demonstration programs for the creation and evaluation
of innovative volunteer and community service programs.
‘‘SEC. 147. DETERMINATION OF THE AMOUNT OF THE NA-
TIONAL SERVICE EDUCATIONAL AWARD.
‘‘(a) AMOUNTS GENERALLY.—Except as provided in
subsection (b), an individual described in section 146(a)
who successfully completes a required term of service in
an approved national service position shall receive a na-
tional service educational award having a value, for each
of not more than 2 of such terms of service, equal to 90
percent of—
‘‘(1) one-half of the aggregate minimum basic
educational assistance allowance calculated under
sections 3013(d)(1) and 3015(b)(1) of title 38,
United States Code (as in effect on July 28, 1993),
for a member of the Armed Forces who is entitled
to such an allowance under section 3011 of such
title and whose initial obligated period of active duty
is two years; less
‘‘(2) one-half of the aggregate basic contribu-
tion required to be made by the member under sec-
tion 3011(b) of such title (as in effect on July 28,
1993).
‘‘(b) AWARD FOR PARTIAL COMPLETION OF SERV-
ICE.—If an individual serving in an approved national
service position is released in accordance with section
139(c)(1)(A) from completing the term of service agreed
to by the individual, the Corporation may provide the indi-
vidual with that portion of the national service educational
award approved for the individual that corresponds to the
quantity of the term of service actually completed by the
individual.
‘‘SEC. 148. DISBURSEMENT OF NATIONAL SERVICE EDU-
CATIONAL AWARDS.
‘‘(a) IN GENERAL.—Amounts in the Trust shall be
available—
‘‘(1) to repay student loans in accordance with
subsection (b);
‘‘(2) to pay all or part of the cost of attendance
at an institution of higher education in accordance
with subsection (c);
‘‘(3) to pay expenses incurred in participating
in an approved school-to-work program in accord-
ance with subsection (d); and
‘‘(4) to pay interest expenses in accordance with
regulations prescribed pursuant to subsection (e).
‘‘(b) USE OF EDUCATIONAL AWARD TO REPAY OUT-
STANDING STUDENT LOANS.—
‘‘(1) APPLICATION
BY
ELIGIBLE
INDIVID-
UALS.—An eligible individual under section 146 who
desires to apply his or her national service edu-
cational award to the repayment of qualified student
loans shall submit, in a manner prescribed by the
Corporation, an application to the Corporation
that—
‘‘(A) identifies, or permits the Corporation
to identify readily, the holder or holders of such
loans;
‘‘(B) indicates, or permits the Corporation
to determine readily, the amounts of principal
and interest outstanding on the loans;
‘‘(C) specifies, if the outstanding balance is
greater than the amount disbursed under para-
graph (2), which of the loans the individual pre-
fers to be paid by the Corporation; and
‘‘(D) contains or is accompanied by such
other information as the Corporation may re-
quire.
‘‘(2) DISBURSEMENT OF REPAYMENTS.—Upon
receipt of an application from an eligible individual
of an application that complies with paragraph (1),
the Corporation shall, as promptly as practicable
consistent with paragraph (5), disburse the amount
of the national service educational award to which
the eligible individual is entitled. Such disbursement
shall be made by check or other means that is pay-
able to the holder of the loan and requires the en-
dorsement or other certification by the eligible indi-
vidual.
‘‘(3) APPLICATION OF DISBURSED AMOUNTS.—
If the amount disbursed under paragraph (2) is less
than the principal and accrued interest on any quali-
fied student loan, such amount shall be applied ac-
cording to the specified priorities of the individual.
‘‘(4) REPORTS BY HOLDERS.—Any holder re-
ceiving a loan payment pursuant to this subsection
shall submit to the Corporation such information as
the Corporation may require to verify that such pay-
ment was applied in accordance with this subsection
and any regulations prescribed to carry out this sub-
section.
‘‘(5) NOTIFICATION OF INDIVIDUAL.—The Cor-
poration upon disbursing the national service edu-
cational award, shall notify the individual of the
amount paid for each outstanding loan and the date
of payment.
‘‘(6) AUTHORITY TO AGGREGATE PAYMENTS.—
The Corporation may, by regulation, provide for the
aggregation of payments to holders under this sub-
section.
‘‘(7) DEFINITION
OF
QUALIFIED
STUDENT
LOANS.—As used in this subsection, the term ‘quali-
fied student loans’ means—
‘‘(A) any loan made, insured, or guaran-
teed pursuant to title IV of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1070 et seq.),
other than a loan to a parent of a student pur-
suant to section 428B of such Act (20 U.S.C.
1078–2); and
‘‘(B) any loan made pursuant to title VII
or VIII of the Public Health Service Act (42
U.S.C. 292a et seq.).
‘‘(8) DEFINITION OF HOLDER.—As used in this
subsection, the term ‘holder’ with respect to any eli-
gible loan means the original lender or, if the loan
is subsequently sold, transferred, or assigned to
some other person, and such other person acquires
a legally enforceable right to receive payments from
the borrower, such other person.
‘‘(c) USE OF EDUCATIONAL AWARDS TO PAY CUR-
RENT EDUCATIONAL EXPENSES.—
‘‘(1) APPLICATION BY ELIGIBLE INDIVIDUAL.—
An eligible individual under section 146 who desires
to apply his or her national service educational
award to the payment of current full-time or part-
time educational expenses shall, on a form pre-
scribed by the Corporation, submit an application to
the institution of higher education in which the stu-
dent will be enrolled that contains such information
as the Corporation may require to verify the individ-
ual’s eligibility.
