be 
included in determining the value of education awards received. The 
national service laws, as amended by the Serve America Act, do not 
differentiate between awards received prior to the effective date. All 
awards earned in the past will have a value attributed to them for the 
purposes of this section. Thus, under the proposed rule, if an 
individual has received two full-time education awards in the past, 
that individual is not eligible to receive another education award, and 
may not enroll in a term of service that will result in the receipt of 
an education award.
    Separate from the limitation on education award receipt, individual 
Corporation programs--AmeriCorps NCCC, AmeriCorps VISTA, and AmeriCorps 
State & National--have their own term limitations. Each full-time term, 
part-time term, and term for which the individual leaves after serving 
15% or for misconduct is considered one term for the purposes of these 
program-specific term limitations. Thus, if an individual serves two 
terms of service in AmeriCorps NCCC and exits from one for compelling 
personal circumstances, that individual may be able to enroll in a 
minimum time AmeriCorps State and National or AmeriCorps VISTA 
position, but will not be able to enroll in another AmeriCorps NCCC 
term because the individual has already met the term limit for that 
program. Because the limit on the value of education awards an 
individual may receive necessarily will limit the number of terms an 
individual will be able to serve across the Corporation's AmeriCorps 
and Silver Scholar programs, the Corporation does not intend to set an 
overall limit for number of terms across programs at this time.

Transfer of Education Awards (Part 2530)

    The Serve America Act amended Subtitle D of title I of the NCSA to 
authorize individuals to transfer an education award, with limitations 
on who can transfer an award, and who can receive a transferred award. 
By statute, to transfer an award, an individual must: (1) Have 
successfully completed a term of service in an approved AmeriCorps 
State and National or Silver Scholar position; and (2) have been age 55 
or older before beginning that term of service. To receive an award, an 
individual must: (1) Be designated by a qualifying transferring 
individual; (2) be the child, grandchild, or foster child of the 
transferring individual; and (3) be a citizen, national, or lawful 
permanent resident alien of the United States. The effective date of 
this provision was October 1, 2009; only individuals beginning service 
on or after that date will be eligible to transfer an education award.
    Sec. 148(f) specifies that the ``designated individual,'' meaning 
the child, grandchild, or foster child designated by the transferring 
individual to receive the award, may use the award for the purposes 
described in paragraphs (b), (c), and (d) of that section--i.e., to 
repay qualified student loans, to pay for current educational expenses 
at an institution of higher education, or to pay expenses incurred in 
an approved school-to-work program. The school-to-work program, 
authorized under the School-to-Work Opportunities Act of 1994, 
sunsetted in 2001, thus, in practice, the designated individual would 
be able to use the award only for current educational expenses or to 
repay qualified student loans. The NCSA does not extend the

[[Page 8020]]

use of the award to pay expenses incurred in enrolling in an 
institution or training establishment approved under the G.I. Bill to 
designated individuals, nor does it permit designated individuals to 
receive interest forbearance payments as described in Sec. 148(e).
    This section of the NCSA also permits a transferring individual to, 
``on any date on which a portion of the education award remains unused, 
modify or revoke the transfer of the educational award with respect to 
that portion.''
    This proposed rule adds a new Part 2530 on transfer, including 
rules reflecting statutory guidelines, and details on the processes for 
requesting both transfers and revocations of transferred awards. The 
NCSA also includes a provision requiring the Corporation to ``establish 
requirements to prevent waste, fraud, or abuse in connection with the 
transfer of an educational award and to protect the integrity of the 
educational award under this subsection.'' This proposed rule includes 
several measures intended to protect a transferred education award from 
waste, fraud, or abuse.
    First, as part of the process for the transferring individual to 
request the transfer and the process for the designated individual to 
accept the transfer, the proposed rule would require both the 
transferring individual and the designated individual to provide a 
certification under penalty of law that each meets the criteria to 
transfer, or receive, a transferred award. As with all certifications, 
an individual may be asked to produce verifying documentation.
    Second, the proposed rule would limit an individual to making a 
single transfer of an education award that is attributable to a single 
term of service, thereby limiting the opportunity for waste, fraud, or 
abuse. In order to transfer awards to more than one designated 
individual, the transferring individual will need to earn awards for 
more than one term of service. Under no circumstance may an individual 
partition a single award attributable to completion of a single term of 
service to multiple designated individuals. Notably, this proposed rule 
would permit an individual to transfer all or a portion of an award to 
a designated individual, thus, the transferring individual could keep a 
portion of the award for his or her use, and transfer a portion of the 
award to a designated individual.
    As stated above, a transferring individual also has the authority 
to revoke any unused portion of an education award from a designated 
individual. As another measure to prevent waste, fraud, or abuse, and 
in line with the Corporation's intent to limit individuals to a single 
transfer from each award, a transferring individual would not, as a 
general rule, be permitted to re-transfer a revoked award to another 
individual.
    The proposed rule includes an exception to this general rule for 
those situations in which the Corporation considers the award to have 
been revoked for good cause, as demonstrated by the transferring 
individual. For example, if a transferring individual revokes the full 
amount transferred upon the death of a designated individual, the 
Corporation would permit the transferring individual to re-transfer the 
award in whole or in part.
    This proposed rule also includes several clarifying provisions. As 
discussed in the section in this rule on the limitation on the value of 
education awards an individual may receive, the NCSA prohibits an 
individual from receiving more than the aggregate value of two 
education awards. Under this proposed rule, an award would be 
considered to be ``received'' at the time it becomes available for an 
individual's use. The fact that an individual transfers an award to a 
designated individual would not decrease the value of awards the 
individual would be considered to have received. Transferred awards a 
designated individual receives would also be considered when 
calculating the aggregate value of awards received.
    For example, if an individual receives two full-time awards, and 
transfers both awards to a child, both the transferring and designated 
individual will be considered to have received the aggregate value of 
two full-time awards, and neither will be eligible to receive 
additional AmeriCorps or Silver Scholar awards from the National 
Service Trust. Notably, because Summer of Service education awards are 
not included in the calculation of aggregate value of education awards 
received, a designated individual could still receive Summer of Service 
education awards even if the designated individual had already received 
the aggregate value of two full-time education awards. As discussed in 
the section on calculating the value of an education award, a 
transferred award would have a value based on the amount of a full-time 
education award in the year the position on which the transferring 
individual's award was based was approved.
    Finally, under the national service laws, an individual has seven 
years from the date the individual completes a term of service upon 
which an award is based to use an award, and a designated individual 
receiving a transferred award has ten years from the date the term of 
service is completed to use the award. For example, if an individual 
receives an award for a term completed in 2010, and transfers the award 
five years after receiving the award, the designated individual would 
have five years to use the award. In accordance with these statutory 
time frames, the proposed rule permits an individual to revoke an award 
at any point prior to its use, but the individual may only use a 
revoked award for his or her use if the award has not expired. For 
example, if an individual received an award for a term completed in 
2010, transferred the award five years after receiving the award, and 
then revoked the unused portion six years after receiving the award, 
the transferring individual would have only one year to use the award. 
If, however, the transferring individual had revoked the award eight 
years after it was originally earned, the award would expire 
immediately upon revocation, because although the award had not yet 
expired for use by the designated individual, it would have expired for 
the transferring individual a year earlier.

