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[Federal Register: August 20, 2010 (Volume 75, Number 161)]
[Rules and Regulations]               
[Page 51395-51416]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20au10-10]                         

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CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

45 CFR Chapter XXV

RIN 3045-AA51

 
AmeriCorps National Service Program

AGENCY: Corporation for National and Community Service.

ACTION: Final rule.

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SUMMARY: The Corporation for National and Community Service (``the 
Corporation'') is issuing rules to implement changes to the operation 
of the National Service Trust as directed by the Edward M. Kennedy 
Serve America Act (``the Serve America Act'' or ``SAA''). In addition, 
this rule provides flexibility for exceptions to the 80 percent cost 
reimbursement requirement for Senior Companion and Foster Grandparent 
programs based on hardship. Finally, this rule reorders and renumbers 
certain parts of the existing regulations, adds new definitions, and 
makes several minor technical edits.

DATES: This final rule is effective September 20, 2010, except for the 
amendments to Sec. Sec.  2522.220, 2522.230, 2522.235, and 2522.240, 
which are effective August 20, 2010.

FOR FURTHER INFORMATION CONTACT: Amy Borgstrom, Docket Manager, 
Corporation for National and Community Service, (202) 606-6930, TDD 
(202) 606-3472. Persons with visual impairments may request this rule 
in an alternate format.

SUPPLEMENTARY INFORMATION:

List of Topics

I. Background
II. Public Comments
III. Specifics of Final Rule and Analysis of Comments
    A. Definitions
    B. Eligibility to Receive an Education Award
    C. Successful Completion of a Term of Service
    D. Partial Awards for Release for Compelling Personal 
Circumstances
    E. Limitation on Amount of Award Disbursed to Institution of 
Higher Education
    F. Use of Education Award for a Program of Education Approved by 
the Secretary of Veterans Affairs
    G. Payment of Accrued Interest
    H. Amount of AmeriCorps Education Award
    I. Amount of Silver Scholar and Summer of Service Education 
Awards
    J. Limitation on Value of Education Awards Received
    K. Impact of Aggregate Value of Education Awards Received
    L. Transfer of Education Awards
    M. Periods of Availability for Silver Scholar, Summer of 
Service, and Transferred Education Awards
    N. Certifications of Successful Completion of Terms of Service
    O. Effect of Erroneous Certifications of Successful Completion 
of Terms of Service
    P. Public Service Loan Forgiveness and AmeriCorps
    Q. Term Limits for AmeriCorps State and National
    R. Selection Criteria Sub-Categories for AmeriCorps State and 
National
    S. Applications for the Same Project
    T. Pre-Approval of Formula Programs
    U. Hardship Waiver Permitted for Cost Reimbursement Requirement 
for Senior Companion and Foster Grandparent Programs.
IV. Summary of Redesignations
V. Effective Dates
VI. Non-Regulatory Issues

I. 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 National and Community Service Act of 1990 
(42 U.S.C. 12501 et seq.) (NCSA) and the Domestic Volunteer Service Act 
(42 U.S.C. 4950 et seq.) (DVSA). The Corporation engages more than five 
million Americans of all ages and backgrounds in service each year, 
including approximately 85,000 AmeriCorps members, nearly 500,000 
Senior Corps volunteers, 1.5 million Learn and Serve America students, 
and three 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 
rulemaking is the Corporation's second in a series to implement the 
amendments mandated by the Serve America Act. This rule primarily makes 
amendments and additions to existing regulations regarding the National 
Service Trust, including limitations on education award receipt, the 
available uses of an education award, eligibility to receive an 
education award, eligibility to transfer an education award, and the 
amount of an education award. This rule also addresses the limitation 
on the number of terms an individual may serve in an AmeriCorps State 
and National program. This rule adds 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.

II. Public Comments

    On February 23, 2010, the Corporation published a proposed rule in 
the Federal Register (75 FR 8013) with a 60-day comment period. In 
addition to accepting comments in writing through e-mail and through 
http://www.regulations.gov, the Corporation held four conference calls. 
During the public comment period, the Corporation received over 400 
comments on the proposed rule from grantees, the Corporation's 
Inspector General, and other interested parties. Over half of the 
comments received recommended changes to the rule that are not 
currently authorized by statute, including expanding the types of 
people who can transfer and receive education

[[Page 51396]]

awards. The Corporation also received numerous comments on items not 
within the scope of this rulemaking, such as comments on the Silver 
Scholar program and the amount of the Foster Grandparent stipend. While 
these comments are not addressed here, the Corporation will take them 
under consideration in the future.
    The remaining comments expressed views on the merits of particular 
sections of the proposed regulations, as well as some broader policy 
statements and issues. Acknowledging that there are strong views on, 
and competing legitimate public policy interests relating to, issues in 
this rulemaking, the Corporation has carefully considered all of the 
comments on the proposed regulations.
    The Corporation has summarized below the major comments received on 
the proposed regulatory changes, and has described the changes we made 
in the final regulatory text in response to the comments received. In 
addition to the more substantive comments below, the Corporation 
received some editorial suggestions, some of which we have adopted. The 
Corporation has also made minor editorial changes to better organize 
the regulatory text.

