[Federal Register Volume 88, Number 4 (Friday, January 6, 2023)]
[Proposed Rules]
[Pages 1021-1035]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-28125]


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CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

45 CFR Parts 2525, 2526, 2527, 2528, 2529, and 2530

RIN 3045-AA66


National Service Trust Education Awards

AGENCY: Corporation for National and Community Service.

ACTION: Proposed rule with request for comments.

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SUMMARY: The Corporation for National and Community Service (operating 
as AmeriCorps) proposes to revise its National Service Trust 
regulations. The National Service Trust is an account from which 
AmeriCorps pays education awards to eligible AmeriCorps participants 
and interest on qualified student loans for AmeriCorps participants 
during their terms of service in approved national service positions. 
This proposed rule would improve the clarity of regulations applicable 
to education awards through use of consistent terminology and more 
transparent procedures for extensions, transfers, and revocations of 
education awards, and would increase flexibility for those who earn 
education awards to use and transfer those awards. This proposed rule 
would also renumber sections related to national service education 
awards to combine them all into one CFR part with subpart designations 
for easier navigation.

DATES: Comments must reach AmeriCorps on or before March 7, 2023.

ADDRESSES: You may submit comments by any of the following methods:
    (1) Electronically through www.regulations.gov;
    (2) By mail sent to: AmeriCorps, Attention: Elizabeth Appel, 250 E 
Street SW, Washington, DC 20525; or
    (3) By hand delivery or by courier to the AmeriCorps mailroom at 
the address above between 9 a.m. and 4 p.m. Eastern Time, Monday 
through Friday, except Federal holidays.
    Comments submitted in response to this proposed rule will be made 
available to the public through www.regulations.gov. For this reason, 
please do not include in your comments information of a confidential 
nature, such as sensitive personal information or proprietary 
information. If you send an email comment, your email address will be 
automatically captured and included as part of the comment that is 
placed in the public docket and made available on the internet. Please 
note that responses to this public comment request containing any 
routine notice about the confidentiality of the communication will be 
treated as public comments that may be made available to the public 
notwithstanding the inclusion of the routine notice.
    Comments on the Paperwork Reduction Act information collections 
contained in this document are separate from comments on the substance 
of the rulemaking. Send your comments and suggestions on the 
information collection requirements to the Desk Officer for the 
Department of the Interior at OMB-OIRA at (202) 395-5806 (fax) or 
[email protected] (email). Please provide a copy of your 
comments to [email protected].

[[Page 1022]]


FOR FURTHER INFORMATION CONTACT: Elizabeth Appel, Associate General 
Counsel, AmeriCorps, 250 E Street SW, Washington, DC 20525, (202) 967-
5070, [email protected].

SUPPLEMENTARY INFORMATION:
I. Background
II. Overview of Proposed Changes
    A. Renumbering To Combine Provisions Into One CFR Part
    B. Part-by-Part (Proposed Subpart-by-Subpart) Summary of 
Proposed Changes
    1. Proposed Changes to Current Part 2525 (Proposed Subpart A)
    2. Proposed Changes to Current Part 2526 (Proposed Subpart B)
    3. Proposed Changes to Current Part 2527 (Proposed Subpart C)
    4. Proposed Changes to Current Part 2528 (Proposed Subpart D)
    5. Proposed Changes to Current Part 2529 (Proposed Subpart E)
    6. Proposed Changes to Current Part 2530 (Proposed Subpart F)
III. Regulatory Analyses

I. Background

    The National and Community Service Act of 1990, as amended, 42 
U.S.C. 12501 et seq., aims to encourage U.S. citizens to engage in 
national service and to expand educational opportunity by rewarding 
individuals who participate in national service with an increased 
ability to pursue higher education or job training. Specifically, the 
Act establishes the National Service Trust, and authorizes AmeriCorps 
to use funds from that Trust to provide education awards to eligible 
individuals who have fulfilled a term of service in an approved 
national service position and meet other applicable requirements. 
AmeriCorps' regulations implementing the Act are at 45 CFR parts 2525 
through 2530 and address the National Service Trust (the Trust), who is 
eligible to receive education awards from the Trust, how the amount of 
the education awards is determined, the purposes for which the 
education awards may be used, the circumstances under which AmeriCorps 
participants will receive forbearance and payment of interest expenses 
on qualified student loans, and the circumstances in which participants 
may transfer their educational awards.

II. Overview of Proposed Changes

    Overall, this proposed rule is intended to improve clarity of the 
regulations through use of consistent terminology and plain language, 
improve the transparency of the criteria and procedures for extensions, 
transfers, and revocations of education awards, and increase 
flexibility for those who earn education awards to use and transfer 
those awards. To meet these objectives, this proposed rule would make 
changes to the following CFR parts:

 Part 2525--National Service Trust: Purpose and Definitions
 Part 2526--Eligibility for an Education Award
 Part 2527--Determining the Amount of an Education Award
 Part 2528--Using an Education Award
 Part 2529--Payment of Accrued Interest
 Part 2530--Transfer of an Education Award

    Some proposed changes would apply to all these CFR parts, including 
updating references to the Corporation for National and Community 
Service to refer to it by its operating name, AmeriCorps, rather than 
``the Corporation,'' and replacing specific mention of AmeriCorps 
programs, Silver Scholar, and Summer of Service positions with the term 
``national service position,'' where appropriate. Other proposed 
changes would affect only one or some CFR parts. Substantive proposed 
changes specific to each CFR part are summarized here.
    The proposed rule would also renumber sections, combining these CFR 
parts into one resulting CFR part, at part 2525, with different 
subparts. Combining these CFR parts into one allows readers to find 
regulations on education awards in a single CFR part, which improves 
navigability and prevents readers from having to switch back and forth 
between CFR parts for relevant provisions (for example, to refer back 
to part 2525 for definitions that apply to later CFR parts).

A. Renumbering To Combine Provisions Into One CFR Part

    The proposed rule would renumber the provisions that currently 
appear in parts 2526 through 2530 to move them into part 2505, so that 
the regulatory provisions regarding the National Service Trust 
education awards can be found in one central CFR part. The following 
table shows where the provisions that fall under the current CFR parts 
would instead fall under subparts to part 2525.

------------------------------------------------------------------------
                Current                              Proposed
------------------------------------------------------------------------
Part 2525--National Service Trust:       Part 2525--National Service
 Purpose and Definitions.                 Trust.
                                         Subpart A--Purpose and
                                          Definitions.
Part 2526--Eligibility for an Education  Subpart B--Eligibility for an
 Award.                                   Education Award.
Part 2527--Determining the Amount of an  Subpart C--Determining the
 Education Award.                         Amount of an Education Award.
Part 2528--Using an Education Award....  Subpart D--Using an Education
                                          Award.
Part 2529--Payment of Accrued Interest.  Subpart E--Payment of Accrued
                                          Interest.
Part 2530--Transfer of Education Awards  Subpart F--Transfer of
                                          Education Awards.
------------------------------------------------------------------------

    The following table provides a more detailed comparison of where 
current regulatory provisions are located, and where those provisions 
would be located under the proposed rule. This table also shows where 
new subpart headings and new sections are being proposed.

------------------------------------------------------------------------
                Current                              Proposed
------------------------------------------------------------------------
Part 2525--National Service Trust:       Part 2525--National Service
 Purpose and Definitions.                 Trust.
                                         Subpart A--Purpose and
                                          Definitions.
Sec.   2525.10 What is the National      Sec.   2525.1 What is the
 Service Trust?.                          National Service Trust?
Sec.   2525.20 Definitions.............  Sec.   2525.2 Definitions.
Part 2526--Eligibility for an Education  Subpart B--Eligibility for an
 Award.                                   Education Award.
Sec.   2526.10 Who is eligible to        Sec.   2525.10 When can an
 receive an education award from the      Eligible Individual receive an
 National Service Trust?                  education award from the
                                          National Service Trust?
Sec.   2526.15 Upon what basis may an    Sec.   2525.15 Upon what basis
 organization responsible for the         may an entity responsible for
 supervision of a national service        the supervision of an Eligible
 participant certify that the             Individual certify that the
 individual successfully completed a      Eligible Individual
 term of service?                         successfully completed a term
                                          of service?

[[Page 1023]]

