[Federal Register Volume 87, Number 135 (Friday, July 15, 2022)]
[Proposed Rules]
[Pages 42431-42437]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-14328]


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NATIONAL SCIENCE FOUNDATION

45 CFR Part 620

RIN 3145-AA64


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

AGENCY: National Science Foundation.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The National Science Foundation (NSF), in consultation with 
the Secretary of Education, is proposing standards for how a 
CyberCorps[supreg] SFS scholarship would be repaid if a scholarship 
recipient fails to meet the program requirements, as well as the 
process to discharge the repayment obligation, in whole or in part, in 
certain circumstances.

DATES: Interested parties should submit written comments on or before 
September 13, 2022 to be considered in the formation of the final rule.

ADDRESSES: Submit comments in response to this proposed rule to the 
Federal eRulemaking portal at https://www.regulations.gov. Follow the 
instructions provided on the ``Comment Now'' screen. If your comment 
cannot be submitted using Regulations.gov, email the point of contact 
in the FOR FURTHER INFORMATION CONTACT section of this document for 
alternate instructions.
    Comments submitted in response to this document will be made 
publicly available and are subject to disclosure under NSF's Freedom of 
Information Act regulations at 45 CFR part 612. For this reason, please 
do not include in your comments information of a confidential nature, 
such as sensitive personal information or proprietary information, or 
any information that you would not want publicly disclosed. To confirm 
receipt of your comment(s), please check https://www.regulations.gov, 
approximately two to three days after submission to verify posting.

FOR FURTHER INFORMATION CONTACT: William Grant, Assistant General 
Counsel, National Science Foundation, 2415 Eisenhower Avenue, 
Alexandria, VA 22314; telephone: 703-292-8060; email: <a href="/cdn-cgi/l/email-protection#50273722313e24103e23367e373f26"><span class="__cf_email__" data-cfemail="b5c2d2c7d4dbc1f5dbc6d39bd2dac3">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION:

Background and Authority for This Proposed Rule

    The Cybersecurity Enhancement Act of 2014 (15 U.S.C. 7442), as 
amended by the National Defense Authorization Acts for 2018 and 2021, 
authorized NSF, in coordination with the U.S. Office of Personnel 
Management (OPM) and the U.S. Department of Homeland Security (DHS), to 
implement the CyberCorps[supreg] SFS scholarship program to recruit and 
train the next generation of information technology professionals, 
industrial control system security professionals, and security managers 
to meet the needs of the cybersecurity mission for Federal, state, 
local, and tribal governments.
    Finding cybersecurity talent can be challenging for government 
organizations. This program helps hiring managers by providing 
scholarships to candidates from institutions with some of the top 
cybersecurity programs in the country. Special hiring authorities in 15 
U.S.C. 7442(e) allow Federal organizations, without regard to any 
provision of chapter 33 of title 5 governing appointments in the 
competitive service, to noncompetitively appoint SFS graduates. In 
addition, upon fulfillment of their service term, they may be converted 
noncompetitively to a term, career-conditional, or career appointment. 
If converted to a term appointment, an agency may later 
noncompetitively convert such employee to a career-conditional or 
career appointment before the term appointment expires.
    The CyberCorps[supreg] SFS program is led and managed by NSF in 
coordination with OPM and DHS. National Science Foundation oversees all 
aspects of the program, including:
    <bullet> Program solicitations, merit review process, site visits, 
grant awards, assessing progress via annual and final reports, managing 
financial functions, representing the program in interactions with 
Federal agencies and other organizations within the academic/scientific 
communities;
    <bullet> Outreach to current and prospective CyberCorps[supreg] SFS 
grantee institutions and principal investigators (PIs);
    <bullet> Coordination with OPM via an annual reimbursable Inter-
Agency Agreement (IAA) for student management;

[[Page 42432]]