III. Specifics of the Final Rule and Analysis of Comments

    As discussed in more detail below, the final rule:
     Amends the definitions of ``education award'' and ``term 
of service,'' and adds definitions for ``AmeriCorps education award,'' 
``Silver Scholar education award,'' ``Summer of Service education 
award,'' ``approved Silver Scholar position,'' ``approved Summer of 
Service position,'' ``G.I. Bill approved program,'' and ``economically 
disadvantaged youth'';
     Adds individuals who complete approved Silver Scholar and 
Summer of Service positions as eligible to receive an education award;
     Adds a requirement for programs to complete an end-of-term 
evaluation to determine whether an individual successfully completed 
the term of service;
     Clarifies that an individual must have served 
satisfactorily prior to being released for compelling personal 
circumstances in order to receive a partial award;
     Removes consideration of an individual's veterans' 
benefits when determining the maximum amount of an individual's 
education award that may be disbursed to an institution of higher 
education;
     Adds to the list of uses for an education award use to pay 
expenses incurred in enrolling in an educational institution or 
training establishment approved by the Secretary of Veterans Affairs 
for offering programs of education, apprenticeship, or on-the-job 
training for which educational assistance may be provided by the 
Secretary of Veterans Affairs;
     Includes individuals who successfully complete service in 
a Silver Scholar program as eligible for the payment of accrued 
interest on qualified student loans;
     Amends the amount of a full-time AmeriCorps education 
award to be equal to the maximum amount of a Federal Pell Grant for the 
year in which the AmeriCorps position is approved;
     Adds sections stating the amount of a Silver Scholar 
education award ($1,000) and Summer of Service education award ($500);
     Adds limitation that no individual may receive more than 
the aggregate value of two full-time education awards and describes how 
an education award's value is determined;
     Adds a new part on transferring education awards, 
including limitations on who may transfer, who may receive a 
transferred award, and the processes for transferring, accepting, 
rejecting, and revoking a transferred award;
     Clarifies the periods of availability for Silver Scholar 
education awards (7 years), Summer of Service education awards (10 
years), and transferred education awards (10 years);
     Adds a requirement for programs to certify that an 
individual successfully completed a term of service in order to receive 
an education award;
     Adds a section on the Corporation's recourses in cases 
where a grantee makes an erroneous certification that an individual 
successfully completed a term of service;
     Adds flexibility to permit an individual to credit service 
time towards receiving an education award and earning Public Service 
Loan Forgiveness through the Department of Education;
     Increases the limit of terms one may serve in AmeriCorps 
State and National from two to four;
     Removes selection criteria sub-categories and relative 
weights for AmeriCorps State and National grant competitions;
     Removes the restriction on submitting more than one 
application for the same project at the same time and clarifies that 
the Corporation will not provide more than one grant to the same 
project in the same fiscal year;
     Removes the requirement that State Commissions pre-select 
formula programs prior to submitting a formula application; and
     Adds an option for a hardship waiver for the Senior 
Companion and Foster Grandparent cost-reimbursement requirement.

A. 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 
Section 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 $500 
(with authority for awards up to $750 for economically disadvantaged 
youth), available upon successful completion of a term of service in an 
approved Summer of Service position. Silver Scholar and Summer of 
Service education awards are available for use for the same purposes as 
AmeriCorps education awards: to repay qualified student loans, to pay 
for current educational expenses at an institution of higher education, 
and to pay for the cost of attending a program of education approved by 
the Secretary of Veterans Affairs.
    Several commenters sought clarification regarding the nature of the 
Summer of Service program, as the Corporation has supported multiple 
initiatives referred to as ``Summers of Service.'' To clarify, an 
approved Summer of Service position is one supported through a Learn 
and Serve America grant authorized and funded under Subtitle B of Title 
I of the NCSA. For more information on the Summer of Service program, 
see http://www.learnandserve.gov/about/programs/community_based.asp.
    To align with the amended statute, this rule amends Sec.  2525.20 
by adding three separate definitions for ``AmeriCorps education 
award,'' ``Silver

[[Page 51397]]

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 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.
    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 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.
    We received many requests for additional clarification on the 
Silver Scholar and Summer of Service programs, including whether there 
will be limitations on the number of terms an individual may serve in 
each program and how the Silver Scholar program will interact with 
other programs. Specific rules for these programs were not a part of 
this rulemaking; the Corporation may undertake separate rulemakings on 
these topics in the future.
    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 defines ``economically disadvantaged youth'' 
for the purposes of the larger Summer of Service education award as a 
child who is eligible for a free lunch or breakfast under the Richard 
B. Russell National School Lunch Act. This rule amends Sec.  2525.20 to 
add this definition.
    The Corporation received several comments questioning the 
Corporation's definition of ``economically disadvantaged youth,'' 
including comments that such a definition would exclude home-schooled 
children and middle school youth who do not sign up for free lunch. 
Using the eligibility guidelines for participation in a free lunch or 
breakfast program under the Richard B. Russell National School Lunch 
would not exclude home-schooled students or students who do not sign up 
for a free lunch or breakfast. A child need not actually be enrolled in 
a school-based free lunch or breakfast program to qualify for the 
larger Summer of Service education award. The definition means only 
that the eligibility standards of such a program will be used to 
determine whether a child qualifies for a larger education award.
    The proposed rule defined an ``economically disadvantaged youth'' 
as one who is eligible for free or reduced lunch and breakfast. Upon 
further consideration, the Corporation has amended the definition in 
the final rule to an individual who is eligible for free or reduced 
lunch or breakfast.
    While the Corporation has the authority to establish a larger award 
for economically disadvantaged youth, the Corporation has not elected 
to use this authority in the first year of funding Summer of Service 
programs.

B. 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 $1,000 and $500 respectively, available upon successful completion 
of an approved Silver Scholar or Summer of Service position. This rule 
amends Sec.  2526.10 to include individuals who successfully complete 
terms of service in approved Silver Scholar or Summer of Service 
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 described the eligibility criteria to 
serve in AmeriCorps State and National, AmeriCorps NCCC, and AmeriCorps 
VISTA, including age and education criteria that would 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 rule amends Sec.  2526.10 to defer to the eligibility 
criteria of individual programs for program-specific criteria.
    Under this rule, for an individual to be eligible to receive an 
education award, the organization responsible for the individual's 
supervision must certify that the individual: (1) Met the applicable 
eligibility requirements for the approved national service position, 
approved Silver Scholar position, or approved Summer of Service 
position, as appropriate; (2) successfully completed the term of 
service in the AmeriCorps, Silver Scholar, or Summer of Service 
program; and (3) is a citizen, national, or lawful permanent resident 
alien of the United States.

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

    Section 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 rule adds a new Sec.  
2526.15 describing that process. Under this rule, organizations 
supervising AmeriCorps State and National participants will continue to 
use the existing process detailed at Sec.  2522.220(d).
    For Summer of Service and Silver Scholar programs, the organization 
is required to conduct an end-of-term evaluation for each participant 
to determine whether the individual successfully completed the term of 
service. To determine whether an individual successfully completed a 
term, the program must examine 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.
    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 of 
successful completion will not, however, suffice as documentation of 
hours served.
    One commenter noted that the proposed language of Sec.  2526.15 is 
not explicit that an individual must satisfy all three elements of the 
evaluation in order to be considered to have successfully completed a 
term of service.
    The Corporation has amended Sec.  2526.15 to clarify that a 
certification of successful completion necessarily encompasses a 
determination that the individual completed the service hour 
requirement, performed satisfactorily, and met any other performance 
criteria set by the program.
    The Corporation received several requests for standard definitions 
of ``satisfactory'' and ``unsatisfactory.'' To

[[Page 51398]]

afford programs the necessary flexibility to supervise and manage their 
members, the Corporation declines to set a standard for what is 
considered ``satisfactory.''
    The proposed rule inadvertently included AmeriCorps VISTA and 
AmeriCorps NCCC in the above certification process. The Corporation 
uses its own process to determine whether a VISTA or NCCC member has 
successfully completed a term of service; the above rules do not apply 
to VISTA or NCCC.