‘‘(2) SUBMISSION OF REQUESTS FOR PAYMENT
BY
INSTITUTIONS.—An institution of higher edu-
cation that receives one or more applications that
comply with paragraph (1) shall submit to the Cor-
poration a statement, in a manner prescribed by the
Corporation, that—
‘‘(A) identifies each eligible individual fil-
ing an application under paragraph (1) for a
disbursement of the individual’s national service
educational award under this subsection;
‘‘(B) specifies the amounts for which such
eligible individuals are, consistent with para-
graph (6), qualified for disbursement under this
subsection;
‘‘(C) certifies that (i) the institution of
higher education has in effect a program par-
ticipation agreement under section 487 of the
Higher Education Act of 1965 (20 U.S.C.
1094), and (ii) the institution’s eligibility to
participate in any of the programs under title
IV of such Act (20 U.S.C. 1070 et seq.) has not
been limited, suspended, or terminated; and
‘‘(D) contains such provisions concerning
financial compliance as the Corporation may re-
quire.
‘‘(3) DISBURSEMENT OF PAYMENTS.—Upon re-
ceipt of a statement from an institution of higher
education that complies with paragraph (2), the Cor-
poration shall, subject to paragraph (4), disburse the
total amount of the national service educational
awards for which eligible individuals who have sub-
mitted applications to that institution under para-
graph (1) are qualified. Such disbursement shall be
made by check or other means that is payable to the
institution and requires the endorsement or other
certification by the eligible individual.
‘‘(4) MULTIPLE DISBURSEMENTS REQUIRED.—
The total amount required to be disbursed to an in-
stitution of higher education under paragraph (3)
for any period of enrollment shall be disbursed by
the Corporation in 2 or more installments, none of
which exceeds 1⁄2 of such total amount. The interval
between the first and second such installment shall
not be less than 1⁄2 of such period of enrollment, ex-
‘‘(A) the eligible individual’s cost of attend-
ance for such period of enrollment, determined
in accordance with section 472 of the Higher
Education Act of 1965 (20 U.S.C. 1087ll); and
‘‘(B) the sum of (i) the student’s estimated
financial assistance for such period under part
A of title IV of such Act (20 U.S.C. 1070 et
seq.), and (ii) the student’s veterans’ education
benefits, determined in accordance with section
480(c) of such Act (20 U.S.C. 1087vv(c)).
‘‘(d) USE OF EDUCATIONAL AWARD TO PARTICIPATE
IN APPROVED SCHOOL-TO-WORK PROGRAMS.—The Cor-
poration shall by regulation provide for the payment of
national service educational awards to permit eligible indi-
viduals to participate in school-to-work programs approved
by the Secretaries of Labor and Education.
‘‘(e) INTEREST PAYMENTS DURING FORBEARANCE
ON LOAN REPAYMENT.—The Corporation shall provide by
regulation for the payment on behalf of an eligible individ-
ual of interest that accrues during a period for which such
individual has obtained forbearance in the repayment of
a qualified student loan (as defined in subsection (b)(6)),
if the eligible individual successfully completes his or her
required term of service (as determined under section
146(b)). Such regulations shall be prescribed after con-
sultation with the Secretary of Education.
‘‘(f) EXCEPTION.—With the approval of the Director,
an approved national service program funded under sec-
tion 121, may offer participants the option of waiving
their right to receive a National Service Education Award
in order to receive an alternative post-service benefit fund-
ed by the program entirely with non-Federal funds.
‘‘(g) DEFINITION OF INSTITUTION OF HIGHER EDU-
CATION.—Notwithstanding section 101 of this Act, for
purposes of this section the term ‘institution of higher
education’ has the meaning provided by section 481(a) of
the Higher Education Act of 1965 (20 U.S.C. 1088(a)).’’.
(b) TABLE OF CONTENTS.—Section 1(b) of the Na-
tional and Community Service Act of 1990 (Public Law
101–610; 104 Stat. 3127) is amended by striking the
items relating to subtitle D of title I of such Act and in-
serting the following new items:
‘‘Subtitle D—National Service Trust and Provision of National Service
Educational Awards
‘‘Sec. 145. Establishment of the National Service Trust.
‘‘Sec. 146. Individuals eligible to receive a national service educational award
from the Trust.
‘‘Sec. 147. Determination of the amount of the national service educational
award.
‘‘Sec. 148. Disbursement of national service educational awards.’’.
(c) CONFORMING AMENDMENTS.—
(1) ELIGIBILITY
FOR
SUBSIDIZED
STAFFORD
LOANS.—Section 428(a)(2)(C)(i) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1078(a)(2)(C)(i)) is
amended by inserting after ‘‘parts C and E of this
title,’’ the following: ‘‘any national service edu-
cational award such student will receive under sub-
title D of title I of the National and Community
Service Act of 1990 (42 U.S.C. 12751 et seq.),’’.
(2) FORBEARANCE
IN
THE
COLLECTION
OF
STAFFORD LOANS.—Section 428 of the Higher Edu-
cation Act of 1965 is amended—
(A) in subsection (b)(1)—
(i) by redesignating subparagraphs
(W), (X), and (Y) as subparagraphs (X),
(Y), and (Z), respectively; and
(ii) by inserting immediately after
subparagraph (V) the following new sub-
paragraph:
‘‘(W)(i) provides that, upon written re-
quest, a lender shall grant a borrower forbear-
ance on such terms as are otherwise consistent
with the regulations of the Secretary, during
periods in which the borrower is serving in a
national service position, for which he or she re-
ceives a national service educational award
under the National Service Trust Act of 1993;
‘‘(ii) provides that clauses (iii) and (iv) of
subparagraph (V) shall also apply to a forbear-
ance granted under this subparagraph; and
‘‘(iii) provides that interest shall continue
to accrue on a loan for which a borrower re-
ceives forbearance under this subparagraph and
shall be capitalized or paid by the borrower;’’;
and
(B) in subsection (c)(3)(A), by striking
‘‘subsection (b)(1)(V)’’ and inserting ‘‘sub-
section (b)(1) (V) and (W)’’.
