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Rule2023-14729

National Service Trust Education Awards

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Published

July 13, 2023

Effective

August 14, 2023

Issuing agencies

Corporation for National and Community Service

Abstract

The Corporation for National and Community Service (operating as AmeriCorps) is finalizing revisions to 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 rule improves 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 increases flexibility for those who earn education awards to use and transfer those awards. This rule also renumbers sections related to national service education awards to combine them all into one CFR part with subpart designations for easier navigation.

Full Text

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<title>Federal Register, Volume 88 Issue 133 (Thursday, July 13, 2023)</title>
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[Federal Register Volume 88, Number 133 (Thursday, July 13, 2023)]
[Rules and Regulations]
[Pages 44721-44735]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-14729]

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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: Final rule.

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SUMMARY: The Corporation for National and Community Service (operating
as AmeriCorps) is finalizing revisions to 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 rule improves 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 increases flexibility for those who earn education awards
to use and transfer those awards. This rule also renumbers sections
related to national service education awards to combine them all into
one CFR part with subpart designations for easier navigation.

DATES: This rule is effective August 14, 2023.

FOR FURTHER INFORMATION CONTACT: Elizabeth Appel, Associate General
Counsel, AmeriCorps, 250 E Street SW, Washington, DC 20525, (202) 967-
5070, <a href="/cdn-cgi/l/email-protection#8de8ecfdfde8e1cdeee3fea3eae2fb"><span class="__cf_email__" data-cfemail="5732362727323b1734392479303821">[email&#160;protected]</span></a>.

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

I. Background

The National and Community Service Act of 1990, as amended, 42
U.S.C. 12501 et seq., aims to encourage United States 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 within
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 Final Rule

Overall, this final 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 rule makes changes to the
following CFR parts:

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

Some changes 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.'' Specific mentions of AmeriCorps programs, Silver
Scholar, and Summer of Service positions were replaced with the term
``national service position,'' where appropriate. Other changes affect
only one or some CFR parts. Substantive

[[Page 44722]]

changes specific to each CFR part are summarized here.
The rule also renumbers 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 final rule renumbers 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 will instead
fall under subparts to part 2525.

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

------------------------------------------------------------------------
Current Final rule
------------------------------------------------------------------------
Part 2525--National Service Trust: Purpose Part 2525--National Service
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
Award an Education Award.
Sec. 2526.10 Who is eligible to receive Sec. 2525.10 When can an
an education award from the National Eligible Individual receive
Service Trust? an education award from the
National Service Trust?
Sec. 2526.15 Upon what basis may an Sec. 2525.15 Upon what
organization responsible for the basis may an entity
supervision of a national service responsible for the
participant certify that the individual supervision of an Eligible
successfully completed a term of service? Individual certify that the
Eligible Individual
successfully completed a
term of service?
Sec. 2526.20 Is an AmeriCorps Sec. 2525.20 Is an
participant who does not complete an AmeriCorps participant who
originally approved term of service does not complete an
eligible to receive a pro-rated education originally-approved term of
award? service eligible to receive
a pro-rated education
award?
Sec. 2526.25 Is a participant in an Sec. 2525.25 Is a
approved Summer of Service position or participant in an approved
approved Silver Scholar position who does Summer of Service position
not complete an approved term of service or approved Silver Scholar
eligible to receive a pro-rated education position who does not
award? complete an approved term
of service eligible to
receive a pro-rated
education award?
Sec. 2526.30 How do convictions for the Sec. 2525.30 How do
possession or sale of controlled convictions for the
substances affect an education award possession or sale of
recipient's ability to use their award? controlled substances
affect an education award
recipient's ability to use
their award?
Sec. 2526.40 What is the time period Sec. 2525.40 How long is
during which an individual may use an an education award
education award? available for 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
total amount of education awards an limit on the total amount
individual may receive? of education awards an
individual may receive?
Sec. 2526.55 What is the impact of the Sec. 2525.55 What is the
aggregate value of education awards impact of the aggregate
received on an individual's ability to value of education awards
serve in subsequent terms of service? received on an individual's
ability to serve in
additional terms of
service?
Sec. 2526.60 May an individual receive Sec. 2525.60 May an
an education award and related interest individual receive an
benefits from the National Service Trust education award and related
as well as other loan cancellation interest benefits from the
benefits for the same service? National Service Trust as
well as other loan
cancellation benefits for
the same term of service?
Sec. 2526.70 What are the effects of an Sec. 2525.70 What are the
erroneous certification of successful effects of an erroneous
completion of a term of service? certification of successful
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?