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

    Section 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 section 146, the Act 
distinguishes between approved national service positions (which are 
described in section 123 to include AmeriCorps State and National, 
AmeriCorps VISTA, AmeriCorps NCCC, and ServeAmerica Fellows), approved 
Silver Scholar positions, and approved Summer of Service positions. The 
Act 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.
    This 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. We received several comments recommending 
that a release for compelling personal circumstances be permitted for 
Silver Scholars and Summer of Service positions. As stated above, 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 rule also amends Sec.  2526.20 to reflect the statutory 
requirement that an individual serving in an approved AmeriCorps 
position must have performed satisfactorily before being released for 
compelling personal circumstances in order to receive a partial 
education award.

E. 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 section 
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 section 148(c)(6) 
to eliminate consideration of an individual's veterans' benefits in 
this manner. This rule amends Sec. Sec.  2528.30 and 2528.40 to align 
with amended section 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.

F. 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 section 148 of the NCSA to add a 
fifth available 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 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. This rule 
adds a definition for ``G.I. Bill approved programs.''
    This rule requires 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 will 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. Further, the institution or 
training establishment must certify under penalty of law that the 
course or program for which the individual is requesting to use the 
education award 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. The Corporation will only disburse funds to an institution 
or establishment if it verifies that a course or program of education 
has received the requisite approval.
    Unlike G.I. education benefits, which may be disbursed directly to 
an individual, under this rule, the education award will only 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 rule 
requires the educational institution or training establishment to 
provide a pro-rated refund to the Corporation. The Corporation will 
provide more detailed guidance on the refund process during 
implementation.

    Please Note: An individual will begin being able to use the 
Corporation's online systems to request the use of an award at a 
G.I. Bill approved program beginning mid-August, 2010 or 30 days 
following the publishing of this regulation, whichever is later.

G. Payment of Accrued Interest (Sec.  2529.10)

    This rule amends Sec.  2529.10, which previously provided for 
interest forbearance to individuals serving in approved AmeriCorps 
positions, to clarify that individuals who

[[Page 51399]]

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 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 
student loans.
    The Serve America Act also amended section 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.'' 
Therefore, an individual who serves in a ServeAmerica Fellowship 
position will be eligible for the payment of accrued interest on 
qualified student loans upon successful completion of a term of 
service.

H. 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 ServeAmerica 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 section 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 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 is 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. (42 U.S.C. 12606(a)(1)(A)(i)). 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 AmeriCorps NCCC member agreement on any date between October 1, 
2009, and September 30, 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. (42 U.S.C. 
12606(a)(1)(A)(ii)). 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.
    For example, if an AmeriCorps State program receives a grant and an 
allotment of AmeriCorps positions 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 or decreased as of October 1, 
2010. The determining factor is that the member position was approved 
by the Corporation in a grant awarded 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, consider two programs with different member enrollment 
periods. Program A has an enrollment period of September 1, 2010 to 
August 30, 2011. Program B's enrollment period is September 15, 2010 to 
September 14, 2011. Both programs receive a grant award for the second 
year of their grant in the summer of 2011, and each enrolls a member on 
September 2, 2011. The member enrolling in Program A will be enrolling 
at the beginning of the enrollment period for that program year, and 
will receive an education award based on the amount of a full-time 
award on October 1, 2010. The member

[[Page 51400]]

enrolling in Program B will be enrolling at the end of the enrollment 
period for the prior program year, and will receive an education award 
based on the amount of a full-time award on October 1, 2009.
    The Corporation received several comments expressing concern about 
the possibility of two members serving simultaneously but receiving 
different education award amounts. Specifically, these commenters noted 
that different education award amounts may give the appearance of 
inequity between members.
    In the proposed rule, the Corporation included an example of a 
scenario under which a program enrolls two members on the same day 
using one slot from the prior year grant and one slot from the current 
year grant. While such a scenario is possible, it is unlikely to occur. 
However, it is likely that an AmeriCorps State and National member may 
start on the same day as an AmeriCorps VISTA member at the same service 
site. To mitigate a perception of inequity among members in any case, 
and 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 being offered to the 
individual for 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 being offered for successful completion of a term of service in 
the member service agreement.
    One commenter recommended that the Corporation make the education 
award amount for a particular AmeriCorps position available to the 
member and the program through the MyAmeriCorps portal. The Corporation 
is developing its systems to provide this information through the 
MyAmeriCorps portal in the near future, but will also require programs 
to communicate this information to the member 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. 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.

I. 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 rule amends Sec.  2527.10 to include 
the Silver Scholar education award of $1,000, available upon successful 
completion of a term of service of at least 350 hours in a Silver 
Scholar position.
    This 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 an economically disadvantaged youth.
    In the proposed rule, we stated that 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 youth,'' defined in this 
rule as a child that is eligible for a free lunch or breakfast under 
the Richard B. Russell National School Lunch Act (42 U.S.C. 1758(b)). 
Upon further consideration, the Corporation is changing this 
certification requirement in the final rule, and will instead require 
verification from the school or organization with which the participant 
served.
    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 an award. 
And unlike the AmeriCorps education award described in the previous 
section, under the authorizing statute Silver Scholar and Summer of 
Service education awards will not vary in amount from one year to the 
next.
    Summer of Service and Silver Scholar education awards may be used 
for the same purposes as AmeriCorps education awards, including paying 
for the cost of attendance or other current educational expenses at an 
institution of higher education, to pay expenses incurred in enrolling 
in an educational institution or training establishment approved by the 
Secretary of Veteran's Affairs for programs of education, 
apprenticeship, or on the job training, and to repay qualified student 
loans.

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

    Prior to the passage of the Serve America Act, the national service 
laws limited individuals to receive 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 aggregate value of 
education awards received. Section 146(c) now states: ``An individual 
may not receive, through national service educational awards and silver 
scholar 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 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 provide 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. Rather, the Corporation 
interprets the change in

[[Page 51401]]

focus from the number of terms served to the value of education awards 
received as a means of affording individuals serving in less-than-full-
time terms more service opportunities. 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 will measure the value 
of any award amount relative to the amount of a full-time award in a 
given year. For the purposes of this section, the value of an education 
award will be considered equal to the actual amount of the education 
award received divided by the amount of a full-time education award in 
the fiscal 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] TR20AU10.013

     For example, an individual who completed a part-time position 
approved in 2009 received an education award of $2,362.50. 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 ServeAmerica Fellows), 
and the program determines in the end-of-term evaluation that the 
individual served unsatisfactorily, the individual may not 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), 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

[[Page 51402]]

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, 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 may enroll in a 
national service position, but will not be eligible to receive any 
additional AmeriCorps or Silver Scholar education awards.
    For purposes of this section, 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. 
In addition, 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.
    This rule states that an individual may receive no more than the 
aggregate value of two full-time education awards. 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 
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).
    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 aggregate 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 and those received subsequent 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.