 
Sec.   2526.20 Is an AmeriCorps          Sec.   2525.20 Is an AmeriCorps
 participant who does not complete an     participant who does not
 originally approved term of service      complete an originally-
 eligible to receive a pro-rated          approved term of service
 education award?                         eligible to receive a pro-
                                          rated education award?
Sec.   2526.25 Is a participant in an    Sec.   2525.25 Is a participant
 approved Summer of Service position or   in an approved Summer of
 approved Silver Scholar position who     Service position or approved
 does not complete an approved term of    Silver Scholar position who
 service eligible to receive a pro-       does not complete an approved
 rated education award?                   term of service eligible to
                                          receive a pro-rated education
                                          award?
Sec.   2526.30 How do convictions for    Sec.   2525.30 How do
 the possession or sale of controlled     convictions for the possession
 substances affect an education award     or sale of controlled
 recipient's ability to use their         substances affect an education
 award?                                   award recipient's ability to
                                          use their award?
Sec.   2526.40 What is the time period   Sec.   2525.40 How long is an
 during which an individual may use an    education award available for
 education award?                         use?
                                         Sec.   2525.41 When must an
                                          application for extension be
                                          submitted?
                                         Sec.   2525.42 Under what
                                          circumstances may AmeriCorps
                                          grant an extension?
                                         Sec.   2525.43 What if the
                                          request for an extension is
                                          missing information or
                                          documentation?
                                         Sec.   2525.44 How will
                                          AmeriCorps notify an Eligible
                                          Individual or Designated
                                          Recipient of its decision on
                                          the extension request?
                                         Sec.   2525.45 Can an Eligible
                                          Individual or Designated
                                          Recipient appeal a denied
                                          request for an extension to
                                          the use period?
Sec.   2526.50 Is there a limit on the   Sec.   2525.50 Is there a limit
 total amount of education awards an      on the total amount of
 individual may receive?                  education awards an individual
                                          may receive?
Sec.   2526.55 What is the impact of     Sec.   2525.55 What is the
 the aggregate value of education         impact of the aggregate value
 awards received on an individual's       of education awards received
 ability to serve in subsequent terms     on an individual's ability to
 of service?                              serve in additional terms of
                                          service?
Sec.   2526.60 May an individual         Sec.   2525.60 May an
 receive an education award and related   individual receive an
 interest benefits from the National      education award and related
 Service Trust as well as other loan      interest benefits from the
 cancellation benefits for the same       National Service Trust as well
 service?                                 as other loan cancellation
                                          benefits for the same term of
                                          service?
Sec.   2526.70 What are the effects of   Sec.   2525.70 What are the
 an erroneous certification of            effects of an erroneous
 successful completion of a term of       certification of successful
 service?                                 completion of a term of
                                          service?
Part 2527--Determining the Amount of an  Subpart C--Determining the
 Education Award.                         Amount of an Education Award.
Sec.   2527.10 What is the amount of an  Sec.   2525.100 What is the
 education award?.                        amount of an education award?
Part 2528--Using an Education Award....  Subpart D--Using an Education
                                          Award.
Sec.   2528.10 For what purposes may an  Sec.   2525.210 For what
 education award be used?.                purposes may an education
                                          award be used?
Sec.   2528.20 What steps are necessary  Sec.   2525.220 What steps are
 to use an education award to repay a     necessary to use an education
 qualified student loan?                  award to repay a qualified
                                          student loan?
Sec.   2528.30 What steps are necessary  Sec.   2525.230 What steps are
 to use an education award to pay all     necessary to use an education
 or part of the current educational       award to pay all or part of
 expenses at an institution of higher     the current educational
 education?                               expenses at an institution of
                                          higher education?
Sec.   2528.40 Is there a limit on the   Sec.   2525.240 Is there a
 amount of an individual's education      limit on the amount of an
 award that the Corporation will          Eligible Individual's
 disburse to an institution of higher     education award that
 education for a given period of          AmeriCorps will disburse to an
 enrollment?                              institution of higher
                                          education for a given period
                                          of enrollment?
Sec.   2528.50 What happens if an        Sec.   2525.250 What happens if
 individual withdraws or fails to         an individual withdraws or
 complete the period of enrollment in     fails to complete the period
 an institution of higher education for   of enrollment in an
 which the Corporation has disbursed      institution of higher
 all or part of that individual's         education for which AmeriCorps
 education award?                         has disbursed all or part of
                                          that individual's education
                                          award?
Sec.   2528.60 Who may use the           Sec.   2525.260 Who may use the
 education award to pay expenses          education award to pay
 incurred in enrolling in a G.I. Bill     expenses incurred in enrolling
 approved program?                        in a G.I. Bill-approved
                                          program?
Sec.   2528.70 What steps are necessary  Sec.   2525.270 What steps are
 to use an education award to pay         necessary to use an education
 expenses incurred in enrolling in a      award to pay expenses incurred
 G.I. Bill approved program?              in enrolling in a G.I. Bill-
                                          approved program?
Sec.   2528.80 What happens if an        Sec.   2525.280 What happens if
 individual for whom the Corporation      an individual for whom
 has disbursed education award funds      AmeriCorps has disbursed
 withdraws or fails to complete the       education award funds
 period of enrollment in a G.I. Bill      withdraws or fails to complete
 approved program?                        the period of enrollment in a
                                          G.I. Bill approved program?
                                         Sec.   2525.290 What happens to
                                          an education award upon
                                          divorce or death?
Part 2529--Payment of Accrued Interest.  Subpart E--Payment of Accrued
                                          Interest.
Sec.   2529.10 Under what circumstances  Sec.   2525.310 Under what
 will the Corporation pay interest that   circumstances will AmeriCorps
 accrues on qualified student loans       pay interest that accrues on
 during an individual's term of service   qualified student loans during
 in an approved AmeriCorps position or    an individual's term of
 approved Silver Scholar position?        service in an approved
                                          position?
Sec.   2529.20 What steps are necessary  Sec.   2525.320 What steps are
 to obtain forbearance in the repayment   necessary to obtain
 of a qualified student loan during an    forbearance in the repayment
 individual's term of service in an       of a qualified student loan
 approved AmeriCorps position?            during an individual's term of
                                          service in an approved
                                          AmeriCorps position?
Sec.   2529.30 What steps are necessary  Sec.   2525.330 What steps are
 for using funds in the National          necessary for AmeriCorps to
 Service Trust to pay interest that has   pay interest that has accrued
 accrued on a qualified student loan      on a qualified student loan in
 during a term of service for which an    forbearance?
 individual has obtained forbearance?
Part 2530--Transfer of Education Awards  Subpart F--Transfer of
                                          Education Awards.
Sec.   2530.10 Under what circumstances  Sec.   2525.410 Under what
 may an individual transfer an            circumstances may an Eligible
 education award?                         Individual transfer an
                                          education award?
Sec.   2530.20 For what purposes may a   Sec.   2525.420 For what
 transferred award be used?.              purposes may a transferred
                                          award be used?
Sec.   2530.30 What steps are necessary  Sec.   2525.430 What steps are
 to transfer an education award?          necessary to transfer an
                                          education award?

[[Page 1024]]

 
Sec.   2530.40 Is there a limit on the   Sec.   2525.440 Is there a
 number of individuals one may            limit on the number of
 designate to receive a transferred       recipients an individual may
 award?                                   designate to receive a
                                          transferred award?
Sec.   2530.50 Is there a limit on the   Sec.   2525.450 Is there a
 amount of transferred awards a           limit on the amount of
 designated individual may receive?       transferred education awards a
                                          Designated Recipient may
                                          receive?
Sec.   2530.60 What is the impact of     Sec.   2525.460 What is the
 transferring or receiving a              impact of transferring or
 transferred education award on an        receiving a transferred
 individual's eligibility to receive      education award on an Eligible
 additional education awards?             Individual's eligibility to
                                          receive additional education
                                          awards?
Sec.   2530.70 Is a designated           Sec.   2525.470 Is a Designated
 individual required to accept a          Recipient required to accept a
 transferred education award?             transferred education award?
Sec.   2530.80 Under what circumstances  Sec.   2525.480 Under what
 is a transfer revocable?.                circumstances is a transfer
                                          revocable?
Sec.   2530.85 What steps are necessary  Sec.   2525.485 What steps are
 to revoke a transfer?.                   necessary to revoke a
                                          transfer?
                                         Sec.   2525.487 What happens to
                                          a transferred education award
                                          upon divorce or death?
Sec.   2530.90 Is a designated           Sec.   2525.490 Is the
 individual eligible for the payment of   recipient of a transferred
 accrued interest under Part 2529?        education award eligible for
                                          the payment of accrued
                                          interest for their own student
                                          loans under subpart E?
------------------------------------------------------------------------

B. Part-by-Part (Proposed Subpart-by-Subpart) Summary of Proposed 
Changes

1. Proposed Changes to Current Part 2525 (Proposed Subpart A)
    Under this proposed rule, part 2525 would be newly designated as 
subpart A of part 2525 and would continue to set out the description of 
the National Service Trust and definitions. Proposed changes would 
ensure that definitions apply throughout the newly compiled CFR part 
2525. For example, the proposed changes would delete the phrase ``for 
the purposes of this section,'' for definitions of the following terms: 
``AmeriCorps education award,'' ``economically disadvantaged youth,'' 
``education award,'' ``G.I. Bill-approved program,'' ``Silver Scholar 
education award,'' and ``Summer of Service education award.''
    The proposed changes to part 2525 would add definitions for two 
terms and substantively revise two definitions. The newly added 
definitions are for the following terms:
     ``Eligible Individual'' as the individual who is eligible 
for an education award; and
     ``Designated Recipient'' as the person to whom an 
education award is transferred.
    The two definitions proposed for revision are for ``educational 
expenses'' and ``qualified student loan.'' The proposed changes would 
revise the definition of ``educational expenses'' to:
     Provide that costs of attendance are determined by the 
Title IV institution of higher education or G.I. Bill approved program;
     Include tuition or associated costs as determined by the 
program offered by the institution or establishment approved for 
offering benefits for which educational assistance may be provided by 
the Secretary for Veterans Affairs;
     Include expenses incurred participating in a school-to-
work program approved by the Secretaries of Labor and Education;
     Delete reference to the following, because they would be 
included in the category of ``costs of attendance'' as determined by 
the institution or G.I. Bill approved program:
    [cir] Tuition and fees ``normally assessed'' by an institution;
    [cir] Tuition and fees for students engaged in a course of study by 
correspondence; and
    [cir] Expenses related to a student's disability; and
     Delete reference to costs associated with student 
engagement in a work experience under a cooperative education program 
or course because the costs would be included in the category for 
expenses incurred in participating in a school-to-work program.
    These changes will simplify the definition and do not affect what 
educational expenses an education award may be used for.
    Proposed changes to the definition of ``qualified student loan'' 
would delete the lists of specific Federal family education loans, 
William D. Ford Federal direct loans, Federal Perkins loans, and Public 
Health Service Act loans because they are included in the broad 
categories set out in the proposed definition. The proposed changes 
would also replace the category ``any other loan designated as such by 
Congress'' with the more specific category of loans determined by an 
institution of higher education or approved veterans' benefits program 
to be necessary to cover a student's educational expenses and made, 
insured, or guaranteed by certain listed entities.
    The proposed changes would also correct the cross-reference to the 
Higher Education Act of 1965 to cite to the correct section defining 
``institution of higher education.''
    Other proposed changes to this newly designed subpart A are non-
substantive, such as adding the legal name of the education awards to 
the definition of ``education award,'' eliminating unnecessary verbiage 
in definitions that first state the term and then repeat the term to 
provide the meaning.
2. Proposed Changes to Current Part 2526 (Proposed Subpart B)
    Current part 2526, which is proposed to become subpart B to part 
2525, addresses eligibility for an education award.
    Proposed changes to current part 2526, now proposed as subpart B to 
part 2525, would incorporate the newly defined terms for ``Eligible 
Individual'' and ``Designated Recipient'' for clarity. Edits to 
proposed Sec.  2525.10 would clarify when Eligible Individuals are 
entitled to receive an education award, and clarify that an Eligible 
Individual may receive a full education award for a full-time term of 
service, a partial education award for a less than full-time term of 
service, or a pro-rated education award if the Eligible Individual was 
granted a release from completing the term of service for compelling 
personal circumstances but completed at least 15 percent of the 
originally approved term of service and performed satisfactorily during 
that time. The proposed rule would also move to a separate section 
(proposed Sec.  2525.15) the specifics for what the organization 
responsible for the individual's supervision must certify.
    Proposed Sec.  2525.15 would combine requirements for AmeriCorps 
State and National approved national service positions with other 
approved national service positions for consistency. Proposed Sec.  
2525.20 would clarify that there is a requirement, in the cross-
referenced Sec.  2522.230(a)(3), for the program to document the basis 
for any determination that compelling personal