[[Page 44723]]

Sec. 2528.20 What steps are necessary to Sec. 2525.220 What steps
use an education award to repay a are necessary to use an
qualified student loan? education award to repay a
qualified student loan?
Sec. 2528.30 What steps are necessary to Sec. 2525.230 What steps
use an education award to pay all or part are necessary to use an
of the current educational expenses at an education award to pay all
institution of higher education? or part of the current
educational 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 award limit on the amount of an
that the Corporation will disburse to an Eligible Individual's
institution of higher education for a education award that
given period of enrollment? AmeriCorps will disburse to
an institution of higher
education for a given
period of enrollment?
Sec. 2528.50 What happens if an Sec. 2525.250 What happens
individual withdraws or fails to complete if an individual withdraws
the period of enrollment in an or fails to complete the
institution of higher education for which period of enrollment in an
the Corporation has disbursed all or part institution of higher
of that individual's education award? education for which
AmeriCorps has disbursed
all or part of that
individual's education
award?
Sec. 2528.60 Who may use the education Sec. 2525.260 Who may use
award to pay expenses incurred in the education award to pay
enrolling in a G.I. Bill approved expenses incurred in
program? enrolling in a G.I. Bill-
approved program?
Sec. 2528.70 What steps are necessary to Sec. 2525.270 What steps
use an education award to pay expenses are necessary to use an
incurred in enrolling in a G.I. Bill education award to pay
approved program? expenses incurred in
enrolling in a G.I. Bill-
approved program?
Sec. 2528.80 What happens if an Sec. 2525.280 What happens
individual for whom the Corporation has if an individual for whom
disbursed education award funds withdraws AmeriCorps has disbursed
or fails to complete the period of education award funds
enrollment in a G.I. Bill approved withdraws or fails to
program? complete 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
accrues on qualified student loans during AmeriCorps pay interest
an individual's term of service in an that accrues on qualified
approved AmeriCorps position or approved student loans during an
Silver Scholar position? individual's term of
service in an approved
position?
Sec. 2529.20 What steps are necessary to Sec. 2525.320 What steps
obtain forbearance in the repayment of a are necessary to obtain
qualified student loan during an forbearance in the
individual's term of service in an repayment of a qualified
approved AmeriCorps position? student loan during an
individual's term of
service in an approved
AmeriCorps position?
Sec. 2529.30 What steps are necessary Sec. 2525.330 What steps
for using funds in the National Service are necessary for
Trust to pay interest that has accrued on AmeriCorps to pay interest
a qualified student loan during a term of that has accrued on a
service for which an individual has qualified student loan in
obtained forbearance? 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 education circumstances may an
award? Eligible 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 to Sec. 2525.430 What steps
transfer an education award? are necessary to transfer
an education award?
Sec. 2530.40 Is there a limit on the Sec. 2525.440 Is there a
number of individuals one may designate limit on the number of
to receive a transferred award? recipients an individual
may 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 designated limit on the amount of
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 transferred impact of transferring or
education award on an individual's receiving a transferred
eligibility to receive additional education award on an
education awards? Eligible Individual's
eligibility to receive
additional education
awards?
Sec. 2530.70 Is a designated individual Sec. 2525.470 Is a
required to accept a transferred Designated Recipient
education award? required to accept a
transferred education
award?
Sec. 2530.80 Under what circumstances is Sec. 2525.480 Under what
a transfer revocable? circumstances is a transfer
revocable?
Sec. 2530.85 What steps are necessary to Sec. 2525.485 What steps
revoke a transfer? are 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 individual Sec. 2525.490 Is the
eligible for the payment of accrued recipient of a transferred
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 (New Subpart-by-Subpart) Summary of Changes