K. Impact of Aggregate Value of Education Awards Received (Sec. Sec.  
2526.55, 2527.10)

    The proposed rule included a limitation that an individual would 
not be permitted to enroll in a subsequent term of service if 
successful completion of that term 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. The proposed 
rule provided that this would not prevent an individual from enrolling 
in a term of service for which the individual chooses to waive receipt 
of the education award.
    The Corporation received many comments on this provision. Some 
commenters requested additional clarification on waiving an education 
award. Other commenters questioned the Corporation's proposal to 
require an individual who is not eligible to receive an entire 
education award for a particular term of service to waive the entire 
award in order to enroll in the term. Among the comments received, 
there was broad support for permitting an individual eligible to 
receive only a portion of an award to receive that portion upon 
successful completion of a term of service.
    After further consideration, the Corporation agrees that an 
individual who is eligible to receive a portion of an education award 
should be able to receive that portion upon successful completion of 
the term of service. Under this rule, if an amount offered for a term 
of service has a value that, when added to the aggregate value of 
awards previously received, would exceed 2, the individual will receive 
a discounted award representing that portion of the award having a 
value for which the individual is eligible.
    However, the Corporation will need time to implement this policy 
properly, including time to make necessary upgrades to our systems. We 
estimate that our systems should be updated by November 1, 2010. Prior 
to that date, the Corporation will notify applicants in the 
MyAmeriCorps portal of the new rule, but will not provide 
individualized notice to applicants of the amount of award the 
individual may receive. Once the system changes have been implemented, 
an individual will be notified upon enrollment in a particular term of 
service of the aggregate value of awards the individual has previously 
received, and the maximum award amount the individual is eligible to 
receive for that term of service. The maximum amount the individual 
will receive upon successful completion will be either the amount of 
the award offered for that term of service, or a discounted amount 
having a value that, when added to the aggregate value of awards 
previously received, does not exceed 2--whichever is less. The 
discounted amount is determined by multiplying the value the individual 
is eligible to receive by the amount of a full-time award in the year 
the position is approved, and may be equal to zero dollars.

(2-aggregate value of education awards received)
x
(amount of full-time education award in year position was approved)

    This rule adds a new paragraph (g) to Sec.  2527.10 describing how 
a discounted award amount is determined.
    For example, consider an individual who has received an aggregate 
value of 1.26 awards who wishes to enroll in a full-time term offering 
an award with a value of 1. The individual is eligible to receive an 
award with a value of .74, and therefore upon successful completion 
will receive a discounted award amount of $3,959 ((2-1.26) x $5,350).
    If an individual had already received the value of two full-time 
education awards, the maximum discounted amount the individual is 
eligible to receive for successful completion of the term of service is 
$0 ((2-2) x $5,350).
    An individual must successfully complete the term of service in 
which the individual enrolls in order to receive the entire amount of 
the education award for which the individual is eligible. Section 
147(c) of the Act states that if ``an individual serving in an approved 
national service position is released [for compelling personal 
circumstances], the Corporation may provide the individual with that 
portion of the national service educational award approved for the 
individual that corresponds to the quantity of the term

[[Page 51403]]

of service actually completed by the individual.'' An individual is 
only approved to receive an award amount for which the individual is 
eligible. If an individual is eligible to receive a discounted 
education award, and the individual leaves a term of service for 
compelling personal circumstances, the individual will receive a 
corresponding portion of the discounted award amount.
    For example, consider an individual who enrolls in a term of 
service offering an award amount of $5,350, but who is only eligible to 
receive an amount of $3,000 based on the aggregate value of awards the 
individual had previously received. If this individual exits the term 
for compelling personal circumstances after serving 50% of the required 
service hours, the individual will receive $1,500, or 50% of $3,000--
the discounted award amount for which the individual was approved.

    Please Note:  the option to elect to waive an education award 
was proposed in order to enable an individual to serve in a term of 
service offering an education award amount with a value exceeding 
the value for which the individual is eligible. The Corporation is 
not including a waiver requirement or option in the final rule.

L. 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.
    Section 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 as amended does not extend the 
use of the transferred 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 Section 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 rule adds a new part 2530 on transfer, including rules 
reflecting statutory guidelines, and details on the processes for 
requesting 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 rule includes several 
measures intended to prevent waste, fraud, or abuse in connection with 
the transfer of an education award.
    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, this rule requires 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 any certification, an individual 
may be required to produce verifying documentation.
    This rule specifies in Sec.  2530.70 that an individual is not 
required to accept a transferred award. We received a question 
regarding whether an individual may reject an award at any time, or 
must do so at the outset. An individual may reject an award at the 
outset, or at any point after acceptance. Any award amount that has 
been rejected will not be considered when calculating the aggregate 
value of education awards an individual has received. A transferring 
individual may re-transfer an award if the designated individual 
rejects the transferred award in full and the award has not yet 
expired.
    Second, this rule limits an individual to making a single transfer 
of an education award that is attributable to a single term of service. 
An individual may transfer an award in whole or in part; thus, the 
transferring individual may keep a portion of an award for his or her 
use and transfer a portion to a designated individual. However, an 
individual may not transfer a single award attributable to completion 
of a single term of service to more than one designated individual.
    The Corporation received several comments opposing this limitation, 
and one recommendation that the Corporation increase the limit to two 
designated individuals for each award. Several commenters noted that 
the Act does not specifically dictate this limitation; however, the Act 
directs the Corporation to establish rules to prevent fraud, waste, and 
abuse in connection with transferred awards, and this limitation is 
designed to mitigate such risks. Also, as stated in the proposed rule, 
this provision limits, but does not proscribe, an individual's ability 
to transfer to multiple individuals; 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.
    As stated above, a transferring individual also has the authority 
to revoke the transfer of any unused portion of an education award. 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.
    This 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.
    The Corporation received several requests for a definition of 
``good cause.'' Beyond the death of a transferee or a transferee's 
rejection of an award in full, the Corporation cannot speculate as to 
the types of situations that may arise that would necessitate an 
individual to revoke an award, and thus is not prepared to define 
``good cause'' at this time. The Corporation will make determinations 
of whether there is good cause to permit someone to re-transfer an 
award in a consistent manner, and