Periods of Availability for Silver Scholar, Summer of Service, and 
Transferred Education Awards (Sec.  2526.40)

    Under Sec. 146 of the NCSA, the period of availability for a Silver 
Scholar education award is seven years from the date the individual 
completes a term of service. The period of availability for a Summer of 
Service education award is ten years from the date the individual 
completes the term of service. Individuals who receive a transferred 
award may use the award within ten years of the date the transferring 
individual completes the term of service that is the basis for the 
award--not the date the designated individual receives the transferred 
award. For example, if an individual transfers an award five years 
after the date the individual completed the term of service, the 
designated individual would have five years to use the award--ten years 
from the date the transferring individual completed the term of 
service. This proposed rule amends section Sec.  2526.40 to include 
periods of availability for Silver Scholar, Summer of Service, and 
transferred education awards.
    Similar to national service education awards, Sec. 146 authorizes 
the Corporation to grant an extension to the period of availability for 
a Silver Scholar education award, a Summer of Service education award, 
or a

[[Page 8021]]

transferred award if the individual requesting the extension ``was 
unavoidably prevented'' from using the education award or if the 
individual ``performed another term of service in an approved national 
service position, approved summer of service position, or approved 
silver scholar position during that period.''
    The ten year period of availability for transferred education 
awards has raised questions about whether extensions will be granted if 
a designated individual is still too young to use an award by its 
expiration date. The NCSA does not specify a minimum age for the 
designated individual. Thus, if an individual transfers an award to a 
grandchild who was four years old at the time the individual completed 
the term of service that was the basis of the award, the ten year 
period of availability will expire when the child is fourteen. It is 
unlikely that, at that time, the child would have had an opportunity to 
use the education award, thus, the award would expire unused.
    Sec. 148(f) of the NCSA directs the Corporation to ``establish 
requirements to prevent waste, fraud, or abuse in connection with the 
transfer of an educational award and to protect the integrity of the 
educational award.'' To permit extensions for a designated individual 
who is too young to use an award would mean, in some cases, extensions 
for up to nine years beyond the original expiration date--nearly twice 
the statutory period of availability. The longer the period of 
availability, the greater the risk of fraud, waste, or abuse. Further, 
Congress selected ten years as a reasonable period of availability for 
a transferred award. Based upon these considerations, this proposed 
rule specifies that an individual who is unable to use an education 
award as a result of being too young will not be considered to be 
unavoidably prevented from using the education award. Individuals 
wishing to transfer an award will be reminded at the time they request 
a transfer that while there is no minimum age for a designated 
individual, extensions based on age will not be granted.

Certifications of Successful Completion of Terms of Service (Sec.  
2626.10)

    The Serve America Act amended the NCSA by adding a new section 
146A, which imposes a requirement that a national service program 
certify under penalty of law that an individual successfully completed 
an agreed-upon term of service to be eligible to receive an education 
award from the National Service Trust. Specifically Sec. 146A(a) 
provides that, in making disbursements from the National Service Trust, 
the Corporation is authorized to act on the basis of certifications 
that individuals who served in approved AmeriCorps positions, approved 
Summer of Service positions, or approved Silver Scholar positions, 
successfully completed the term of service required to be eligible for 
an education award. These certifications must be made by the entity 
which selected the individual to serve in the position, and supervised 
the individual's performance of their service. This proposed rule 
implements Sec. 146A(a) by including the certification requirement in 
the determination of who is eligible to receive an education award 
under Sec.  2526.10(a)(2)(A), (C), and (D).

Effect of Erroneous Certifications of Successful Completion of Terms of 
Service (Sec.  2526.70)

    Under Sec. 146A(b) of the NCSA, if the Corporation finds that a 
certification made under Sec. 146A(a) is erroneous or incorrect, the 
Corporation shall assess a charge against the national service program 
which made the certification. The charge is to be assessed for the 
amount of any payment which the Corporation has or may make from the 
National Service Trust based on the erroneous certification. In 
assessing the amount of a charge, the Corporation is to consider the 
full facts and circumstances surrounding the erroneous or incorrect 
certification.
    This proposed rule implements Sec. 146A(b) and specifies that any 
Corporation determination in regard to a charge under Sec.  2526.70 
will not preclude the Corporation from taking any other actions which 
may be warranted under other applicable authorities, such as the 
Program Fraud Civil Remedies Act.

Public Service Loan Forgiveness and AmeriCorps (Sec.  2526.20)

    On September 27, 2007, President Bush signed the College Cost 
Reduction and Access Act of 2007 (Pub. L. 110-84) into law. The CCRAA 
created the Public Service Loan Forgiveness Program. This program 
offers forgiveness for outstanding Federal Direct loans for those 
individuals who make 120 qualifying payments after October 1, 2007, 
while working full-time in a ``public service job.'' In the Department 
of Education's implementing rules, ``public service job'' has been 
defined to include ``serving in a full-time AmeriCorps * * * 
position.'' (34 CFR 685.219(c); 73 FR 63527, Oct. 23, 2008). 
``AmeriCorps position'' as defined in that section would include full-
time service in AmeriCorps State and National, AmeriCorps NCCC, 
AmeriCorps VISTA, and ServeAmerica Fellowships.
    Generally, an individual cannot receive an education award and 
related interest benefits from the National Service Trust as well as 
other loan cancellation benefits for the same service. For example, the 
law authorizing the Teacher Loan Forgiveness Program (TLFP) explicitly 
states that ``no borrower may, for the same service, receive a benefit 
under this [program] and subtitle D of title I of the National and 
Community Service Act of 1990.'' (20 U.S.C. 1078-10(g)(2)). Thus, an 
AmeriCorps member serving in a teacher corps program would have to 
choose whether to count the service year towards TLFP or AmeriCorps, 
but would not be able take both benefits for the same period of 
service.
    The Public Service Loan Forgiveness Program is an exception to this 
general rule. Service performed by an individual serving in a full-time 
AmeriCorps position may be credited to both an education award and 
Public Service Loan Forgiveness.
    This rule amends Sec.  2526.60 to include an exception to the 
general prohibition on an individual's receiving an education award and 
related interest benefits from the National Service Trust as well as 
other loan cancellation benefits for the Public Service Loan 
Forgiveness Program.
    For more information on qualifying for Public Service Loan 
Forgiveness while serving in AmeriCorps, please visit: http://www.nationalservice.gov/for_organizations/highered/ccraa.asp.

Term Limits for AmeriCorps State and National (Sec.  2522.235)

    AmeriCorps State and National is the national service program 
funded under subtitle C of title I of the NCSA. Prior to passage of the 
Serve America Act, Sec. 140(h) of the NCSA included a limitation that 
no program could use any Federal funds to support an individual during 
a third term of service in an AmeriCorps State and National position. 
The Serve America Act removed Sec. 140(h) of the NCSA, thereby 
eliminating the statutory limitation on the number of terms in which 
one could be supported with Federal funds while serving in AmeriCorps 
State and National position. The Serve America Act amended Sec. 146(c) 
by changing the limitation from receiving awards for the first two 
terms of service to receiving up to the value of two full-time 
education awards. As discussed in the section on the limitation of 
education award receipt, these amendments now give the

[[Page 8022]]