[[Page 1025]]

circumstances prevent the Eligible Individual from completing their 
term of service.
    Proposed Sec.  2525.30 would revise the factors that AmeriCorps 
considers when determining whether an Eligible Individual may be 
entitled to use his or her education award when the Eligible Individual 
has three or more convictions for possession or sale of a controlled 
substance. The proposed changes would delete factors relating to the 
nature and extent of any other criminal record, the nature and extent 
of any involvement in trafficking of controlled substances, and the 
length of time between offenses. AmeriCorps has determined that these 
factors are unnecessary considerations, given that the type and amount 
of controlled substance and whether firearms or dangerous weapons were 
involved in the offense are already considered, and there is already a 
catch-all factor to allow for consideration of other relevant 
aggravating or ameliorating circumstances.
    Proposed Sec.  2525.40 would revise the current section to separate 
information on extensions to the use period into new sections specific 
to various questions regarding extensions. Proposed edits to this 
section would also delete the specific reference to Summer of Service 
education awards.
    Proposed Sec.  2525.41 is a new section and would specifically 
address when an application for an extension must be submitted, and 
would add an exception to the requirement to submit a request for 
extension prior to the use period deadline for instances when the 
individual was unavoidably prevented from timely submitting their 
application.
    Proposed Sec.  2525.42 is a new section and would specifically 
address the circumstances in which AmeriCorps will grant an extension. 
The proposed changes would clarify that AmeriCorps will automatically 
(upon receipt of an application) extend the use period when an 
individual served and successfully completed another term of service in 
an approved national service position during the use period. The 
proposed changes would then clarify that AmeriCorps treats all service 
in AmeriCorps and the Peace Corps as service in another approved 
national service position for the purposes of extensions, and specifies 
the documentation required to evidence service in the Peace Corps. 
Proposed paragraph (b) of this section would add information on 
AmeriCorps' discretion to grant an extension when an Eligible 
Individual or Designated Recipient is unavoidably prevented from using 
the education award during the use period. Proposed paragraph (b) would 
also add examples of situations that may warrant an extension. 
Paragraph (b)(2) would provide factors that AmeriCorps will consider in 
determining whether to grant an extension. Proposed paragraph (c) would 
add examples of circumstances that do not warrant an extension, but 
would remove the current example of an individual who cannot use the 
education award as a result of the individual's conviction for 
possession or sale of a controlled substance, to allow AmeriCorps to 
examine the specific circumstances involved with the conviction under 
the proposed factors.
    Proposed Sec.  2525.43 is a new section and would specifically 
address what will happen if a request for extension is missing 
information or documentation. Proposed Sec.  2525.44 is a new section 
that would specifically address how AmeriCorps will notify the Eligible 
Individual or Designated Recipient of its decision on the extension 
request. Proposed Sec.  2526.45 is a new section that would provide new 
procedures for an Eligible Individual or Designated Recipient to appeal 
a denied request for extension.
    Proposed Sec.  2525.50 would delete information about the 
calculation of the value of each individual education award and would 
instead focus on how the aggregate value of awards is calculated, given 
that the limit is the aggregate value of two full-time education 
awards. Proposed Sec.  2525.55 would also simplify the section to 
convey the impact of the aggregate value of education awards on ability 
to serve and to receive additional education awards.
    Proposed Sec.  2525.70 would add a new paragraph (b) to state that 
AmeriCorps will disallow the education award and/or initiate debt 
collection if AmeriCorps determines the certification made by a 
national service program is knowingly false or inaccurate.
3. Proposed Changes to Current Part 2527 (Proposed Subpart C)
    Current part 2527, which is proposed to become subpart C to part 
2525, addresses determining the amount of an education award.
    Proposed Sec.  2525.100 would replace the text on the education 
award amounts that may be earned for part-time and reduced part-time 
service with a table setting out amounts specifically for three 
quarters time, half-time, reduced half-time, quarter-time, minimal time 
and summer associate, and abbreviated time terms of service. These 
specifics better reflect the range of alternatives to full-time service 
and the accompanying partial education award amounts available. This 
proposed section also labels as ``pro-rated awards'' those awards 
available to Eligible Individuals who are released from completing a 
term of service for compelling personal circumstances. This proposed 
section would also replace the formula for discounted education award 
amounts (where discounting is required to ensure an Eligible Individual 
receives no more than the aggregate value of two awards) with a 
narrative explanation of how the award amounts are discounted, for 
clarity.
4. Proposed Changes to Current Part 2528 (Proposed Subpart D)
    Current part 2528, which is proposed to become subpart D to part 
2525, addresses using an education award.
    Proposed Sec.  2525.210 and Sec.  2525.240 would refer to the 
updated definition of ``educational expenses'' instead of repeating 
what the educational expenses include.
    Proposed Sec.  2525.250 would specify that the institution does not 
need to refund AmeriCorps for disbursed, but not used, education award 
funds if the Eligible Individual was charged for the uncompleted period 
of study or training. This proposed section would also clarify that the 
institution must provide a pro-rata refund to AmeriCorps if the 
institution does not have a published refund policy.
    Proposed Sec.  2525.290, a new section, would be added to specify 
that an education award is not to be treated as marital property and 
that, unless the listed circumstances are present, that an education 
award expires upon the Eligible Individual's death.
5. Proposed Changes to Current Part 2529 (Proposed Subpart E)
    Current part 2529, which is proposed to become subpart E to part 
2525, addresses payment of accrued interest.
    Proposed Sec.  2525.310 would add that the loan holder specifies 
the period of forbearance during the term of service. Paragraph (b) of 
this section would add that the portion of accrued interest AmeriCorps 
will pay is based on the length of service.
6. Proposed Changes to Current Part 2530 (Proposed Subpart F)
    Current part 2530, which is proposed to become subpart F to part 
2525, addresses the transfer of education awards.
    Proposed Sec.  2530.10 would delete the provision regarding 
enrollment on or before 2010 because the proposed rule,

[[Page 1026]]

if finalized, will apply only after the effective date, which will 
necessarily be after 2010. This proposed section would also add the 
stepchild of an Eligible Individual to the categories of Designated 
Recipients for transferred awards.
    Proposed Sec.  2530.30 would break out procedures for a Designated 
Recipient to accept a transferred award into a new paragraph (c). This 
proposed section would also add a new paragraph (e) to clarify that a 
Designated Recipient may refuse to accept a transferred education 
award, and an Eligible Individual may revoke the amount of transfer 
that has not been requested for use.
    Proposed Sec.  2530.40 would allow Eligible Individuals to transfer 
their education awards to one or two individuals, rather than just one 
individual. Proposed paragraph (b) of this section would allow 
Designated Recipients to reject part of the education award designated 
to be transferred to them. These provisions also clarify that the main 
restriction on transfer or re-transfer of an education award to an 
eligible Designated Recipient as that the use period for the education 
award must not have expired.
    Proposed Sec.  2530.50 would clarify that any education awards the 
Designated Recipient may have earned through their own service term or 
that were previously been transferred to them award are included in the 
calculation of the aggregate education award value limit. Proposed 
paragraph (c) would allow Eligible Individuals to re-transfer an 
education award if it is rejected in part by a Designated Recipient, 
allowing for more flexibility than the current regulation, which 
prohibits re-transfer of the rejected portion of the award.
    The proposed rule would add a new paragraph to Sec.  2540.70 to 
clarify that a Designated Recipient who originally accepted a 
transferred education award may rescind their acceptance of any unused 
portion of the award at any time before the education award expires, 
and for any reason.
    Proposed Sec.  2540.80 would remove the requirement for AmeriCorps 
to approve a re-transfer of an education award after an Eligible 
Individual revokes the award.
    Proposed Sec.  2530.85 would delete the paragraph regarding the 
mechanics of deducting and crediting the revoked amount because these 
functions are handled internally by AmeriCorps.
    Proposed Sec.  2530.87 is a new proposed section that would address 
what happens to a transferred education award upon divorce or death.

III. Regulatory Analyses

A. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
The Office of Information and Regulatory Affairs in the Office of 
Management and Budget anticipates that this will not be a significant 
regulatory action and, therefore, is not subject to review under 
Section 6(b) of E.O. 12866, Regulatory Planning and Review.