[[Page 51404]]

may develop a more formal policy in the future based upon the types of 
requests received.
    This 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 rule, an award is 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 will not decrease the 
value of awards the individual is considered to have received. 
Transferred awards a designated individual receives will 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. 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.
    Under the national service laws, an individual has seven years from 
the date the individual completes a term of service 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, this rule permits 
an individual to revoke the transfer of an award at any point prior to 
its use, but the individual may only use such an award 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 transfer six years after receiving the 
award, the transferring individual would have only one year to use any 
unused portion of the award. If, however, the transferring individual 
had revoked the transfer 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.
    Several commenters suggested that, in the event a person receiving 
a transferred award does not or cannot use it, the individual who 
originally transferred the award should be permitted to use the award 
beyond the seven-year period specified in statute. The Corporation will 
grant extensions to the statutory seven-year period in circumstances in 
which an individual was unavoidably prevented from using an education 
award. An individual who does not use an award during its seven year 
period of availability because the individual transferred the award and 
did not revoke the transfer prior to the award's expiration will not be 
considered to have been unavoidably prevented from using the award.
    The Corporation received many comments opposing elements of this 
rulemaking that simply implement provisions of the Serve America Act, 
including: The provision that only an individual who serves in an 
AmeriCorps State and National or Silver Scholar position may transfer 
an education award, meaning that an individual who serves in an 
AmeriCorps VISTA, ServeAmerica Fellowship, or AmeriCorps NCCC position 
cannot transfer an award; the requirement that an individual must have 
served in a national service position in order to transfer an award, 
meaning that an individual who receives a transferred award cannot 
transfer that award to someone else; the provision that an eligible 
individual may only transfer to a child, grand-child, or foster child, 
meaning an individual cannot transfer an award to other family members, 
mentored children, or scholarship funds; the provision limiting the 
option to transfer to individuals age 55 and older; and the provision 
that education awards received by transfer must be considered when 
calculating the aggregate value of awards received. Expanding the types 
of individuals who can transfer an award, the types of individuals who 
may receive an award, and the impact of receiving an education award by 
transfer on an individual's eligibility to receive a subsequent award 
would require amendments to the statute, which can be done only by 
Congress.
    Many commenters expressed concern that an individual who has 
received education awards by transfer will be ineligible to serve terms 
of service in national service positions. If an individual has received 
education awards by transfer, the individual's eligibility to receive 
additional education awards may be limited, however, receipt of awards 
by transfer will not impact an individual's ability to serve in a 
national service position. The fact that an individual has received the 
maximum value of education awards does not preclude the individual's 
future participation in a national service position.
    We received a question regarding the tax implications for the 
recipient of a transferred award. The Internal Revenue Service 
previously ruled that an education award is taxable to the person using 
the award in the year that it is used. The Corporation will notify 
national service participants and designated individuals should the 
Corporation receive any guidance from the Internal Revenue Service to 
the contrary in connection with an individual's use of a transferred 
award.
    One commenter asked whether an individual could transfer a pro-
rated award received after leaving a term for compelling personal 
circumstances. An eligible individual may transfer a pro-rated award 
received after leaving a term for compelling reasons.
    Please note: an individual wishing to transfer an award will be 
able to do so using the Corporation's online systems beginning mid-
October, 2010.

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

    This rule amends section Sec.  2526.40 to include periods of 
availability for Silver Scholar, Summer of Service, and transferred 
education awards. Under section 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.
    Similar to national service education awards, section 146 
authorizes the Corporation to grant an extension to the

[[Page 51405]]

period of availability for a Silver Scholar education award, a Summer 
of Service education award, or a 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.''
    Several commenters urged the Corporation to grant extensions to 
individuals who have received a transferred award but are too young to 
use the award by the expiration date, noting that many individuals 
eligible to transfer an award have very young children or 
grandchildren. Indeed, it is unlikely that any designated individual 
under the age of 8 will have had an opportunity to use an education 
award by the 10-year expiration date.
    As stated in the proposed rule, 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 
Corporation believes that 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 rule maintains 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.

N. Certifications of Successful Completion of Terms of Service (Sec.  
2526.10)

    The Serve America Act amended the NCSA by adding a new section 
146A, which requires 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, section 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 rule implements section 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)(i), 
(iii), and (iv).

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

    Under section 146A(b) of the NCSA, if the Corporation finds that a 
certification made under section 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 rule implements section 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.
    One commenter noted that the proposed rule does not describe the 
factors which the Corporation will consider in determining the amount 
it will assess based on an erroneous or incorrect certification. The 
commenter noted that the Corporation could take a number of different 
approaches which could range from strict liability standards to 
considerations of fault (assessed against a specific evidentiary 
standard) to assessing charges by a formula based on the number of 
hours appropriately served. The commenter suggested that, if the 
Corporation intends to use any such standards or procedures, that they 
be set out by the rule.
    The authority granted in section 146A(b) of the National and 
Community Service Act and implemented by Sec.  2526.70 is broad. It 
grants to the Corporation the authority to assess and collect charges 
related to education awards (or portions thereof) which have not yet 
been disbursed from the National Service Trust. This authority also 
requires the Corporation to consider ``the full facts and circumstances 
surrounding the erroneous or incorrect certification.'' Because of the 
breadth of this authority and the charge to consider the facts and 
circumstances surrounding each certification, the Corporation will make 
its assessments of erroneous or incorrect certifications on a case-by-
case basis consistent with its overriding responsibility to treat 
similarly situated entities in a consistent manner. Some factors the 
Corporation may consider include, but are not limited to: The number of 
hours an individual fell short from successful completion; the number 
of members with hour shortfalls; and the prevalence of programmatic 
weaknesses.
    One commenter noted that the term ``national service program'' is 
not specifically defined in Sec.  2526.70. The commenter questioned 
whether the Corporation would assess charges only against ``the 
certifying program'' or may also assess charges against ``upstream 
grantees.'' The authority in section 146A(b) is to assess charges for 
erroneous certifications made under section 146A(a). Those 
certifications must be made ``by the entity that selected the 
individual for and supervised the individual in the approved national 
service position.'' The Corporation expects that in many cases those 
entities will be either subgrantees of state service commissions or 
AmeriCorps national grantees who receive their awards directly from the 
Corporation. However, the Corporation reserves the right to collect 
erroneous payments from the grantee or any other entity with 
responsibility for the program. The Corporation has not modified the 
proposed rule in this regard because it does not view the proposed rule 
as inconsistent with the authority given in section 146A(b).
    One commenter asked whether the Corporation will assess charges for 
erroneous certifications only if an award has been disbursed from the 
National Service Trust. Section 146A(b) gives the Corporation the 
authority to assess a charge ``for the amount of any associated payment 
or potential payment from the National Service Trust.'' (Emphasis 
added). As discussed above, this authority is broad enough to encompass 
an assessment before an education award is disbursed. The Corporation's 
proposed regulation did not limit that authority.