Corporation the flexibility to support a single individual for more 
than two terms of service in less-than-full-time terms. The amendments 
do not guarantee an individual may serve more than two terms of 
service, nor do they direct the Corporation to provide an individual 
with the opportunity to serve more than two terms of service. Rather, 
the amended provision establishes a new limitation that the Corporation 
must enforce.
    Theoretically, using the calculation for the aggregate value of 
awards received (discussed previously in this preamble), without term 
limitations, an individual could potentially serve as few as two full-
time terms, or as many as 9 minimum-time terms, in AmeriCorps State and 
National. The number of minimum-time terms could be even higher if an 
individual leaves one or more terms for compelling personal 
circumstances. A minimum-time term may be completed over two years. 
Thus, without term limitations, a single individual could potentially 
serve in AmeriCorps State and National for nearly 20 years.
    By statute, one of the Corporation's guiding purposes is to 
``encourage citizens of the United States * * * to engage in full-time 
or part-time national service.'' In furtherance of this, the 
Corporation's longstanding policy is to limit the number of terms an 
individual may serve in an approved national service position to ensure 
that there are opportunities for all interested Americans to serve. 
Increasingly, applications for AmeriCorps far exceed available 
positions. The Corporation's current limitation of two terms of service 
in AmeriCorps State and National means that, after a maximum of two 
terms, a position will be available for a new individual to have an 
opportunity to serve.
    As discussed previously in this preamble, however, the Corporation 
appreciates that the law as amended affords more opportunities to serve 
for those individuals who serve in less-than-full-time positions. To 
balance the increased flexibility afforded by the amended statute with 
the Corporation's interest in providing more Americans an opportunity 
to serve, the Corporation proposes to double the number of available 
terms in AmeriCorps State and National from two to four. This would 
provide twice as many opportunities as were previously available, but 
would place a reasonable limit in order to ensure service opportunities 
are available for other interested participants.
    This proposed rule amends Sec.  2522.235 to limit the number of 
terms an individual may serve in AmeriCorps State and National to four. 
A term of service includes full-time, part-time, and reduced-part-time 
terms, as well as any term from which one exits after serving 15 
percent of the agreed term of service or a term from which one is 
exited for misconduct. If a person leaves for reasons other than 
misconduct prior to serving 15%, the term is not considered a term of 
service for the purposes of this limitation. This does not mean that an 
individual is guaranteed four terms of service in AmeriCorps State and 
National.
    Exhaustion of the number of terms one serves in AmeriCorps State 
and National would not necessarily prevent an individual from enrolling 
in a position in another national service program, such as AmeriCorps 
NCCC, AmeriCorps VISTA, or Silver Scholars, and receiving an education 
award for successful completion of the service. For example, if an 
individual serves four minimum-time terms in AmeriCorps State and 
National, for an aggregate value of .85 education awards received, the 
individual could enroll in a term in another national service program 
such as AmeriCorps VISTA, AmeriCorps NCCC, or Silver Scholars.
    However, under the proposed rule, an individual may not enroll in 
any term of service for which the successful completion would result in 
receipt of an award that, when combined with the aggregate value of 
awards previously received, would exceed the value of two full-time 
education awards. Thus, if an individual served for two full-time terms 
of service in AmeriCorps State and National and received two full-time 
education awards, the individual would not be eligible to enroll in any 
term in AmeriCorps State and National, AmeriCorps NCCC, AmeriCorps 
VISTA, Silver Scholar, or other national service program for which the 
successful completion would result in the receipt of an AmeriCorps or 
Silver Scholar education award.
    Please note that the Corporation's current regulatory limitation of 
two terms of service in AmeriCorps State and National fits within the 
current statutory framework, and will remain in effect until this 
proposed rule has been finalized.

Selection Criteria Sub-Categories for AmeriCorps State and National 
(Part 2522)

    The Serve America Act amended Subtitle C of title I of the NCSA by 
placing greater emphasis on a grantee's impact. Programs are now 
described not only in terms of their programmatic activities and the 
unmet community needs the programs are addressing, but also in terms of 
`performance indicators' that demonstrate the program's impact. 
Additionally, the NCSA now requires the Corporation to each year fund 
at least two of five statutorily described programs, including programs 
that address unmet education, health, economic opportunity, veteran, 
and clean energy needs. While the Corporation can accommodate these 
changes in future grant competitions without changing our current 
published selection criteria, the current ``sub-categories'' of the 
basic selection criteria and the published weights for the sub-
categories are an imperfect fit for the increased emphasis on 
performance and funding of programs addressing particular community 
needs.
    This proposed rule would remove Sec. Sec.  2522.425-435, the 
sections that describe the sub-categories of the three basic selection 
criteria, as well as Sec. Sec.  2522.445-448, the sections that set out 
the weights given to the sub-categories.
    The Corporation will, in the future, publish specific sub-
categories for the basic selection criteria as well as funding 
priorities in the Notice of Funds Availability. This will enable the 
Corporation to adjust application components and the weights given to 
sub-components. Additionally, this will further the Corporation's 
continued efforts to simplify the application process, as supported by 
the Serve America Act.
    The Corporation will continue to use a multi-stage process, 
including review by a panel of experts, and will continue to make 
funding decisions based on the same basic selection criteria of program 
design, organizational capability, and cost-effectiveness and budget 
adequacy. The weights given to the basic selection criteria--50% for 
program design, 25% for organizational capability, and 25% for cost-
effectiveness and budget adequacy--would not change. The change in 
location of published sub-categories and their respective weights does 
not signify a change in the Corporation's standards for transparency, 
clarity, and consistency in considering applications; all applicants 
will be made aware of sub-categories of selection criteria in advance 
of the application and review process.
    Please note that for the 2010 AmeriCorps State and National grant 
competition, the currently published selection criteria, sub-
categories, and weights remain in effect.

[[Page 8023]]

Applications for the Same Project (Sec.  2522.320)

    The Serve America Act amended Sec. 130(g) of the NCSA, which 
previously required the Corporation to ``reject an application * * * if 
a project proposed to be conducted using assistance requested by the 
applicant is already described in another application pending before 
the Corporation.'' As amended, this section now prohibits the 
Corporation from providing ``more than [one] grant under the national 
service laws for a fiscal year to support the same project under the 
national service laws.'' This provision, as amended, supports the 
Corporation's longstanding practice not to provide more than one grant 
to the same project. In addition, the revised language increases the 
Corporation's flexibility in structuring its grant application review 
process.
    This proposed rule aligns the regulations with the amended statute 
by removing the regulatory conditions under which an applicant may 
submit multiple applications for the same project. In the future, the 
Corporation will include guidance on applying for different funds for 
the same project in the grant application instructions. For the 
purposes of preventing the same project from receiving more than one 
grant under the national service laws, the Corporation will continue to 
use the characteristics currently listed in Sec.  2522.340 when 
determining whether two projects are the same.
    Please note that the current regulations at Sec. Sec.  2522.320-330 
prohibiting the submission of more than one application for the same 
project in a single competition remain in effect for the 2010 
AmeriCorps State and National grant competition.

Pre-Approval of Formula Programs (Sec.  2550.80)

    Sec. 130(f) of the NCSA was amended by the Serve America Act by 
removing the requirement that a State's application for Subtitle C (of 
title I of the NCSA) formula funds include an assurance that formula 
programs be selected on a competitive basis prior to submission of the 
application. This amendment aligns with language from the Corporation's 
annual appropriations and conforms to current practice. States continue 
to be required to provide an assurance that formula programs will be 
selected on a competitive basis, however, States may select these 
programs after submitting the application for Subtitle C formula funds. 
This proposed rule amends Sec.  2550.80 to reflect this change.

Hardship Waiver Permitted for Cost Reimbursement Cap for Senior 
Companion and Foster Grandparent Programs (Sec. Sec.  2551.92, 2552.92)

    Under current regulations, the total of cost reimbursements 
attributable to Senior Companions or Foster Grandparents, including 
stipends, insurance, transportation, meals, physical examinations, and 
recognition, may not exceed 80 percent of the Federal share of the 
grant award. Because of the financial challenges faced by some 
organizations as a result of the recent economic downtown and the real 
potential for a decrease in non-Federal support, the proposed rule 
permits the Corporation to allow an exception to the 80 percent limit 
in cases of demonstrated need. Demonstrated need would include initial 
difficulties in developing local funding sources in the first three 
years of operation; an economic downturn, natural disaster, or other 
similar event that severely reduces sources of local funding support; 
or the unexpected discontinuation of a long-term local funding source.

                        Summary of Redesignations
------------------------------------------------------------------------
         Previous location                    Proposed location
------------------------------------------------------------------------
      Sec.   2522.220(c)                   Sec.   2522.220(b)
      Sec.   2522.220(d)                   Sec.   2522.220(c)
      Sec.   2522.220(e)                   Sec.   2522.220(d)
      Sec.   2522.220(f)                   Sec.   2522.220(e)
      Sec.   2522.220(g)                   Sec.   2522.220(f)
               Part 2530                            Part 2531
               Part 2531                            Part 2532
               Part 2532                            Part 2533
------------------------------------------------------------------------

IV. Effective Dates

    The Corporation intends to make any final rule based on this 
proposed rule effective no sooner than 30 days after the final rule is 
published in the Federal Register. We will include an implementation 
schedule in the final rule, based on the final rule's date of 
publication.

