AmeriCorps Education Awards

CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

45 CFR Parts 2522 and 2525

RIN 3045-AA09

AmeriCorps Education Awards

AGENCY: Corporation for National and Community Service.

ACTION: Proposed rule.

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SUMMARY: We propose to amend several provisions relating to the

AmeriCorps education award, including those governing the circumstances

under which an AmeriCorps member may be determined eligible for a pro-

rated education award and the ways in which participants may use the

award.

DATES: The deadline for written comments is January 31, 2000.

ADDRESSES: Comments may be mailed or delivered to Gary Kowalczyk,

Coordinator of National Service Programs, Corporation for National and

Community Service, 1201 New York Avenue NW, Washington, D.C. 20525,

sent by facsimile transmission to (202) 565-2784, or sent

electronically to [email protected]. Copies of all communications

received will be available for review at the Corporation by members of

the public.

FOR FURTHER INFORMATION CONTACT: Gary Kowalczyk, Coordinator of

National Service Programs, Corporation for National and Community

Service, (202) 606-5000, ext. 340. T.D.D. (202) 565-2799. This proposed

rule may be requested in an alternative format for persons with visual

impairments.

SUPPLEMENTARY INFORMATION: Pursuant to the National and Community

Service Act of 1990, as amended (42 U.S.C. 12501 et seq.), the

Corporation for National and Community Service (``the Corporation''),

through the National Service Trust, provides education awards and

qualified student loan interest benefits to AmeriCorps participants who

successfully complete a term of service in an approved national service

position. The AmeriCorps education award may be used to pay for

specified educational costs and to repay certain types of student

loans. In addition, upon a participant's successful completion of a

term of service, the National Service Trust will pay the interest that

accrued during the term on certain types of student loans.

On July 12, 1999 (64 FR 37411), we published final rules governing

the AmeriCorps education award and related interest benefits. This

notice of proposed rulemaking proposes to clarify one provision

regarding eligibility for a pro-rated education award and another

provision concerning the use of the education award to pay current

educational expenses.

Release for Compelling Personal Circumstances

A participant who demonstrates that compelling personal

circumstances make completion of the term of service unreasonably

difficult or impossible may be eligible for a pro-rated education

award. In the final rule published on July 12, 1999, we listed examples

of situations that could be properly classified as compelling personal

circumstances. The proposed rule would eliminate one of the situations

listed as an example of compelling personal circumstances.

Specifically, we propose to rescind our previous determination that

compelling personal circumstances are present when a participant, who

is serving in a program that includes in its approved objectives the

promotion of employment among participants, leaves a term of service to

accept an employment opportunity. We believe that eliminating this

category is

[[Page 67236]]

necessary to promote consistency in the provision of pro-rated

education awards throughout AmeriCorps. Under the proposed rule, a

participant who leaves service for employment is eligible for an

education award only if the participant is a recipient of Temporary

Assistance to Needy Families (TANF) making the transition from welfare

to work.

Definition of Current Educational Expenses

The proposed rule expands the definition of ``current'' educational

expenses to include expenses incurred after an individual enrolls as an

AmeriCorps member. The final rule published on July 12, 1999, covered

expenses incurred only after the completion of service. We believe that

interpreting ``current'' educational expenses to include those incurred

after an AmeriCorps member begins a term of service would avoid

financial hardship for AmeriCorps members who serve while also

attending an institution of higher education.

Executive Order 12866

We have determined that this regulatory action is not a

``significant'' rule within the meaning of Executive Order 12866

because it is not likely to result in: (1) An annual effect on the

economy of $100 million or more, or an adverse and material effect on a

sector of the economy, productivity, competition, jobs, the

environment, public health or safety, or State, local, or tribal

government or communities; (2) the creation of a serious inconsistency

or interference with an action taken or planned by another agency; (3)

a material alteration in the budgetary impacts of entitlement, grants,

user fees, or loan programs or the rights and obligations of recipients

thereof; or (4) the raising of novel legal or policy issues arising out

of legal mandates, the President's priorities, or the principles set

forth in Executive Order 12866.

Regulatory Flexibility Act

We have determined that this regulatory action will not result in

(1) an annual effect on the economy of $100 million or more; (2) a

major increase in costs or prices for consumers, individual industries,

Federal, State, or local government agencies, or geographic regions; or

(3) significant adverse effects on competition, employment, investment,

productivity, innovation, or on the ability of United States-based

enterprises to compete with foreign-based enterprises in domestic and

export markets. Therefore, we have not performed the initial regulatory

flexibility analysis that is required under the Regulatory Flexibility

Act (5 U.S.C. 601 et seq.) for major rules that are expected to have

such results.

Other Impact Analyses

Because the proposed changes do not authorize any information

collection activity outside the scope of existing regulations, this

regulatory action is not subject to review and approval under the

Paperwork Reduction Act of 1995 (44 U.S.C. 3500 et seq.). 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.

List of Subjects

45 CFR Part 2522

AmeriCorps, Grant programs--social programs, Reporting and

recordkeeping requirements, Volunteers.

45 CFR Part 2525

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

For the reasons stated in the preamble, chapter XXV, title 45 of

the Code of Federal Regulations is proposed to be amended as follows:

PART 2522-AMERICORPS PARTICIPANTS, PROGRAMS, AND APPLICANTS

1. The authority citation for part 2522 continues to read as

follows:

Authority: 42 U.S.C. 12501 et seq.

2. Section 2522.230 is amended by revising paragraphs (a)(5) and

(a)(6) to read as follows:

Sec. 2522.230 Under what circumstances may AmeriCorps participants be

released from completing a term of service, and what are the

consequences?

* * * * *

(a) * * *

(5) Compelling personal circumstances include:

(i) Those that are beyond the participant's control, such as, but

not limited to:

(A) A participant's disability or serious illness;

(B) Disability, serious illness, or death of a participant's family

member if this makes completing a term unreasonably difficult or

impossible; or

(C) Conditions attributable to the program or otherwise

unforeseeable and beyond the participant's control, such as a natural

disaster, a strike, relocation of a spouse, or the nonrenewal or

premature closing of a project or program, that make completing a term

unreasonably difficult or impossible;

(ii) Those that the Corporation, has for public policy reasons,

determined as such, including:

(A) Military service obligations; or

(B) Acceptance by a participant of an opportunity to make the

transition from welfare to work.

(6) Compelling personal circumstances do not include leaving a

program:

(i) To enroll in school;

(ii) To obtain employment, other than in moving from welfare to

work; or

(iii) Because of dissatisfaction with the program.

* * * * *

PART 2525-NATIONAL SERVICE TRUST: PURPOSE AND DEFINITIONS

1. The authority citation for part 2525 continues to read as

follows:

Authority: 42 U.S.C. 12601-12604.

2. Section 2525.20 is amended by revising the definition of

``Current educational expenses'' to read as follows:

Sec. 2525.20 Definitions.

* * * * *

Current educational expenses. The term current educational expenses

means the cost of attendance for a period of enrollment in an

institution of higher education that begins after an individual enrolls

in an approved national service position.

* * * * *

Dated: November 23, 1999.

Wendy Zenker,

Chief Operating Officer.

[FR Doc. 99-31009 Filed 11-30-99; 8:45 am]

BILLING CODE 6050-28-U