P. Public Service Loan Forgiveness and AmeriCorps (Sec.  2526.20)

    On September 27, 2007, President Bush signed the College Cost 
Reduction

[[Page 51406]]

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.

Q. 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, section 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 section 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 an 
AmeriCorps State and National position.
    The Serve America Act amended section 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 Corporation the flexibility to support a 
single individual during more than two terms of service in less-than-
full-time terms. The amendments do not guarantee that 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.
    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 longstanding limitation of two terms of 
service in AmeriCorps State and National meant that, after a maximum of 
two terms, a position was available for a new individual to have an 
opportunity to serve.
    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, this rule doubles the 
number from two to four terms an individual may serve in AmeriCorps 
State and National and be supported with federal funds. This will 
provide twice as many opportunities as were previously available, but 
will place a reasonable limit in order to ensure service opportunities 
are available for other interested participants. This does not mean 
that an individual is guaranteed four terms of service in AmeriCorps 
State and National.
    A term of service includes full-time, part-time, reduced part-time, 
quarter-time, and minimum-time terms, as well as any term from which 
one exits after serving 15 percent of the agreed term of service, and 
any term from which one is exited for misconduct. If a person leaves 
for reasons other than misconduct prior to serving 15 percent, the term 
is not considered a term of service for the purposes of this 
limitation.
    Exhaustion of the number of terms one may serve 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.
    The Corporation received many comments expressing concern about the 
proposed limit of four terms. These comments generally fell into one of 
three categories: (1) Those who opposed any term limit for AmeriCorps; 
(2) those who believe the limitation on education award value received 
is a sufficient limitation on the number of terms an individual may 
serve; and (3) those who agree that there should be a limit on the 
number of terms an individual may serve, but recommend expanding the 
limit to 5 or more.
    The Corporation does not agree that an individual should be 
permitted to serve in AmeriCorps indefinitely. As discussed above, a 
limitation on terms ensures that national service positions will be 
available for more individuals to serve.
    Most commenters supported a limitation to the number of terms, but 
recommended an increase over the proposed rule. Many encouraged the 
Corporation to adopt a different mechanism for limiting terms, or to 
rely on the limitation of education award receipt as a sufficient 
limitation. Based upon the Corporation's statement in the proposed rule 
that a limitation of the value of two full-time education awards should 
be understood as ``a limitation of two full-time service 
opportunities,'' one commenter recommended that the term limit 
approximate a limit of two full-time service opportunities. One 
commenter suggested using MSY's (member service years) served as a 
possible mechanism for measuring the value of service opportunities one 
has had in AmeriCorps. Another commenter recommended setting a 
limitation of 3,400 hours served, the equivalent of two full-time terms 
of service.
    The Corporation considered various methodologies in implementing 
the Serve America Act amendments, but concluded that the number of 
possible service opportunities afforded by such

[[Page 51407]]

methodologies would be counter to ensuring that opportunities to serve 
are appropriately distributed among those interested. A limit of up to 
two MSYs would permit someone to serve up to 9 minimum time terms, and 
a limit of 3,400 hours would permit an individual to serve up to 10 
minimum time terms. Further, developing separate value systems for 
AmeriCorps terms of service and education awards received presents an 
additional challenge by making AmeriCorps service overly complicated.
    The Corporation did not consider using the limitation on education 
awards alone as a sufficient limit to the number of terms an individual 
may serve, as using such a limitation would prevent an individual who 
received education awards through transfer from later serving in an 
approved AmeriCorps position. To enable these individuals to serve, the 
Corporation is permitting individuals to enroll in AmeriCorps without 
receiving an education award. In short, the Corporation believes it 
necessary to have separate limitations on the number of terms an 
individual may serve in AmeriCorps State and National and on the value 
of education awards an individual may receive.
    Many commenters offered arguments in support of expanding the term 
limit, including that participants want to continue service beyond four 
terms, that increasing the number of terms permits the organization to 
benefit from a participant's cumulative experience, or similarly that 
the organization could benefit from the community relationships the 
participant may have developed over time.
    The Corporation does not believe that placing a limit on the number 
of terms one may serve in AmeriCorps State and National will prevent 
those individuals interested in continued service from serving, whether 
it be through their careers, as volunteers, or as participants in other 
programs such as AmeriCorps NCCC, AmeriCorps VISTA, or a Senior Corps 
program. Additionally, unlike employment, AmeriCorps is not intended to 
be a long-term arrangement. If a program wishes to retain a particular 
individual, the sponsoring organization should consider developing a 
staff position. In any event, a reasonable limit on the terms of 
service advances the overriding goal of having meaningful opportunities 
to serve for all those interested.
    The Corporation also received comments in opposition to the 
Corporation's justification for limiting the number of terms. One 
commenter noted that the appropriate remedy for ensuring that there are 
sufficient AmeriCorps members is to increase funding for AmeriCorps, 
not limit the number of terms an individual may serve. However, recent 
funding increases have not kept up with the increase in the number of 
Americans applying to become AmeriCorps members.
    One commenter noted that while applications for AmeriCorps service 
may outnumber available positions overall, this may not be true for 
individual programs, and that the total number of applicants is not 
representative of the total number of qualified applicants. This 
commenter encouraged the Corporation to permit organizations that are 
able to demonstrate an inability to secure qualified AmeriCorps members 
a waiver to permit individuals to serve more than four terms. In such 
cases, the Corporation encourages programs to strengthen their local 
recruitment methods as well as use the Corporation's online recruitment 
system.