V. Non-Regulatory Issues

Executive Order 12866

    Under Executive Order 12866, the Chief Executive Officer must 
determine whether this regulatory action is ``significant'' and 
therefore subject to the requirements of the Executive Order and review 
by OMB. Section 3(f) of Executive Order 12866 defines a ``significant 
regulatory action'' as an action likely to result in a rule that may 
(1) Have an annual effect on the economy of $100 million or more, or 
adversely affect a sector of the economy, productivity, competition, 
jobs, the environment, public health or safety, or State, local or 
Tribal governments, or communities in a material way (also referred to 
as an ``economically significant'' rule); (2) create serious 
inconsistency or otherwise interfere with an action taken or planned by 
another agency; (3) materially alter the budgetary impacts of 
entitlement grants, user fees, or loan programs or the rights and 
obligations of recipients thereof; or (4) create novel legal or policy 
issues arising out of legal mandates, the President's priorities, or 
the principles set forth in the Executive order. The Chief Executive 
Officer has determined that this regulatory action is not significant 
under the Executive Order.

Regulatory Flexibility Act

    The Corporation has determined that the regulatory action will not 
result in (1) An annual effect on the economy of $100 million or more; 
(2) a major increase in costs or prices for consumers, individual 
industries, Federal, State, or local government agencies, or geographic 
regions; or (3) significant adverse effects on competition, employment, 
investment, productivity, innovation, or on the ability of United 
States-based enterprises to compete with foreign-based enterprises in 
domestic and export markets. Therefore, the Corporation has not 
performed the initial regulatory flexibility analysis that is required 
under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) for major 
rules that are expected to have such results.

Paperwork Reduction Act of 1995

    Sections 2526.10, 2528.10, 2528.30, 2528.40, 2528.60, 2528.70, 
2529.10, 2530.30, and 2530.85 contain information collection 
requirements. Under the Paperwork Reduction Act of 1995 (44 U.S.C. 
3507(d)), the Corporation has submitted a copy of these sections to the 
Office of Management Budget (OMB) for its review.
    Section 2526.10 identifies two new categories of individuals 
eligible to receive education awards--individuals who have successfully 
completed terms of service in Silver Scholar and Summer of Service 
positions. The proposed addition requires the development of new 
enrollment and exit forms for the National Service Trust for 
individuals enrolling in and exiting from Silver Scholar or Summer of 
Service positions. The Corporation estimates the burden associated with 
filling out a Silver Scholar or Summer of Service enrollment form to be 
3 minutes and a Silver Scholar or Summer of Service

[[Page 8024]]

exit form to be 3 minutes. Additionally, Sec.  2526.10 requires the 
program supervising the participant to certify that the participant met 
eligibility criteria and successfully completed the required term of 
service. The proposed change affects those programs who supervise the 
participants. The burden hour estimate associated with the current exit 
form reported under OMB Control Number 3045-0015 is 3 minutes. The 
Corporation does not expect the proposed changes to increase the burden 
for this collection.
    Section 2528.10 expands the available uses of an education award to 
include use for current educational expenses incurred in enrolling in 
an educational institution or training establishment approved for 
educational benefits under the Montgomery G.I. Bill for offering 
programs of education, apprenticeship, or on-job training for which 
educational assistance may be provided by the Secretary of Veterans 
Affairs. Sections 2528.60-70 lay out the processes for requesting to 
use an award for this purpose. These proposed provisions affect 
individuals who choose to use education awards for this purpose, and 
the educational institutions or training establishments at which such 
individuals elect to use their awards. The burden hour estimate 
associated with the current voucher and payment request form reported 
under OMB Control Number 3045-0014 is 5 minutes. The Corporation does 
not expect the proposed additions to increase the burden for this 
collection.
    Section 2529.10 expands the availability of payments on accrued 
interest to individuals who successfully complete terms of service in 
Silver Scholar positions. This affects those individuals who serve in 
Silver Scholar programs and elect to place qualified student loans in 
forbearance, and request accrued interest payments from the National 
Service Trust. The burden hour estimate associated with the current 
forbearance request form and interest accrual form, reported under OMB 
Control Numbers 3045-0030 and 3045-0053 are 1 minute and 10 minutes, 
respectively. The Corporation does not expect the proposed changes to 
increase the burdens for these collections.
    Sections 2530.30 and 2530.85 set forth the processes for requesting 
to transfer an award, accepting a transferred award, and revoking a 
transferred award. This affects those individuals who choose to 
transfer their education awards and those individuals receiving awards 
via transfer. The Corporation estimates the burden associated with 
requesting to transfer an award and accepting a transferred award to be 
5 minutes, and the burden associated with revoking a transferred award 
to be 5 minutes.

List of Subjects

45 CFR Part 2510

    Grant programs--social programs, Volunteers.

45 CFR Part 2522

    Grants administration, Grant programs--social programs, Volunteers.

45 CFR Part 2525

    Grant programs--social programs, Student aid, Volunteers.

45 CFR Part 2526

    Education, Grant programs--social programs, Student aid, 
Volunteers.

45 CFR Part 2527

    Education, Grant programs--social programs, Student aid, 
Volunteers.

45 CFR Part 2528

    Education, Grant programs--social programs, Student aid, 
Volunteers.

45 CFR Part 2529

    Education, Grant programs--social programs, Student aid, 
Volunteers.

45 CFR Part 2530

    Education, Grant programs--social programs, Student aid, 
Volunteers.

45 CFR Part 2531

    Grant programs--social programs.

45 CFR Part 2532

    Grant programs--social programs, Volunteers.

45 CFR Part 2533

    Grants administration, Grant programs--social programs.

45 CFR Part 2550

    Grants administration, Grant programs--social programs.

45 CFR Part 2551

    Grants administration, Grant programs--social programs, Volunteers.

45 CFR Part 2552

    Grants administration, Grant programs--social programs, Volunteers.

    For the reasons stated in the preamble, under the authority 42 
U.S.C. 12651d, the Corporation for National and Community Service 
proposes to amend chapter XXV, title 45 of the Code of Federal 
Regulations, as follows:

PART 2510--OVERALL PURPOSES AND DEFINITIONS

    1. The authority citation for Part 2510 continues to read as 
follows:

    Authority: 42 U.S.C. 12501 et seq.

    2. Amend Sec.  2510.20 by adding definitions for ``Approved Silver 
Scholar position'' and ``Approved Summer of Service position'' in 
alphabetical order, to read as follows:

Sec.  2510.20  Definitions

* * * * *
    Approved Silver Scholar Position. The term approved Silver Scholar 
position means a Silver Scholar position for which the Corporation has 
approved a Silver Scholar education award.
    Approved Summer of Service Position. The term approved Summer of 
Service position means a Summer of Service position for which the 
Corporation has approved a Summer of Service education award.
* * * * *

PART 2522--AMERICORPS PARTICIPANTS, PROGRAMS, AND APPLICANTS

    3. The authority citation for Part 2522 continues to read as 
follows:

    Authority: 42 U.S.C. 12571-12595; 12651b-12651d; E.O. 13331, 69 
FR 9911.

    4. Amend Sec.  2522.220 by:
    a. Revising the heading;
    b. Removing paragraph (b);
    c. Redesignating paragraphs (c) through (g) as (b) through (f), 
respectively; and
    d. Revising newly redesignated paragraph (b).
    The revisions read as follows:

Sec.  2522.220  What are the required terms of service for AmeriCorps 
participants?

* * * * *
    (b) Eligibility for subsequent term. A participant will only be 
eligible to serve a subsequent term of service if that individual has 
received satisfactory performance review(s) for any previous term(s) of 
service in an approved AmeriCorps position, in accordance with the 
requirements of paragraph (d) of this section and Sec.  2526.15. Mere 
eligibility for a second or further term of service in no way 
guarantees a participant selection or placement.
* * * * *
    5. Amend Sec.  2522.230 by:
    a. Revising paragraphs (b)(6) and (b)(7); and
    b. Revising paragraph (e).
    The revisions read as follows:

[[Page 8025]]

Sec.  2522.230  Under what circumstances may AmeriCorps participants be 
released from completing a term of service, and what are the 
consequences?