    <bullet> Coordination with DHS on connecting students with 
government agencies via CyberCorps[supreg] SFS Job Fairs;
    <bullet> Implementing contracts for independent continuous program 
monitoring and program-level evaluation;
    <bullet> Coordination with the U.S. Department of the Treasury 
(Treasury) and/or Department of Education on collections and repayments 
for the small number of students who do not fulfill their service 
obligations; and
    <bullet> Processing requests for partial or complete releases from 
the service obligation under appropriate circumstances.
    The OPM Program Management Office is supported by a reimbursable 
Interagency Agreement with NSF and manages the operational aspects of 
CyberCorps[supreg] SFS student scholarships including:
    <bullet> Creating and distributing Student Service Agreements, 
policy, guidance and other program documents;
    <bullet> Tracking CyberCorps[supreg] SFS students from entry into 
the program until eight years following the completion of their post-
graduation service obligation;
    <bullet> Facilitating the registration of new CyberCorps[supreg] 
SFS students and monitoring their academic status with participating 
institutions during the Scholarship Phase;
    <bullet> Reviewing and approving student job offers and monitoring 
the service obligations reported by students;
    <bullet> Coordinating collection of information for repayments and 
waiver requests to NSF; and
    <bullet> Maintaining the CyberCorps[supreg] SFS program website 
(https://sfs.opm.gov/) that allows students to access 
CyberCorps[supreg] SFS program information and post their resumes 
online, so they become available to registered and approved 
organizations.
    DHS serves as a strategic partner to promote cybersecurity 
education and workforce development; helps strengthen partnerships 
between CyberCorps[supreg] SFS institutions and Federal, state, local, 
and tribal governments; serves as a technical advisor; sponsors annual 
CyberCorps[supreg] SFS Job Fairs; and organizes and maintains the 
CyberCorps[supreg] SFS Hall of Fame website. In addition, DHS partners 
with the National Security Agency on the National Centers of Academic 
Excellence in Cybersecurity (NCAE) initiative to:
    <bullet> Establish standards for cybersecurity curricula and 
academic excellence;
    <bullet> Include competency development among students and faculty;
    <bullet> Value community outreach and leadership in professional 
development;
    <bullet> Integrate cybersecurity practice within the institution 
across academic disciplines; and
    <bullet> Actively engage in solutions to challenges facing 
cybersecurity education.
    Agencies may recruit SFS students for internships during their 
academic term and permanent placement after graduation. Agencies 
interested in recruiting from the pool of SFS Scholars can gain access 
to these candidates by registering as an agency official at the OPM SFS 
Portal to browse the SFS student pool. In addition, closed hiring 
events specifically for the SFS students are held twice a year to give 
agencies an opportunity to interview and even hire SFS students on the 
spot. The Winter and Summer CyberCorps[supreg] Job Fairs usually occur 
in January and September, respectively. The Winter CyberCorps[supreg] 
Job Fair, sponsored jointly by NSF and DHS, is typically held at a 
hotel in the Washington, DC metro over a three-day period. Students 
visit agency booths and interview rooms to speak with representatives 
about internship and hiring opportunities and to gain a better 
understanding of what it would be like to work at a particular agency 
and in government. The 2021 and 2022 Winter Job Fairs were held 
virtually due to COVID-19 restrictions. The Summer Virtual Job Fair 
allows SFS students to visit participating agencies' virtual booths to 
search for possible employers. Each agency booth includes a 
representative for students to connect with and talk online regarding 
potential employment during a one-day period. At each virtual booth, 
students can view current job postings and submit resumes to apply for 
jobs.
    The first cohort of 31 students was enrolled in Fall 2001 and the 
first nine students graduated the following year. As of December 2021, 
3,842 students have graduated from the program and a total of 4,773 
students have been enrolled in the program since its inception. There 
are 91 institutions of higher education with active projects. In 
addition, there are 28 community colleges that participate as a partner 
with a CyberCorps[supreg] SFS university, and eight community colleges 
in the CyberCorps[supreg] SFS Community College Cyber Pilot (C3P) 
program. A list of participating institutions and additional 
information on this program can be found at https://sfs.opm.gov.

