Rule2023-16009
NSF Federal Cyber Scholarship-for-Service Program (CyberCorps® SFS)
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 1, 2023
Effective
August 31, 2023
Issuing agencies
National Science Foundation
Abstract
The rule establishes repayment standards for CyberCorps[supreg] SFS scholarship recipients who fail to fulfill program requirements, and the process for requesting deferral or discharge of their service or repayment obligation, in whole or part. The rule also requires that, during the period that they are performing their service obligation under the program, scholarship recipients must provide annual documentation of their service employment and their current contact information.
Full Text
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<title>Federal Register, Volume 88 Issue 146 (Tuesday, August 1, 2023)</title>
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[Federal Register Volume 88, Number 146 (Tuesday, August 1, 2023)]
[Rules and Regulations]
[Pages 50044-50053]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-16009]
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NATIONAL SCIENCE FOUNDATION
45 CFR Part 620
RIN 3145-AA-64
NSF Federal Cyber Scholarship-for-Service Program
(CyberCorps[supreg] SFS)
AGENCY: National Science Foundation (NSF).
ACTION: Final rule.
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SUMMARY: The rule establishes repayment standards for
CyberCorps[supreg] SFS scholarship recipients who fail to fulfill
program requirements, and the process for requesting deferral or
discharge of their service or repayment obligation, in whole or part.
The rule also requires that, during the period that they are performing
their service obligation under the program, scholarship recipients must
provide annual documentation of their service employment and their
current contact information.
DATES: This rule is effective August 31, 2023.
FOR FURTHER INFORMATION CONTACT: Victor Piotrowski, Lead Program
Director, CyberCorps SFS, NSF, 2415 Eisenhower Avenue, Alexandria, VA
22314, (703) 292-5141, <a href="/cdn-cgi/l/email-protection#e593958c8a91978a92a58b9683cb828a93"><span class="__cf_email__" data-cfemail="c9bfb9a0a6bdbba6be89a7baafe7aea6bf">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: On July 15, 2022, NSF published proposed
regulations for its CyberCorps[supreg] Scholarship for Service (SFS)
program, pursuant to the Cybersecurity Enhancement Act of 2014 (Pub. L.
113-274, sec. 302, 15 U.S.C. 7442), as amended. See 87 FR 42431
(proposing new 45 CFR part 620). The goal of the program, which is led
and managed by NSF in coordination with the U.S. Office of Personnel
Management (OPM) and Department of Homeland Security (DHS), is to
recruit and train the next generation of information technology
professionals, industrial control system security professionals, and
security managers to meet the needs of the cybersecurity mission for
Federal, State, local, and tribal governments.\1\
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\1\ See 15 U.S.C. 7442(a).
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Under the program, NSF makes grant awards to qualified institutions
of higher education to provide scholarships to students pursuing
degrees or specialized program certifications in the cybersecurity
field and cybersecurity-related aspects of other related fields as
appropriate, including artificial intelligence, quantum computing and
aerospace, covering the student's tuition and fees for not more than
three years, plus stipend.\2\ In return, scholarship recipients must
agree that, after receiving their degree, they will work for a period
equal to the length of their scholarship in the cybersecurity mission
of a Federal executive agency or other qualifying entity (i.e.,
Congress, interstate agency, State, local, or tribal government or
affiliated critical infrastructure non-profit, or as a cybersecurity
educator in a qualified institution of higher education that provides
SFS scholarships to students).\3\ Recipients must also agree to provide
OPM (in coordination with NSF) and their qualified institution of
higher education with ``annual verifiable documentation of post-award
employment'' and ``up-to-date contact information'' while they are
completing their service obligation.\4\
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\2\ See id. at 7442(b) (as amended by the CHIPS and Science Act,
Public Law 117-167, sec. 10316 (2022)), (c). The program is also
intended to provide summer internship opportunities or other
meaningful temporary appointments in the Federal information
technology and cybersecurity workforce, to prioritize the placement
of scholarship recipients fulfilling their post-award employment
obligation with executive agencies and other cybersecurity
positions, and to provides award to promote cybersecurity education,
such as awards for summer cybersecurity camps or teacher training,
in each of the 50 states at the kindergarten through grade 12 level.
Id. at 7442(b)(2), (4). A detailed summary of the program's
activities and achievements can be found in the statement of basis
and purpose (preamble) accompanying the proposed rule.
\3\ Id. at 7442(d) (post-award employment obligation). The
program is required to ``prioritize the placement of scholarship
recipients fulfilling the post-award employment obligation . . . to
ensure that--(A) not less than 70 percent of such recipients are
placed in an executive agency . . . ; (B) not more than 10 percent
of such recipients are placed as educators in the field of
cybersecurity at qualified institutions of higher education that
provide scholarships under this section; and (C) not more than 20
percent of such recipients are placed'' in other qualifying
cybersecurity positions. See 15 U.S.C. 7442(b)(3).
\4\ Id. at 7442(g)(1); see also id. at 7442(h) (requiring that
SFS institutions monitor their scholarship recipients' compliance
with this service obligation, and also provide NSF and OPM with
documentation of such service until it is completed).
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Scholarship recipients who fail to fulfill their service or
reporting obligations, or other scholarship conditions required by the
Cybersecurity Enhancement Act, become liable to the United States for
repayment of the scholarship.\5\ In these cases, the Act provides that
the recipient's institution shall be responsible for: (1) determining
the repayment amount, based on how much of the post-award employment
obligation the recipient has completed, if any; (2) notifying the
recipient, OPM, and NSF; and (3) collecting repayment within a time
period determined by the Director of NSF.\6\ The Act provides that such
amounts ``shall . . . be repaid'' by the scholarship recipient
``or[,]'' if not repaid, the repayment obligation ``shall be treated''
as a Federal Direct
[[Page 50045]]
Unsubsidized Loan, ``subject to repayment, together with interest
thereon accruing from the date of the scholarship award, in accordance
with terms and conditions specified by the Director of the National
Science Foundation (in consultation with the Secretary of Education) in
regulations promulgated to carry out this subsection.'' \7\
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\5\ See id. at 7442(g)(2) (imposing liability on a scholarship
recipient who ``(A) fails to maintain an acceptable level of
academic standing at the applicable institution of higher education,
as determined by the Director of the National Science Foundation;
(B) is dismissed from the applicable institution of higher education
for disciplinary reasons; (C) withdraws from the eligible degree
program before completing the program; (D) declares that the
individual does not intend to fulfill the post-award employment
obligation under this section; (E) fails to maintain or fulfill any
of the post-graduation or post-award obligations or requirements of
the individual; or (F) fails to fulfill the requirements of
paragraph (1) [i.e., annual verifiable documentation of post-award
employment and up-to-date contact information].'').