(3) ELIGIBILITY
FOR
STAFFORD
LOAN
FOR-
GIVENESS.—Section 428J of the Higher Education
Act of 1965 (20 U.S.C. 1078–10) is amended—
(A) in subsection (b)(1), is amended by
striking ‘‘October 1, 1992’’ and inserting ‘‘Oc-
tober 1, 1989’’; and
(B) in subsection (c), by adding at the end
the following new paragraph:
‘‘(5) INELIGIBILITY
OF
NATIONAL
SERVICE
EDUCATIONAL
AWARD
RECIPIENTS.—No student
borrower may, for the same volunteer service, receive
a benefit under both this section and subtitle D of
title I of the National and Community Service Act
of 1990 (42 U.S.C. 12751 et seq.).’’.
(4) ELIGIBILITY FOR PERKINS LOAN FORGIVE-
NESS.—Section 465(a) of the Higher Education Act
of 1965 (20 U.S.C. 1087ee(a)) is amended by add-
ing at the end the following new paragraph:
‘‘(6) No borrower may, for the same volunteer
service, receive a benefit under both this section and
subtitle D of title I of the National and Community
Service Act of 1990 (42 U.S.C. 12751 et seq.).’’.
(5) IMPACT ON GENERAL NEEDS ANALYSIS.—
Section 480(j) of such Act (20 U.S.C. 1087vv(j)) is
amended by adding at the end the following new
paragraph:
‘‘(3) Notwithstanding paragraph (1), any na-
tional service educational award such student will re-
ceive under subtitle D of title I of the National and
Community Service Act of 1990 (42 U.S.C. 12751
et seq.) shall not be taken into account in determin-
ing estimated financial assistance not received under
this title.’’.
SEC. 103. SCHOOL-BASED AND COMMUNITY-BASED SERV-
ICE-LEARNING PROGRAMS.
(a) AMENDMENTS TO SERVE-AMERICA PROGRAMS.—
(1) PURPOSE.—The purpose of this subsection
is to improve the Serve-America programs estab-
lished under part I of subtitle B of the National and
Community Service Act of 1990, and to enable the
Corporation for National Service, and the entities
receiving financial assistance under such part, to—
(A) work with teachers in elementary
schools and secondary schools within a commu-
nity, and with community-based agencies, to
create and offer service-learning opportunities
for all school-age youth;
(B) educate teachers, and faculty providing
teacher training and retraining, about service-
learning, and incorporate service-learning op-
portunities into classroom teaching to strength-
en academic learning;
(C) coordinate the work of adult volunteers
who work with elementary and secondary
schools as part of their community service ac-
tivities; and
(D) work with employers in the commu-
nities to ensure that projects introduce the stu-
dents to various careers and expose the stu-
dents to needed further education and training.
(2) PROGRAMS.—Subtitle B of title I of the Na-
tional and Community Service Act of 1990 (42
U.S.C. 12501 et seq.) is amended by striking the
subtitle heading and all that follows through the end
of part I and inserting the following:
‘‘Subtitle 
B—School-Based 
and
Community-Based 
Service-
Learning Programs
‘‘PART I—SERVE-AMERICA PROGRAMS
‘‘Subpart A—School-Based Programs for Students
‘‘SEC. 111. AUTHORITY TO ASSIST STATES AND INDIAN
TRIBES.
‘‘(a) USE OF FUNDS.—The Corporation, in consulta-
tion with the Secretary of Education, may make grants
under section 112(b)(1), and allotments under subsections
(a) and (b)(2) of section 112, to States (acting through
their State educational agency) and Indian tribes to pay
for the Federal share of—
‘‘(1) planning and building the capacity of the
States or Indian tribes (which may be accomplished
through grants or contracts with qualified organiza-
tions) to implement school-based service-learning
programs, including—
‘‘(A) providing training for teachers, su-
pervisors, personnel from community-based
agencies (particularly with regard to the utiliza-
tion of participants), and trainers, to be con-
ducted by qualified individuals or organizations
that have experience with service-learning;
‘‘(B) developing service-learning curricula
to be integrated into academic programs, in-
cluding the age-appropriate learning component
described in section 114(d)(5)(B);
‘‘(C) forming local partnerships described
in paragraph (2) or (4) to develop school-based
service-learning programs in accordance with
this subpart;
‘‘(D) devising appropriate methods for re-
search and evaluation of the educational value
of service-learning and the effect of service-
learning activities on communities; and
‘‘(E) establishing effective outreach and
dissemination of information to ensure the
broadest possible involvement of community-
based agencies with demonstrated effectiveness
in working with school-age youth in their com-
munities;
‘‘(2) implementing, operating, or expanding
school-based service-learning programs, which may
include paying for the cost of the recruitment, train-
ing, supervision, placement, salaries, and benefits of
service-learning coordinators, through State distribu-
tion of Federal funds made available under this sub-
part to projects operated by local partnerships
among—
‘‘(A) local educational agencies; and
‘‘(B) one or more community partners
that—
‘‘(i) shall include a public or private
nonprofit organization that—
‘‘(I) has a demonstrated and ex-
tensive expertise in the provision of
services to meet unmet human, edu-
cational, 
environmental, 
or 
public
safety needs;
‘‘(II) was in existence at least 1
year before the date on which the or-
ganization applies to participate in the
partnership; and
‘‘(III) will make projects avail-
able for participants, who shall be stu-
dents; and
‘‘(ii) may include a private for-profit
business or private elementary or second-
ary school;
‘‘(3) planning of school-based service-learning
programs through State distribution of Federal
funds made available under this subpart to local
educational agencies, which planning may include
paying for the cost of—
‘‘(A) the salaries and benefits of service-
learning coordinators; or
‘‘(B) the recruitment, training, supervision,
and placement of service-learning coordinators
who are participants in a program under sub-
title C or receive a national service educational
award under subtitle D,
who will identify the community partners described
in paragraph (2)(B) and assist in the design and im-
plementation of a program described in paragraph
(2); and
‘‘(4) implementing, operating, or expanding
school-based service-learning programs involving
adult volunteers to utilize service-learning to improve
the education of students through State distribution
of Federal funds made available under this part to
local partnerships among—
‘‘(A) local educational agencies; and
‘‘(B) one or more—
‘‘(i) public or private nonprofit organi-
zations;
‘‘(ii) other educational agencies; or
100
‘‘(iii) private for-profit businesses,
that coordinate and operate projects for participants,
who shall be students.