Changes Proposed by NSF With This Proposed Rule

    This program provides funds to institutions of higher education 
that award scholarships to students who agree to work after graduation 
for a Federal, state, local, or tribal government organization in a 
position related to cybersecurity for a period equal to the duration of 
the scholarship, to be started within 18 months and to be completed 
within five years of entering the commitment phase of the program. 
Failure to satisfy the academic requirements of the program or to 
complete the service obligation would result in forfeiture of the 
scholarship award, which must either be repaid, or be treated as a 
Direct Unsubsidized Loan to be repaid, together with any accrued 
interest and fees. The statute further permits the Director to waive, 
in whole or in part, the service obligation or the obligation to repay 
the scholarship under certain conditions.
    Currently, in the event that a scholarship recipient is required to 
repay the scholarship award, the academic institution providing the 
scholarship collects the repayment amounts within a period of time, or 
the repayment amounts are treated as Direct Unsubsidized Loan. 
Unfortunately, in many cases, the participating CyberCorps[supreg] SFS 
institution is neither able to collect a repayment nor convert it to a 
loan due to lack of cooperation from a scholarship recipient, closing 
an NSF award at an institution, or the amounts exceeding annual or 
aggregate loan limits under 34 CFR 685.203. It results with 
participants being required to submit a one-time payment to NSF or 
being sent to Treasury for collection action. See 31 U.S.C. 3711(g); 
3716(c); 3720A(a).
    After discussions with the Department of Education, NSF is 
proposing that the conversion of the scholarship to a Direct 
Unsubsidized Loan will be done by NSF in collaboration with the 
Department of Education rather than by an academic institution. 
Historically, the group of scholars who need the repayment processing 
has been small, but it requires unproportionally time-intensive efforts 
by OPM, NSF, Treasury, as well as by the academic institutions. Each of 
the almost 100 participating academic institutions individually may 
have not more than one case every five years. This paucity of cases at 
the individual institution level nevertheless generates a large volume 
of questions in the aggregate to be handled by NSF and OPM. In 
addition, there may be significant process differences between 
different institutions, resulting in students being treated 
inconsistently across institutions, with some receiving relief while 
others are put into repayment.

[[Page 42433]]

Finally, in many cases an institution concludes that it is not able to 
treat the scholarship as the Direct Unsubsidized Loan due to the lack 
of cooperation from a scholarship recipient or other factors such as an 
amount exceeding allowable limits, forcing the scholarship recipient to 
make a lump sum payment or be transferred for Treasury collection 
action. This proposed rule lays out a single, centralized process for 
NSF and the Department of Education to convert the repayments amounts 
to Direct Unsubsidized Loans for the benefit of individual scholars, 
SFS institutions, and Federal agencies. The Direct Unsubsidized Loans, 
sometimes called Unsubsidized Stafford Loans, are low-cost, fixed-rate 
Federal student loans available to both undergraduate and graduate 
students. The key benefits to the student include

<bullet> Fixed interest rate of 3.73% for undergraduate students for 
the 2021-2022 academic year (interest rates are fixed on July 1st of 
each year for new loans after that date)
<bullet> Fixed interest rate of 5.28% for graduate and professional 
students for the 2021-2022 academic year
<bullet> No payments while enrolled in school
<bullet> Eligibility not based on demonstrated financial need or credit
<bullet> Multiple repayment plans (including income-based) available

Also, once converted the interest rates on Direct Unsubsidized Loans 
are fixed and do not change over the life of the loan.
    After consultation with the Department of Education, the proposed 
rule also specifies that scholarships converted to a Direct 
Unsubsidized Loan by the Secretary of Education are not counted against 
the scholarship recipient's annual or aggregate loan limits under 34 
CFR 685.203, similar to the Teacher Education Assistance for College 
and Higher Education (TEACH) scholarship. After conversion, the Direct 
Unsubsidized Loan will be subject to the Department of Education's 
normal processes and procedures for those loans, including repayment, 
discharge, or waiver of the repayment obligation. Once a scholarship 
has been converted to a Direct Unsubsidized Loan, it may not be 
reconverted back to a CyberCorps[supreg] SFS scholarship, NSF will have 
no further authority to discharge or waive the repayment obligation, 
and borrowers will have to follow the Department of Education's normal 
student loan rules for that program. That is, the obligation will 
convert from one that is owed to NSF to one that is owed to Education.
    Considering that the proposed rule provides a benefit to the 
scholarship recipients by ensuring a successful conversion to a Federal 
Unsubsidized Loan rather than requiring a one-time payment or a payment 
agreement with the Treasury, this option will be provided not only to 
new scholarship recipients but also to student who are already in the 
program via an optional amendment to their agreement to serve or repay.
    In addition to the process of conversion of the scholarship to a 
Direct Unsubsidized Loan, NSF proposes standards to govern the process 
to discharge the repayment obligation where ``compliance by the 
[scholarship recipient] with the obligation is impossible or would 
involve extreme hardship to the [scholarship recipient], or if 
enforcement of such obligation with respect to the [scholarship 
recipient] would be unconscionable.'' (15 U.S.C. 7442(l)). However, the 
statute does not explain or define what would be considered 
``impossible'', ``extreme hardship,'' or an ``unconscionable'' 
enforcement of the service obligation that would justify a partial or 
complete waiver of the repayment obligation, therefore NSF must use its 
discretion and judgment to define these terms for waiver requests made 
prior to conversion to a Direct Unsubsidized Loan.
    For the purposes of this proposed rule, NSF has determined the 
circumstances for discharge include death, total and permanent 
disability, or extreme hardship, as evidenced in a written request to 
be provided to and approved by the Director. This set of circumstances 
has been selected in consultation with other Federal agencies and 
modeled on the TEACH scholarship program as well as the definition of 
the total and permanent disability in Sec.  620.5 of this proposed 
rule. Also, an interagency management board, consisting of 
representatives from NSF, OPM, and DHS, would discuss each request and 
make a recommendation to the Director. The management board meets 12 
times a year and considers requests for deferral of obligation, 
discharge of agreement to serve, as well as cases that need to be 
recommended for a repayment or collection.
    The proposed rule lays out definitions to describe elements of the 
SFS program and clarifies the requirement to document the scholarship 
recipient's service obligation. It formalizes a process for deferral of 
the service obligation where a scholarship recipient is continuing with 
advanced study or professional development, for medical reasons, 
military service, or other exceptional circumstances. Because there is 
no current, standard process for deferral and up to now each individual 
institution has had to set up their own policies, the proposed rule 
establishes a consistent process across all participating institutions. 
This process is modeled on the Department of Education's TEACH program 
and, based on historical data, would affect about 40 scholarship 
recipients a year. If a scholarship recipient does not qualify for a 
deferral or discharge, and does not meet their service obligation, 
under the statute they may repay the scholarship, or it will be 
converted to a Direct Unsubsidized Loan. NSF and OPM will send 
information collected on the Agreement to Serve or Repay together with 
the loan amount to the Department of Education.