B. Congressional Review Act (Small Business Regulatory Enforcement 
Fairness Act of 1996, Title II, Subtitle E)

    As required by the Congressional Review Act (5 U.S.C. 801-808), 
before an interim or final rule takes effect, AmeriCorps will submit 
for an interim or final rule a report to each House of the Congress and 
to the Comptroller General of the United States. A major rule cannot 
take effect until 60 days after it is published in the Federal 
Register. The Office of Information and Regulatory Affairs in the 
Office of Management and Budget anticipates that this will not be a 
major rule under 5 U.S.C. 804 because this rule will not result in (1) 
an annual effect on the economy of $100 million or more; (2) a major 
increase in costs or prices for consumers, individual industries, 
Federal, state, or local Government agencies, or geographic regions; or 
(3) significant adverse effects on competition, employment, investment, 
productivity, innovation, or on the ability of United States-based 
enterprises to compete with foreign-based enterprises in domestic and 
export markets.

C. Regulatory Flexibility Act

    As required by the Regulatory Flexibility Act of 1980 (5 U.S.C. 601 
et seq.), AmeriCorps certifies that this rule, if adopted, will not 
have a significant economic impact on a substantial number of small 
entities. Therefore, AmeriCorps has not performed the initial 
regulatory flexibility analysis that is required under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.) for rules that are expected to 
have such results.

D. Unfunded Mandates Reform Act of 1995

    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.

E. Paperwork Reduction Act

    This proposed rule requires a revision to one OMB Control Number, 
Education Award Transfer Forms, currently approved under OMB Control 
Number 3045-0136, which expires 01/31/2024.
    The other information collections in the rule are already 
authorized by another OMB Control Number. Specifically, the 
requirements for certifications referred to in proposed Sec. Sec.  
2525.15 and 2525.20 restate requirements in other parts of title 45 
(specifically Sec. Sec.  2522.220 and 2522.230), which are authorized 
by OMB Control Number 3045-0006, Enrollment and Exit Forms, on which 
the sponsoring entity provides their certifications, and for which 
entities maintain supporting documentation as a usual and customary 
business practice.
    This proposed rule does not affect the information collections 
associated with parts 2528 and 2529 (other than affecting the CFR 
citations, which will be updated during routine renewals) that have 
been approved by OMB:
     For 45 CFR 2528: Voucher and Payment Request Form--
approved under OMB Control Number 3045-0014, which expires 01/31/2023.
     For 45 CFR 2529: Interest Accrual Form--currently approved 
under OMB Control Number 3045-0053, which expires 01/31/2023, and 
Forbearance Request for National Service Form--approved under OMB 
Control Number 3045-0030, which expires 01/31/2023.
    This proposed rule affects the Education Award Transfer Forms 
because the Request to Transfer a Segal Education Award Amount form 
must be updated to clarify that an award may be transferred to no more 
than two individuals, that a transfer may be declined in part or in 
full or revoked in part or in full, and to delete the portion of the 
form requiring request of a waiver to re-transfer. The Accept/Decline 
Award Transfer Form requires a change to indicate that step-children 
and step-grandchildren may accept the transfer of an education award. 
There is no change to the estimated time or hour or non-

[[Page 1027]]

hour cost burdens resulting from these form changes. With this proposed 
rulemaking, we are therefore seeking to revise the following 
information collection:
    OMB Control Number: 3045-0136.
    Title: Education Award Transfer Forms.
    Brief Description of Collection: This information collection 
consists of the questions that AmeriCorps members answer to request a 
transfer of their education award or revoke a transfer, and that 
education award recipients answer to accept or decline the transfer or 
rescind their acceptance. The information collected identifies those 
qualified to transfer their award, the transfer award amount, and those 
qualified to receive the award transfer, as well as establish a 
National Service Trust account for the transfer recipient.
    Forms Affected: Transfer Application Form, Award Transfer 
Acceptance Form.
    Type of Review: Revision of a currently approved information 
collection:
    Respondents/Affected Public: Individuals.
    Total Estimated Number of Annual Respondents: 900.
    Total Estimated Number of Annual Responses: 900.
    Estimated Time per Response: 5 minutes.
    Estimated Total Annual Hour Burden: 75 hours.
    Respondents' Obligation: Required to obtain a benefit.
    Frequency of Response: Occasional.
    Total Estimated Annual Non-Hour Burden Response: $0.
    As part of our continuing effort to reduce paperwork and respondent 
burdens, we invite the public to comment on any aspect of this 
information collection, including:
    (1) Whether or not the collection of information is necessary for 
the proper performance of the functions of the agency, including 
whether or not the information will have practical utility;
    (2) The accuracy of our estimate of the burden for this collection 
of information, including the validity of the methodology and 
assumptions used;
    (3) Ways to enhance the quality, utility, and clarity of the 
information to be collected; and
    (4) Ways to minimize the burden of the collection of information on 
those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology, e.g., permitting 
electronic submission of response.
    Written comments and recommendations for the proposed information 
collection should be sent within 30 days of publication of this 
rulemaking to www.reginfo.gov/public/do/PRAMain. Find this particular 
information collection by selecting ``Currently under 30-day Review--
Open for Public Comments'' or by using the search function. Please 
provide a copy of your comments to the person listed in the FOR FURTHER 
INFORMATION CONTACT section. Please reference OMB Control Number 3045-
0136 in the subject line of your comments.

F. Federalism (E.O. 13132)

    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 rulemaking does not have any 
federalism implications, as described above.

G. Takings (E.O. 12630)

    This proposed rule does not affect a taking of private property or 
otherwise have taking implications under Executive Order 12630 because 
this proposed rule does not affect individual property rights protected 
by the Fifth Amendment or involve a compensable ``taking.'' A takings 
implication assessment is not required.

H. Civil Justice Reform (E.O. 12988)

    This proposed rule complies with the requirements of Executive 
Order 12988. Specifically, this rulemaking: (a) Meets the criteria of 
section 3(a) requiring that all regulations be reviewed to eliminate 
errors and ambiguity and be written to minimize litigation; and (b) 
Meets the criteria of section 3(b)(2) requiring that all regulations be 
written in clear language and contain clear legal standards.

I. Consultation With Indian Tribes (E.O. 13175)

    AmeriCorps recognizes the inherent sovereignty of Indian Tribes and 
their right to self-governance. We have evaluated this rulemaking under 
the AmeriCorps consultation policy and the criteria in E.O. 13175 and 
determined that this rule does not impose substantial direct effects on 
federally recognized Tribes.

J. Clarity of This Regulation

    We are required by Executive Orders 12866 (section 1(b)(12)), and 
12988 (section 3(b)(1)(B)), and 13563 (section 1(a)), and by the 
Presidential Memorandum of June 1, 1998, to write all rules in plain 
language. This means that each proposed rule we publish must: (a) be 
logically organized; (b) use the active voice to address readers 
directly; (c) use clear language rather than jargon; (d) be divided 
into short sections and sentences; and (e) use lists and tables 
wherever possible. If you feel that we have not met these requirements, 
please send us comments by one of the methods listed in the ADDRESSES 
section. To help us revise the rule, your comments should be as 
specific as possible.

List of Subjects in 45 CFR Part 2525

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

    For the reasons discussed in the preamble, under the authority of 
42 U.S.C. 12651c(c), the Corporation for National and Community Service 
proposes to amend parts 2525 through 2530 of chapter XXV, title 45 of 
the Code of Federal Regulations, as follows:

0
1. Revise part 2525 to read as follows:

PART 2525--NATIONAL SERVICE TRUST

Subpart A--Purpose and Definitions
Sec.
2525.1 What is the National Service Trust?
2525.2 Definitions.
Subpart B--Eligibility for an Education Award
2525.10 When can an Eligible Individual receive an education award 
from the National Service Trust?
2525.15 Upon what basis may an entity responsible for the 
supervision of an Eligible Individual certify that the Eligible 
Individual successfully completed a term of service?
2525.20 Is an AmeriCorps participant who does not complete an 
originally approved term of service eligible to receive a pro-rated 
education award?
2525.25 Is a participant in an approved Summer of Service position 
or approved Silver Scholar position who does not complete an 
approved term of service eligible to receive a pro-rated education 
award?
2525.30 How do convictions for the possession or sale of controlled 
substances affect an education award recipient's ability to use 
their award?
2525.40 How long is an education award available for use?
2525.41 When must an application for extension be submitted?
2525.42 Under what circumstances may AmeriCorps grant an extension?

[[Page 1028]]