‘‘(b) DUTIES
OF SERVICE-LEARNING COORDINA-
TOR.—A service-learning coordinator referred to in para-
graph (2) or (3) of subsection (a) shall provide services
to a local educational agency by—
‘‘(1) expanding the awareness of teachers of the
potential of service-learning in strengthening the
educational achievement, leadership development,
and substantive learning, of students;
‘‘(2) providing technical assistance and informa-
tion to, and facilitating the training of, teachers who
want to use service-learning in their classrooms;
‘‘(3) assisting local partnerships described in
subsection (a) in the planning, development, and
execution of service-learning projects;
‘‘(4) recruiting and supervising adult volun-
teers, or individuals who are participants in a pro-
gram under subtitle C or receive a national service
educational award under subtitle D, to expand serv-
ice-learning opportunities; and
‘‘(5) coordinating the activities of the service-
learning coordinator with the activities of the com-
101
mittee described in section 114(d)(1), and, where
appropriate, assisting the committee.
‘‘(c) RELATED EXPENSES.—A partnership, local edu-
cational agency, or other qualified organization that re-
ceives financial assistance under this subpart may, in car-
rying out the activities described in subsection (a), use
such assistance to pay for the Federal share of reasonable
costs related to the supervision of participants, program
administration, transportation, insurance, evaluations,
and for other reasonable expenses related to the activities.
‘‘SEC. 111A. AUTHORITY TO ASSIST LOCAL APPLICANTS IN
NONPARTICIPATING STATES.
‘‘In any fiscal year in which a State does not submit
an application under section 113, for an allotment under
subsection (a) or (b)(2) of section 112, that meets the re-
quirements of section 113 and such other requirements
as the Chairperson may determine to be appropriate, the
Corporation may use the allotment of that State to make
direct grants to pay for the Federal share of the cost of—
‘‘(1) carrying out the activities described in
paragraph (2) or (4) of section 111(a), to a local
partnership described in such paragraph; or
‘‘(2) carrying out the activities described in
paragraph (3) of such section, to an agency de-
scribed in such paragraph,
102
that is located in the State.
‘‘SEC. 111B. AUTHORITY TO ASSIST PUBLIC OR PRIVATE
NONPROFIT ORGANIZATIONS.
‘‘(a) IN GENERAL.—The Corporation may make
grants under section 112(b)(1) to public and private non-
profit organizations that—
‘‘(1) have experience with service-learning;
‘‘(2) were in existence 1 year before the date on
which the organization submitted an application
under section 114(a); and
‘‘(3) meet such other criteria as the Chair-
person may establish.
‘‘(b) USE OF FUNDS.—Such organizations may use
grants made under subsection (a) to make grants to part-
nerships described in paragraph (2) or (4) of section
111(a) to implement, operate, or expand school-based
service-learning programs as described in such section and
provide technical assistance and training to appropriate
persons.
‘‘SEC. 112. GRANTS AND ALLOTMENTS.
‘‘(a) INDIAN TRIBES
AND TERRITORIES.—Of the
amounts appropriated to carry out this subpart for any
fiscal year, the Corporation shall reserve an amount of not
more than 1 percent for payments to Indian tribes, the
Virgin Islands of the United States, Guam, American
103
Samoa, and the Commonwealth of the Northern Mariana
Islands, to be allotted in accordance with their respective
needs. The Corporation may also make payments from
such amount to Palau, in accordance with its needs, until
such time as the Compact of Free Association with Palau
is ratified.
‘‘(b) 
GRANTS
AND
ALLOTMENTS
THROUGH
STATES.—The Corporation shall use the remainder of the
funds appropriated to carry out this subpart for any fiscal
year as follows:
‘‘(1) GRANTS.—Except as provided in para-
graph (3), from 25 percent of such funds, the Cor-
poration may make grants, on a competitive basis,
to—
‘‘(A) State educational agencies and Indian
tribes; or
‘‘(B) as described in section 111B, to
grantmaking entities.
‘‘(2) ALLOTMENTS.—
‘‘(A) SCHOOL-AGE YOUTH.—Except as pro-
vided in paragraph (3), from 37.5 percent of
such funds, the Corporation shall allot to each
State an amount that bears the same ratio to
37.5 percent of such funds as the number of
104
school-age youth in the State bears to the total
number of school-age youth of all States.
‘‘(B) ALLOCATION
UNDER
ELEMENTARY
AND SECONDARY EDUCATION ACT OF 1965.—
Except as provided in paragraph (3), from 37.5
percent of such funds, the Corporation shall
allot to each State an amount that bears the
same ratio to 37.5 percent of such funds as the
allocation to the State for the previous fiscal
year under chapter 1 of title I of the Elemen-
tary and Secondary Education Act of 1965 (20
U.S.C. 2711 et seq.) bears to such allocations
to all States.
‘‘(3) MINIMUM
AMOUNT.—No State shall re-
ceive, under paragraph (2), an allotment that is less
than the allotment such State received for fiscal year
1993 under section 112(b) of this Act, as in effect
on the day before the date of enactment of this part.
If the amount of funds made available in a fiscal
year to carry out paragraph (2) is insufficient to
make such allotments, the Corporation shall make
available sums from the 25 percent described in
paragraph (1) for such fiscal year to make such al-
lotments.
105
‘‘(4) 
DEFINITION.—Notwithstanding 
section
101(25), for purposes of this subsection, the term
‘State’ means each of the several States, the District
of Columbia, the Commonwealth of Puerto Rico, and
an Indian tribe.