\6\ Id. at 7442(i), (k).
\7\ Id. at 7442(k); see also id. at 7442(i), (j) (requiring the
repayment obligation to be treated as a Federal Direct Unsubsidized
Loan under part D of title IV of the Higher Education Act of 1965
(20 U.S.C. 1087a et seq.)).
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Proposed Rule
In support of the above requirements, NSF's proposed rule set forth
repayment standards (terms and conditions) to be applied to recipients
who fail to fulfill their service obligation. See proposed Sec. 620.6
(obligation to repay). The proposed rule also set forth procedures by
which scholarship recipients may request that the NSF Director defer or
discharge their post-award employment or repayment obligation under the
Director's legal authority to suspend or waive such obligations. See
proposed Sec. 620.4 (deferral of obligation), Sec. 620.5 (discharge
of agreement to serve or pay).\8\ In addition, the proposed rule
included a provision reflecting the requirement that scholarship
recipients provide annual post-award employment documentation and up-
to-date contact information while completing their service obligation.
See proposed Sec. 620.3 (documenting the service obligation). The
remaining provisions of the proposed rule explained the rule's scope
and purpose (proposed Sec. 620.1), defined key terms used in the rule
(proposed Sec. 620.2), and included a severability clause (i.e., if
one provision of the rule is invalidated, its other provisions will
remain in force) (proposed Sec. 620.7).
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\8\ The Cybersecurity Enhancement Act permits ``[t]he Director
of the National Science Foundation [to] provide for the partial or
total waiver or suspension of any service or payment obligation by
an individual under this section whenever compliance by the
individual with the obligation is impossible or would involve
extreme hardship to the individual, or if enforcement of such
obligation with respect to the individual would be unconscionable.''
See 15 U.S.C. 4772(l).
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Public Comment
In response to the proposed rule, NSF received one anonymous public
comment, suggesting that the agency more clearly define the
circumstances in which enforcement of a student's service obligation
would be so ``impossible,'' ``unconscionable,'' or result in such
``extreme hardship'' that a partial or complete waiver of the
obligation would be justified. The commenter suggested that such a
clarification would provide additional guidance to administrators
advising students who might apply for a waiver, would allow agency
decisionmakers to stand behind their waiver decisions more strongly,
and would give students a level of confidence ``that each application
for a waiver will be treated [the same] as the last, as much as that is
possible.''
The agency has determined that it is unnecessary to clarify these
terms further. The rule (see Sec. Sec. 620.4 and 620.5) already sets
forth several specific examples that provide meaningful and substantial
guidance to students (i.e., scholarship recipients) potentially
applying for a deferral (suspension) of the period to fulfill their
service obligation or, if appropriate, a waiver (discharge) of the
service or repayment obligation (e.g., death, total or permanent
disability, financial or economic burden, other medical situations). At
the same time, the rule preserves flexibility for students to
demonstrate, and for the agency to determine, the circumstances under
which a deferral or waiver, in whole or part, may be justified.
Students will submit their waiver or deferral requests, for
consideration by the Director (or other designated NSF official),
through the program's official online portal, <a href="https://sfs.opm.gov/">https://sfs.opm.gov/</a>. As
explained in the proposed rule, this portal is maintained and used by
OPM's SFS program office to administer the scholarship program under
reimbursable agreement with NSF.\9\ Students already use the portal to
register with the program, to ask questions and obtain information,
including about qualifying cybersecurity employment opportunities, to
provide and update their current contact information, and to submit
documentation of their post-graduation employment.\10\ As noted above,
when requesting a waiver or deferral, students will have the
opportunity to explain the specific reason or basis for their request,
and to submit supporting information or documentation to justify the
request, including why it would be impossible, unconscionable, or an
extreme hardship for them to fulfill their service or repayment
obligation.
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\9\ See 87 FR at 42432.
\10\ Likewise, if a student has retained counsel or is deceased,
the student's authorized legal representative (e.g., an attorney or
relative serving as an executor of the student's estate) may also
use the portal to contact the program and seek a waiver or deferral
on the student's behalf. Alternatively, as discussed later in the
``Paperwork Reduction Act'' section of this document, NSF is also
providing an email address where such requests may be directed.
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Final Rule Technical Amendments
In adopting the proposed rule as final, the agency has made other
technical clarifications and corrections.
First, in Sec. 620.2 (definitions), it has removed the definitions
of ``payment data'' and ``monitoring phase,'' since these terms are not
used in the rule and are not needed to interpret or apply it. In
addition, the definition of ``Scholarship Phase'' has been revised to
reflect the statutory requirement that the individual be enrolled in a
full-time program of study, except individuals in community college,
who must be enrolled at least half-time.
Second, in Sec. 620.1 (scope and purpose) and Sec. 620.2
(definitions), the agency has corrected language stating that
scholarship recipients shall fulfill their service obligation ``in a
position related to cybersecurity'' for a Federal, state, local, or
Tribal government organization. These rule provisions have been revised
to conform to the language of the Cybersecurity Enhancement Act, which
states that the scholarship recipient shall be employed ``in the
cybersecurity mission'' of a Federal executive agency, Congress
(including any agency, entity, office, or commission established in the
legislative branch), an interstate agency, a state, local or Tribal
government or government-affiliated non-profit considered to be
critical infrastructure (as defined in 42 U.S.C. 5195c(e)), or as an
educator in the field of cybersecurity at a qualified institution of
higher education (as defined in 15 U.S.C. 7442(b)(3)(B)).\11\
Additionally, in Sec. 620.2, the agency has revised the definition of
``service obligation'' by clarifying what employment may be credited
towards that obligation,\12\ and requiring that scholarship recipients
obtain prior approval of their proposed cybersecurity positions from
the SFS program office. Such approval is necessary to ensure that the
individual will be employed in a position that qualifies under the
statute, and to prioritize the placement of certain percentages of
scholarship recipients in various positions in Government and other
organizations, as discussed earlier. See note 3. The definition of
``agreement
[[Page 50046]]
to serve or repay'' in Sec. 620.2 has also been revised to make clear
that a scholarship recipient who fails to fulfill the service
obligation must repay the ``scholarship or'' the amount shall be
treated as a Federal direct unsubsidized loan, and that the recipient
must also comply with both the recipient's service agreement ``and
these rules.'' Further, the definition of ``Commitment Phase'' (i.e.,
the five-year period within which the scholarship recipient must
complete the service obligation and submit verifiable documentation of
that service) has been revised to clarify that it begins immediately
following the date when the Scholarship Phase ends, and not 18 months
later, as the proposed rule might be read to suggest.\13\ The revised
definition also makes clear that the duration of the Commitment Phase
is subject to any deferral (extension) granted by the NSF Director
under Sec. 620.4 (deferral of service obligation).