Regulatory Analysis

Expected Impact of the Proposed Rule

    There are three main reasons that the proposed rule is needed. 
First, the Federal Unsubsidized Loan, resulting from the scholarship 
conversion is subject to repayment in accordance with terms and 
conditions specified by the Director of the National Science Foundation 
(in consultation with the Secretary of Education) in regulations 
promulgated to carry out the subsection (j) of 15 U.S.C. 7442. Second, 
the lack of flexibility in current practice creates inefficiencies for 
students and agencies in administering the program. In many cases, the 
participating CyberCorps[supreg] SFS institution is neither able to 
collect a repayment nor convert it to a loan due to lack of cooperation 
from a scholarship recipient, closing an NSF award at an institution, 
or the amounts exceeding annual or aggregate loan limits under 34 CFR 
685.203. It results in participants being required to submit a one-time 
payment to NSF or being sent to Treasury for a payment agreement. There 
is inefficiency and significant administration cost for institutions 
and agencies due to the lack of an automatic and uniform way to handle 
repayment and loan conversion. Lastly, the lack of flexibility in 
current practice prevents students from receiving any benefits from a 
Direct Unsubsidized Loan if the conversion by an institution is 
impossible.
    Three groups will be affected by the proposed rule: Students (SFS 
scholars), universities (SFS institutions), and Federal agencies. The 
Table 1, Table 2, and Table 3 summarize expected impacts on those three 
groups.

[[Page 42434]]



                            Table 1--Expected Impact of the Proposed Rule on Students
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                                            Number per                                    Expected impact of
                                               year            Current practice              proposed rule
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Students fulfilling obligation through               300  Students report completion  None for future students;
 service.                                                  to OPM.                     current participants will
                                                                                       have the option to
                                                                                       convert to loan.
Students fulfilling through lump-sum                   5  Repay to SFS institution    Participants could pay a
 payment.                                                  or NSF.                     lump sum or convert to
                                                                                       loan.
Students cooperating with the SFS                      8  Converted to a loan by      Transfer to the Department
 institution and OPM, but not paying                       Institution if possible,    of Education for loan
 lump sum.                                                 or transferred to           conversion (eligible for
                                                           Treasury for collection     related benefits),
                                                           action.                     without the need for the
                                                                                       student's further
                                                                                       cooperation or consent.
Students not cooperating and not paying                5  Transferred to Treasury     Same as above.
 lump sum.                                                 for collection action.
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                          Table 2--Expected Impact of the Proposed Rule on Universities
                                               [SFS institutions]
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                                            Number per                                    Expected impact of
                                               year            Current practice              proposed rule
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Universities............................              15  Currently SFS institutions  Automatic conversion to
                                                           must convert to a loan      loan will mean less
                                                           which may be impossible     effort for students/less
                                                           due to loan limits or       administration time for
                                                           lack of student             universities.
                                                           cooperation.
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                        Table 3--Expected Impact of the Proposed Rule on Federal Agencies
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                                             Number of                                    Expected impact of
                                          cases per year       Current practice              proposed rule
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NSF.....................................              18  Work with institutions to   Standardized transfer to
                                                           find a way to create        the Department of
                                                           payments or loan            Education for automatic
                                                           conversion. If              loan conversion.
                                                           impossible, refer to
                                                           Treasury for collection
                                                           action.
OPM.....................................              18  Work with institutions to   Provide the cases to NSF
                                                           find a way to create        for conversion to the
                                                           payments or loan            loan.
                                                           conversion. If
                                                           impossible, work with NSF
                                                           to transfer to Treasury
                                                           for collection action.
Treasury................................               5  Handle repayment or         No transfers to Treasury,
                                                           collection; appeals;        unless the student
                                                           requests for additional     defaults on their loan.
                                                           evidence etc.
Education...............................              20  Not involved..............  Loan conversion.
----------------------------------------------------------------------------------------------------------------