2525.43 What if the request for an extension is missing information 
or documentation?
2525.44 How will AmeriCorps notify an Eligible Individual or 
Designated Recipient of its decision on the extension request?
2525.45 Can an Eligible Individual or Designated Recipient appeal a 
denied request for an Extension to the use period?
2525.50 Is there a limit on the total amount of education awards an 
individual may receive?
2525.55 What is the impact of the aggregate value of education 
awards received on an individual's ability to serve in additional 
terms of service?
2525.60 May an individual receive an education award and related 
interest benefits from the National Service Trust as well as other 
loan cancellation benefits for the same term of service?
2525.70 What are the effects of an erroneous certification of 
successful completion of a term of service?
Subpart C--Determining the Amount of an Education Award
2525.100 What is the amount of an education award?
Subpart D--Using an Education Award
2525.210 For what purposes may an education award be used?
2525.220 What steps are necessary to use an education award to repay 
a qualified student loan?
2525.230 What steps are necessary to use an education award to pay 
all or part of the current educational expenses at an institution of 
higher education?
2525.240 Is there a limit on the amount of an Eligible Individual's 
education award that AmeriCorps will disburse to an institution of 
higher education for a given period of enrollment?
2525.250 What happens if an individual withdraws or fails to 
complete the period of enrollment in an institution of higher 
education for which AmeriCorps has disbursed all or part of that 
individual's education award?
2525.260 Who may use the education award to pay expenses incurred in 
enrolling in a G.I. Bill-approved program?
2525.270 What steps are necessary to use an education award to pay 
expenses incurred in enrolling in a G.I. Bill-approved program?
2525.280 What happens if an individual for whom AmeriCorps has 
disbursed education award funds withdraws or fails to complete the 
period of enrollment in a G.I. Bill-approved program?
2525.290 What happens to an education award upon divorce or death?
Subpart E--Payment of Accrued Interest
2525.310 Under what circumstances will AmeriCorps pay interest that 
accrues on qualified student loans during an individual's term of 
service in an approved position?
2525.320 What steps are necessary to obtain forbearance in the 
repayment of a qualified student loan during an individual's term of 
service in an approved AmeriCorps position?
2525.330 What steps are necessary for AmeriCorps to pay interest 
that has accrued on a qualified student loan in forbearance?
Subpart F--Transfer of Education Awards
2525.410 Under what circumstances may an Eligible Individual 
transfer an education award?
2525.420 For what purposes may a transferred award be used?
2525.430 What steps are necessary to transfer an education award?
2525.440 Is there a limit on the number of recipients an individual 
may designate to receive a transferred award?
2525.450 Is there a limit on the amount of transferred education 
awards a Designated Recipient may receive?
2525.460 What is the impact of transferring or receiving a 
transferred education award on an Eligible Individual's eligibility 
to receive additional education awards?
2525.470 Is a Designated Recipient required to accept a transferred 
education award?
2525.480 Under what circumstances is a transfer revocable?
2525.485 What steps are necessary to revoke a transfer?
2525.487 What happens to a transferred education award upon divorce 
or death?
2525.490 Is the recipient of a transferred education award eligible 
for the payment of accrued interest for their own student loans 
under subpart E?

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

Subpart A--Purpose and Definitions


Sec.  2525.1  What is the National Service Trust?

    The National Service Trust is an account in the Treasury of the 
United States from which AmeriCorps makes payments of education awards, 
pays interest that accrues on qualified student loans for AmeriCorps 
participants during terms of service in approved national service 
positions, and makes other payments authorized by Congress.


Sec.  2525.2  Definitions.

    In addition to the definitions in Sec.  2510.20 of this chapter, 
the following definitions apply to terms used this part:
    AmeriCorps means the Corporation for National and Community 
Service.
    Cost of attendance has the same meaning as in Title IV of the 
Higher Education Act of 1965, as amended (20 U.S.C. 1070 et seq.).
    Current educational expenses means the cost of attendance, or other 
costs attributable to an educational course offered by an institution 
of higher education that has in effect a program participation 
agreement under Title IV of the Higher Education Act, for a period of 
enrollment that begins after an individual enrolls in an approved 
national service position.
    Designated Recipient means the person to whom an earned education 
award is transferred.
    Economically disadvantaged youth means a child who is eligible for 
a free lunch or breakfast under the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1758(b)).
    Education award means the Segal AmeriCorps Education Award of 
financial assistance available under this part, including the Silver 
Scholar education awards, and Summer of Service education awards.
    Educational expenses means--
    (1) Cost of attendance as determined by the Title IV institution of 
higher education or G.I. Bill-approved program as provided in 20 U.S.C. 
1087ll; or
    (2) Tuition or associated costs as determined by a program offered 
by an educational institution or training establishment approved for 
educational benefits under 38 U.S.C. 3670 et seq. for offering programs 
of education, apprenticeship, or on-job training for which educational 
assistance may be provided by the Secretary for Veterans Affairs; and
    (3) Expenses incurred participating in a school-to-work program 
approved by the Secretaries of Labor and Education.
    Eligible Individual means an individual who has enrolled in and 
successfully completed a term of service in an approved national 
service position, as certified under Sec.  2525.15 of this chapter.
    G.I. Bill-approved program is an educational institution or 
training establishment approved for educational benefits under the 
Montgomery G.I. Bill (38 U.S.C. 3670 et seq.) for offering programs of 
education, apprenticeship, or on-job training for which educational 
assistance may be provided by the Secretary for Veterans Affairs.
    Holder means--
    (1) The original lender; or
    (2) Any other entity to which a loan is subsequently sold, 
transferred, or assigned if such entity acquires a legally enforceable 
right to receive payments from the borrower.
    Institution of higher education has the same meaning given the term 
in section 102 of the Higher Education Act of 1965, as amended (20 
U.S.C. 1002).
    Period of enrollment means the period that the institution has 
established for which institutional charges are generally assessed 
(e.g., length of the

[[Page 1029]]

student's course, program, or academic year.)
    Qualified student loan means:
    (1) Any loan made, insured, or guaranteed under Title IV of the 
Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), other than a 
loan to a parent of a student under section 428B of that Act (20 U.S.C. 
1078-2);
    (2) Any loan made under Title VII or VIII of the Public Service 
Health Act (42 U.S.C. 292a et seq.); or
    (3) Any other loan determined by an institution of higher education 
or an approved veterans' benefits program to be necessary to cover a 
student's educational expenses and made, insured, or guaranteed by:
    (i) An eligible lender, as defined in section 435 of the Higher 
Education Act of 1965 (20 U.S.C. 1085);
    (ii) The direct student loan program under part D of Title IV of 
the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.);
    (iii) A State agency; or
    (iv) A lender otherwise determined by AmeriCorps to be eligible to 
receive disbursements from the National Service Trust.
    Silver Scholar education award means the financial assistance 
available under this part for which an individual in an approved Silver 
Scholar position may be eligible.
    Summer of Service education award means the financial assistance 
available under this part for which an individual in an approved Summer 
of Service position may be eligible.
    Term of service means--
    (1) For an individual serving in an approved AmeriCorps position, 
one of the terms of service specified in Sec.  2522.220 of this chapter
    (2) For an individual serving in an approved Silver Scholar 
position, not less than 350 hours during a one-year period
    (3) For an individual serving in an approved Summer of Service 
position, not less than 100 hours during the summer months of a single 
year.

Subpart B--Eligibility for an Education Award


Sec.  2525.10  When can an Eligible Individual receive an education 
award from the National Service Trust?

    (a) General. An Eligible Individual is entitled to receive an 
education award from the National Service Trust if that person:
    (1) Is a citizen or national of the United States or a lawful 
permanent resident alien of the United States; and,
    (2) Met the applicable eligibility requirements for the approved 
national service program as appropriate; and,
    (3) Either:
    (i) Is certified by their supervising entity to have successfully 
completed a term of service--whether a full-time 1,700-hour term 
corresponding to a full education award or a less than full-time term 
of service with a corresponding partial award amount described in Sec.  
2525.100(b)--as certified under Sec.  2525.15; or,
    (ii) For a pro-rated education award amount described in Sec.  
2525.100(c), is certified by their supervising entity to have completed 
at least 15 percent of the originally-approved term of service, and 
performed satisfactorily prior to being granted a release for 
compelling personal circumstances, consistent with Sec.  2522.230(a).
    (b) Prohibition on duplicate benefits. An Eligible Individual who 
receives a post-service benefit in lieu of an education award may not 
receive an education award for the same term of service.
    (c) Penalties for false information. Any individual who makes a 
materially false statement or representation in connection with the 
approval or disbursement of an education award or other payment from 
the National Service Trust may be liable for the recovery of funds and 
subject to civil and criminal sanctions.


Sec.  2525.15  Upon what basis may an entity responsible for the 
supervision of an Eligible Individual certify that the Eligible 
Individual successfully completed a term of service?

    (a) An Eligible Individual's supervising entity must certify that 
the individual has successfully completed a term of service. The 
individual successfully completed a term of service if the individual 
has:
    (1) Completed the number of service hours required;
    (2) Satisfactorily performed on assignments, tasks, or projects;
    (3) Met any performance criteria as determined by the program and 
communicated to the member; and
    (4) Fulfilled any other enrollment and program requirements to earn 
an education award.
    (b) A certification by the supervising entity that an individual 
did or did not successfully complete a term of service will be deemed 
to incorporate an end-of-term evaluation.


Sec.  2525.20  Under what circumstances is an Eligible Individual who 
does not complete an approved term of service eligible to receive a 
pro-rated education award?

    (a) Release for compelling personal circumstances. An Eligible 
Individual who is released before they to complete an approved term of 
service is eligible for a pro-rated education award if their 
supervising entity:
    (1) Released the Eligible Individual for compelling personal 
circumstances in accordance with the requirements of Sec.  2522.230(a), 
including requirements for maintaining documentation of the basis for 
the entity's decision;
    (2) Certifies that the Eligible Individual:
    (i) Performed satisfactorily before they were granted a release for 
compelling personal circumstances; and
    (ii) Completed at least 15 percent of the originally approved term 
of service.
    (b) Release for cause. An individual who is released for cause 
before they completed an originally approved term of service is not 
eligible for any portion of an education award.


Sec.  2525.25  If a participant in an approved Summer of Service or 
Silver Scholar position does not complete their term of service, are 
they eligible to receive a pro-rated education award?

    No. An individual released for any reason before they complete an 
approved term of service in a Silver Scholar or Summer of Service 
position is not eligible to receive a pro-rated award.


Sec.  2525.30  How do convictions for the possession or sale of 
controlled substances affect an Eligible Individual's ability to use 
their award?

    (a) Except as provided in paragraph (b) of this section, an 
Eligible Individual who is convicted under Federal or State law of the 
possession or sale of a controlled substance is not eligible to use his 
or her education award from the date of the conviction until the end of 
a specified time period, which is determined based on the type of 
conviction as follows:
    (1) For conviction of the possession of a controlled substance, the 
individual is ineligible from the date of conviction for--
    (i) One year for a first conviction;
    (ii) Two years for a second conviction; and
    (iii) For a third or subsequent conviction, indefinitely, as 
determined by AmeriCorps according to the following factors--
    (A) Type and amount of controlled substance;
    (B) Whether firearms or other dangerous weapons were involved in 
the offense;
    (C) Employment history;
    (D) Service to the community;
    (E) Recommendations from community members and local officials, 
including experts in substance abuse and treatment; and
    (F) Any other relevant aggravating or ameliorating circumstances.