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\11\ See 15 U.S.C. 7442(d) (defining post-award employment
obligation).
\12\ In proposed Sec. 620.2, the definition of ``service
obligation'' stated, ``All time at the agency that the recipient is
considered an employee of the agency counts toward the service
obligation.'' The final rule instead provides that, with respect to
employment in the cybersecurity mission of a Federal executive
agency, periods of employment in paid duty status will be credited
towards the service obligation, while periods in unpaid nonduty
status will not be credited.
\13\ Scholarship recipients will have 18 months to submit
documentation that they have begun the required post-award
employment, as under current program practice and policy, which will
not change and was the intent of the proposed rule language.
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Third, Sec. 620.6 (obligation to repay) has been revised in
paragraph (a) to make clear that a scholarship recipient's obligation
to repay may result not only from failure to fulfill the recipient's
service obligation, but also failure to provide annual verifiable post-
award employment documentation and up-to-date contact information, or
to fulfill any of the other terms and conditions of support imposed by
the Cybersecurity Enhancement Act, as discussed earlier.\14\
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\14\ See 15 U.S.C. 7442(g)(2) (conditions of support), discussed
supra note 5. In these cases, the NSF Director has the authority to
suspend or waive the repayment obligation on the condition that the
scholarship recipient complete some or all of the service
obligation, even if the individual has not received a degree, as
ordinarily contemplated under the program statute. See id. at
7442(d) (requiring that a scholarship recipient agree to serve for a
period equal to the length of the scholarship ``following receipt of
the student's degree'').
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Fourth, Sec. 620.6 (obligation to repay) has been further revised
in paragraph (a) to clarify that the amount of the scholarship for
which the recipient shall be liable will be calculated in accordance
with the formula set forth in the Cybersecurity Enhancement Act, at 15
U.S.C. 7442(i), which depends on whether the recipient has completed
less than one year of service, or one or more years of service.
Fifth, in Sec. 620.4 (deferral of obligation) and Sec. 620.5
(discharge of agreement to serve or repay), the agency has added
language permitting a scholarship recipient to seek reconsideration if
the NSF Director denies the recipient's request for a deferral or
discharge under those sections. Although the Cybersecurity Enhancement
Act does not provide for a right of appeal or any right to an oral
hearing, the rule will provide an opportunity for a scholarship
recipient to request reconsideration in written form where there may be
new or additional facts or applicable law that the recipient believes
should be considered. If reconsideration is requested, the Director's
decision on that request shall be considered final, with no further
reconsideration. Furthermore, the agency has revised Sec. Sec. 620.4
and 620.5 to clarify the deadline for requesting a deferral or
discharge. Specifically, a request for a deferral of the service
obligation must be received before the period for completing that
service has expired (i.e., Commitment Phase). Furthermore, NSF will not
consider any request to defer or discharge any scholarship amounts that
have already been repaid or referred to the Department of the Treasury
for collection. In addition, the heading of Sec. 620.4 is amended to
refer to deferral of the ``service'' obligation, in contrast to Sec.
620.5, which pertains to the partial or total discharge (waiver) of
either the service or repayment obligation.
Sixth, in Sec. 620.6 (obligation to repay), the agency has deleted
language from paragraph (c) that stated that, when a CyberCorps SFS
scholarship is treated for repayment purposes as a Direct Unsubsidized
Loan, it ``is not counted against the scholarship recipient's annual or
aggregate loan limits under 34 CFR 685.203 [Department of Education
loan limits].'' This language, which NSF included in consultation with
the Department of Education, was intended to allow the full amount of a
SFS scholarship to be treated as a Direct Unsubsidized Loan under NSF's
regulations,\15\ regardless whether the total amount would exceed the
limits normally applicable to such loans under the Department's loan
regulations. To better reflect that intent, the final rule, now in
paragraph (b), rather than paragraph (c), of Sec. 620.6, states that
an SFS scholarship shall be repaid or treated as a Direct Unsubsidized
Loan under NSF's rule, ``without regard to'' the annual or aggregate
loan limits set forth in the Department of Education's loan
regulations. Whether SFS scholarship amounts treated as a Direct
Unsubsidized Loan will be ``counted'' or not against the Department's
loan limits (i.e., if and when the individual applies for other Federal
student loans) is a separate issue that falls outside the scope of
these regulations and NSF's authority.\16\ In addition, paragraphs (b)
and (c) have been revised to clarify that the interest rate applicable
to SFS scholarship amounts treated as Direct Unsubsidized Loans is
determined by the statute governing the terms and conditions of such
loans (i.e., 20 U.S.C. 1078e), that such interest accrues from the date
of the scholarship award, as specified in the Cybersecurity Enhancement
Act (see supra note 7), and that, if the loan goes into default, the
individual will also be liable for reasonable collection fees and costs
(plus court costs and attorney fees, if the Government has to sue the
individual to collect).\17\
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\15\ The statutory provision governing scholarship repayment
contains no dollar limit on the amount that shall be repaid or
treated as a Direct Unsubsidized Loan. See 15 U.S.C. 7442(i) (amount
of repayment).
\16\ NSF nonetheless notes that, when the Department of
Education converts other Federal grants into Direct Unsubsidized
Loans for repayment purposes, it expressly exempts those amounts
from the annual and aggregate limits applicable to such loans. See
34 CFR 685.203(k) (``Any TEACH Grants that have been converted to
Direct Unsubsidized Loans are not counted against any annual or
aggregate loan limits under this section.''). NSF believes it would
be appropriate, as a matter of consistency and fairness, for the
Department to provide the same exemption for any CyberCorps SFS
scholarship amounts treated as Direct Unsubsidized Loans under this
rule.
\17\ Cf. <a href="https://fsapartners.ed.gov/sites/default/files/attachments/2020-04/SubUnsubMPN.pdf">https://fsapartners.ed.gov/sites/default/files/attachments/2020-04/SubUnsubMPN.pdf</a> (master promissory note for
Direct Unsubsidized Loans) at 11 (] 17) (indicating that the
individual will be required to pay reasonable collection fees and
costs, plus court costs and attorney fees, if the individual
defaults on the loan).
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Seventh, other clarifications have been made to Sec. 620.6
(obligation to repay), aside from those already discussed above.
Paragraph (a) no longer contains a sentence stating that SFS
scholarships treated as Direct Unsubsidized Loans will be repaid in
accordance with terms and conditions prescribed by the Director of NSF.
That sentence has been rendered unnecessary in light of paragraphs (b)
and (g), which directly address such repayment terms and conditions.