Costs

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

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

[[Page 42435]]

 
2018....................................             339               0               0               0               1               1               2
2019....................................             384               1               0               0               0               1               2
2020....................................             375               0               0               0               0               0               0
2021....................................             354               0               0               0               0               0               0
                                         ---------------------------------------------------------------------------------------------------------------
    Total...............................           4,709              21               0              49               3               7              80
--------------------------------------------------------------------------------------------------------------------------------------------------------

    The costs resulting from the notice of proposed rulemaking (NPRM) 
includes one-time costs and recurring costs. The one-time costs consist 
of time needed to read and understand the proposed rule from 
universities and affected students and time for current students to 
learn about, decide, and complete paperwork to opt-into loan conversion 
when the option is available. The recurring costs consist of time to 
complete any additional paperwork to agree on loan conversion and new 
cost for the Department of Education to handle loan conversion.
    SFS scholars (students), SFS institutions (universities), and three 
Federal agencies (NSF, OPM, and Treasury) will benefit from the NPRM. 
First, SFS institutions will save their time from responding to SFS 
scholars seeking information when they are not completing the service 
obligation. The estimated saving will be 20 hours per year. The total 
estimated saving will be $24,000 if the estimated number of cases is 20 
per year with $60- per hour as a wage rate.\1\ Second, SFS scholars who 
will not fulfill their obligation by service, will save their time from 
communicating with SFS institutions and OPM about options before being 
transferred to the Treasury. The estimated time saving is 30 hours per 
case per year. The SFS scholars who will not fulfill their obligations 
by service will be eligible for benefits available to Direct 
Unsubsidized Loan borrowers. The benefits include: (1) Entering a six-
month grace period prior to entering repayment, and (2) Eligiblity for 
all the benefits of the Direct Loan Program. These benefits are not 
currently available to individuals whose repayments are handled by 
Treasury. Three Federal agencies will save time from handling repayment 
cases. The estimated time saving for NSF is 30 hours per case for about 
20 cases per year for personnel whose wage rate is estimated at $84.48 
\2\ per hour, based on OPM 2022 salary and wages. The estimated saving 
for NSF is $50,688. The estimated time savings for OPM is 15 hours per 
case for about 20 cases per year for personnel whose wage rate is 
estimated at $56.30 per hour, based on OPM 2022 salary and wages.\3\ 
The Treasury will save time for handling at least five cases per year 
because they will not handle payment agreement or student information. 
There is no direct benefit for the Department of Education.
---------------------------------------------------------------------------

    \1\ Computer Science Professor Salary (June 2022)--Zippia 
[verbar] Average Computer Science Professor Salaries Hourly And 
Annual.
    \2\ GS-15 Step 10: Pay & Leave: Salaries & Wages--OPM.gov.
    \3\ GS-13 Step 4: Pay & Leave: Salaries & Wages--OPM.gov.
---------------------------------------------------------------------------

    Alternatives of this NPRM could be continuing with the current 
practice of an ad-hoc payment plan that could happen at SFS 
institutions or being transferred to the U.S. Treasury. This 
alternative would not provide the benefits to scholarship recipients, 
SFS institutions, and agencies that the proposed rule is intended to 
address. Another alternative is to extend the window for government 
service (e.g., allowing up to ten years) and track SFS scholars for an 
extended time period before the loan conversion. This alternative would 
likely result in a larger share of SFS scholars fulfilling their 
service obligations. However, this action would not eliminate the need 
to improve the efficiency of the process for SFS scholars who do not 
fulfill their service obligations, and it may also delay government 
service for some SFS scholars given the extended window to complete 
service obligations. As a result, we believe the chosen proposal best 
addresses the administrative difficulties resulting from a scholarship 
recipient failing to meet the program requirements.