* * * * *
    (b) * * *
    (6) An individual's eligibility for a subsequent term of service in 
AmeriCorps will not be affected by release for cause from a prior term 
of service so long as the individual received a satisfactory end-of-
term performance review as described in Sec.  2522.220(d)(2) for the 
period served in the prior term.
    (7) Except as provided in paragraph (e) of this section, a term of 
service from which an individual is released for cause counts as one of 
the terms of service described in Sec.  2522.235 for which an 
individual may receive the benefits described in Sec. Sec.  2522.240 
through 2522.250.
* * * * *
    (e) Release prior to serving 15 percent of a term of service. If a 
participant is released for reasons other than misconduct prior to 
completing 15 percent of a term of service, the term will not be 
considered to be one of the terms of service described in Sec.  
2522.220(b) for which an individual may receive the benefits described 
in Sec. Sec.  2522.240 through 2522.250.
    6. Add a new Sec.  2522.235 to read as follows:

Sec.  2522.235  Is there a limit on the number of terms an individual 
may serve in an AmeriCorps State and National program?

    (a) General limitation. An individual may receive the benefits 
described in Sec. Sec.  2522.240 through 2522.250 for no more than four 
terms of service in an AmeriCorps State and National program, 
regardless of whether those terms were served on a full-, part-, or 
reduced part-time basis, consistent with the limitations in Sec.  
2526.50.
    (b) Early release. Except as provided in paragraph (c) of this 
section, a term of service from which an individual is released for 
compelling personal circumstances or for cause counts as one of the 
terms of service for which an individual may receive the benefits 
described in Sec.  2522.240 through Sec.  2522.250.
    (c) Release prior to serving fifteen percent of a term. If a person 
is released for reasons other than misconduct prior to completing 
fifteen percent of a term of service, the term will not be considered 
one of the terms of service for which an individual may receive the 
benefits described in Sec. Sec.  2522.240 through 2522.250.
    7. Amend Sec.  2522.240 by:
    a. Revising paragraph (a); and
    b. Removing the reference to Sec.  2522.220(g) in paragraph (c) and 
adding a reference to Sec.  2522.220(f) in its place.
    The revision will read as follows:

Sec.  2522.240  What financial benefits do AmeriCorps participants 
serving in approved AmeriCorps positions receive?

    (a) AmeriCorps educational awards. An individual serving in an 
approved AmeriCorps State and National position will receive an 
educational award from the National Service Trust upon successful 
completion of each of no more than four terms of service as defined in 
Sec.  2522.220, consistent with the limitations in Sec.  2526.50.
* * * * *
    Sec. Sec.  2522.320, 2522.330, 2522.425, 2522.430, 2522.435, 
2522.445, and 2522.448 [Removed and Reserved]
    8. Remove and reserve Sec. Sec.  2522.320, 2522.330, 2522.425, 
2522.430, 2522.435, 2522.445, and 2522.448.

PART 2525--NATIONAL SERVICE TRUST: PURPOSE AND DEFINITIONS

    9. The authority citation for Part 2525 is revised to read as 
follows:

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

    10. Amend Sec.  2525.20 by:
    a. Removing the definition for ``approved school-to-work program'';
    b. Revising the definitions for ``education award'' and ``term of 
service''; and
    c. Adding definitions for ``AmeriCorps education award,'' 
``economically disadvantaged youth,'' ``Silver Scholar education 
award,'' and ``Summer of Service education award'' in alphabetical 
order, to read as follows:

Sec.  2525.20  [Amended]

* * * * *
    AmeriCorps education award. For the purposes of this section, the 
term AmeriCorps education award means the financial assistance 
available under parts 2526 through 2528 of this chapter for which an 
individual in an approved AmeriCorps position may be eligible.
* * * * *
    Economically disadvantaged youth. For the purposes of this section, 
the phrase economically disadvantaged youth means a child who is 
eligible for a free lunch and breakfast under the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1758(b)).
    Education award. For the purposes of this section, the term 
education award refers to the financial assistance available under 
parts 2526 through 2528 of this chapter, including AmeriCorps education 
awards, Silver Scholar education awards, and Summer of Service 
education awards.
* * * * *
    Silver Scholar education award. For the purposes of this section, 
the term Silver Scholar education award means the financial assistance 
available under parts 2526 through 2528 of this chapter for which an 
individual in an approved Silver Scholar position may be eligible.
    Summer of Service education award. For the purposes this section, 
the term Summer of Service education award means the financial 
assistance available under parts 2526 through 2528 of this chapter for 
which an individual in an approved Summer of Service position may be 
eligible.
    Term of service. The term term of service means--
    (1) For an individual serving in an approved AmeriCorps position, 
one of the terms of service specified in Sec.  2522.220 of this 
chapter;
    (2) For an individual serving in an approved Silver Scholar 
position, not less than 350 hours during a one-year period; and
    (3) For an individual serving in an approved Summer of Service 
position, not less than 100 hours during the summer months.

PART 2526--ELIGIBILITY FOR AN EDUCATION AWARD

    11. The authority citation for Part 2526 is revised to read as 
follows:

    Authority: 42 U.S.C. 12601-12604, 12606.

    12. Amend Sec.  2526.10 by revising paragraph (a) to read as 
follows:

Sec.  2526.10  Who is eligible to receive an education award from the 
National Service Trust?

    (a) General. An individual is eligible to receive an education 
award from the National Service Trust if the organization responsible 
for the individual's supervision in a national service program 
certifies that the individual--
    (1) Met the applicable eligibility requirements for the approved 
AmeriCorps position, approved Silver Scholar position, or approved 
Summer of Service position, as appropriate, in which the individual 
served;
    (2)(i) For an AmeriCorps education award, successfully completed 
the required term of service in the approved national service position;
    (ii) For a partial AmeriCorps education award, completed at least 
15 percent of the originally-approved term of service, and performed 
satisfactorily prior to being granted a release for compelling personal 
circumstances consistent with Sec.  2522.230(a);

[[Page 8026]]

    (iii) For a Summer of Service education award, successfully 
completed the required term of service in a Summer of Service position; 
or
    (iv) For a Silver Scholar education award, successfully completed 
the required term of service in a Silver Scholar position; and
    (3) Is a citizen, national, or lawful permanent resident alien of 
the United States.
* * * * *
    13. Add a new Sec.  2526.15 to read as follows:

Sec.  2526.15  Upon what basis may an organization responsible for the 
supervision of a national service participant certify that the 
individual successfully completed a term of service?

    (a) An organization responsible for the supervision of an 
individual serving in an AmeriCorps State and National position will 
determine whether an individual successfully completed a term of 
service based upon an end-of-term evaluation conducted pursuant to 
Sec.  2522.220(d).
    (b) An organization responsible for the supervision of an 
individual serving in a program other than AmeriCorps State and 
National will determine whether an individual successfully completed a 
term of service based upon an end-of-term evaluation that examines 
whether the individual:
    (1) Completed the required number of service hours for the term of 
service;
    (2) Satisfactorily performed on assignments, tasks, or projects; 
and
    (3) Met any performance criteria as determined by the program and 
communicated to the member.
    (c) A certification by the organization responsible for the 
supervision of an individual that the individual did or did not 
successfully complete a term of service will be deemed to incorporate 
an end-of-term evaluation.
    14. Amend Sec.  2526.20 by revising paragraph (a) to read as 
follows:

Sec.  2526.20  Is an AmeriCorps participant who does not complete an 
originally-approved term of service eligible to receive a pro-rated 
education award?

    (a) Compelling personal circumstances. A participant in an approved 
AmeriCorps position who is released prior to completing an approved 
term of service for compelling personal circumstances in accordance 
with Sec.  2522.230(a) is eligible for a pro-rated education award if 
the participant--
    (1) Performed satisfactorily prior to being granted a release for 
compelling personal circumstances; and
    (2) Completed at least 15 percent of the originally-approved term 
of service.
* * * * *
    15. Add a new Sec.  2526.25 to read as follows:

Sec.  2526.25  Is a participant in an approved Summer of Service 
position or approved Silver Scholar position who does not complete an 
approved term of service eligible to receive a pro-rated education 
award?

    No. An individual released for any reason prior to completing an 
approved term of service in a Silver Scholar or Summer of Service 
position is not eligible to receive a pro-rated award.
    16. Revise Sec.  2526.40 to read as follows:

Sec.  2526.40  What is the time period during which an individual may 
use an education award?