Paragraph (b), as proposed, allowed individuals to avoid repayment by
submitting documentation showing that they have actually completed
their service obligation. Additional language has been added to that
paragraph in the final rule, to explain that individuals who have
violated other scholarship terms and conditions and become liable for
repayment may similarly submit documentation, if any, demonstrating
that they have not in fact violated those terms and conditions, to
avoid repayment. Paragraph (d) informs scholarship recipients that they
will be sent notices during the Commitment Phase, prior to the
deadlines for
[[Page 50047]]
beginning and completing their service obligation, reminding them that
they must timely submit verifiable documentation of such service; the
proposed rule mentioned only the latter notice. Paragraph (f) is
revised to explicitly warn individuals that failure to receive these
notices, or the annual notices described in paragraph (e), will not
relieve them from liability for scholarship repayment. Paragraph (g)
now emphasizes that all benefits and terms and conditions normally
applicable to a borrower under the Direct Unsubsidized Loan program
(e.g., interest rate, repayment schedule) will apply when a CyberCorps
scholarship is treated as a Direct Unsubsidized Loan for repayment
purposes, i.e., not only the initial six-month grace period mentioned
in the proposed rule. Finally, paragraph (h) of Sec. 620.6 has been
revised to make clear that, when an individual's repayment obligation
is treated as a Direct Unsubsidized Loan, NSF cannot convert it back
into a scholarship once it has been referred to the Department of the
Treasury for debt collection.\18\
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\18\ For example, such a loan may be referred to Treasury's
Bureau of Fiscal Service (BFS) Centralized Receivables Service
(CRS), which collects current non-delinquent, non-tax accounts
receivable on behalf of federal agencies. See <a href="https://www.fiscal.treasury.gov/crs/">https://www.fiscal.treasury.gov/crs/</a>. Furthermore, if the loan (debt)
becomes delinquent, it normally must be transferred no later than
120 days to Treasury BFS's cross-servicing program, which will also
submit the debt to the offset program. See <a href="https://fiscal.treasury.gov/cross-servicing/">https://fiscal.treasury.gov/cross-servicing/</a>; <a href="https://fiscal.treasury.gov/top/how-top-works.html">https://fiscal.treasury.gov/top/how-top-works.html</a>.
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Eighth, Sec. 620.3 (documenting the service obligation) and
paragraph (e)(2) of Sec. 620.6 (obligation to repay) are revised to
clarify that the recipient must provide the required post-award
employment documentation and up-to-date contact information annually to
both OPM and NSF in a ``form and manner'' (rather than a ``form'')
approved by the SFS program office, to allow that office flexibility in
determining the specific format in which such information shall be
provided. For consistency, Sec. 620.3 and Sec. 620.6(e)(2) are
revised to state that this documentation is to be provided to OPM and
NSF via the ``SFS program office,'' rather than sent directly to the
``Director,'' or the ``Director and OPM,'' as had been stated in the
proposed rule. Furthermore, a sentence is added at the end of Sec.
620.3 to reflect the Act's requirement that the recipient also provide
this information to the recipient's SFS institution.\19\ Additionally,
proposed Sec. 620.3 could be read to imply that this documentation
must be submitted only ``if'' the individual is completing the service
obligation. In the final rule, Sec. 620.3 states that this
documentation must be submitted ``[t]o demonstrate'' that the
individual is completing that obligation.
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\19\ See 15 U.S.C. 7442(g)(1).
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Ninth, the authority for the rule (following the table of contents)
has been revised to include the Cybersecurity Enhancement Act, 15
U.S.C. 7442, as authority and basis for the rule's requirements, in
addition to the agency's general rulemaking authority under the NSF Act
of 1950, 42 U.S.C. 1870.
Tenth, the final rule has been revised throughout to remove
references to SFS scholarships being ``converted'' into Direct
Unsubsidized Loans for repayment purposes. The final rule reverts to
the statutory language, which states that, when an individual fails to
serve or otherwise violates the SFS scholarship's conditions of
support, it must be repaid or ``shall be treated as'' a Direct
Unsubsidized Loan. See 15 U.S.C. 7442(g), (i)-(k). For example, SFS
scholarship repayment plans, agreements, or promissory notesshall be
``treated [i.e., the same] as'' a Direct Unsubsidized Loan, and subject
to repayment under the same terms and conditions that would apply to
such loans, as NSF has stated in Sec. 620.6(g). By using the language
expressly prescribed by Congress, the final rule conforms to the
statute's requirements, without suggesting that SFS scholarships will
be routinely ``converted'' into Direct Unsubsidized Loans (i.e.,
payable to the Department of Education). At the same time, the rule
does not foreclose SFS institutions from utilizing that option, if it
becomes available and feasible to do so.
Regulatory Analysis
Consistent with requirements applicable to significant regulatory
actions within the meaning of Executive Order 12866,\20\ the notice of
the proposed rule included a regulatory analysis explaining the
expected impact of the rule, including its impact on Federal agencies.
See 87 FR at 42433. Although no public comments were received on the
impact analysis, certain changes have been made to that analysis to
reflect more accurately the anticipated impact of the revised rule.
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\20\ See section 3(f) of Exec. Order 12866 (defining significant
regulatory action to include any regulatory action that is likely to
result in a rule that may, among other things, ``(3) Materially
alter the budgetary impact of entitlements, grants, user fees, or
loan programs or the rights and obligations of recipients
thereof''). Accordingly, pursuant to that Executive Order, NSF
submitted the rule to OMB for its pre-publication review. See 87 FR
at 42435 (also citing Executive Order 13563).
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There are three main reasons that the rule is needed. First, under
the law, a scholarship recipient's obligation to repay ``shall be
treated as'' a Direct Unsubsidized Loan in accordance with terms and
conditions that the Director of the National Science Foundation (in
consultation with the Secretary of Education) is required by law to be
set forth in regulations promulgated to carry out subsection (j) of 15
U.S.C. 7442. Second, without these regulations, current practice
creates limited options for OPM, NSF, and SFS institutions, as well as
potential hardship for students. In many cases, the participating
CyberCorps[supreg] SFS institution is neither able to collect a
repayment nor convert it to a loan due to lack of cooperation from a
scholarship recipient, closing an NSF award at an institution, or the
amounts exceeding annual or aggregate loan limits under 34 CFR 685.203.
Thus, if the individual does not submit a one-time payment to the SFS
institution or NSF, the matter has typically been referred to Treasury
as a delinquent debt for collection purposes. Third, under current
practice, students are not afforded the terms and conditions of a
Direct Unsubsidized Loan if the scholarship is not treated as such a
loan.
Three groups will be affected by the final rule: Students (SFS
scholars), universities (SFS institutions), and certain Federal
agencies (OPM, NSF, and Treasury). Table 1, Table 2, and Table 3
summarize expected impacts on those three groups.