[[Page 1030]]

    (2) For conviction of the sale of a controlled substance, the 
individual is ineligible from the date of conviction for--
    (i) Two years for a first conviction; and
    (ii) Two years plus any additional time AmeriCorps determines is 
appropriate for second and subsequent convictions, based on the factors 
set forth in paragraphs (a)(1)(iii)(A) through (F) of this section.
    (b) AmeriCorps will restore the Eligible Individual's access to use 
the education award if AmeriCorps determines that the individual has 
successfully completed a legitimate drug rehabilitation program, or in 
the case of a first conviction that the individual has enrolled in a 
legitimate drug rehabilitation program and:
    (1) The drug rehabilitation program is recognized as legitimate by 
appropriate Federal, State or local authorities; and
    (2) The Eligible Individual's enrollment in or successful 
completion of the legitimate drug rehabilitation program has been 
certified by an appropriate official of that program.


Sec.  2525.40  How long is an education award available for use?

    Unless AmeriCorps approves an extension under Sec.  2525.42, the 
use period for an education award is as follows:
    (a) An education award is available for an Eligible Individual to 
use until seven years from the date when they successfully completed 
the term of service for which the award was earned;
    (b) An education award that is transferred to a Designated 
Recipient under subpart F may be used until 10 years from the date when 
the Eligible Individual who transferred the award successfully 
completed their term of national service.


Sec.  2525.41  When must an application for an extension be submitted?

    An application for an extension must be submitted to AmeriCorps 
before the award use period ends, or the individual must have been 
unavoidably prevented from timely submitting the extension application.


Sec.  2525.42  Under what circumstances will AmeriCorps grant an 
extension?

    (a) AmeriCorps will automatically grant an extension to the use 
period of an education award if the individual served and successfully 
completed a term of service in an approved national service position 
that fell within the use period for that education award and applies 
for an extension under Sec.  2525.41.
    (1) The use period will be extended by the length of the 
individual's additional approved and completed term of service at the 
time of the extension application.
    (2) For purposes of this extension, AmeriCorps will treat all 
service in AmeriCorps and the Peace Corps as service in another 
AmeriCorps-approved national service position.
    (3) If the additional of service is in the Peace Corps, the 
individual requesting an extension will need to provide a Description 
of Service (DOS), signed by the country's director or designee for the 
Peace Corps service.
    (b) If AmeriCorps determines that an Eligible Individual or 
Designated Recipient was unavoidably prevented from using the education 
award during the original use period, AmeriCorps may grant an extension 
for a period of time that AmeriCorps deems appropriate, but generally 
not for more than one year from the end of the original use period. 
Also, AmeriCorps will grant only one extension of the use period except 
in very limited circumstances, such as, for example, when the event 
preventing the member from timely using their education award is likely 
to exist for more than 12 months, such as active military duty.
    (1) Examples of situations that may warrant an extension if they 
hinder use of an education award may include, but are not limited to:
    (i) The Eligible Individual's serious illness, injury, or 
disability;
    (ii) The death, serious illness, injury, or disability of someone 
in the Eligible Individual's immediate family that occurs close to the 
end of the use period;
    (iii) The destruction or inaccessibility of important service 
records maintained by the program;
    (iv) Natural disasters;
    (v) Military service that prevents the use of an education award, 
such as active duty overseas (but a person in the reserves or National 
Guard who has not been called up on active duty, or who is enlisted in 
the military, is not necessarily unavoidably prevented from timely 
using their education award because of their military service).
    (2) When considering whether to grant an extension, AmeriCorps also 
will consider whether:
    (i) The extension is a result of the individual's choices or 
actions or factors beyond the individual's control;
    (ii) The need for the extension is in any part attributable to 
AmeriCorps' or an AmeriCorps-funded entity's actions;
    (iii) The lending institution or institution entitled to the 
payment failed to take an action, or took an action, that resulted in 
the individual needing/wanting the extension.
    (c) Examples of circumstances that do not meet the criteria for 
granting an extension may include but are not limited to:
    (1) Employment or unemployment, even in a position with a non-
profit organization involved in community service.
    (2) Forgetting to use the education award, being unaware of the 
use-period restrictions, or not receiving his or her education award 
expiration notice.
    (3) Being too young to use a transferred education award.


Sec.  2525.43  What if the request for an extension is missing 
information or documentation?

    If the extension application lacks necessary information or 
documentation, AmeriCorps may request additional documentation. If the 
requested additional documentation is not provided to AmeriCorps within 
30 days, AmeriCorps may close the request for an extension.


Sec.  2525.44  How will AmeriCorps notify the Eligible Individual or 
Designated Recipient of its decision on the extension request?

    AmeriCorps will notify the Eligible Individual or Designated 
Recipient in writing if the request for an extension has been granted 
or denied. The notification will advise the requester of the process 
for appealing the denial if the requester has a good-faith basis to 
believe their request was erroneously denied.


Sec.  2525.45  Can an Eligible Individual or Designated Recipient 
appeal a denied request for an extension?

    (a) If an Eligible Individual or Designated Recipient submits a 
timely application for an extension and the application is denied, the 
individual may file an appeal. The appeal must:
    (1) Be received within 30 days of the denial determination;
    (2) Be made in writing--either online through the My AmeriCorps 
portal if the education award has not expired--or through a submission 
to the National Service Hotline at 1-800-942-2677;
    (3) Explain why the initial determination was erroneous/should be 
reviewed; and,
    (4) Include supporting documentation, if applicable.
    (b) AmeriCorps may grant an appeal when, after review of all the 
information provided originally and on appeal, it appears that the 
extension should have been granted. AmeriCorps may ask for additional 
documentation to inform the appeal determination.

[[Page 1031]]

    (c) Individuals who submit appeals will be notified in writing of 
the final determination.


Sec.  2525.50  Is there a limit on the total amount of education awards 
an individual may receive?

    (a) General Limitation. While there is no limit on the specific 
dollar amount, no individual may receive more than the amount equal to 
the aggregate value of two full-time education awards.
    (b) Calculation of aggregate value of awards received. The 
aggregate value of education awards received is the sum of:
    (1) The value of each education award received for successful 
completion of an approved national service position;
    (2) The value of each partial education award received upon release 
from an approved national service position for compelling personal 
circumstances; and
    (3) The value of any amount received from a transferred education 
award, except as provided in Sec.  2525.460.
    (c) Determination of Receipt of Award. For purposes of determining 
the aggregate value of education awards, an award is considered to be 
received at the time it becomes available for use.


Sec.  2525.55  What is the impact of the aggregate value of education 
awards received on an individual's ability to serve in additional terms 
of service?

    The aggregate value of education awards received does not limit an 
individual's ability to serve in additional terms of service, but does 
impact the amount of the education award the individual may receive 
pursuant to Sec.  2525.100(d) upon successful completion of any 
additional term of service.


Sec.  2525.60  May an individual receive an education award and related 
interest benefits from the National Service Trust as well as other loan 
cancellation benefits for the same term of service?

    An individual may not receive an education award and related 
interest benefits from the National Service Trust for a term of service 
and have that same service credited toward repayment, discharge, or 
cancellation of other student loans, except an individual may credit 
the service toward the Public Service Loan Forgiveness Program, as 
provided under 34 CFR 685.219.


Sec.  2525.70  What are the effects of an erroneous certification of 
successful completion of a term of service?

    (a) If AmeriCorps determines that the certification made by a 
national service program under Sec.  2525.10(a)(2) is erroneous, 
AmeriCorps shall assess against the national service program a charge 
for the amount of any associated payment or potential payment from the 
National Service Trust, taking into consideration the full facts and 
circumstances that led to the erroneous or incorrect certification.
    (b) If AmeriCorps determines that the certification made is 
knowingly false or inaccurate, AmeriCorps will disallow the education 
award and/or initiate a debt collection process for any education award 
funds disbursed.
    (c) Nothing in this section prohibits AmeriCorps from taking any 
action authorized by law based upon any certification that is knowingly 
made in a false, materially misleading, or fraudulent manner.

Subpart C--Determining the Amount of an Education Award


Sec.  2525.100  What is the amount of an education award?

    (a) Full-time term of service. Except as provided in paragraph (d) 
of this section, the education award for a full-time term of service in 
an approved national service position of at least 1,700 hours will be 
equal to the maximum amount of a Federal Pell Grant under Section 401 
of the Higher Education Act of 1965 (20 U.S.C. 1070a) that a student 
eligible for that grant may receive in the aggregate for the award year 
in which the term of service is approved by AmeriCorps.
    (b) Less than full-time term of service. Except as provided in 
paragraph (d) of this section, the amount of an education award for an 
approved national service position for less than full-time term of 
service (i.e., partial award) is determined in accordance with the 
following table:

                                            Table 1 to Paragraph (b)
----------------------------------------------------------------------------------------------------------------
                                                  In an       Is equal to the following percentage of the amount
                                                approved        of an education award for a full-time term of
                    For:                     position of at       service described in paragraph (a) of this
                                             least: (hours)                        section:
----------------------------------------------------------------------------------------------------------------
Three quarters time term of service (TQT)..           1,200  70 percent.
Half-time term of service (HT).............             900  50 percent.
Reduced half-time term of service (RHT)....             675  Approximately 39 percent.
Quarter-time term of service (QT)..........             450  Approximately 26 percent.
Minimal time and summer associate (MT & SA)             300  Approximately 21 percent.
Abbreviated time (AT)......................             100  5.6 percent.
----------------------------------------------------------------------------------------------------------------

    (c) Calculating a pro-rated award following release for compelling 
personal circumstances. The education award for an Eligible Individual 
who is released from completing an approved term of service for 
compelling personal circumstances is equal to the product of--
    (1) The number of hours completed divided by the number of hours in 
the approved term of service; and
    (2) The amount of the education award for the approved term of 
service.
    (d) Calculating a discounted education award amount. To ensure that 
an Eligible Individual receives no more than the aggregate value of two 
awards, pursuant to Sec.  2525.50, if the sum of the education award 
value offered for a term of service and the aggregate value of 
previously-received education awards exceeds the value of two awards, 
then the individual may receive only a portion of that offered 
education award, such that the aggregate value of the education awards 
is not greater than the value of two awards.