Executive Order 12866, ``Regulatory Planning and Review'' and Executive 
Order 13563, ``Improving Regulation and Regulatory Review''

    These Executive orders direct agencies to assess all costs, 
benefits and available regulatory alternatives and, if regulation is 
necessary, to select regulatory approaches that maximize net benefits 
(including potential economic, environmental, public health, safety 
effects, distributive impacts, and equity). These Executive orders 
emphasize the importance of quantifying both costs and benefits, of 
reducing costs, of harmonizing rules, and of promoting flexibility. 
This proposed rule is a ``significant regulatory action'' under section 
3(f) of Executive Order 12866, ``Regulatory Planning and Review,'' as 
supplemented by Executive Order 13563, ``Improving Regulation and 
Regulatory Review.'' Accordingly, the Office of Management and Budget 
has reviewed this proposed rule.

Executive Order 13132, Federalism

    Executive Order 13132, Federalism, prohibits an agency from 
publishing any rule that has federalism implications if the rule 
imposes substantial direct compliance costs on state and local 
governments and is not required by statute, or the rule preempts state 
law, unless the agency meets the consultation and funding requirements 
of section 6 of the Executive order. This proposed rule does not have 
any federalism implications, as described above.

Congressional Review Act

    A major rule cannot take effect until 60 days after it is published 
in the Federal Register. This proposed rule is not anticipated to be a 
major rule under 5 U.S.C. 801.

Paperwork Reduction Act

    This proposed rule implicates several information collection 
requirements under the Paperwork Reduction Act (44 U.S.C. 3501 et 
seq.). On behalf of NSF, OPM as the program management office currently 
maintains a collection under OMB Control Number 3206-0246, Scholarship 
for Service Program internet Site. This collection covers the 
registration of students, agency officials, principal investigators, 
and program administrators; provides the ability for students to create 
and maintain online resumes; provides Federal agency officials access 
to student resumes for placement opportunities; and provides placement 
status reports. No changes in

[[Page 42436]]

burden or data elements or other aspects of this collection are 
expected to change based on this proposed rule.
    In addition, this proposed rule contains a new information 
collection requirement. As discussed in this proposed rule, this 
information collection will provide contact information for the 
participants in the program and will allow NSF to work with the 
Department of Education to convert the scholarship to Direct 
Unsubsidized Loan.
    Title of Collection: CyberCorps[supreg] SFS Scholarship Agreement 
to Serve or Repay.
    OMB Control No.: 3145-XXXX.
    Type of Review: New.
    Respondents: Individual participants in the CyberCorps Scholarships 
for Service Program.
    Estimated Number of Annual Respondents: 20.
    Estimated Total Annual Burden Hours: 30 minutes per respondent.
    Comments are invited on: (a) Whether the collection of information 
is necessary for the proper performance of the functions of the 
program, including whether the information will have practical utility; 
(b) The accuracy of the Agency's estimate of the burden of the 
collection of information, including the validity of the methods and 
the assumptions used; (c) Ways to enhance the quality, utility, and 
clarity of the information to be collected; and (d) Ways to minimize 
the burden of the collection of information on respondents, including 
through the use of automated collection techniques or other forms of 
information technology. Comments submitted in response to this 
notification will be summarized and/or included in the request for 
Office of Management and Budget (OMB) approval. All comments will 
become a matter of public record.

Regulatory Flexibility Act

    As required by the Regulatory Flexibility Act of 1980 (5 U.S.C. 605 
(b)), NSF certifies that this proposed rule, if adopted, will not have 
a significant economic impact on a substantial number of small 
entities.

Unfunded Mandates

    For purposes of Title II of the Unfunded Mandates Reform Act of 
1995, 2 U.S.C. 1531-1538, as well as Executive Order 12875, this 
regulatory action does not contain any Federal mandate that may result 
in increased expenditures in either Federal, state, local, or tribal 
governments in the aggregate, or impose an annual burden exceeding $100 
million on the private sector.

List of Subjects in 45 CFR Part 620

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


0
For reasons set forth in the preamble, NSF proposes to add part 620 to 
45 CFR chapter VI to read as follows:

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

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

    Authority:  42 U.S.C. 1870.


Sec.  620.1   Scope and purpose.