1. Changes to Current Part 2525 (New Subpart A)
Under this rule, part 2525 is newly designated as subpart A of part
2525 and continues to set out the description of the National Service
Trust and definitions. Changes ensure that definitions apply throughout
the newly compiled CFR part 2525. For example, the changes 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 changes to part 2525 add definitions for two terms and
substantively revise two definitions. The newly added definitions are
for the following terms:
<bullet> ``Eligible Individual'' as the individual who is eligible
for an education award; and
<bullet> ``Designated Recipient'' as the person to whom an
education award is transferred.
The two definitions being revised are for ``educational expenses''
and ``qualified student loan.'' The changes revise the definition of
``educational expenses'' to:
<bullet> Provide that costs of attendance are determined by the
Title IV institution of higher education or G.I. Bill approved program;
<bullet> Include tuition or associated costs as determined by the
program offered by the institution or establishment

[[Page 44724]]

approved for offering benefits for which educational assistance may be
provided by the Secretary for Veterans Affairs;
<bullet> Include expenses incurred participating in a school-to-
work program approved by the Secretaries of Labor and Education;
<bullet> 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
<bullet> 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.
Changes to the definition of ``qualified student loan'' 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 new definition. The changes 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 changes also correct the cross-reference to the Higher
Education Act of 1965 to cite to the correct section defining
``institution of higher education.''
Other 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. Changes to Current Part 2526 (New Subpart B)
Current part 2526, which is newly designated as subpart B to part
2525, addresses eligibility for an education award.
Changes to current part 2526, which will now be located at subpart
B to part 2525, incorporate the newly defined terms for ``Eligible
Individual'' and ``Designated Recipient'' for clarity. Edits to Sec.
2525.10 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 final rule also moves to a separate section (Sec. 2525.15) the
specifics for what the organization responsible for the individual's
supervision must certify.
Section 2525.15 combines requirements for AmeriCorps State and
National approved national service positions with other approved
national service positions for consistency. Section 2525.20 clarifies
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 circumstances prevent the
Eligible Individual from completing their term of service.
Section 2525.30 revises the factors that AmeriCorps considers when
determining whether an Eligible Individual may be entitled to use their
education award when the Eligible Individual has three or more
convictions for possession or sale of a controlled substance. The final
rule deletes 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.
Section 2525.40 revises the current section to separate information
on extensions to the use period into new sections specific to various
questions regarding extensions. Edits to this section also delete the
specific reference to Summer of Service education awards.
Section 2525.41 is a new section that specifically addresses when
an application for an extension must be submitted and adds 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.
Section 2525.42 is a new section that specifically addresses the
circumstances in which AmeriCorps will grant an extension. This section
clarifies 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. This section then clarifies
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. Paragraph (b) of this section adds
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. Paragraph (b)
also adds examples of situations that may warrant an extension.
Paragraph (b)(2) provides factors that AmeriCorps will consider in
determining whether to grant an extension. Paragraph (c) adds examples
of circumstances that do not warrant an extension, but removes 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 factors.
Section 2525.43 is a new section that specifies what will happen if
a request for extension is missing information or documentation.
Section 2525.44 is a new section that specifies how AmeriCorps will
notify the Eligible Individual or Designated Recipient of its decision
on the extension request. Section 2526.45 is a new section that
provides new procedures for an Eligible Individual or Designated
Recipient to appeal a denied request for extension.
Section 2525.50 deletes information about the calculation of the
value of each individual education award and instead focuses on how the
aggregate value of awards is calculated, given that the limit is the
aggregate value of two full-time education awards. Section 2525.55 also
simplifies the section to convey the impact of the aggregate value of
education awards on ability to serve

[[Page 44725]]

