PART 2525—NATIONAL SERVICE TRUST Authority: 42 U.S.C. 12601-12606 Source: 88 FR 44727, July 13, 2023, unless otherwise noted. Subpart A—Purpose and Definitions § 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. § 2525.2 Definitions. In addition to the definitions in § 2510.20 of this chapter, the following definitions apply to terms used this part: AmeriCorps Cost of attendance Current educational expenses Designated Recipient Economically disadvantaged youth Education award Educational expenses (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. 1087 ll; (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. (3) Expenses incurred participating in a school-to-work program approved by the Secretaries of Labor and Education. Eligible Individual G.I. Bill-approved program et seq. Holder (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 Period of enrollment e.g., Qualified student loan (1) Any loan made, insured, or guaranteed under Title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq. (2) Any loan made under Title VII or VIII of the Public Service Health Act (42 U.S.C. 292a et seq. (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 Summer of Service education award Term of service (1) For an individual serving in an approved AmeriCorps position, one of the terms of service specified in § 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 § 2525.10 When can an Eligible Individual receive an education award from the National Service Trust? (a) General. (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 § 2525.100(b)—as certified under § 2525.15; or (ii) For a pro-rated education award amount described in § 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 § 2522.230(a) of this chapter. (b) Prohibition on duplicate benefits. (c) Penalties for false information. § 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. § 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. (1) Released the Eligible Individual for compelling personal circumstances in accordance with the requirements of § 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. § 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. § 2525.30 How do convictions for the possession or sale of controlled substances affect an Eligible Individual's ability to use their award? (a) Except as provided in paragraph (b) of this section, an Eligible Individual who is convicted under Federal or State law of the possession or sale of a controlled substance is not eligible to use his or her education award from the date of the conviction until the end of a specified time period, which is determined based on the type of conviction as follows: (1) For conviction of the possession of a controlled substance, the individual is ineligible from the date of conviction for— (i) One year for a first conviction; (ii) Two years for a second conviction; and (iii) For a third or subsequent conviction, indefinitely, as determined by AmeriCorps according to the following factors: (A) Type and amount of controlled substance; (B) Whether firearms or other dangerous weapons were involved in the offense; (C) Employment history; (D) Service to the community; (E) Recommendations from community members and local officials, including experts in substance abuse and treatment; and (F) Any other relevant aggravating or ameliorating circumstances. (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. § 2525.40 How long is an education award available for use? Unless AmeriCorps approves an extension under § 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. § 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. § 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 § 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. § 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. § 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. § 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 (3) Explain why the initial determination was erroneous/should be reviewed; and, (4) Include supporting documentation, if applicable. (b) AmeriCorps may grant an appeal when, after review of all the information provided originally and on appeal, it appears that the extension should have been granted. AmeriCorps may ask for additional documentation to inform the appeal determination. (c) Individuals who submit appeals will be notified in writing of the final determination. § 2525.50 Is there a limit on the total amount of education awards an individual may receive? (a) General limitation. (b) Calculation of aggregate value of awards received. (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 § 2525.460. (c) Determination of receipt of award. § 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 § 2525.100(d) upon successful completion of any additional term 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? 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. § 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 § 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 § 2525.100 What is the amount of an education award? (a) Full-time term of service. (b) Less than full-time term of service. i.e., Table 1 to Paragraph ( b For: In an approved Is equal to the following percentage of the amount of an education award for a full-time term of service described in paragraph (a) of this section: Three quarters time term of service (TQT) 1,200 70 percent. Half-time term of service (HT) 900 50 percent. Reduced half-time term of service (RHT) 675 Approximately 39 percent. Quarter-time term of service (QT) 450 Approximately 26 percent. Minimal time and summer associate (MT & SA) 300 Approximately 21 percent. Abbreviated time (AT) 100 5.6 percent. (c) Calculating a pro-rated award following release for compelling personal circumstances. (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. Subpart D—Using an Education Award § 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 § 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. § 2525.220 What steps are necessary to use an education award to repay a qualified student loan? (a) Required information. (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. (c) Aggregate payments. § 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. (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. (c) Installment payments. § 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. § 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. § 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. § 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. (1) An individual's written authorization and request for a specific payment amount; (2) Verification from the individual that they meet the criteria in § 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. § 2525.280 What happens if an individual for whom AmeriCorps has disbursed education award funds withdraws or fails to complete the period of enrollment in a G.I. Bill approved program? (a) If an individual for whom AmeriCorps has disbursed education award funds withdraws or otherwise fails to complete a period of enrollment, the approved educational institution or training establishment that received a disbursement of education award funds from AmeriCorps must provide a pro-rata refund to AmeriCorps of the unused portion of the education award. (b) AmeriCorps will credit any refund received for an individual under paragraph (a) of this section to the individual's education award allocation in the National Service Trust. § 2525.290 What happens to an education award upon divorce or death? (a) Prohibition on treatment of an education award as marital property. (b) Death of Eligible Individual. (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 § 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. (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. (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. (d) Limitation. (e) Suspended service. § 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. § 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 § 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 § 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. § 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 § 2525.210. § 2525.430 What steps are necessary to transfer an education award? (a) Request for transfer. (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 § 2525.410. (b) Notification to Designated Recipient. (1) Notify the Designated Recipient, or their legal guardian, of the proposed transfer; (2) Confirm the Designated Recipient's identity; (3) Confirm that the Designated Recipient is a citizen, national, or lawful permanent resident of the United States; and (4) Give the Designated Recipient the opportunity to accept or reject the proposed transferred education award. (c) Acceptance by Designated Recipient. (d) Timing of transfer. (e) Refusal. (f) Revocation. § 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 § 2525.480, the education award can be transferred to another Designated Recipient, so long as the education award has not yet expired. § 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 § 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. § 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. (b) Impact on Designated Recipient. (c) Result of revocation on education award value. § 2525.470 Is a Designated Recipient required to accept a transferred education award? (a) General rule. (b) Result of rejection in full. (c) Result of rejection in part. (d) Rescission. § 2525.480 Under what circumstances is a transfer revocable? (a) Revocation. (b) Use of award. (c) Re-transfer. § 2525.485 What steps are necessary to revoke a transfer? (a) Request for revocation. (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. (c) Notification to Designated Recipient. (d) Timing of revocation. § 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. (b) Death of transferor. § 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.