Division D—National Service Trust and Provision of Educational Awards
Editorial Notes
Codification
Subtitle D of title I of
§12601. Establishment of the National Service Trust
(a) Establishment
There is established in the Treasury of the United States an account to be known as the National Service Trust. The Trust shall consist of—
(1) from the amounts appropriated to the Corporation and made available to carry out this division, such amounts as the Corporation may designate to be available for the payment of—
(A) national service educational awards, summer of service educational awards, and silver scholar educational awards; and
(B) interest expenses pursuant to
(2) any amounts received by the Corporation as gifts, bequests, devises, or otherwise pursuant to
(3) any amounts recovered by the Corporation pursuant to
(4) the interest on, and proceeds from the sale or redemption of, any obligations held by the Trust.
(b) Investment of Trust
It shall be the duty of the Secretary of the Treasury to invest in full the amounts appropriated to the Trust. Except as otherwise expressly provided in instruments concerning a gift, bequest, devise, or other donation and agreed to by the Corporation, such investments may be made only in interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States. For such purpose, such obligations may be acquired on original issue at the issue price or by purchase of outstanding obligations at the market price. Any obligation acquired by the Trust may be sold by the Secretary at the market price.
(c) Expenditures from Trust
Amounts in the Trust shall be available, to the extent provided for in advance by appropriation, for—
(1) payments of national service educational awards, summer of service educational awards, and silver scholar educational awards in accordance with
(2) payments of interest in accordance with
(d) Reports to the authorizing committees on receipts and expenditures
Not later than March 1 of each year, the Corporation shall submit a report to the authorizing committees on the financial status of the Trust during the preceding fiscal year. Such report shall—
(1) specify the amount deposited to the Trust from the most recent appropriation to the Corporation, the amount received by the Corporation as gifts, bequests, devises, or otherwise pursuant to
(2) identify the number of individuals who are currently performing service to qualify, or have qualified, for national service educational awards, summer of service educational awards, or silver scholar awards;
(3) identify the number of individuals whose expectation to receive national service educational awards, summer of service educational awards, or silver scholar awards during the period covered by the report—
(A) has been reduced pursuant to
(B) has lapsed pursuant to
(4) estimate the number of additional approved national service positions, additional approved summer of service positions, and additional approved silver scholar positions that the Corporation will be able to make available on the basis of any accumulated surplus in the Trust above the amount required to provide national service educational awards, summer of service educational awards, or silver scholar awards to individuals identified under paragraph (2), including any amounts available as a result of the circumstances referred to in paragraph (3).
(
Editorial Notes
Prior Provisions
A prior section 12601,
A prior section 145 of
Amendments
2009—Subsec. (a)(1).
Subsec. (a)(1)(A).
Subsec. (a)(2).
Subsec. (a)(3), (4).
Subsec. (c).
Subsec. (d).
Subsec. (d)(2), (3).
Subsec. (d)(4).
Statutory Notes and Related Subsidiaries
Effective Date of 2009 Amendment
Amendment by
Effective Date
Section effective Oct. 1, 1993, see section 123 of
Segal AmeriCorps Education Award
§12601a. Transfer of funds; notice to Congress
For fiscal year 2009 and thereafter, in addition to amounts otherwise provided to the National Service Trust, at no later than the end of the fifth fiscal year after the fiscal year for which funds are appropriated or otherwise made available, unobligated balances of appropriations available for grants under the National Service Trust Program under subtitle C of title I of the 1990 Act [
(
Editorial Notes
References in Text
The 1990 Act, referred to in text, is
Codification
Section was enacted as part of the appropriation act cited as the credit to this section, and not as part of the National and Community Service Act of 1990 which comprises this chapter.
Statutory Notes and Related Subsidiaries
Similar Provisions
Similar provisions were contained in the following prior appropriation act:
§12602. Individuals eligible to receive an educational award from the Trust
(a) Eligible individuals
An individual shall receive a national service educational award, summer of service educational award, or silver scholar educational award from the National Service Trust if the organization responsible for the individual's supervision in a national service program certifies that the individual—
(1) met the applicable eligibility requirements for the approved national service position, approved silver scholar position, or approved summer of service position, as appropriate, in which the individual served;
(2)(A) for a full-time or part-time national service educational award, successfully completed the required term of service described in subsection (b)(1) in the approved national service position;
(B) for a partial educational award in accordance with
(i) satisfactorily performed prior to being granted a release for compelling personal circumstances under such section; and
(ii) completed at least 15 percent of the required term of service described in subsection (b) for the approved national service position;
(C) for a summer of service educational award, successfully completed the required term of service described in subsection (b)(2) in an approved summer of service position, as certified through a process determined by the Corporation through regulations consistent with
(D) for a silver scholar educational award, successfully completed the required term of service described in subsection (b)(3) in an approved silver scholar position, as certified through a process determined by the Corporation through regulations consistent with
(3) is a citizen or national of the United States or lawful permanent resident alien of the United States.
(b) Term of service
(1) Approved national service position
The term of service for an approved national service position shall not be less than the full- or part-time term of service specified in
(2) Approved summer of service position
The term of service for an approved summer of service position shall not be less than 100 hours of service during the summer months.