[[Page 50048]]
Table 1--Expected Impact of the Proposed Rule on Students
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Number per Expected impact of proposed
year Current practice rule
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Students fulfilling obligation through 300 Students report None.
service. completion to OPM.
Students fulfilling their repayment 5 Repay to SFS institution Participants could pay a lump
obligation through lump-sum payment. or NSF. sum or the amount shall be
treated as a Direct
Unsubsidized Loan.
Students cooperating with the SFS 8 Converted to a loan by Student's obligation shall be
institution and OPM, but not paying SFS Institution if treated as a Direct
lump sum. possible, but if not Unsubsidized Loan, subject
possible, transferred to to repayment in accordance
Treasury for collection with terms and conditions
action. prescribed by the NSF
Director in this rule.
Students not cooperating and not 5 Transferred to Treasury See above. Transferred to
paying lump sum. for collection action. Treasury for collection if
student defaults on
repayment or their request
for deferral or discharge is
denied. May also be
transferred for collection
pre-delinquency.
----------------------------------------------------------------------------------------------------------------
Table 2--Expected Impact of the Proposed Rule on Universities
[SFS institutions]
----------------------------------------------------------------------------------------------------------------
Number per Expected impact of proposed
year Current practice rule
----------------------------------------------------------------------------------------------------------------
Universities.......................... 15 SFS institutions may The scholarship shall be
attempt to convert the treated as a Direct
scholarship to a loan, Unsubsidized Loan, without
which may be impossible converting it to such a
due to loan limits, lack loan, under repayment terms
of student cooperation. and conditions established
by the NSF Director in the
final rule.
----------------------------------------------------------------------------------------------------------------
Table 3--Expected Impact of the Proposed Rule on Federal Agencies
----------------------------------------------------------------------------------------------------------------
Number of Expected impact of proposed
cases per year Current practice rule
----------------------------------------------------------------------------------------------------------------
NSF................................... 18 Work with institutions to NSF should see fewer cases
find a way to create and higher likelihood of
payments or loan repayment, because student
conversion. If repayment obligations shall
impossible, refer to be treated as Direct
Treasury for collection Unsubsidized Loans under the
action. rule, without the need to
convert them to such loans.
This should reduce cases in
which scholarship recipients
seek repayment relief from
NSF (e.g., requests to
suspend or waive (discharge)
their obligation when they
are unable to pay in a lump
sum).
OPM................................... 18 Work with institutions to See above. Scholarship
find a way to create amounts are to be treated as
payments or loan. a loan, subject to repayment
conversion. If terms and conditions set
impossible, work with forth by the NSF Director in
NSF to transfer to the final rule, resulting in
Treasury for collection fewer collection issues or
action. requests for relief from
repayment.
Treasury.............................. 5 Handle repayment or No automatic transfers to
collection; appeals; Treasury, and NSF will
requests for additional handle requests for deferral
evidence, etc. or discharge of the service
or repayment obligation,
including reconsideration
requests.
Education............................. 20 Not involved............. No change. Not involved,
since SFS institutions will
treat repayment obligations
as Direct Unsubsidized Loans
without necessarily
converting them to such
loans, which would require
coordination with Education.
----------------------------------------------------------------------------------------------------------------
Costs
The vast majority of students who enroll in the CyberCorps[supreg]
SFS program will complete their studies and will move into Federal,
state, local, tribal government or other qualifying service, where the
vast majority will complete their service obligations. Table 4 below
summarizes the number of students released from obligations (granted a
waiver or have a request pending) as of November 1, 2021.
[[Page 50049]]
Table 4--The Number of SFS Scholars Released From the Service Obligations From 2001-2021
--------------------------------------------------------------------------------------------------------------------------------------------------------
Partial Waiver
Scholarships Full waiver: Partial Full waiver: waiver: request
awarded academic phase waiver: employment employment pending Total waivers
academic phase phase phase decision
--------------------------------------------------------------------------------------------------------------------------------------------------------
2001.................................... 31 0 0 6 0 0 6
2002.................................... 115 2 0 16 0 0 18
2003.................................... 219 1 0 16 0 0 17
2004.................................... 185 0 0 3 0 0 3
2005.................................... 182 4 0 2 0 0 6
2006.................................... 133 1 0 0 0 0 1
2007.................................... 111 1 0 0 0 0 1
2008.................................... 94 0 0 0 0 0 0
2009.................................... 133 4 0 1 0 0 5
2010.................................... 181 2 0 1 0 0 3
2011.................................... 195 2 0 1 0 1 4
2012.................................... 186 2 0 0 0 0 2
2013.................................... 268 1 0 1 0 0 2
2014.................................... 277 0 0 2 0 1 3
2015.................................... 277 0 0 0 0 0 0
2016.................................... 313 0 0 0 0 3 3
2017.................................... 357 0 0 0 2 0 2
2018.................................... 339 0 0 0 1 1 2
2019.................................... 384 1 0 0 0 1 2
2020.................................... 375 0 0 0 0 0 0
2021.................................... 354 0 0 0 0 0 0
---------------------------------------------------------------------------------------------------------------
Total............................... 4,709 21 0 49 3 7 80
--------------------------------------------------------------------------------------------------------------------------------------------------------
The costs resulting from the rule include one-time costs and
recurring costs. The one-time costs consist of time needed for
universities and affected students to read and understand the rule and
time for students to learn about, decide, and complete paperwork to
have the scholarship treated as a Direct Unsubsidized Loan if
scholarship repayment is required. The recurring costs consist of the
time needed by the university and the student to complete any
additional paperwork or tasks associated with the repayment of such a
loan.
SFS scholars (students), SFS institutions (universities), and three
Federal agencies (NSF, OPM, and Treasury) will benefit from the NPRM.