and to receive additional education awards.
Section 2525.70 adds 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. Changes to Current Part 2527 (New Subpart C)
Current part 2527, which will now be subpart C to part 2525,
addresses determining the amount of an education award.
Section 2525.100 replaces 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 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 section also replaces 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. Changes to Current Part 2528 (New Subpart D)
Current part 2528, which will now be subpart D to part 2525,
addresses using an education award.
Sections 2525.210 and 2525.240 refer to the updated definition of
``educational expenses'' instead of repeating what the educational
expenses include.
Section 2525.250 specifies 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 section also clarifies that the institution must
provide a pro-rata refund to AmeriCorps if the institution does not
have a published refund policy.
Section 2525.290, a new section, specifies 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. Changes to Current Part 2529 (New Subpart E)
Part 2529, which will now be subpart E to part 2525, addresses
payment of accrued interest.
Section 2525.310 adds that the loan holder specifies the period of
forbearance during the term of service. Paragraph (b) of this section
adds that the portion of accrued interest AmeriCorps will pay is based
on the length of service.
6. Changes to Current Part 2530 (New Subpart F)
Part 2530, which will now be subpart F to part 2525, addresses the
transfer of education awards.
Section 2530.10 deletes the provision regarding enrollment on or
before 2010 because the final rule will apply only after the effective
date, which is in 2023. This section also adds the stepchild of an
Eligible Individual to the categories of Designated Recipients for
transferred awards.
Section 2530.30 breaks out procedures for a Designated Recipient to
accept a transferred award into a new paragraph (c). This section also
adds 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.
Section 2530.40 allows Eligible Individuals to transfer their
education award to one or two individuals, rather than just one
individual. Paragraph (b) of this section allows 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 is that the use period for the education award must not have
expired.
Section 2530.50 clarifies that any education awards the Designated
Recipient may have earned through their own service term or that were
previously been transferred to them are included in the calculation of
the aggregate education award value limit. Paragraph (c) allows
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.
This final rule also adds 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.
Section 2540.80 removes the requirement for AmeriCorps to approve a
re-transfer of an education award after an Eligible Individual revokes
the award.
Section 2530.85 deletes the paragraph regarding the mechanics of
deducting and crediting the revoked amount because these functions are
handled internally by AmeriCorps.
Section 2530.87 is a new section that addresses what happens to a
transferred education award upon divorce or death.

III. Response to Public Comments

AmeriCorps published the proposed rule on January 6, 2023 (88 FR
1021) and received two public comment submissions before the March 7,
2023, comment deadline. Summaries of the points raised in those
comments and AmeriCorps' responses are provided here. No changes to the
proposed regulatory text were made in response to these comments or
otherwise.
One commenter was supportive of allowing those who earn education
awards to spread the benefit to more than one beneficiary. This
commenter stated that they have multiple grandchildren and would like
to share their education award with as many of them as possible. They
also stated they believe allowing sharing with multiple recipients
would be an incentive for other older individuals to do more national
service.
Response: The final rule carries forward the proposal to increase
the number of Designated Recipients to whom an Eligible Individual can
transfer their earned award from one to two. The final rule does not
increase the number of recipients to whom an education award may be
transferred beyond two in order to best prevent fraud, waste, and
abuse. Allowing transfers to more than two persons would substantially
increase the level of internal controls needed and pose an undue
administrative burden on the agency. The agency has determined that
these risks can be more efficiently mitigated by limiting the number of
transferees to two individuals.
The other commenter stated their general support of the changes but
provided the following suggestions and recommendations for additional
changes.
The commenter noted that Sec. 2525.55 states that the aggregate
value of education awards does not limit an individual's ability to
serve additional terms of service and requested that AmeriCorps
leverage its waiver

[[Page 44726]]

authority to allow commissions to request a waiver to the four-term
limit on AmeriCorps members.
Response: The general limitation on four terms of service in an
AmeriCorps State and National program is set out in a different
regulation than the one being revised by this final rule (see 45 CFR
2522.235); however, AmeriCorps will consider this comment as in any
future updates to that regulation.
This commenter also suggested that AmeriCorps should provide for an
end-of-service ``cash stipend'' in lieu of an education award for
individuals that have already earned the maximum aggregate value of
education awards. The commenter stated this change would create more
equity among AmeriCorps programs and assist AmeriCorps in recruitment
and retention efforts:
Response: This comment is beyond the scope of this regulation, but
AmeriCorps will take it under advisement.
This commenter requested that Sec. 2525.290 be revised so that,
instead of an education award expiring upon an Eligible Individual's
death, it could be transferred to an eligible Designated Recipient at
that time and allow an extension of time for the Designated Recipient
to access the education award if needed, even if the recipient was not
age-eligible at the time the Eligible Individual earned the education
award.
Response: The proposed and final Sec. 2525.290 reflect the
statutory limitation, which provides that the Eligible Individual must
transfer the education award prior to death in order for the death not
to affect the use of the education award by the Designated Recipient.
See 42 U.S.C. 12604(f)(5).
This commenter expressed their support of adding stepchild and
step-grandchild to the categories of Designated Recipients for
transferred awards, allowing transfer to one or two individuals rather
than just one, allowing the recipient to reject all of part of the
education award, and allowing the re-transfer of the rejected portion
of the education award to someone else.
Response: The final rule carries forward these aspects of the
proposed rule.
The commenter suggested removing or lowering the age requirement
for transferring the education award and encouraged AmeriCorps to work
with Congress to remove the limitation that an individual must be age
55 or more the day service begins to be eligible to transfer the award,
and instead allow anyone of any age to transfer their education award.
Response: The commenter is correct that the rule cannot remove or
lower the age requirement for transferring an education award because
the statute provides as a condition for transfer of an education award
that the eligible individual is age 55 or older before beginning the
term of service involved. See 42 U.S.C. 12604(f)(2)(A)(ii).
The commenter recommended not having transferred education awards
count as part of an individual's aggregate value of education awards
earned.
Response: The current regulation provides that the amount received
as a transferred education award is included in the aggregate value of
awards received. See 45 CFR 2526.50(c)(4). The proposed rule did not
propose any change to this requirement; however, AmeriCorps will take
this recommendation under advisement for any future rulemaking.