    (a) General requirement. Unless the Corporation approves an 
extension in accordance with the requirements of paragraph (b) of this 
section--
    (1) An individual may use an AmeriCorps education award or a Silver 
Scholar education award within seven years of the date on which the 
individual successfully completed a term of service in an approved 
AmeriCorps or Silver Scholar position;
    (2) An individual may use a Summer of Service education award 
within ten years of the date on which the individual successfully 
completed a term of service in an approved Summer of Service position;
    (3) A designated individual who receives a transferred education 
award in accordance with Sec.  2530.10 may use the transferred 
education award within ten years of the date on which the individual 
who transferred the award successfully completed the term of service in 
an approved AmeriCorps or Silver Scholar position that is the basis of 
the award.
    (b) Extensions. In order to receive an extension of the period of 
availability specified in paragraph (a) of this section for using an 
education award, an individual must apply to the Corporation for an 
extension prior to the end of that time period. The Corporation will 
grant an application for an extension under the following 
circumstances:
    (1) If the Corporation determines that an individual was performing 
another term of service in an approved AmeriCorps, Summer of Service, 
or Silver Scholar position during the original period of availability, 
the Corporation will grant an extension for a time period that is 
equivalent to the time period during which the individual was 
performing the other term of service.
    (2) If the Corporation determines that an individual was 
unavoidably prevented from using the education award during the 
original period of availability, the Corporation will grant an 
extension for a period of time that the Corporation deems appropriate. 
An individual who is ineligible to use an education award as a result 
of the individual's conviction of the possession or sale of a 
controlled substance is not considered to be unavoidably prevented from 
using the education award for the purposes of this paragraph. In the 
case of a transferred award, an individual who is unable to use an 
education award as a result of being too young to enroll in an 
institution of higher education or other training establishment is not 
considered to be unavoidably prevented from using the education award.
    17. Revise Sec.  2526.50 to read as follows:

Sec.  2526.50  Is there a limit on the total amount of education awards 
an individual may receive?

    (a) General Limitation. No individual may receive more than an 
amount equal to the aggregate value of two full-time education awards.
    (b) Calculation of the value of an education award. For the 
purposes of this section, the value of an education award is equal to 
the actual amount of the education award received divided by the amount 
of a full-time education award in the year the AmeriCorps or Silver 
Scholar position to which the award is attributed was approved. Each 
award received will be considered to have a value between 0 and 1. 
Although the amount of a full-time award as defined in Sec.  2527.10(a) 
may change, the value of a full-time award will always be equal to 1.
    (c) Calculation of aggregate value of awards received. The 
aggregate value of awards received is equal to the sum of:
    (1) The value of each education award received as a result of 
successful completion of an approved AmeriCorps position;
    (2) The value of each partial education award received as a result 
of release from an approved AmeriCorps position for compelling personal 
circumstances;
    (3) The value of each education award received as a result of 
successful completion of a term of service in an approved Silver 
Scholar position; and
    (4) The value of any amount received as a transferred education 
award, except as provided in Sec.  2530.60(c).

[[Page 8027]]

    (d) Determination of Receipt of Award. For purposes of determining 
the aggregate value of education awards, an award is considered to be 
received at the time it becomes available for an individual's use.
    18. Add a new Sec.  2526.55 to read as follows:

Sec.  2526.55  What is the impact of the aggregate value of education 
awards received on an individual's ability to enroll in subsequent 
terms of service?

    No individual may enroll in a subsequent term of service if 
successful completion of that term of service would result in receipt 
of an education award the value of which, when added to the aggregate 
value of awards previously received, would be greater than 2.
    19. Revise Sec.  2526.60 to read as follows:

Sec.  2526.60  May an individual receive an education award and related 
interest benefits from the National Service Trust as well as other loan 
cancellation benefits for the same service?

    An individual may not receive an education award and related 
interest benefits from the National Service Trust for a term of service 
and have that same service credited toward repayment, discharge, or 
cancellation of other student loans, except as provided under 31 CFR 
685.219.
    20. Add a new Sec.  2526.70 to read as follows:

Sec.  2526.70  What are the effects of an erroneous certification of 
successful completion of a term of service?

    (a) If the Corporation determines that the certification made by an 
national service program under Sec.  2526.10(a)(2)(i), (iii), or (iv) 
is erroneous, the Corporation shall assess against the national service 
program a charge for the amount of any associated payment or potential 
payment from the National Service Trust, taking into consideration the 
full facts and circumstances surrounding the erroneous or incorrect 
certification.
    (b) Nothing in this section shall prohibit the Corporation from 
taking any action authorized by law based upon any certification that 
is knowingly made in a false, materially misleading, or fraudulent 
manner.

PART 2527--DETERMINING THE AMOUNT OF AN EDUCATION AWARD

    21. The authority citation for Part 2527 is revised to read as 
follows:

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

    22. Amend Sec.  2527.10 by:
    a. Revising the heading;
    b. Revising paragraphs (a), (b), and (c); and
    c. Adding new paragraphs (e) and (f).
    The revisions and additions read as follows:

Sec.  2527.10  What is the amount of an education award?

    (a) Full-time term of service. The education award for a full-time 
term of service in an approved AmeriCorps position of at least 1,700 
hours will be equal to the maximum amount of a Federal Pell Grant under 
section 401 of the Higher Education Act of 1965 (20 U.S.C. 1070a) that 
a student eligible for such grant may receive in the aggregate for the 
award year in which the term of service is approved by the Corporation.
    (b) Part-time term of service. The education award for a part-time 
term of service in an approved AmeriCorps position of at least 900 
hours is equal to one half of the amount of an education award amount 
for a full-time term of service described in paragraph (a) of this 
section.
    (c) Reduced part-time term of service. The education award for a 
reduced part-time term of service in an approved AmeriCorps position of 
fewer than 900 hours is an amount equal to the product of:
    (1) The number of hours of service required to complete the reduced 
part-time term of service divided by 900; and
    (2) The amount of the education award for a part-time term of 
service described in paragraph (b) of this section.
* * * * *
    (e) Summer of Service Education Award. (1) In general. The 
education award for a term of service in an approved Summer of Service 
position for at least 100 hours is $500.
    (2) Exception. The Corporation may authorize a Summer of Service 
education award of $750 if the participant is economically 
disadvantaged, as certified by the school operating the Summer of 
Service program.
    (f) Silver Scholar Education Award. The education award for a term 
of service in an approved Silver Scholar position for at least 350 
hours is $1,000.

PART 2528--USING AN EDUCATION AWARD

    23. The authority citation for Part 2528 is revised to read as 
follows:

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

    24. Revise Sec.  2528.10(a)(3) to read as follows:

Sec.  2528.10  [Amended]

    (a) * * *
    (3) To pay expenses incurred in enrolling in an educational 
institution or training establishment approved for educational benefits 
under the Montgomery G.I. Bill (38 U.S.C. 3670 et seq.) for offering 
programs of education, apprenticeship, or on-job training for which 
educational assistance may be provided by the Secretary of Veterans 
Affairs, in accordance with Sec. Sec.  2528.60, 2528.70, and 2529.80.
    25. Revise Sec.  2528.30(a)(2)(vi)(A) and (B) to read as follows:

Sec.  2528.30  [Amended]

    (a) * * *
    (2) * * *
    (vi) * * *
    (A) The individual's cost of attendance and other educational 
expenses; and
    (B) The individual's estimated student financial assistance for 
that period under part A of title IV of the Higher Education Act (20 
U.S.C. 1070 et seq.).
* * * * *
    26. Revise Sec.  2528.40(a) and (b) to read as follows:

Sec.  2528.40  Is there a limit on the amount of an individual's 
education award that the Corporation will disburse to an institution of 
higher education for a given period of enrollment?