‘‘(c) REALLOTMENT.—If the Corporation determines
that the allotment of a State or Indian tribe under this
section will not be required for a fiscal year because the
State or Indian tribe does not submit an application for
the allotment under section 113 that meets the require-
ments of such section and such other requirements as the
Chairperson may determine to be appropriate, the Cor-
poration shall, after making any grants under section
111A to a partnership or agency described in such section,
make any remainder of such allotment available for real-
lotment to such other States, and Indian tribes, with ap-
proved applications submitted under section 113, as the
Corporation may determine to be appropriate.
‘‘(d) EXCEPTION.—Notwithstanding subsections (a)
and (b), if less than $20,000,000 is appropriated for any
fiscal year to carry out this subpart, the Corporation shall
award grants to States and Indian tribes, from the
amount so appropriated, on a competitive basis to pay for
the Federal share of the activities described in section 111.
106
‘‘SEC. 113. STATE OR TRIBAL APPLICATIONS.
‘‘(a) SUBMISSION.—To be eligible to receive a grant
under section 112(b)(1), an allotment under subsection
(a) or (b)(2) of section 112, a reallotment under section
112(c), or a grant under section 112(d), a State, acting
through the State educational agency, or an Indian tribe,
shall prepare, submit to the Corporation, and obtain ap-
proval of, an application at such time and in such manner
as the Chairperson may reasonably require.
‘‘(b) CONTENTS.—An application that is submitted
under subsection (a) with respect to service-learning pro-
grams described in section 111 shall include—
‘‘(1) a 3-year strategic plan, or a revision of a
previously approved 3-year strategic plan, for pro-
moting service-learning through the programs, which
plan shall contain such information as the Chair-
person may reasonably require, such as—
‘‘(A) a description of the goals to be at-
tained in promoting service-learning through
such programs;
‘‘(B) a description of the resources and or-
ganization needed to achieve the goals of such
programs within elementary schools and second-
ary schools; and
‘‘(C) a description of the manner in
which—
107
‘‘(i) such programs and the activities
to be carried out under such programs re-
late to the goals described in subparagraph
(A);
‘‘(ii) the applicant will evaluate the
success of the programs and the extent of
community involvement in the programs,
and measure the extent to which the pro-
grams meet the goals described in subpara-
graph (A);
‘‘(iii) in reviewing applications submit-
ted under section 114(c), the applicant has
ranked the applications according to the
criteria described in section 115(b), has
considered the factors described in section
115(a), and has reviewed the applications
in a manner that ensured the equitable
treatment of all such applications;
‘‘(iv) the programs will be coordinated
with—
‘‘(I) the education reform efforts
of the applicant;
‘‘(II) other efforts to meet the
National Education Goals;
108
‘‘(III) other service activities in
the State or serving the Indian tribe;
and
‘‘(IV) other education programs,
training programs, social service pro-
grams, and appropriate programs that
serve school-age youth, that are au-
thorized under Federal law;
‘‘(v) the applicant will disseminate in-
formation, conduct outreach, and take
other measures, to encourage cooperative
efforts among the local educational agen-
cies, local government agencies, commu-
nity-based agencies, State agencies, and
private for-profit businesses that will carry
out the service-learning programs proposed
by the applicant, to develop and provide
projects, including those that involve the
participation of urban, suburban, and rural
students working together;
‘‘(vi) the applicant will promote ap-
propriate projects in such programs for
economically disadvantaged students, stu-
dents with limited basic skills, students in
foster care who are becoming too old for
109
foster care, students of limited English
proficiency, homeless students, and stu-
dents with disabilities;
‘‘(vii) service-learning training and
technical 
assistance 
will 
be 
provided
through the programs—
‘‘(I) to State and local edu-
cational agency personnel, federally
assisted education specialists in the
State or serving the Indian tribe, and
local recipients of grants under this
subpart, to raise the awareness of
service-learning among such person-
nel, specialists, and recipients; and
‘‘(II) by qualified and experi-
enced individuals employed by the
State or Indian tribe or through
grants or contracts with such individ-
uals;
‘‘(viii) a service-learning network will
be established for the State or Indian
tribe, comprised of expert teachers and ad-
ministrators who have carried out success-
ful service-learning activities within the
State or serving the Indian tribe; and
110
‘‘(ix) the applicant will use payments
from 
sources 
described 
in 
section
116(a)(2)(B) to expand projects for stu-
dents through the programs proposed by
the applicant;
‘‘(2) assurances that—
‘‘(A) the applicant will keep such records
and provide such information to the Corpora-
tion with respect to the programs as may be re-
quired for fiscal audits and program evaluation;
and
‘‘(B) the applicant will comply with the
nonduplication and nondisplacement require-
ments of section 177; and
‘‘(3) such additional information as the Chair-
person may reasonably require.
‘‘SEC. 114. LOCAL APPLICATIONS.
‘‘(a) APPLICATION
TO
CORPORATION
TO
MAKE
GRANTS FOR SCHOOL-BASED SERVICE-LEARNING PRO-
GRAMS.—
‘‘(1) IN GENERAL.—To be eligible to receive a
grant in accordance with section 111B(a) to make
grants relating to school-based service-learning pro-
grams described in section 111(a)(2), a grantmaking
111
entity shall prepare, submit to the Corporation, and
obtain approval of, an application.
‘‘(2) SUBMISSION.—Such application shall be
submitted at such time and in such manner, and
shall contain such information, as the Chairperson
may reasonably require. Such application shall in-
clude a proposal to assist such programs in more
than 1 State.
‘‘(b) DIRECT APPLICATION
TO CORPORATION TO
CARRY OUT SCHOOL-BASED SERVICE-LEARNING PRO-
GRAMS IN NONPARTICIPATING STATES.—To be eligible to
receive a grant from the Corporation in the circumstances
described in section 111A to carry out an activity de-
scribed in such section, a partnership or agency described
in such section shall prepare, submit to the Corporation,
and obtain approval of, an application. Such application
shall be submitted at such time and in such manner, and
shall contain such information, as the Chairperson may
reasonably require.