Subpart D--Using an Education Award


Sec.  2525.210  For what purposes may an education award be used?

    (a) An education award may be used to pay educational expenses and/
or to repay qualified student loans, as defined in Sec.  2525.2;
    (b) An education award is divisible and may be applied to any 
combination

[[Page 1032]]

of loans, costs, or expenses described in paragraph (a) of this 
section.


Sec.  2525.220  What steps are necessary to use an education award to 
repay a qualified student loan?

    (a) Required information. Before disbursing an amount from an 
education award to repay a qualified student loan, AmeriCorps must 
receive--
    (1) An Eligible Individual's written authorization and request for 
a specific payment amount;
    (2) Any identifying and other information from the loan holder as 
requested by AmeriCorps.
    (b) Payment. When AmeriCorps receives the information required 
under paragraph (a) of this section, it will pay the loan holder and 
notify the Eligible Individual of the payment.
    (c) Aggregate payments. AmeriCorps may establish procedures to 
aggregate payments to holders of loans for more than a single 
individual.


Sec.  2525.230  What steps are necessary to use an education award to 
pay all or part of the current educational expenses at an institution 
of higher education?

    (a) Required information. Before disbursing funds from an education 
award to pay all or part of the current educational expenses at an 
institution of higher education, AmeriCorps must receive--
    (1) An Eligible Individual's written authorization and request for 
a specific payment amount;
    (2) Information from the institution of higher education as 
requested by AmeriCorps, including verification that--
    (i) It has in effect a program participation agreement under 
section 487 of the Higher Education Act of 1965 (20 U.S.C. 1094);
    (ii) Its eligibility to participate in any of the programs under 
Title IV of the Higher Education Act of 1965 has not been limited, 
suspended, or terminated;
    (iii) If an Eligible Individual who has used an education award 
withdraws or otherwise fails to complete the period of enrollment for 
which the education award was provided, the institution of higher 
education will ensure an appropriate refund to AmeriCorps of the unused 
portion of the education award under its own published refund policy, 
or if it does not have one, provide a pro-rata refund to AmeriCorps of 
the unused portion of the education award;
    (iv) Individuals using education awards to pay for current 
educational expenses at that institution do not comprise more than 15 
percent of the institution's total student population;
    (v) The requested amount will be used to pay all or part of the 
Eligible Individual's educational expenses attributable to a course 
offered by the institution;
    (vi) The requested amount does not exceed the difference between:
    (A) The Eligible Individual's cost of attendance and other 
educational expenses; and
    (B) The Eligible Individual's estimated student financial 
assistance for that period under Part A of Title IV of the Higher 
Education Act (20 U.S.C. 1070 et seq.).
    (b) Payment. When AmeriCorps receives the information required 
under paragraph (a) of this section, it will pay the institution and 
notify the Eligible Individual of the payment.
    (c) Installment payments. AmeriCorps will disburse the education 
award payment to the institution in at least two separate installments, 
none of which exceeds 50 percent of the total amount. The interval 
between installments may not be less than one-half of the period of 
enrollment, except as necessary to permit the second installment to be 
paid at the beginning of the second semester, quarter, or other 
division of a period of enrollment.


Sec.  2525.240  Is there a limit on the amount of an Eligible 
Individual's education award that AmeriCorps will disburse to an 
institution for a given period of enrollment?

    Yes. AmeriCorps' disbursement from an Eligible Individual's 
education award for any period of enrollment may not exceed the 
difference between:
    (a) The Eligible Individual's educational expenses, determined by 
the institution; and
    (b) The Eligible Individual's estimated financial assistance for 
that period under part A of Title IV of the Higher Education Act.


Sec.  2525.250  What happens if an individual withdraws or fails to 
complete the period of enrollment in an institution of higher education 
for which AmeriCorps has disbursed all or part of that individual's 
education award?

    (a) If an Eligible Individual for whom AmeriCorps has disbursed 
education award funds withdraws or otherwise fails to complete a period 
of enrollment, then an institution that receives a disbursement of 
education award funds from AmeriCorps must:
    (1) Provide a refund to AmeriCorps in an amount determined under 
that institution's published refund requirements, unless the 
institution charged the Eligible Individual for the uncompleted period 
of study or training.
    (2) Provide a pro-rata refund to AmeriCorps of the unused portion 
of the education award if the institution does not have a published 
refund policy.
    (b) AmeriCorps will credit any refund received for an Eligible 
Individual under paragraph (a) of this section to the individual's 
education award allocation in the National Service Trust.


Sec.  2525.260  Who may use the education award to pay expenses 
incurred in enrolling in a G.I. Bill-approved program?

    To use the education award to pay expenses incurred in enrolling in 
a G.I. Bill-approved program, an Eligible Individual must have received 
an education award for successfully completing a term in an approved 
national service position, in which they enrolled on or after October 
1, 2009.


Sec.  2525.270  What steps are necessary to use an education award to 
pay expenses incurred in enrolling in a G.I. Bill-approved program?

    (a) Required Information. Before disbursing funds from an education 
award for this purpose, AmeriCorps must receive:
    (1) An individual's written authorization and request for a 
specific payment amount;
    (2) Verification from the individual that they meet the criteria in 
Sec.  2525.260; and
    (3) Information from the educational institution or training 
establishment as requested by AmeriCorps, including verification that--
    (i) The amount requested will be used to pay all or part of the 
individual's expenses attributable to a course, program of education, 
apprenticeship, or job training offered by the institution or 
establishment;
    (ii) The course(s) or program(s) for which the individual is 
requesting to use the education award has been and is currently 
approved by the State approving agency for the State where the 
institution or establishment is located, or by the Secretary of 
Veterans Affairs; and
    (iii) If an individual who has used an education award withdraws or 
otherwise fails to complete the period of enrollment for which the 
education award was provided, the institution or establishment will 
ensure a pro-rata refund to AmeriCorps of the unused portion of the 
education award.
    (b) Payment. When AmeriCorps receives the information required 
under paragraph (a) of this section, it will pay the institution or 
establishment and notify the individual of the payment.

[[Page 1033]]

Sec.  2525.280  What happens if an individual for whom AmeriCorps has 
disbursed education award funds withdraws or fails to complete the 
period of enrollment in a G.I. Bill approved program?

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


Sec.  2525.290  What happens to an education award upon divorce or 
death?

    (a) Prohibition on treatment of an education award as marital 
property. An education award may not be treated as marital property, or 
the asset of a marital estate, subject to division in a divorce or 
other civil proceeding.
    (b) Death of Eligible Individual. An educational award expires and 
is no longer available for any purpose upon the death of the Eligible 
Individual, except for:
    (1) Any award or portion of the educational award the Eligible 
Individual transferred prior to death;
    (2) Any amount for which the Eligible Individual submitted a 
request for disbursement prior to death that the National Service Trust 
had not yet either received or acted upon as of the date of death.

Subpart E--Payment of Accrued Interest


Sec.  2525.310  Under what circumstances will AmeriCorps pay interest 
that accrues on qualified student loans during an individual's term of 
service in an approved position?

    (a) Eligibility. AmeriCorps will pay interest that accrues on an 
Eligible Individual's qualified student loan, subject to the limitation 
on amount in paragraph (b) of this section, if:
    (1) The Eligible Individual successfully completes a term of 
national service in an approved position; and
    (2) The loan holder approves the Eligible Individual's request for 
forbearance for a time period specified by the loan holder during the 
term of service.
    (b) Amount. The portion of accrued interest that AmeriCorps will 
pay is determined by the length of service. The percentage of accrued 
interest that AmeriCorps will pay is the lesser of--
    (1) The product of--
    (i) The number of completed service hours divided by the number of 
days for which forbearance was granted; and
    (ii) 365 divided by 17; and
    (2) 100.
    (c) Supplemental to education award. A payment of accrued interest 
under this part is supplemental to an education award received by an 
Eligible Individual under this part.
    (d) Limitation. AmeriCorps is not responsible for the payment of 
any accrued interest in excess of the amount determined in accordance 
with paragraph (b) of this section.
    (e) Suspended service. AmeriCorps will not pay interest expenses 
that accrue on an Eligible Individual's qualified student loan during a 
period of suspended service.


Sec.  2525.320  What steps are necessary to obtain forbearance in the 
repayment of a qualified student loan during an individual's term of 
service in an approved AmeriCorps position?

    (a) An Eligible Individual seeking forbearance must submit a 
request to the loan holder.
    (b) If, before approving a request for forbearance, the loan holder 
requires verification that the Eligible Individual is serving in an 
approved national service position, AmeriCorps will provide 
verification upon a request from the Eligible Individual or the loan 
holder.


Sec.  2525.330  What steps are necessary for AmeriCorps to pay interest 
that has accrued on a qualified student loan in forbearance?

    (a) If an Eligible Individual has obtained forbearance on a 
qualified student loan, AmeriCorps will make payments from the National 
Service Trust for interest that has accrued on that student loan during 
the individual's term of service, after:
    (1) The program verifies that the Eligible Individual has 
successfully completed the term of service and the dates when the term 
of service began and ended;
    (2) The holder of the loan verifies the amount of interest that has 
accrued during the term of service.
    (b) When AmeriCorps receives all necessary information from the 
program and the loan holder, it will pay the loan holder and notify the 
individual of the payment.