R. 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 fund each year 
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 rule removes Sec. Sec.  2522.425-2522.435, the sections that 
describe the sub-categories of the three basic selection criteria, as 
well as Sec. Sec.  2522.445-2522.448, the sections that set out the 
weights given to the sub-categories.
    The Corporation may, in the future, publish specific sub-categories 
for the basic selection criteria in the Notice of Funding Opportunity 
or Availability. This will enable the Corporation to adjust application 
components and the weights given to sub-components. The Corporation 
expects that future grant applications will focus less on the process 
through which grantees achieve their outcomes and more on the outcomes 
they produce. 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--will 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 any sub-categories of selection criteria in 
advance of the application and review process.
    The Corporation received several comments expressing concern that 
the Corporation's timeline for releasing application instructions will 
arrive too late for State Commissions to be able to help sub-grantees 
prepare their applications, for State Commissions to operate their own 
grant competition, and for programs to conduct the type of community 
assessment and planning necessary to formulate a potentially successful 
program model. The Corporation intends to release the Notice of Funds 
Availability and application instructions by late summer each year. 
This will allow Commissions and multi-state applicants the opportunity 
to run their RFP processes in the Fall in preparation for submitting 
applications to the Corporation by its due date the following winter.

S. Applications for the Same Project (Sec.  2522.320)

    The Serve America Act amended section 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

[[Page 51408]]

same project under the national service laws.'' This provision 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 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.

T. Pre-Approval of Formula Programs (Sec.  2550.80)

    Section 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 rule amends Sec.  2550.80 to reflect this change.

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

    Under past 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 downturn and the real 
potential for a decrease in non-Federal support, this 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.
    The Corporation received a total of 65 comments related to the 
proposed rule change. One comment supported the proposal as stated in 
the Proposed Rule; one comment suggested the Corporation eliminate the 
``may not exceed 80 percent of the Federal share'' entirely; 3 comments 
suggested that the Corporation change the ratio to ``may not exceed 60 
percent''; and 60 comments suggested that the Corporation change the 
ratio to ``may not exceed 70 percent.'' Implicit in these comments was 
the concern that non-Federal sources of funds are increasingly 
difficult to secure, and that a proposal to waive the requirement on a 
case-by-case basis may not be applied consistently across all grantees.
    While the Corporation understands the concerns expressed and is 
sensitive to resource acquisition issues at the grantee level, it 
believes that the proposal put forth in the Proposed Rule best serves 
the statutory intent related to the programs. By allowing case-by-case 
waivers, based on specific conditions identified by grantees, the 
Corporation can provide administrative relief when warranted. The 
Corporation will develop standard criteria for waivers that will 
include economic downturn at the local level.

IV. Summary of Redesignations

------------------------------------------------------------------------
         Previous location                       New 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
------------------------------------------------------------------------

V. Effective Dates

    Except for the amendments to Sec. Sec.  2522.220, 2522.230, 
2522.235, and 2522.240, which are effective August 20, 2010, this rule 
is effective September 20, 2010.

VI. 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 and 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 positions and those who 
have successfully completed terms of service in Summer of Service 
positions. These additions require the development of new enrollment 
and exit forms for the

[[Page 51409]]

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 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 that supervise 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 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 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 these 
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 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 2518

    Grants administration, Grant programs--social programs.

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.

0
For the reasons stated in the preamble, under the authority 42 U.S.C. 
12651d, the Corporation for National and Community Service amends 
chapter XXV, title 45 of the Code of Federal Regulations as follows:

PART 2510--OVERALL PURPOSES AND DEFINITIONS

0
1. The authority citation for part 2510 continues to read as follows:

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

0
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 2518--SERVICE-LEARNING CLEARINGHOUSE

0
3. The authority citation for part 2518 is amended to read as follows:

    Authority:  42 U.S.C. 12653o.

Sec.  2518.100  [Amended]

0
4. Amend Sec.  2528.100 by removing the reference ``parts 2530 through 
2533'' and adding ``parts 2531 through 2534'' in its place.

Sec.  2518.110  [Amended]

0
5. Amend Sec.  2528.110 by removing the reference ``parts 2530 through 
2533'' in the introductory text and adding ``parts 2531 through 2534'' 
in its place.

PART 2522--AMERICORPS PARTICIPANTS, PROGRAMS, AND APPLICANTS

0
6. 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.

[[Page 51410]]

Sec.  2522.100  [Amended]

0
7. Amend Sec.  2522.100 by removing the reference ``part 2532'' in 
paragraph (g)(2) and adding ``part 2533'' in its place.
0
8. Amend Sec.  2522.220 by:
0
a. Revising the heading;
0
b. Removing paragraph (b);
0
c. Redesignating paragraphs (c) through (g) as (b) through (f), 
respectively; and
0
d. Revising newly designated 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 a satisfactory performance review for any previous term 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.
* * * * *

0
9. Amend Sec.  2522.230 by:
0
a. Revising the heading;
0
b. Revising paragraphs (b)(6) and (b)(7); and
0
c. Amending paragraph (e) by removing the word ``two''.
    The revisions will read as follows:

Sec.  2522.230  Under what circumstances may an AmeriCorps participant 
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(c)(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.
* * * * *

0
10. Add 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.  2522.240 through Sec.  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.

0
11. Amend Sec.  2522.240 by:
0
a. Revising paragraph (a); and
0
b. Removing ``Sec.  2522.220(g)'' in paragraph (c) and adding ``Sec.  
2522.220(f)'' in its place.
    The revision reads as follows:

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

    (a) AmeriCorps education awards. An individual serving in an 
approved AmeriCorps State and National position may receive an 
education 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]

0
12. 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

0
13. The authority citation for part 2525 is amended to read as follows:

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

0
14. Amend Sec.  2525.20 by:
0
a. Removing the definition for ``Approved school-to-work program'';
0
b. Revising the definitions for ``education award'' and ``term of 
service''; and
0
c. Adding definitions for ``AmeriCorps education award,'' 
``economically disadvantaged youth,'' ``G.I. Bill approved program,'' 
``Silver Scholar education award,'' and ``Summer of Service education 
award'' in alphabetical order, to read as follows:

Sec.  2525.20  Definitions.

* * * * *
    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 or 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.
* * * * *
    G.I. Bill approved program. For the purposes of this section, a 
G.I. Bill Approved Program is an educational institution or training 
establishment approved for educational benefits under the Montgomery 
G.I. Bill (38 U.S.C. 3670 et seq.) for offering programs of education, 
apprenticeship, or on-job training for which educational assistance may 
be provided by the Secretary for Veterans Affairs.
* * * * *
    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

[[Page 51411]]

    (3) For an individual serving in an approved Summer of Service 
position, not less than 100 hours during the summer months of a single 
year.