‘‘(c) APPLICATION TO STATE OR INDIAN TRIBE TO
RECEIVE ASSISTANCE TO CARRY OUT SCHOOL-BASED
SERVICE-LEARNING PROGRAMS.—
‘‘(1) IN GENERAL.—Any—
‘‘(A) qualified organization that desires to
receive financial assistance under this subpart
112
from a State or Indian tribe for an activity de-
scribed in section 111(a)(1);
‘‘(B) partnership described in section
111(a)(2) that desires to receive such assistance
from a State, Indian tribe, or grantmaking en-
tity for an activity described in section
111(a)(2);
‘‘(C) agency described in section 111(a)(3)
that desires to receive such assistance from a
State or Indian tribe for an activity described
in such section; or
‘‘(D) partnership described in section
111(a)(4) that desires to receive such assistance
from a State or Indian tribe for an activity de-
scribed in such section,
to be carried out through a service-learning program
described in section 111, shall prepare, submit to
the State educational agency, Indian tribe, or
grantmaking entity, and obtain approval of, an ap-
plication for the program.
‘‘(2) SUBMISSION.—Such application shall be
submitted at such time and in such manner, and
shall contain such information, as the agency, tribe,
or entity may reasonably require.
113
‘‘(d) CONTENTS OF APPLICATION.—An application
that is submitted under subsection (a), (b), or (c) with
respect to a service-learning program described in section
111 shall, at a minimum, contain a proposal that in-
cludes—
‘‘(1) information specifying the membership and
role of an established advisory committee, consisting
of representatives of community-based agencies in-
cluding service recipients, students, parents, teach-
ers, administrators, representatives of agencies that
serve school-age youth or older adults, school board
members, representatives of local labor organiza-
tions, and representatives of business, that will pro-
vide advice with respect to the program;
‘‘(2) a description of—
‘‘(A) the goals of the program which shall
include goals that are quantifiable and dem-
onstrate any benefits from the program to par-
ticipants and the community;
‘‘(B) service-learning projects to be pro-
vided under the program, and evidence that
participants will make a sustained commitment
to service in the projects;
114
‘‘(C) the manner in which participants in
the program were or will be involved in the de-
sign and operation of the program;
‘‘(D) training for supervisors, teachers,
service sponsors, and participants in the pro-
gram;
‘‘(E) the manner in which exemplary serv-
ice will be recognized under the program; and
‘‘(F) any resources that will permit con-
tinuation of the program, if needed, after the
assistance received under this subpart for the
program has ended;
‘‘(3) information that shall include—
‘‘(A) a disclosure of whether or not the
participants will receive academic credit for par-
ticipation in the program;
‘‘(B) the expected number of participants
in the program and the hours of service that
such participants will provide individually and
as a group;
‘‘(C) the proportion of expected partici-
pants in the program who are economically dis-
advantaged, including participants with disabil-
ities; and
115
‘‘(D) any role of adult volunteers in imple-
menting the program, and the manner in which
such volunteers will be recruited;
‘‘(4) in the case of an application submitted by
a local partnership, a written agreement, between
the members of the local partnership, stating that
the program was jointly developed by the members
and that the program will be jointly executed by the
members; and
‘‘(5) assurances that—
‘‘(A) prior to the placement of a partici-
pant, the entity carrying out the program will
consult with any local labor organization rep-
resenting employees in the area who are en-
gaged in the same or similar work as that pro-
posed to be carried out by such program, to
prevent the displacement and protect the rights
of such employees;
‘‘(B) the entity carrying out the program
will develop an age-appropriate learning compo-
nent for participants in the program that shall
include a chance for participants to analyze and
apply their service experiences; and
‘‘(C) the entity carrying out the program
will comply with the nonduplication and
119
withholding, notice, and judicial review requirements in
accordance with paragraphs (3) and (4) of section 1017(b)
of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 2727(b)).
‘‘SEC. 116. FEDERAL, STATE, AND LOCAL CONTRIBUTIONS.
‘‘(a) SHARE.—
‘‘(1) IN GENERAL.—The Federal share attrib-
utable to this subpart of the cost of carrying out a
program for which a grant or allotment is made
under this subpart may not exceed—
‘‘(A) 90 percent of the total cost of the
program for the first year for which the pro-
gram receives assistance under this subpart;
‘‘(B) 80 percent of the total cost of the
program for the second year for which the pro-
gram receives assistance under this subpart;
‘‘(C) 70 percent of the total cost of the
program for the third year for which the pro-
gram receives assistance under this subpart;
and
‘‘(D) 50 percent of the total cost of the
program for the fourth year, and for any subse-
quent year, for which the program receives as-
sistance under this subpart.
120
‘‘(2) CALCULATION.—In providing for the re-
maining share of the cost of carrying out such a pro-
gram, each recipient of assistance under this sub-
part—
‘‘(A) shall provide for such share through
a payment in cash or in kind, fairly evaluated,
including facilities, equipment, or services; and
‘‘(B) may provide for such share through
State sources, local sources, or Federal sources
(other than funds made available under the na-
tional service laws).
‘‘(b) WAIVER.—The Chairperson may waive the re-
quirements of subsection (a) in whole or in part with re-
spect to any such program in any fiscal year if the Cor-
poration determines that such a waiver would be equitable
due to a lack of available financial resources at the local
level.
‘‘SEC. 116A. LIMITATIONS ON USES OF FUNDS.
‘‘(a) ADMINISTRATIVE COSTS.—
‘‘(1) LIMITATION.—Not more than 5 percent of
the amount of assistance provided to a State edu-
cational agency, Indian tribe, or grantmaking entity
that is the original recipient of a grant or allotment
under subsection (a), (b), (c), or (d) of section 112
121
for a fiscal year may be used to pay for administra-
tive costs incurred by—
‘‘(A) the original recipient; or
‘‘(B) the entity carrying out the service-
learning programs supported with the assist-
ance.