IV. Regulatory Analyses

A. Executive Orders 12866 and 13563

Executive Orders 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). Executive
Order 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 has determined this is not a
significant regulatory action, and therefore is not subject to review
under Section 6(b) of Executive Order 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 an
interim or final rule report to the US House of Representatives, U.S.
Senate, and to the Comptroller General of the U.S. 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 US-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 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 rule requires a revision to one OMB Control Number, Education
Award Transfer Forms, currently approved under OMB Control Number 3045-
0136, which expires January 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 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 final 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:
<bullet> For 45 CFR 2528: Voucher and Payment Request Form--
approved

[[Page 44727]]

under OMB Control Number 3045-0014, which expires March 31, 2026.
<bullet> For 45 CFR 2529: Interest Accrual Form--currently approved
under OMB Control Number 3045-0053, which expires March 31, 2026.
Forbearance Request for National Service Form--approved under OMB
Control Number 3045-0030, which expires March 31, 2026.
This final 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-hour cost burdens
resulting from these form changes. With this rulemaking, AmeriCorps is
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 information collection
revision should be sent within 30 days of publication of this
rulemaking to <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a>. 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 (Executive Order 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 (Executive Order 12630)

This rule does not affect a taking of private property or otherwise
have taking implications under Executive Order 12630 because this 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 (Executive Order 12988)

This 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 (Executive Order 13175)

AmeriCorps recognizes the inherent sovereignty of Indian tribes and
their right to self-governance. The agency has evaluated this
rulemaking under the AmeriCorps consultation policy and the criteria in
Executive Order 13175 and determined that this rule does not impose
substantial direct effects on federally recognized tribes.

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
amends chapter XXV of 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 Under what circumstances is an Eligible Individual who does
not complete an approved term of service eligible to receive a pro-
rated education award?
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?
2525.30 How do convictions for the possession or sale of controlled
substances affect an Eligible Individual's ability to use their
award?
2525.40 How long is an education award available for use?

[[Page 44728]]

2525.41 When must an application for an extension be submitted?
2525.42 Under what circumstances will AmeriCorps grant an extension?
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?
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 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?

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.
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 44729]]

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) of
this chapter.
(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 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)
of this chapter, 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

[[Page 44730]]

(F) Any other relevant aggravating or ameliorating circumstances.
(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 of this part 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, 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

[[Page 44731]]

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

[[Page 44732]]

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; and
(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.

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

[[Page 44733]]

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) One hundred (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:
(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.

[[Page 44734]]

(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.
(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

[[Page 44735]]

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?

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

PART 2526--[REMOVED AND RESERVED]

0
2. Remove and reserve part 2526.

PART 2527--[REMOVED AND RESERVED]

0
3. Remove and reserve part 2527.

PART 2528--[REMOVED AND RESERVED]

0
4. Remove and reserve part 2528.

PART 2529--[REMOVED AND RESERVED]

0
5. Remove and reserve part 2529.

PART 2530--[REMOVED AND RESERVED]

0
6. Remove and reserve part 2530.

Fernando Laguarda,
General Counsel.
[FR Doc. 2023-14729 Filed 7-12-23; 8:45 am]
BILLING CODE 6050-28-P

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