First, SFS institutions will save their time from responding to SFS
scholars seeking information about their repayment options when they
are not completing the service obligation. This information will be
provided in the rule and in the SFS scholarship agreement, which
specifically includes the option to repay an SFS scholarship by having
it treated as a Direct Unsubsidized Loan. The estimated saving will be
20 hours per year. The total estimated saving will be $24,000 if the
estimated number of cases is 20 per year with $60 per hour as a wage
rate.\21\ Second, SFS scholars who do not fulfill their obligation by
service will save time from communicating with SFS institutions and OPM
about options before being transferred to Treasury. The estimated time
saving is 30 hours per case per year. The SFS scholars who do not
fulfill their service obligation will be eligible for benefits
available to Direct Unsubsidized Loan borrowers when their repayment
obligation is treated as such a loan. The benefits include: (1)
Entering a six-month grace period prior to entering repayment, and (2)
Eligibility for all the benefits of the Direct Unsubsidized Loan
program. These benefits are not currently available to individuals
whose debts have been referred to Treasury. Three Federal agencies will
save time from handling repayment cases, since the final rule makes
clear that SFS institutions will be able to treat and manage an
individual's repayment obligation as a Direct Unsubsidized Loan,
without referring it to NSF, OPM, or Treasury for collection (or a
request for a waiver or discharge) if the individual is unable or
unwilling to make a lump-sum payment. The estimated time saving for NSF
is 30 hours per case for about 20 cases per year for personnel whose
wage rate is estimated at $84.48 \22\ per hour, based on OPM 2022
salary and wages. The estimated saving for NSF is $50,688. The
estimated time savings for OPM is 15 hours per case for about 20 cases
per year for personnel whose wage rate is estimated at $56.30 per hour,
based on OPM 2022 salary and wages.\23\ Treasury will save time for
handling at least five cases per year because they will not handle
payment agreement or student information, other than cases where the
student is liable for repayment and their case is referred to Treasury
for collection. There remains no direct benefit for or burden upon the
Department of Education.
---------------------------------------------------------------------------
\21\ Computer Science Professor Salary (June 2022)--Zippia
[verbar] Average Computer Science Professor Salaries Hourly And
Annual. SFS institutions remain responsible for notifying
individuals if they become liable for repaying the scholarship and
for collecting such payment with a time period specified by NSF. See
15 U.S.C. 7442(k). That existing burden remains unchanged, although
the collection burden may be reduced if individuals become more
willing to cooperate with the institution on repayment if their
scholarship is treated as a Direct Unsubsidized Loan, rather than
being referred to Treasury for debt collection as under current
practice, when a scholarship cannot be converted to such a loan.
\22\ GS-15 Step 10: Pay & Leave: Salaries & Wages--OPM.gov.
\23\ GS-13 Step 4: Pay & Leave: Salaries & Wages--OPM.gov.
---------------------------------------------------------------------------
Alternatives to this rule could be continuing with the current
practice of an ad-hoc payment plan between the scholarship recipient
and their SFS institutions, or referral of the case to Treasury for
collection if the individual is unwilling or unable to pay in a lump
sum, without treating the repayment amount as a Direct Unsubsidized
Loan. This alternative would not provide the benefits to scholarship
recipients, SFS institutions, and agencies that the rule is intended to
address. Another alternative is to extend the window for individuals to
complete their service
[[Page 50050]]
obligation, which might result in a larger share of SFS scholars
fulfilling their service obligations and avoiding repayment. However,
this action would not eliminate the need to improve the efficiency and
fairness of the process for SFS scholars who do not fulfill their
service obligations, and some SFS scholars might use the extra time to
delay the start or completion of their service obligation, thereby
undercutting the purpose of the program, which was to increase the
cybersecurity workforce as quickly as possible. As a result, we believe
the chosen proposal, which enables individuals who fail to fulfill
their service obligation or who violate other scholarship terms and
conditions to have the scholarship treated as a Direct Unsubsidized
Loan for repayment purposes, to be the most appropriate approach. In
addition, the rule is necessary for NSF to comply with the requirements
of the program statute, as the General Accountability Office has noted
in previously examining the program.
Executive Order 13132, Federalism
Executive Order 13132, Federalism, prohibits an agency from
publishing any rule that has federalism implications if the rule
imposes substantial direct compliance costs on state and local
governments and is not required by statute, or the rule preempts state
law, unless the agency meets the consultation and funding requirements
of section 6 of the Executive order. The final rule, like the proposed
rule, does not have any federalism implications, as described above.
Congressional Review Act
A major rule cannot take effect until 60 days after it is published
in the Federal Register. The final rule is not a major rule under 5
U.S.C. 801.
Paperwork Reduction Act
Notwithstanding any other provision of law, no person is required
to respond to, nor shall any person be subject to a penalty for failure
to comply with, a collection of information subject to the requirements
of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA),
unless that collection of information displays a currently valid Office
of Management and Budget (OMB) Control Number.
As discussed earlier in this document, pursuant to a reimbursable
agreement with NSF, OPM operates a Web portal to administer the
CyberCorps[supreg] SFS program, through which registration and other
required information (including the annual contact and employment
required by the Cybersecurity Enhancement Act and this rule) is
collected from and maintained on scholarship recipients. See OMB
Control No. 3260-0246, Scholarship For Service (SFS) Program internet
Site, <a href="https://omb.report/omb/3206-0246">https://omb.report/omb/3206-0246</a>. In addition, NSF also has OMB
Control Number 3145-0058, National Science Foundation Proposal and
Award Policies and Procedures Guide for information collected from
institutions that seek or receive NSF CyberCorps[supreg] funding
pursuant to a formal NSF solicitation, including information collected
by such institutions on behalf of NSF. See <a href="https://omb.report/omb/3145-0058">https://omb.report/omb/3145-0058</a>.
In its proposed rule, NSF had indicated that it was seeking PRA
clearance for additional information collection activities contained in
the rule. For example, clearance would be required for NSF to use a
standardized form, questionnaire, or other set of identical questions
to collect relevant information from scholarship recipients requesting
the deferral or discharge of their service or repayment obligations
under Sec. 620.4 and Sec. 620.5 of the rule, respectively. Instead,
at this time, scholarship recipients who fail to fulfill the terms of
their scholarship regarding scholarship repayment or conversion, may
elect to submit at request to NSF by sending an email to <a href="/cdn-cgi/l/email-protection#8efde8fdcee0fde8a0e9e1f8"><span class="__cf_email__" data-cfemail="87f4e1f4c7e9f4e1a9e0e8f1">[email protected]</span></a>.
No specific form or format is required. Upon receipt of the request,
NSF may request additional information related to the discharge or
deferral of the obligation, including supporting documentation. As
discussed earlier (see note 10), an authorized representative may make
a request on your behalf if you are deceased or incapacitated. NSF will
acknowledge receipt of your request via the contact information
provided in your request. If you have an attorney, you need to include
in your request an affidavit confirming that you have authorized the
attorney to represent you. If NSF or the SFS program office, in the
future, develops and intends as part of the deferral or discharge
process to use an information collection instrument that is subject to
PRA requirements, additional public comment shall be solicited and OMB
clearance shall be requested, as required by the PRA.
Regulatory Flexibility Act
Pursuant to the Regulatory Flexibility Act of 1980 (5 U.S.C.
605(b)), to the extent, if any, that it applies to this rulemaking (see
``Administrative Procedure Act'' below), NSF certifies that this final
rule is not expected to have a significant economic impact on a
substantial number of small entities. The rule applies to individual
scholarship recipients who, by definition, do not constitute ``small
entities'' (e.g., businesses).