* * * * *
    (a) The individual's cost of attendance and other educational 
expenses, determined by the institution of higher education in 
accordance with section 472 of the Higher Education Act of 1965 (20 
U.S.C. 1987ll); and
    (b) The individual's estimated financial assistance for that period 
under part A of title IV of the Higher Education Act.
    27. Revise Sec.  2528.60 to read as follows:

Sec.  2528.60  Who may use the education award to pay expenses incurred 
in an educational institution or training establishment approved for 
educational benefits under the Montgomery G.I. Bill?

    To use the education award to pay expenses incurred in enrolling at 
an educational institution or training establishment in a program of 
education approved by the Secretary of Veterans Affairs (38 U.S.C. 3670 
et seq.), you must have received an education award for successfully 
completing a term in an approved AmeriCorps position, approved Summer 
of Service position, or approved Silver Scholar position, in which you 
enrolled on or after October 1, 2009.
    28. Revise Sec.  2528.70 to read as follows:

[[Page 8028]]

Sec.  2528.70  What steps are necessary to use an education award to 
pay expenses incurred in enrolling at an educational institution or 
training establishment in a program of education approved by the 
Secretary of Veterans Affairs?

    (a) Required Information. Before disbursing an amount from an 
education award to pay for expenses incurred in enrolling at an 
educational institution or training establishment in a program of 
education approved by the Secretary of Veterans Affairs (38 U.S.C. 3670 
et seq.), the Corporation must receive--
    (1) An individual's written authorization and request for a 
specific payment amount;
    (2) Verification from the individual that the individual meets the 
criteria in Sec.  2528.60; and
    (3) Information from the educational institution or training 
establishment as requested by the Corporation, including verification 
that--
    (i) The amount requested will be used to pay all or part of the 
individual's expenses attributable to a course, program of education, 
apprenticeship, or job training offered by the institution or 
establishment;
    (ii) The course(s) or program(s) for which the individual is 
requesting to use the education award has been and is currently 
approved by the State approving agency for the State where the 
institution or establishment is located, or by the Secretary of 
Veterans Affairs; and
    (iii) If an individual who has used an education award withdraws or 
otherwise fails to complete the period of enrollment for which the 
education award was provided, the institution or establishment will 
ensure a pro-rata refund to the Corporation of the unused portion of 
the education award.
    (b) Payment. When the Corporation receives the information required 
under paragraph (a) of this section, the Corporation will pay the 
institution or establishment and notify the individual of the payment.
    29. Add a new Sec.  2528.80 to read as follows:

Sec.  2528.80  What happens if an individual for whom the Corporation 
has disbursed education award funds withdraws or fails to complete the 
period of enrollment at an educational institution or training 
establishment in a program of education approved by the Secretary of 
Veterans Affairs?

    (a) If an individual for whom the Corporation has disbursed 
education award funds withdraws or otherwise fails to complete a period 
of enrollment, the approved educational institution or training 
establishment that receives a disbursement of education award funds 
from the Corporation must provide a pro-rata refund to the Corporation 
of the unused portion of the education award.
    (b) The Corporation will credit any refund received for an 
individual under paragraph (a) of this section to the individual's 
education award allocation in the National Service Trust.

PART 2529--PAYMENT OF ACCRUED INTEREST

    30. The authority citation of Part 2529 is revised to read as 
follows:

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

    31. Amend Sec.  2529.10 by revising the heading and paragraph 
(a)(1) to read as follows:

Sec.  2529.10  Under what circumstances will the Corporation pay 
interest that accrues on qualified student loans during an individual's 
term of service in an approved AmeriCorps position or approved Silver 
Scholar position?

    (a) * * *
    (1) The individual successfully completes a term of service in an 
approved AmeriCorps position or approved Silver Scholar position; and
* * * * *

PARTS 2530, 2531, 2532, AND 2533 [REDESIGNATED AS PARTS 2531, 2532, 
2533, AND 2534]

    32. Redesignate parts 2530, 2531, 2532, and 2533 as parts 2531, 
2532, 2533 and 2534, respectively
    33. Add a new Part 2530 to read as follows:

PART 2530--TRANSFER OF EDUCATION AWARDS

Sec.
2530.10 Under what circumstances may an individual transfer an 
education award?
2530.20 For what purposes may a transferred award be used?
2530.30 What steps are necessary to transfer an education award?
2530.40 Is there a limit on the number of individuals one may 
designate to receive a transferred award?
2530.50 Is there a limit on the amount of transferred awards a 
designated individual may receive?
2530.60 What is the impact of transferring or receiving a 
transferred education award on an individual's eligibility to 
receive additional education awards?
2530.70 Is a designated individual required to accept a transferred 
education award?
2530.80 Is an award revocable once transferred?
2530.90 Is a designated individual eligible for the payment of 
accrued interest under part 2529?

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

Sec.  2530.10  Under what circumstances may an individual transfer an 
education award?

    An individual may transfer an education award to the individual's 
child, grandchild, or foster child if--
    (a) The individual enrolled in an approved AmeriCorps State and 
National position or approved Silver Scholar position on or after 
October 1, 2009;
    (b) The individual was age 55 or older on the day the individual 
commenced the term of service in an approved AmeriCorps State and 
National position or in approved Silver Scholar position;
    (c) The individual successfully completed a term of service in an 
approved AmeriCorps State and National position or an approved Silver 
Scholar position;
    (d) The award the individual is requesting to transfer has not 
expired, consistent with the period of availability set forth in Sec.  
2526.40(a);
    (e) The individual designated to receive the transferred award is 
the transferring individual's child, grandchild, or foster child; and
    (f) The individual designated to receive the transferred award is a 
citizen, national, or lawful permanent resident alien of the United 
States.

Sec.  2530.20  For what purposes may a transferred award be used?

    A transferred award may be used by a designated individual to repay 
qualified student loans or to pay current educational expenses at an 
institution of higher education, as described in Sec.  2528.10.

Sec.  2530.30  What steps are necessary to transfer an education award?

    (a) Request for Transfer. Before transferring an award to a 
designated individual, the Corporation must receive a request from the 
transferring individual, including--
    (1) The individual's written authorization to transfer the award, 
the year in which the award was earned, and the specific amount of the 
award to be transferred;
    (2) Identifying information for the individual designated to 
receive the transferred award;
    (3) A certification that the transferring individual meets the 
requirements of Sec.  2530.10; and
    (4) A certification that the designated individual is the child, 
grandchild, or foster child of the transferring individual.
    (b) Notification to Designated Individual. Upon receipt of a 
request including all required information listed in paragraph (a) of 
this section, the Corporation will contact the designated

[[Page 8029]]

individual to notify the individual of the proposed transfer, confirm 
the individual's identity, and give the individual the opportunity to 
accept or reject the transferred award.
    (c) Acceptance by Designated Individual. To accept an award, a 
designated individual must certify that the designated individual is 
the child, grandchild, or foster child of the transferring individual 
and that the designated individual is a citizen, national, or lawful 
permanent resident alien of the United States. Upon receipt of the 
designated individual's acceptance, the Corporation will create an 
account in the National Service Trust for the designated individual, if 
an account does not already exist, and the accepted amount will be 
deducted from the transferring individual's account and credited to the 
designated individual's account.
    (d) Timing of transfer. The Corporation must receive the request 
from the transferring individual prior to the date the award expires.

Sec.  2530.40  Is there a limit on the number of individuals one may 
designate to receive a transferred award?

    (a) General Limitation. For each award an individual earns as a 
result of successfully completing a single term of service, an 
individual may transfer all or part of the award to a single designated 
individual. An individual may not transfer a single award attributable 
to successful completion of a single term of service to more than one 
designated individual.
    (b) Re-transfer. If a designated individual rejects a transferred 
award in full, or the Corporation determines that an award was revoked 
for good cause in accordance with Sec.  2530.80(c), the transferring 
individual may designate another individual to receive the transferred 
award.

Sec.  2530.50  Is there a limit on the amount of transferred awards a 
designated individual may receive?

    Consistent with Sec.  2526.50, no individual may receive more than 
an amount equal to the value of two full-time education awards. If the 
sum of the value of the requested transfer plus the aggregate value of 
educational awards a designated individual has previously received 
would exceed the aggregate value of two full-time education awards, as 
determined pursuant to Sec.  2526.50(b), the designated individual will 
be deemed to have rejected that portion of the award that would result 
in the excess. If a designated individual has already received the 
aggregate value of two full-time education awards, the individual may 
not receive a transferred award, and the designated individual will be 
deemed to have rejected the award in full.