‘‘(2) RULES ON USE.—The Chairperson may by
rule prescribe the manner and extent to which—
‘‘(A) such assistance may be used to cover
administrative costs; and
‘‘(B) that portion of the assistance avail-
able to cover administrative costs should be dis-
tributed between—
‘‘(i) the original recipient; and
‘‘(ii) the entity carrying out the serv-
ice-learning programs supported with the
assistance.
‘‘(b) CAPACITY-BUILDING
ACTIVITIES.—Not less
than 10 percent and not more than 15 percent of the
amount of assistance provided to a State educational
agency or Indian tribe that is the original recipient of a
grant or allotment under subsection (a), (b), (c), or (d)
of section 112 for a fiscal year may be used to build capac-
ity through training, technical assistance, curriculum de-
122
velopment, and coordination activities, described in section
111(a)(1).
‘‘(c) LOCAL USES OF FUNDS.—Funds made available
under this subpart may not be used to pay any stipend,
allowance, or other financial support to any student who
is a participant under this subtitle, except reimbursement
for transportation, meals, and other reasonable out-of-
pocket expenses directly related to participation in a pro-
gram assisted under this subpart.
‘‘SEC. 116B. DEFINITIONS.
‘‘As used in this subpart:
‘‘(1) 
GRANTMAKING
ENTITY.—The 
term
‘grantmaking entity’ means an organization de-
scribed in section 111B(a).
‘‘(2) SCHOOL-BASED.—The term ‘school-based’
means based in an elementary school or a secondary
school.
‘‘(3) 
STUDENT.—Notwithstanding 
section
101(28), the term ‘student’ means an individual who
is enrolled in an elementary or secondary school on
a full- or part-time basis.
‘‘Subpart B—Community-Based Service Programs for
School-Age Youth
‘‘SEC. 117. DEFINITIONS.
‘‘As used in this subpart:
123
‘‘(1) COMMUNITY-BASED SERVICE PROGRAM.—
The term ‘community-based service program’ means
a program described in section 117A(b)(1)(A).
‘‘(2) 
GRANTMAKING
ENTITY.—The 
term
‘grantmaking entity’ means a qualified organization
that—
‘‘(A) submits an application under section
117C(a) to make grants to qualified organiza-
tions; and
‘‘(B) was in existence 1 year before the
date on which the organization submitted the
application.
‘‘(3) QUALIFIED
ORGANIZATION.—The term
‘qualified organization’ means a public or private
nonprofit organization with experience working with
school-age youth that meets such criteria as the
Chairperson may establish.
‘‘SEC. 117A. GENERAL AUTHORITY.
‘‘(a) GRANTS.—From the funds appropriated to
carry out this subpart for a fiscal year, the Corporation
may make grants to State Commissions, grantmaking en-
tities, and qualified organizations to pay for the Federal
share of the implementation, operation, expansion, or rep-
lication of community-based service programs.
‘‘(b) USE OF FUNDS.—
124
‘‘(1) STATE COMMISSIONS AND GRANTMAKING
ENTITIES.—A State Commission or grantmaking en-
tity may use a grant made under subsection (a)—
‘‘(A) to make a grant to a qualified organi-
zation to implement, operate, expand, or rep-
licate a community-based service-learning pro-
gram that provides for meaningful human, edu-
cational, environmental, or public safety service
by participants, who shall be school-age youth;
or
‘‘(B) to provide training and technical as-
sistance to such an organization.
‘‘(2) QUALIFIED ORGANIZATIONS.—A qualified
organization, other than a grantmaking entity, may
use a grant made under subsection (a) to implement,
operate, expand, or replicate a program described in
paragraph (1)(A).
‘‘SEC. 117B. STATE APPLICATIONS.
‘‘(a) IN GENERAL.—To be eligible to receive a grant
under section 117A(a), a State Commission shall prepare,
submit to the Corporation, and obtain approval of, an ap-
plication.
‘‘(b) SUBMISSION.—Such application shall be submit-
ted to the Corporation at such time and in such manner,
125
and shall contain such information, as the Chairperson
may reasonably require.
‘‘(c) CONTENTS.—Such an application shall include,
at a minimum, a State plan that contains the descriptions,
proposals, and assurance described in section 117C(d)
with respect to each community-based service program
proposed to be carried out through funding distributed by
the State Commission under this subpart.
‘‘SEC. 117C. LOCAL APPLICATIONS.
‘‘(a) APPLICATION
TO
CORPORATION
TO
MAKE
GRANTS FOR COMMUNITY-BASED SERVICE PROGRAMS.—
To be eligible to receive a grant from the Corporation
under section 117A(a) to make grants under section
117A(b)(1), a grantmaking entity shall prepare, submit
to the Corporation, and obtain approval of, an application
that proposes a community-based service program to be
carried out through grants made to qualified organiza-
tions. Such application shall be submitted at such time
and in such manner, and shall contain such information,
as the Chairperson may reasonably require.
‘‘(b) DIRECT APPLICATION
TO CORPORATION TO
CARRY OUT COMMUNITY-BASED SERVICE PROGRAMS.—
To be eligible to receive a grant from the Corporation
under section 117A(a) to implement, operate, expand, or
replicate a community service program, a qualified organi-
126
zation shall prepare, submit to the Corporation, and ob-
tain approval of, an application that proposes a commu-
nity-based service program to be carried out at multiple
sites, or that proposes an innovative community-based
service program. Such application shall be submitted at
such time and in such manner, and shall contain such in-
formation, as the Chairperson may reasonably require.