Unfunded Mandates
For purposes of Title II of the Unfunded Mandates Reform Act of
1995, 2 U.S.C. 1531-1538, as well as Executive Order 12875, this
regulatory action does not contain any Federal mandate that may result
in increased expenditures in either Federal, state, local, or tribal
governments in the aggregate, or impose an annual burden exceeding $100
million on the private sector.
Administrative Procedure Act
As noted earlier, the amendments reflected in the final rule are
technical, in the nature of clarifications and corrections, to conform
the rule to the language and authority of Cybersecurity Enhancement
Act, as needed, or to further explain the meaning or effect of the
rule. They do not alter the proposed intent or operation of the rule.
Furthermore, to the extent that this rule involves a matter relating to
loans, grants, benefits, or contracts, it is exempt from notice-and-
comment requirements. See Administrative Procedure Act (APA), 5 U.S.C.
553(a)(2). In accordance with the APA, this rule shall be final and
effective 30 days following its publication in the Federal Register.
See 5 U.S.C. 553(d) (publication of a substantive rule shall not be
less than 30 days before its effective date).
Executive Order 12866
Executive Order 12866 directs 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). See ``Regulatory Analysis''
section earlier in this document. In accordance with the provisions of
Executive Order 12866, this rule was reviewed by the Office of
Management and Budget as a significant rule. See supra note 20.
List of Subjects in 45 CFR Part 620
Administrative practice and procedure; Colleges and universities;
Grant programs; Reporting and recordkeeping; Scholarships and
fellowships.
0
For the reasons stated above, NSF adds part 620 to 45 CFR chapter VI,
to read as follows:
[[Page 50051]]
PART 620--CYBERCORPS[supreg] SCHOLARSHIP FOR SERVICE (SFS) PROGRAM
Sec.
620.1 Scope and purpose.
620.2 Definitions.
620.3 Documenting the service obligation.
620.4 Deferral of service obligation.
620.5 Discharge of agreement to serve or repay.
620.6 Obligation to repay the CyberCorps SFS scholarship.
620.7 Severability.
Authority: 15 U.S.C. 7442; 42 U.S.C. 1870.
Sec. 620.1 Scope and purpose.
The CyberCorps SFS Scholarship for Service (SFS) program provides
funds to institutions of higher education that award scholarships to
students who agree to work after graduation in the cybersecurity
mission of a Federal executive agency, Congress (including any agency,
entity, office, or commission established in the legislative branch),
an interstate agency, a state, local or Tribal government or
government-affiliated non-profit considered to be critical
infrastructure, or as an educator in the field of cybersecurity at a
qualified institution of higher education, as defined in 15 U.S.C.
7442(b)(3)(B). The employment will be for a period equal to the
duration of the scholarship and to be started within 18 months and to
be completed within five years of entering the Commitment Phase of the
SFS program. Failure to satisfy the academic requirements of the
program or to complete the service obligation results in forfeiture of
the scholarship award, which must either be repaid or shall be treated
as a Direct Unsubsidized Loan subject to repayment under the terms and
conditions described in Sec. 620.6 of this part.
Sec. 620.2 Definitions.
Agreement to serve or repay means an agreement under which the
individual receiving a CyberCorps SFS scholarship commits to meet the
service requirement or to repay the scholarship or the loan as
described in Sec. 620.6, and to comply with notification and other
provisions of the agreement and these rules.
Commitment Phase means the period, immediately following the date
on which the Scholarship Phase ends, within which SFS recipients must
complete their service obligation (employment). The SFS recipient must
begin such employment within 18 months and it must be completed,
including submission of all required verifiable employment
documentation, within 5 years from the date that the Commitment Phase
begins. The Commitment Phase is limited to a maximum of five years,
unless extended by the Director under Sec. 620.4 of this part.
CyberCorps SFS scholarship recipient (scholarship recipient) means
a student who is selected by an SFS institution for a CyberCorps SFS
scholarship and agrees to work after graduation in the cybersecurity
mission of a Federal executive agency, Congress (including any agency,
entity, office, or commission established in the legislative branch),
an interstate agency, a state, local or Tribal government or
government-affiliated non-profit considered to be critical
infrastructure (as defined in 42 U.S.C. 5195c(e)), or as an educator in
the field of cybersecurity at a qualified institution of higher
education (as defined in 15 U.S.C. 7442(b)(3)(B)).
Deferral means an approved extension of the Commitment Phase.
Director means the Director of the National Science Foundation
(NSF) or an NSF official or employee acting for the Director under a
delegation of authority.
Scholarship Phase means a period when scholarship recipients are
enrolled full-time (or, if enrolled in community college, at least
half-time) in an approved SFS academic program in cybersecurity.
Service obligation means the time period the recipient is required
to work in the cybersecurity mission of a Federal executive agency,
Congress (including any agency, entity, office, or commission
established in the legislative branch), an interstate agency, a state,
local or Tribal government or government-affiliated non-profit
considered to be critical infrastructure (as defined in 42 U.S.C.
5195c(e)), or as an educator in the field of cybersecurity at a
qualified institution of higher education (as defined in 15 U.S.C.
7442(b)(3)(B)). The recipient must also obtain prior approval of such
employment from the SFS program office. Under this definition, as
applied to employment in the cybersecurity mission of a Federal
executive agency, creditable service includes periods of employment in
paid duty status and excludes periods in unpaid nonduty status.
SFS institution means a higher education institution that receives
an SFS grant from NSF to recruit, train, and graduate scholarship
recipients.
SFS program office means an office managing the SFS program through
partnership between NSF and the Office of Personnel Management (OPM).
Sec. 620.3 Documenting the service obligation.
To demonstrate that a scholarship recipient is performing service
in accordance with the agreement to serve or repay, the scholarship
recipient must, within 30 days of the beginning of the service and upon
completion of each year of such service, provide to the SFS program
office documentation of that service in a form and manner approved by
the SFS program office with all required information, including up-to-
date contact information, and certifications. The scholarship recipient
must also provide the recipient's SFS institution with this annual
verifiable documentation of post-award employment and up-to-date
contact information.
Sec. 620.4 Deferral of service obligation.
(a) A scholarship recipient whose CyberCorps SFS Scholarship Phase
has ended may request, from the Director, a deferral of the five-year
Commitment Phase for completion of the service obligation based on--
(1) Enrollment in a program of study or engagement in approved
professional activity that would contribute to further professional
development and/or cybersecurity workforce readiness for the
scholarship recipient;
(2) A condition that is a qualifying reason for leave under the
Family and Medical Leave Act (FMLA);
(3) A call to order to Federal or state active duty or active
service as a member of a Reserve Component of the Armed Forces named in
10 U.S.C. 10101, or service as a member of the National Guard on full-
time National Guard duty, as defined in 10 U.S.C. 101(d)(5); or
(4) Other exceptional circumstances significantly affecting the
scholarship recipient's ability to serve as determined by the Director.