PART 2526--ELIGIBILITY FOR AN EDUCATION AWARD

0
15. The authority citation for part 2526 is revised to read as follows:

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

0
16. 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);
    (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.
* * * * *

0
17. Add 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 must 
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 must determine whether an individual successfully completed a 
term of service based upon an end-of-term evaluation that examines 
whether the individual satisfies all of the following conditions:
    (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.
0
18. 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.
* * * * *

0
19. Add 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.
0
20. 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 may 
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 may 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 may 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.
0
21. Revise Sec.  2526.50 to read as follows:

[[Page 51412]]

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).
    (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.
0
22. Add 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 serve in subsequent terms 
of service?

    The aggregate value of education awards an individual has received 
will not impact an individual's ability to serve in a subsequent term 
of service, but will impact the amount of the education award the 
individual may receive upon successful completion of that term of 
service. If the award amount offered for the term of service has a 
value that, when added to the aggregate value of awards previously 
received, would exceed 2, upon successful completion of the term of 
service, the individual will only receive that portion of the award 
having a value for which the individual is eligible pursuant to Sec.  
2527.10(g).
0
23. 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 an individual may credit 
the service toward the Public Service Loan Forgiveness Program, as 
provided under 34 CFR Sec.  685.219.
0
24. Add 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 a 
national service program under Sec.  2526.10(a)(2)(i), (2)(iii), or 
(2)(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

0
25. The authority citation for part 2527 is amended to read as follows:

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

0
26. Amend Sec.  2527.10 by:
0
a. Revising the heading;
0
b. Revising paragraphs (a), (b), and (c); and
0
c. Adding new paragraphs (e), (f), and (g).
    The revisions and additions read as follows:

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

    (a) Full-time term of service. Except as provided in paragraph (g) 
of this section, 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. Except as provided in paragraph (g), 
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. Except as provided in 
paragraph (g), the education award for a reduced part-time term of 
service in an approved AmeriCorps position of fewer than 900 hours is:
    (1) An amount equal to the product of:
    (i) The number of hours of service required to complete the reduced 
part-time term of service divided by 900; and
    (ii) The amount of the education award for a part-time term of 
service described in paragraph (b) of this section; or
    (2) An amount as determined otherwise by the Corporation.
* * * * *
    (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 verified by the organization or school operating the 
Summer of Service program.
    (f) Silver Scholar Education Award. Except as provided in paragraph 
(g) of this section, the education award for a term of service in an 
approved Silver Scholar position for at least 350 hours is $1,000.
    (g) Calculating discounted education award amount. To ensure that 
an individual receives no more than the aggregate value of two awards, 
as determined pursuant to Sec.  2526.50, the discounted amount an 
individual is eligible to receive is determined by the following 
formula:

(2-aggregate value of awards the individual has received) x (amount of 
a full-time education award in the year the position is approved)

PART 2528--USING AN EDUCATION AWARD

0
27. The authority citation for part 2528 is revised to read as follows:

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

0
28. Revise Sec.  2528.10(a)(3) to read as follows:

[[Page 51413]]

Sec.  2528.10  For what purposes may an education award be used?

    (a) * * *
    (3) To pay expenses incurred in enrolling in a G.I. Bill approved 
program, in accordance with Sec. Sec.  2528.60-80.
* * * * *

0
29. Revise Sec.  2528.30 (a)(2)(vi)(A) and (B) to read as follows:

Sec.  2528.30  What steps are necessary to use an education award to 
pay all or part of the current educational expenses at an institution 
of higher education?

    (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.).
* * * * *

0
30. 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 which the Corporation has disbursed all or part of 
that individual's education award?

* * * * *
    (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.

0
31. Revise Sec.  2528.60 to read as follows:

Sec.  2528.60  Who may use the education award to pay expenses incurred 
in enrolling in a G.I. Bill approved program?

    To use the education award to pay expenses for this purpose, 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.

0
32. Revise Sec.  2528.70 to read as follows:

Sec.  2528.70  What steps are necessary to use an education award to 
pay expenses incurred in enrolling in a G.I. Bill approved program?

    (a) Required Information. Before disbursing an amount from an 
education award for this purpose, 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.

0
33. Add 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 in a G.I. Bill approved program?

    (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

0
34. The authority citation of part 2529 is amended to read as follows:

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

0
35. 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]

0
36. Under the authority of 42 U.S.C. 12651d, redesignate parts 2530, 
2531, and 2532 as parts 2531, 2532, and 2533, respectively.

0
37. 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 Under what circumstances is a transfer revocable?
2530.85 What steps are necessary to revoke a transfer?
2530.90 Is a designated individual eligible for the payment of 
accrued interest under Part 2529?

    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 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;

[[Page 51414]]

    (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 paragraphs (a) through (c) 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 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 or 
permit the creation of 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 otherwise determines that a transfer 
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 
education 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 education 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, in whole or in part, a transfer, 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  Under what circumstances is a transfer revocable?

    (a) Revocation. An individual may revoke a transfer 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,

[[Page 51415]]

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 a transfer?

    (a) Request for revocation. Before revoking a transfer, the 
transferring individual must submit a request to the Corporation that 
includes --
    (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 of the amount 
revoked.
    (c) Used awards. A revocation may only apply to 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 Service 
Trust, not when a request is received to use an award.
    (d) 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.
    (e) Timing of revocation. The Corporation must receive the request 
to revoke the transfer 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 2533--TECHNICAL ASSISTANCE, TRAINING, AND OTHER SERVICE 
INFRASTRUCTURE-BUILDING ACTIVITIES

0
38. The authority for part 2533 is revised to read as follows:

    Authority: 42 U.S.C. 12657.

Sec.  2533.10  [Amended]

0
39. Amend newly redesignated Sec.  2533.10 by removing the reference 
``part 2530'' and adding ``part 2531'' in its place in the following 
locations:
0
a. In the introductory text; and
0
b. In paragraph (p).

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

0
40. The authority citation for part 2550 continues to read as follows:

    Authority:  42 U.S.C. 12638.

0
41. Amend Sec.  2550.80 by revising paragraph (b) to read as follows:

Sec.  2550.80  What are the duties of the State entities?

* * * * *
    (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

0
42. 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.

0
43. Amend Sec.  2551.92 by revising paragraph (e) to read as follows:

Sec.  2551.92  What are project funding requirements?

* * * * *
    (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

0
44. 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.

0
45. 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

[[Page 51416]]

    (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: August 13, 2010.
Tom Bryant,
Associate General Counsel.
[FR Doc. 2010-20525 Filed 8-19-10; 8:45 am]
BILLING CODE 6050-28-P
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