    The CyberCorps SFS Scholarship for Service (SFS) program provides 
funds to institutions of higher education that award scholarships to 
students who agree to work after graduation for a Federal, state, 
local, or tribal government organization in a position related to 
cybersecurity for a period equal to the duration of the scholarship, to 
be started within 18 months and to be completed within five years of 
entering the Commitment Phase of the SFS program. Failure to satisfy 
the academic requirements of the program or to complete the service 
obligation results in forfeiture of the scholarship award, which must 
either be repaid or converted to a Direct Unsubsidized Loan. If 
converted, the loan, together with any accrued interest and fees, is 
subject to repayment to the Secretary of Education and may not be 
reconverted to a scholarship.


Sec.  620.2   Definitions.

    Agreement to serve or repay means an agreement under which the 
individual receiving a CyberCorps SFS scholarship commits to meet the 
service or repay the loan as describe in Sec.  620.6 and to comply with 
notification and other provisions of the agreement.
    Commitment Phase means a period following the completion, or 
otherwise cessation of the Scholarship Phase, within which the SFS 
recipient must complete their obligation requirement. The Commitment 
Phase must begin within 18 months and must be completed within 5 years. 
The Commitment Phase is limited to a maximum of five years.
    CyberCorps SFS scholarship recipient (scholarship recipient) means 
a student who is selected by an SFS institution for CyberCorps SFS 
scholarship and agrees to work after graduation for a Federal, state, 
local, or tribal government organization in a position related to 
cybersecurity.
    Deferral means an approved extension of the Commitment Phase.
    Director means the Director of the National Science Foundation 
(NSF) or an official or employee of the National Science Foundation 
acting for the Director under a delegation of authority.
    Monitoring Phase means a period following the completion of the 
Commitment Phase during which the scholarship recipient must maintain 
current contact information and complete periodic (usually annual) 
surveys as requested by the SFS Program office. The period of time is 
set by the NSF Director in consultation with OPM following the 
completion of the Commitment Phase.
    Payment data means an electronic record that is provided to the 
Director of NSF by an institution showing student disbursement 
information.
    Scholarship Phase means a period when scholarship recipients are 
enrolled in an approved SFS academic program in cybersecurity.
    Service obligation means the time period the recipient is required 
to work as an employee of a Federal, state, local, or tribal government 
organization in a position related to cybersecurity. All time at the 
agency that the recipient is considered an employee of the agency 
counts toward the service obligation.
    SFS institution means a higher education institution that receives 
SFS grant from the National Science Foundation to recruit, train, and 
graduate scholarship recipients.
    SFS program office means an office managing the SFS program through 
partnership between the National Science Foundation (NSF) and the 
Office of Personnel Management (OPM).


Sec.  620.3   Documenting the service obligation.

    If a scholarship recipient is performing service in accordance with 
the agreement to serve or repay, the scholarship recipient must, within 
30 days of the beginning of the service and upon completion of each 
year of service obligation, provide to the Director documentation of 
that service on a form approved by the SFS program office with all 
required information and certifications as defined on the form.


Sec.  620.4   Deferral of obligation.

    (a) A scholarship recipient who has completed, or who has otherwise 
ceased

[[Page 42437]]

enrollment in a CyberCorps SFS Scholarship Phase, may request, from the 
Director, a deferral of the five-year Commitment Phase for completion 
of the service obligation based on--
    (1) Enrollment in a program of study or engagement in approved 
professional activity which would contribute to further professional 
development and/or cybersecurity workforce readiness for the 
scholarship recipient;
    (2) A condition that is a qualifying reason for leave under the 
Family and Medical Leave Act (FMLA);
    (3) A call to order to Federal or state active duty or active 
service as a member of a Reserve Component of the Armed Forces named in 
10 U.S.C. 10101, or service as a member of the National Guard on full-
time National Guard duty, as defined in 10 U.S.C. 101(d)(5); or
    (4) Other exceptional circumstances significantly affecting the 
scholarship recipient's ability to serve as determined by the Director.
    (b) A scholarship recipient must apply for a deferral prior to 
being subject to any of the conditions under Sec.  620.6 that would 
cause the CyberCorps SFS scholarship to be converted to a Direct 
Unsubsidized Loan.
    (c) A scholarship recipient who applies for deferral must provide 
the Director with documentation supporting the request as well as 
current contact information including home address, email address, and 
telephone number.
    (d) The Director notifies the scholarship recipient on the outcome 
of the application for deferral.


Sec.  620.5   Discharge of agreement to serve or repay.