(b) A scholarship recipient must apply for a deferral, by
submitting a written request via the SFS program office, before the
scholarship recipient's Commitment Phase has expired.
(c) A scholarship recipient who applies for deferral must provide
documentation supporting the request as well as current contact
information including home address, email address, and telephone
number.
(d) The Director, or other official designated by the Director,
will notify the scholarship recipient on the outcome of the application
for deferral. If the deferral is denied, the scholarship recipient may
submit a written request for reconsideration to the SFS program office.
The request must be received no later than 30 calendar days after NSF
[[Page 50052]]
sent notice of the denial to the recipient. The request must explain
why the recipient believes the denial is based on an error or mistake
of fact or law, or if there are any new facts or law that should be
considered. The Director's determination on the request shall be final,
with no further reconsideration.
Sec. 620.5 Discharge of agreement to serve or repay.
(a) Discharge conditions. The Director may provide for the partial
or total waiver or suspension of any service or repayment obligation by
a scholarship recipient under the SFS program, including but not
limited to the following circumstances:
(1) Death. If a scholarship recipient dies, the Director discharges
the obligation to complete the agreement to serve or repay based on a
certified copy of the death certificate or verification of the
scholarship recipient's death through an authoritative Federal or state
electronic database approved for use by the Director.
(2) Total and permanent disability. A scholarship recipient's
agreement to serve or repay is discharged if the scholarship recipient
becomes totally and permanently disabled. This is the condition of an
individual who:
(i) Is unable to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment
that--
(A) Can be expected to result in death;
(B) Has lasted for a continuous period of not less than 60 months;
or
(C) Can be expected to last for a continuous period of not less
than 60 months; or
(ii) Has been determined by the Secretary of Veterans Affairs to be
unemployable due to a service-connected disability.
(3) Extreme hardship. Whenever compliance by the scholarship
recipient with the obligation is impossible or would involve extreme
hardship to the scholarship recipient, or if enforcement of such
obligation with respect to the scholarship recipient would be
unconscionable. Extreme hardship could include but is not limited to
financial or economic burden, medical situations, or other situations
as determined by the Director of NSF.
(b) Written request. (1) A scholarship recipient must submit a
written application to the SFS program office, requesting a discharge
from the Director of NSF in accordance with this section. Requests to
discharge and refund amounts already repaid or referred to Treasury
will not be considered or granted.
(2) A scholarship recipient who applies for discharge must provide
the Director with documentation supporting the request as well as
current contact information including home address, email address, and
telephone number.
(3) The Director, or other official designated by the Director,
will notify the scholarship recipient on the outcome of the application
for discharge. If the discharge is denied, the scholarship recipient
may submit a written request for reconsideration to the SFS program
office. The request must be received no later than 30 calendar days
after NSF sent notice of the denial to the recipient. The request must
explain why the recipient believes the denial is based on an error or
mistake of fact or law, or if there are any new facts or law that
should be considered. The Director's determination on the request shall
be final, with no further reconsideration.
Sec. 620.6 Obligation to repay the CyberCorps SFS scholarship.
(a) A scholarship recipient who fails to complete the service
obligation, as evidenced by documentation of that service with all
required information and certifications, or fails to comply with any
other conditions of support set forth in 15 U.S.C. 7442(g), must repay
the scholarship to the United States in an amount calculated in
accordance with 15 U.S.C. 7442(i).
(b) If not repaid, the CyberCorps SFS scholarship amounts paid to
the scholarship recipient, together with interest accruing from the
date of the scholarship award, at the interest rate determined under 20
U.S.C. 1087e, shall be treated as a Direct Unsubsidized Loan, without
regard to any annual or aggregate loan limits under 34 CFR 685.203, and
subject to the repayment terms and conditions set forth in paragraph
(g) of this section, unless the scholarship recipient submits required
documentation to prove the qualified employment within the timeframe
required by the agreement to serve or repay (or, if the recipient has
violated any other conditions of support, verifiable documentation
demonstrating that the recipient has not violated such conditions).
(c) The scholarship recipient remains liable for any amounts
calculated in accordance with paragraph (a) that are not repaid,
including any amounts treated a Direct Unsubsidized Loan as described
in paragraph (b) of this section. Such amounts, if not repaid, shall be
referred to the United States Department of the Treasury for
collection, and, if the individual defaults on the loan, shall also
include reasonable collection fees and costs (plus court costs and
attorney fees, if any).
(d) During the Commitment Phase, approximately 90 days before the
date that the scholarship recipient must begin performing the service
obligation (employment) and approximately 90 days before the Commitment
Phase is scheduled to expire, the scholarship recipient will be
notified of the date by which they must submit verifiable documentation
showing that they are satisfying the service obligation.
(e) At least annually during the service obligation period, the
scholarship recipient shall be notified of--
(1) The terms and conditions that the scholarship recipient must
meet to satisfy the service obligation;
(2) The requirement for the scholarship recipient to provide to the
SFS program office, upon completion of each of the required service
year, verifiable documentation of that service in a form and manner
approved by that office and the need for scholarship recipients to keep
copies of this information and copies of their own employment
documentation; and
(3) The conditions under which the scholarship recipient may
request a deferral of the period for completing the service obligation
or the discharge of the service obligation.
(f) A scholarship recipient remains obligated to meet all
requirements of the service obligation, even if the recipient does not
receive the notices described in paragraphs (d) and (e) of this
section.
(g) A scholarship recipient whose CyberCorps SFS scholarship is
treated as a Direct Unsubsidized Loan--
(1) Enters a six-month grace period prior to entering repayment,
and
(2) Is eligible for all other benefits of and subject to all other
terms and conditions of the Direct Unsubsidized Loan Program.
(h) If a scholarship recipient's repayment obligation is treated as
a Direct Unsubsidized Loan under this part, the loan may not be
converted back to a CyberCorps SFS scholarship if it has been referred
to the United States Department of the Treasury for collection.
Sec. 620.7 Severability.
If any provision of this part or its application to any person,
act, or practice is held invalid, the remainder of the part or the
application of its provisions to any person, act, or practice shall not
be affected thereby.
[[Page 50053]]
Dated: July 24, 2023.
Suzanne H. Plimpton,
Reports Clearance Officer, National Science Foundation.
[FR Doc. 2023-16009 Filed 7-31-23; 8:45 am]
BILLING CODE 7555-01-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.