[Federal Register Volume 70, Number 48 (Monday, March 14, 2005)]
[Proposed Rules]
[Pages 12436-12437]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-4951]


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HARRY S. TRUMAN SCHOLARSHIP FOUNDATION

45 CFR Part 1801


Scholar Accountability Policy

AGENCY: Harry S. Truman Scholarship Foundation.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Truman Scholarship Foundation (Foundation) proposes to 
amend its regulations with respect to Scholar accountability to the 
Foundation for scholarship funds received. This rule is to clarify 
existing Foundation policy. This is the second notice for public 
comment: the first was published in the Federal Register (January 21, 
2005 70 FR 3178-3179), and no comments were received.

DATES: Submit comments on or before April 13, 2005.

ADDRESSES: Send comments to Louis H. Blair, Executive Secretary, Harry 
S. Truman Scholarship Foundation, 712 Jackson Place, NW., Washington, 
DC 20005 or send e-mail to [email protected].

FOR FURTHER INFORMATION CONTACT: Louis Blair, Harry S. Truman 
Scholarship Foundation, 202-395-4831.

SUPPLEMENTARY INFORMATION: This proposed rule was developed by the 
Accountability Task Force, established at the Spring 2003 Board of 
Trustees Meeting. The Task Force researched and considered a number of 
options and recommended this rule to the Board of Trustees in Spring 
2004. The Board adopted the recommendations of the Trustees and 
required the Foundation provide an implementation plan. This 
implementation plan was received and approved at the Fall 2004 Board 
Meeting.

List of Subjects in 45 CFR Part 1801

    Grant Programs--education, Scholarships and fellowships.

    For the reasons set forth in the preamble, the Foundation proposes 
to amend 45 CFR part 1801 as follows:

PART 1801--HARRY S. TRUMAN SCHOLARSHIP PROGRAM

    1. The authority citation for part 1801 continues to read as 
follows:

    Authority: Pub L. 93-642, 88 Stat. 2276 (20 U.S.C. 2001-2012).

    2. Add Sec.  1801.63 to read as follows:


Sec.  1801.63  Scholar Accountability

    (a) A Scholar selected after January 2005 must be employed in 
public service for three of the seven years following completion of his 
or her Foundation funded graduate education.
    (b) Following completion of Foundation funded graduate education, 
Scholars must submit a report to the Foundation by July 15 of each 
year. This report will include the Scholar's current contact 
information as well as a brief description of his or her employment 
during the past twelve months. This reporting requirement ends when the 
Foundation determines that a Scholar has reported three years of public 
service employment and the Foundation notifies him or her that he or 
she no longer is required to submit reports. Scholars who fail for two 
consecutive years to submit the required report to the Foundation will 
be considered to have failed to complete the three year public service 
requirement of paragraph (a) of this section.
    (c) A Scholar who fails to be employed in public service for three 
out of the first seven years following completion of his or her 
Foundation funded graduate education must repay to the Foundation an 
amount equal to:
    (1) All of the Scholarship stipends received,
    (2) Interest at the rate of 6% per annum from the date of receipt 
of each payment until repayment is made to the Foundation, and
    (3) Reasonable collection fees.
    (d)(1) The repayment obligation of paragraph (c) of this section 
accrues on the first July 15 on which it becomes impossible for a 
Scholar to fulfill the three year public service requirement of 
paragraph (a) of this section. For example, July 15 of the sixth year 
following completion of Foundation funded graduate education for a 
Scholar who has been employed in the public service for only one of 
those six years.
    (2) The Foundation will send to the Scholar's last known address a 
notice

[[Page 12437]]

that his or her repayment obligation has accrued. The failure, however, 
of the Foundation to send, or the Scholar to receive, such a notice 
does not alter or delay the Scholar's repayment obligation.
    (e) The Foundation may employ whatever remedies are available to it 
to collect any unpaid obligation accruing under this Sec.  1801.63.
    (f) Upon application by the Scholar showing good cause for doing 
so, the Foundation may waive or modify the repayment obligation 
established by paragraph (c) of this section.
    (g) The Foundation will establish a process for appealing any 
disputes concerning the accrual of the repayment obligation imposed by 
paragraph (c) of this section. The Foundation will publish on its Web 
site http://www.truman.gov information about this appeals process and 
other information pertinent to repayment obligations accruing under 
this Sec.  1801.63.

    Dated: March 9, 2005.
Louis H. Blair,
Executive Secretary.
[FR Doc. 05-4951 Filed 3-11-05; 8:45 am]
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