‘‘(c) APPLICATION
TO
STATE
COMMISSION
OR
GRANTMAKING ENTITY TO RECEIVE GRANTS TO CARRY
OUT COMMUNITY-BASED SERVICE PROGRAMS.—To be el-
igible to receive a grant from a State Commission or
grantmaking entity under section 117A(b)(1), a qualified
organization shall prepare, submit to the Commission or
entity, and obtain approval of, an application. Such appli-
cation shall be submitted at such time and in such man-
ner, and shall contain such information, as the Commis-
sion or entity may reasonably require.
‘‘(d) REQUIREMENTS OF APPLICATION.—An applica-
tion submitted under subsection (a), (b), or (c) shall, at
a minimum, contain—
‘‘(1) a description of any community-based
service program proposed to be implemented, oper-
ated, expanded, or replicated directly by the appli-
cant using assistance provided under this subpart;
127
‘‘(2) a description of any grant program pro-
posed to be conducted by the applicant with assist-
ance provided under this subpart to support a com-
munity-based service program;
‘‘(3) a proposal for carrying out the commu-
nity-based service program that describes the man-
ner in which the entity carrying out the program
will—
‘‘(A) provide preservice and inservice train-
ing, for supervisors and participants, that will
be conducted by qualified individuals, or quali-
fied organizations, that have experience in com-
munity-based service programs;
‘‘(B) include economically disadvantaged
individuals as participants in the program pro-
posed by the applicant;
‘‘(C) provide an age-appropriate service-
learning 
component 
described 
in 
section
114(d)(5)(B);
‘‘(D) conduct an appropriate evaluation of
the program;
‘‘(E) provide for appropriate community
involvement in the program;
‘‘(F) provide service experiences that pro-
mote leadership abilities among participants in
128
the program, including experiences that involve
such participants in program design;
‘‘(G) involve participants in projects ap-
proved by community-based agencies;
‘‘(H) establish and measure progress to-
ward the goals of the program; and
‘‘(I) organize participants in the program
into teams, if appropriate, with team leaders
who may be participants in a program under
subtitle C or individuals who receive a national
service educational award under subtitle D; and
‘‘(4) an assurance that the entity carrying out
the program proposed by the applicant will comply
with the nonduplication and nondisplacement provi-
sions of section 177 and grievance procedure re-
quirements of section 176(f).
‘‘SEC. 117D. CONSIDERATION OF APPLICATIONS.
‘‘(a) APPLICATION OF CRITERIA.—The Corporation
shall apply the criteria described in subsection (b) in de-
termining whether to approve an application submitted
under section 117B or under subsection (a) or (b) of sec-
tion 117C and to provide assistance under section 117A
to the applicant on the basis of the application.
‘‘(b) ASSISTANCE CRITERIA.—In evaluating such an
application with respect to a program under this subpart,
129
the Corporation shall consider the criteria established for
national service programs under section 133(c).
‘‘(c) APPLICATION TO SUBGRANTS.—A State Com-
mission or grantmaking entity shall apply the criteria de-
scribed in subsection (b) in determining whether to ap-
prove an application under section 117C(c) and to make
a grant under section 117A(b)(1) to the applicant on the
basis of the application.
‘‘SEC. 117E. FEDERAL, STATE, AND LOCAL CONTRIBUTIONS.
‘‘(a) FEDERAL SHARE.—
‘‘(1) IN GENERAL.—The Federal share attrib-
utable to this subpart of the cost of carrying out a
program for which a grant is made under this sub-
part may not exceed the percentage specified in sub-
paragraph (A), (B), (C), or (D) of section 116(a)(1),
as appropriate.
‘‘(2) CALCULATION.—Each recipient of assist-
ance under this subpart shall comply with section
116(a)(2).
‘‘(b) WAIVER.—The Chairperson may waive the re-
quirements of subsection (a), in whole or in part, as pro-
vided in section 116(b).
‘‘SEC. 117F. LIMITATIONS ON USES OF FUNDS.
‘‘(a) ADMINISTRATIVE COSTS.—Not more than 5 per-
cent of the amount of assistance provided to a State Com-
130
mission, grantmaking entity, or qualified organization that
is the original recipient of a grant under section 117A(a)
for a fiscal year may be used to pay for administrative
costs incurred by—
‘‘(1) the original recipient; or
‘‘(2) the entity carrying out the community-
based service programs supported with the assist-
ance.
‘‘(b) RULES ON USE.—The Chairperson may by rule
prescribe the manner and extent to which—
‘‘(1) such assistance may be used to cover ad-
ministrative costs; and
‘‘(2) that portion of the assistance available to
cover administrative costs should be distributed be-
tween—
‘‘(A) the original recipient; and
‘‘(B) the entity carrying out the commu-
nity-based service programs supported with the
assistance.
‘‘Subpart C—Clearinghouse
‘‘SEC. 118. SERVICE-LEARNING CLEARINGHOUSE.
‘‘(a) IN GENERAL.—The Corporation shall provide fi-
nancial assistance, from funds appropriated to carry out
subtitle H, to agencies described in subsection (b) to es-
tablish a clearinghouse, which shall carry out activities,
131
either directly or by arrangement with another such entity,
with respect to information about service-learning.
‘‘(b) PUBLIC AND PRIVATE NONPROFIT AGENCIES.—
Public and private nonprofit agencies that have extensive
experience with service-learning, including use of adult vol-
unteers to foster service-learning, shall be eligible to re-
ceive assistance under subsection (a).
‘‘(c) FUNCTION
OF CLEARINGHOUSE.—An entity
that receives assistance under subsection (a) may—
‘‘(1) assist entities carrying out State or local
service-learning programs with needs assessments
and planning;
‘‘(2) conduct research and evaluations concern-
ing service-learning;
‘‘(3)(A) provide leadership development and
training to State and local service-learning program
administrators, supervisors, service sponsors, and
participants; and
‘‘(B) provide training to persons who can pro-
vide the leadership development and training de-
scribed in subparagraph (A);
‘‘(4) facilitate communication among entities
carrying out service-learning programs and partici-
pants in such programs;