    (a) Discharge conditions. The Director may provide for the partial 
or total waiver or suspension of any service or payment obligation by a 
scholarship recipient under the SFS program, including but not limited 
to the following circumstances:
    (1) Death. If a scholarship recipient dies, the Director discharges 
the obligation to complete the agreement to serve or repay based on a 
certified copy of the death certificate or verification of the 
scholarship recipient's death through an authoritative Federal or state 
electronic database approved for use by the Director.
    (2) Total and permanent disability. A scholarship recipient's 
agreement to serve or repay is discharged if the scholarship recipient 
becomes totally and permanently disabled. This is the condition of an 
individual who:
    (i) Is unable to engage in any substantial gainful activity by 
reason of any medically determinable physical or mental impairment 
that--
    (A) Can be expected to result in death;
    (B) Has lasted for a continuous period of not less than 60 months; 
or
    (C) Can be expected to last for a continuous period of not less 
than 60 months; or
    (ii) Has been determined by the Secretary of Veterans Affairs to be 
unemployable due to a service-connected disability.
    (3) Extreme hardship. Whenever compliance by the scholarship 
recipient with the obligation is impossible or would involve extreme 
hardship to the scholarship recipient, or if enforcement of such 
obligation with respect to the scholarship recipient would be 
unconscionable. Extreme hardship could include but is not limited to 
financial/economic burden, medical situations, or other situations as 
determined by the Director of NSF.
    (b) Written request. (1) A scholarship recipient must submit a 
written application for a discharge in accordance with this section 
prior to being subject to any of the conditions under Sec.  620.6 that 
would cause the CyberCorps SFS scholarship to be converted to a Direct 
Unsubsidized Loan.
    (2) A scholarship recipient who applies for discharge must provide 
the Director with documentation supporting the request as well as 
current contact information including home address, email address, and 
telephone number.
    (3) The Director notifies the scholarship recipient on the outcome 
of the application for discharge.


Sec.  620.6   Obligation to repay the CyberCorps SFS scholarship.

    (a) A scholarship recipient who fails to complete their obligation, 
as evidenced by documentation of that service with all required 
information and certifications, must repay to the United States the 
amount of the scholarship award received. Such repayment amounts must 
be repaid on terms as determined by the Director.
    (b) If not repaid, the CyberCorps SFS scholarship amounts paid to 
the scholarship recipient, together with any accrued interest and fees, 
will be converted into a Direct Unsubsidized Loan and subject to 
repayment to the Secretary of Education, if the scholarship recipient 
does not submit required documentation to prove the qualified 
employment within the timeframe required by the agreement to serve or 
repay.
    (c) A CyberCorps SFS scholarship that is converted to a Direct 
Unsubsidized Loan is not counted against the scholarship recipient's 
annual or aggregate loan limits under 34 CFR 685.203.
    (d) On or about 90 days before the date that a scholarship 
recipient's CyberCorps SFS scholarship would be converted to a Direct 
Unsubsidized Loan, the Director notifies the scholarship recipient of 
the date by which they must submit documentation showing that they are 
satisfying the obligation.
    (e) At least annually during the service obligation period, the 
Director notifies the scholarship recipient of--
    (1) The terms and conditions that the scholarship recipient must 
meet to satisfy the service obligation;
    (2) The requirement for the scholarship recipient to provide to the 
Director, upon completion of each of the required service year, 
documentation of that service on a form approved by the Director and 
emphasizes the necessity to keep copies of this information and copies 
of the scholarship recipient's own employment documentation; and
    (3) The conditions under which the scholarship recipient may 
request a deferral of the period for completing the service obligation 
or the discharge of the service obligation.
    (f) A scholarship recipient remains obligated to meet all 
requirements of the service obligation, even if the recipient does not 
receive the notices from the Director as described in paragraph (e) of 
this section.
    (g) A scholarship recipient whose CyberCorps Scholarship has been 
converted to a Direct Unsubsidized Loan--
    (1) Enters a six-month grace period prior to entering repayment, 
and
    (2) Is eligible for all of the benefits of the Direct Loan Program.
    (h) Once converted to a Direct Unsubsidized Loan under this part, 
the loan may not be converted back to a CyberCorps Scholarship.


Sec.  620.7   Severability.

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

    Dated: June 30, 2022.
Suzanne H. Plimpton,
Reports Clearance Officer, National Science Foundation.
[FR Doc. 2022-14328 Filed 7-14-22; 8:45 am]
BILLING CODE 7555-01-P


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