Sec.  2530.60  What is the impact of transferring or receiving a 
transferred education award on an individual's eligibility to receive 
additional education awards?

    (a) Impact on Transferring Individual. Pursuant to Sec.  2526.50, 
an award is considered to be received at the time it becomes available 
for an individual's use. Transferring all or part of an award does not 
reduce the aggregate value of education awards the transferring 
individual is considered to have received.
    (b) Impact on Designated Individual. For the purposes of 
determining the value of the transferred education award under Sec.  
2526.50, a designated individual will be considered to have received a 
value equal to the amount accepted divided by the amount of a full-time 
award in the year the transferring individual's position was approved.
    (c) Result of revocation on award value. If the transferring 
individual revokes all or part of a transferred education award, the 
value of the education award considered to have been received by the 
designated individual for purposes of Sec.  2526.50 will be reduced 
accordingly.

Sec.  2530.70  Is a designated individual required to accept a 
transferred education award?

    (a) General Rule. A designated individual is not required to accept 
a transferred education award, and may reject an award in whole or in 
part.
    (b) Result of rejection in full. If the designated individual 
rejects a transferred award in whole, the amount is credited to the 
transferring individual's account in the National Service Trust, and 
may be transferred to another individual, or may be used by the 
transferring individual for any of the purposes listed in Sec.  
2528.10, consistent with the original time period of availability set 
forth in Sec.  2526.40(a).
    (c) Result of rejection in part. If the designated individual 
rejects a transferred award in part, the rejected portion is credited 
to the transferring individual's account in the National Service Trust, 
and may be used by the transferring individual's for any of the 
purposes listed in Sec.  2528.10, consistent with the original time 
period of availability set forth in Sec.  2526.40(a). An individual may 
not re-transfer the rejected portion of the award to another 
individual.

Sec.  2530.80  Is an award revocable once transferred?

    (a) Revocation. An individual may revoke a transferred education 
award at any time and for any reason prior to the award's use by the 
designated individual.
    (b) Use of Award. Upon revocation, the amount revoked will be 
deducted from the designated individual's account and credited to the 
transferring individual's account. The transferring individual may use 
the revoked transferred education award for any of the purposes 
described in Sec.  2528.10, consistent with the original time period of 
availability set forth in Sec.  2526.40(a).
    (c) Re-transfer. Generally, an individual may not re-transfer an 
award to another individual after revoking the same award from the 
original designated individual. The Corporation may approve re-transfer 
of an award for good cause, including cases in which the original 
designated individual was unavoidably prevented from using the award, 
as demonstrated by the individual transferring the award.

Sec.  2530.85  What steps are necessary to revoke an award?

    (a) Request for revocation. Before revoking an award from a 
designated individual, the Corporation must receive a request from the 
transferring individual, including--
    (1) The individual's written authorization to revoke the award;
    (2) The year in which the award was earned;
    (3) The specific amount to be revoked; and
    (4) The identity of the designated individual.
    (b) Credit to transferring individual. Upon receipt of a request 
including all required information listed in paragraph (a) of this 
section, the Corporation will deduct the amount specified in the 
transferring individual's request from the designated individual's 
account and credit the amount to the account of the transferring 
individual, except as provided in paragraph (c) of this section. The 
Corporation will notify the transferring individual the amount revoked.
    (c) Used awards. The Corporation will only revoke that portion of 
the transferred award that has not been used by the designated 
individual. If the designated individual has used the entire 
transferred amount prior to the date the Corporation receives the 
revocation request, no amount will be returned to the transferring 
individual. An amount is considered to be used when it is disbursed 
from the National

[[Page 8030]]

Service Trust, not when a request is received to use an award.
    (c) Notification to designated individual. The Corporation will 
notify the designated individual of the amount being revoked as of the 
date of the Corporation's receipt of the revocation request.
    (d) Timing of revocation. The Corporation must receive the request 
to revoke the award from the transferring individual prior to the 
award's expiration ten years from the date the award was originally 
earned.

Sec.  2530.90  Is a designated individual eligible for the payment of 
accrued interest under part 2529?

    No, an individual must have successfully completed a term of 
service in an approved AmeriCorps position or Silver Scholar position 
to be eligible for the payment of accrued interest under Part 2529.

PART 2550--REQUIREMENTS AND GENERAL PROVISIONS FOR STATE 
COMMISSIONS AND ALTERNATIVE ADMINISTRATIVE ENTITIES

    34. The authority citation for Part 2550 continues to read as 
follows:

    Authority: 42 U.S.C. 12638.

    35. Amend Sec.  2550.80 by revising paragraph (b) to read as 
follows:

Sec.  2550.80  [Amended]

* * * * *
    (b) Selection of subtitle C programs and preparation of application 
to the Corporation. Each State must:
    (1) Prepare an application to the Corporation to receive funding or 
education awards for national service programs operating in and 
selected by the State.
    (2) Administer a competitive process to select national service 
programs for funding. The State is not required to select programs for 
funding prior to submission of the application described in paragraph 
(b)(1) of this section.
* * * * *

PART 2551--SENIOR COMPANION PROGRAM

    36. The authority citation for Part 2551 continues to read as 
follows:

    Authority: 42 U.S.C. 4950 et seq.; 42 U.S.C. 12651b-12651d; E.O. 
13331, 69 FR 9911.

    37. Amend Sec.  2551.92 by revising paragraph (e) to read as 
follows:

Sec.  2551.92  [Amended]

* * * * *
    (e) How are Senior Companion cost reimbursements budgeted? (1) 
Except as provided in (e)(2) of this section, the total of cost 
reimbursements for Senior Companions, including stipends, insurance, 
transportation, meals, physical examinations, and recognition, shall be 
a sum equal to at least 80 percent of the amount of the Federal share 
of the grant award. Federal, required non-Federal, and excess non-
Federal resources can be used to make up the amount allotted for cost 
reimbursements.
    (2) The Corporation may allow exceptions to the 80 percent cost 
reimbursement requirement in cases of demonstrated need such as:
    (i) Initial difficulties in the development of local funding 
sources during the first three years of operations;
    (ii) An economic downturn, the occurrence of a natural disaster, or 
similar events in the service area that severely restrict or reduce 
sources of local funding support; or
    (iii) The unexpected discontinuation of local support from one or 
more sources that a project has relied on for a period of years.
* * * * *

PART 2552--FOSTER GRANDPARENT PROGRAM

    38. The authority citation for Part 2552 continues to read as 
follows:

    Authority: 42 U.S.C. 4950 et seq.; 42 U.S.C. 12651b-12651d; E.O. 
13331, 69 FR 9911.

    39. Amend Sec.  2552.92 by revising paragraph (e) to read as 
follows:

Sec.  2552.92  What are project funding requirements?

* * * * *
    (e) How are Foster Grandparent cost reimbursements budgeted? (1) 
Except as provided in (e)(2) of this section, the total of cost 
reimbursements for Foster Grandparents, including stipends, insurance, 
transportation, meals, physical examinations, and recognition, shall be 
a sum equal to at least 80 percent of the amount of the Federal share 
of the grant award. Federal, required non-Federal, and excess non-
Federal resources can be used to make up the amount allotted for cost 
reimbursements.
    (2) The Corporation may allow exceptions to the 80 percent cost 
reimbursement requirement in cases of demonstrated need such as:
    (i) Initial difficulties in the development of local funding 
sources during the first three years of operations; or
    (ii) An economic downturn, the occurrence of a natural disaster, or 
similar events in the service area that severely restrict or reduce 
sources of local funding support; or
    (iii) The unexpected discontinuation of local support from one or 
more sources that a project has relied on for a period of years.

    Dated: February 17, 2010.
Frank R. Trinity,
General Counsel.
[FR Doc. 2010-3385 Filed 2-22-10; 8:45 am]
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