Subpart F--Transfer of Education Awards


Sec.  2525.410  Under what circumstances may an Eligible Individual 
transfer an education award?

    An Eligible Individual may transfer an education award if--
    (a) The Eligible Individual was 55 or older on the day they began 
the term of service in an approved national service position;
    (b) The Eligible Individual successfully completed a term of 
service in an approved national service position;
    (c) The education award the Eligible Individual is requesting to 
transfer has not expired, consistent with the period of availability 
set forth in Sec.  2525.40(a);
    (d) The individual designated to receive the transferred education 
award (the Designated Recipient) is:
    (1) The Eligible Individual's child, grandchild, stepchild, step-
grandchild, or foster child; and
    (2) A citizen, national, or lawful permanent resident of the United 
States.
    (e) The Designated Recipient is not entitled to the education award 
until their citizenship status has been verified. Once citizenship is 
confirmed, the Designated Recipient has all the benefits of an Eligible 
Individual.


Sec.  2525.420  For what purposes may a transferred award be used?

    A transferred award may be used by the Designated Recipient to 
repay qualified student loans or to pay current educational expenses at 
an institution of higher education, as described in Sec.  2525.210.


Sec.  2525.430  What steps are necessary to transfer an education 
award?

    (a) Request for Transfer. Before transferring an education award to 
a Designated Recipient, AmeriCorps must receive a request from the 
transferring Eligible Individual, including:
    (1) The Eligible Individual's written authorization to transfer the 
education award, the year in which the education award was earned, and 
the specific amount of the education award to be transferred;
    (2) Identifying information for the Designated Recipient who is to 
receive the transferred education award;
    (3) A certification that the transferring Eligible Individual and 
the Designated Recipient have completed or satisfy the requirements of 
Sec.  2525.410.
    (b) Notification to Designated Recipient. Upon receipt of a 
request, including all required information listed in paragraph (a) of 
this section, AmeriCorps will contact the Designated Recipient to:

[[Page 1034]]

    (1) Notify the Designated Recipient, or their legal guardian, of 
the proposed transfer;
    (2) Confirm the Designated Recipient's identity;
    (3) Confirm that the Designated Recipient is a citizen, national, 
or lawful permanent resident of the United States; and
    (4) Give the Designated Recipient the opportunity to accept or 
reject the proposed transferred education award.
    (c) Acceptance by Designated Recipient. To accept an education 
award, a Designated Recipient, or their legal guardian, must certify 
that the Designated Recipient is eligible under Sec.  2525.410. Upon 
receipt of the Designated Recipient's acceptance and verification of 
the Designated Recipient's eligibility, AmeriCorps will create an 
account in the National Service Trust for the Designated Recipient, if 
an account does not already exist, and the accepted amount will be 
deducted from the transferring Eligible Individual's account and 
credited to the Designated Recipient's account.
    (d) Timing of transfer. AmeriCorps must receive the request from 
the transferring Eligible Individual before the date the education 
award expires.
    (e) Refusal. The Designated Recipient can refuse to accept the 
transferred education award under Sec.  2525.470.
    (f) Revocation. The Eligible Individual can revoke part or all of 
the remaining balance of the transfer that has not yet been requested 
for use under Sec. Sec.  2525.480 and 2525.485.


Sec.  2525.440  Is there a limit on the number of recipients an 
individual may designate to receive a transferred award?

    (a) An Eligible Individual may transfer all or part of a non-
expired education award to no more than two recipients.
    (b) If a Designated Recipient rejects, in whole or in part, a 
transferred education award, or a transfer was revoked in accordance 
with Sec.  2525.480, the education award can be transferred to another 
Designated Recipient, so long as the education award has not yet 
expired.


Sec.  2525.450  Is there a limit on the amount of transferred education 
awards a Designated Recipient may receive?

    (a) If the sum of the value of the requested transfer plus the 
aggregate value of education awards a Designated Recipient has 
previously earned or received, through the Designated Recipient's own 
service term or having previously been transferred an education award, 
would exceed the aggregate value of two full-time education awards, as 
determined pursuant to Sec.  2525.50(b), the Designated Recipient will 
be deemed to have rejected that portion of the education award that 
would result in the excess.
    (b) If a Designated Recipient has already received the aggregate 
value of two full-time education awards, they may not receive a 
transferred education award, and the Designated Recipient will be 
deemed to have rejected the education award in full.


Sec.  2525.460  What is the impact of transferring or receiving a 
transferred education award on an Eligible Individual's eligibility to 
receive additional education awards?

    (a) Impact on transferring individual. Pursuant to Sec.  2525.50, 
an education award is considered to be received at the time it becomes 
available for a Designated Recipient's use. Transferring all or part of 
an award does not reduce the aggregate value of education awards the 
transferring individual is considered to have received.
    (b) Impact on Designated Recipient. For the purposes of determining 
the value of the transferred education award under Sec.  2525.50, a 
Designated Recipient will be considered to have received a value equal 
to the amount received divided by the amount of a full-time education 
award in the year the transferring Eligible Individual's position for 
that education award was approved.
    (c) Result of revocation on education award value. If the Eligible 
Individual revokes the transferred education award, in whole or in 
part, the value of the education award considered to have been received 
by the Designated Recipient for purposes of Sec.  2525.50 will be 
reduced accordingly.


Sec.  2525.470  Is a Designated Recipient required to accept a 
transferred education award?

    (a) General rule. No. A Designated Recipient is not required to 
accept a transferred education award, and may reject an education award 
in whole or in part.
    (b) Result of rejection in full. If the Designated Recipient 
rejects a transferred education award in whole, the amount is credited 
back to the transferring Eligible Individual's account in the National 
Service Trust, and may be transferred to another individual, or may be 
used by the transferring Eligible Individual, consistent with the 
original period of availability set forth in Sec.  2525.40(a).
    (c) Result of rejection in part. If the Designated Recipient 
rejects a transferred education award in part, the rejected portion is 
credited to the transferring Eligible Individual's account in the 
National Service Trust for their use, including re-transfer of the 
education award, consistent with the original period of availability 
set forth in Sec.  2525.40(a).
    (d) Rescission. A Designated Recipient who originally accepted a 
transferred education award may rescind their acceptance of any unused 
portion of the award at any time before the education award expires, 
and for any reason.


Sec.  2525.480  Under what circumstances is a transfer revocable?

    (a) Revocation. An Eligible Individual who transferred an award may 
revoke the transfer at any time and for any reason before the education 
award's expiration and use by the Designated Recipient.
    (b) Use of award. Upon revocation, the revoked amount will be 
deducted from the Designated Recipient's account and credited to the 
transferring Eligible Individual's account. The transferring Eligible 
Individual may use the revoked transferred education award for any of 
the purposes described in Sec.  2525.210, consistent with the original 
time period of availability set forth in Sec.  2525.40(a).
    (c) Re-transfer. An Eligible Individual may re-transfer an 
education award to another qualifying individual after revoking the 
education award.


Sec.  2525.485  What steps are necessary to revoke a transfer?

    (a) Request for revocation. Before revoking a transfer, the 
transferring Eligible Individual must submit a request to AmeriCorps 
that includes:
    (1) The Eligible Individual's written authorization to revoke the 
education award;
    (2) The year in which the education award was earned;
    (3) The specific amount to be revoked; and
    (4) The identity of the Designated Recipient.
    (b) Used education awards. A revocation may only apply to the 
portion of the transferred education award that has not been used by 
the Designated Recipient. If the Designated Recipient has used the 
entire transferred amount before AmeriCorps receives the revocation 
request, no amount will be returned to the transferring Eligible 
Individual. An amount is considered to be used when it is disbursed 
from the National Service Trust, not when a request is received for its 
use.
    (c) Notification to Designated Recipient. AmeriCorps will notify 
the Designated Recipient of the amount being revoked as of the date of 
its receipt of the revocation request.

[[Page 1035]]

    (d) Timing of revocation. AmeriCorps must receive the request to 
revoke the transfer from the transferring Eligible Individual before 
the education award's expiration as calculated pursuant to Sec.  
2525.40(a)(2), from the date the education award was originally earned.


Sec.  2525.487  What happens to a transferred education award upon 
divorce or death?

    (a) Prohibition on treatment of a transferred education award as 
marital property. An education award transferred under this subsection 
may not be treated as marital property, or the asset of a marital 
estate, subject to division in a divorce or other civil proceeding.
    (b) Death of transferor. The death of an Eligible Individual who 
has transferred, or initiated the transfer of, an education award under 
this subsection does not affect the use of the education award by the 
Designated Recipient.


Sec.  2525.490  Is a recipient of a transferred education award 
eligible for the payment of accrued interest for their own student 
loans under subpart E?

    No. The transfer of an education award does not convey eligibility 
for payment of accrued interest under subpart E.

PART 2526--[REMOVED AND RESERVED]

0
2. Remove and reserve part 2526, consisting of Sec.  Sec.  2526.10 
through 2526.70.

PART 2527--[REMOVED AND RESERVED]

0
3. Remove and reserve part 2527, consisting of Sec.  2527.10.

PART 2528--[REMOVED AND RESERVED]

0
4. Remove and reserve part 2528, consisting of Sec.  Sec.  2528.10 
through 2528.80.

PART 2529--[REMOVED AND RESERVED]

0
5. Remove and reserve part 2529, consisting of Sec.  Sec.  2529.10 
through 2529.30.

PART 2530--[REMOVED AND RESERVED]

0
6. Remove and reserve part 2530, consisting of Sec.  Sec.  2530.10 
through 2530.90.

Fernando Laguarda,
General Counsel.
[FR Doc. 2022-28125 Filed 1-5-23; 8:45 am]
BILLING CODE 6050-28-P