(3) Approved silver scholar position
The term of service for an approved silver scholar position shall be not less than 350 hours during a 1-year period.
(c) Limitation on receipt of national service educational awards
An individual may not receive, through national service educational awards and silver scholar educational awards, more than an amount equal to the aggregate value of 2 such awards for full-time service. The value of summer of service educational awards that an individual receives shall have no effect on the aggregate value of the national service educational awards the individual may receive.
(d) Time for use of educational award
(1) In general
Subject to paragraph (2), an individual eligible to receive a national service educational award or a silver scholar educational award under this section may not use such award after the end of the 7-year period beginning on the date the individual completes the term of service in an approved national service position or an approved silver scholar position, as applicable, that is the basis of the award. Subject to paragraph (2), an individual eligible to receive a summer of service educational award under this section may not use such award after the end of the 10-year period beginning on the date the individual completes the term of service in an approved summer of service position that is the basis of the award.
(2) Exception
The Corporation may extend the period within which an individual may use a national service educational award, summer of service educational award, or silver scholar educational award if the Corporation determines that the individual—
(A) was unavoidably prevented from using the national service educational award, summer of service educational award, or silver scholar educational award during the original 7-year period, or 10-year period, as appropriate; or
(B) performed another term of service in an approved national service position, approved summer of service position, or approved silver scholar position during that period.
(3) Term for transferred educational awards
For purposes of applying paragraphs (1) and (2)(A) to an individual who is eligible to receive an educational award as a designated individual (as defined in
(e) Suspension of eligibility for drug-related offenses
(1) In general
An individual who, after qualifying under this section or under
| If convicted of: | |
| The possession of a controlled substance: | Ineligibility period is: |
| 1st conviction | 1 year |
| 2nd conviction | 2 years |
| 3rd conviction | indefinite |
| The sale of a controlled substance: | |
| 1st conviction | 2 years |
| 2nd conviction | indefinite |
(2) Rehabilitation
An individual whose eligibility has been suspended under paragraph (1) shall resume eligibility before the end of the period determined under such paragraph if the individual satisfactorily completes a drug rehabilitation program that complies with such criteria as the Corporation shall prescribe for purposes of this paragraph.
(3) First convictions
An individual whose eligibility has been suspended under paragraph (1) and is convicted of a first offense may resume eligibility before the end of the period determined under such paragraph if the individual demonstrates that he or she has enrolled or been accepted for enrollment in a drug rehabilitation program described in paragraph (2).
(4) "Controlled substance" defined
As used in this subsection, the term "controlled substance" has the meaning given in
(5) Effective date
This subsection shall be effective upon publication by the Corporation in the Federal Register of criteria prescribed under paragraph (2).
(f) Authority to establish demonstration programs
The Corporation may establish by regulation demonstration programs for the creation and evaluation of innovative volunteer and community service programs.
(
Editorial Notes
Prior Provisions
A prior section 12602,
A prior section 146 of
Amendments
2009—
Subsec. (a).
Subsec. (a)(1), (2).
"(1) successfully completes the required term of service described in subsection (b) of this section in an approved national service position;
"(2) was 17 years of age or older at the time the individual began serving in the approved national service position or was an out-of-school youth serving in an approved national service position with a youth corps program described in
Subsec. (a)(3), (4).
"(A) has received a high school diploma, or the equivalent of such diploma;
"(B) is enrolled at an institution of higher education on the basis of meeting the standard described in paragraph (1) or (2) of subsection (a) of
"(C) has received a waiver described in
Subsec. (b).
Subsec. (c).
Subsec. (d)(1).
Subsec. (d)(2).
Subsec. (d)(2)(A).
Subsec. (d)(2)(B).
Subsec. (d)(3).
Subsec. (e)(1).
1994—Subsec. (a)(3).
Statutory Notes and Related Subsidiaries
Effective Date of 2009 Amendment
Amendment by
Effective Date
Section effective Oct. 1, 1993, see section 123 of
Study To Evaluate the Effectiveness of Agency Coordination
"(a)
"(1) review the feasibility of—
"(A) expanding, and participating in, the data matching conducted by the Department of Education with the Social Security Administration and the Department of Homeland Security, pursuant to section 484(g) of the Higher Education Act of 1965 (
"(B) establishing a comparable system of data matching with the Social Security Administration and the Department of Homeland Security; and
"(2) identify—
"(A) the costs, for both the Corporation and the other Federal agencies identified in paragraph (1), associated with expanding or establishing such a system of data matching;
"(B) the benefits or detriments of such an expanded or comparable system both for the Corporation and for the other Federal agencies so identified;
"(C) strategies for ensuring the privacy and security of participant information that is shared between Federal agencies and organizations receiving assistance under the national service laws;
"(D) the information that needs to be shared in order to fulfill the eligibility requirements of section 146(a)(3) of the National and Community Service Act of 1990 (
"(E) an alternative system through which an individual's compliance with section 146(a)(3) of such Act may be verified, should such an expanded or comparable system fail to verify the individual's declaration of compliance; and
"(F) recommendations for implementation of such an expanded or comparable system.
"(b)
"(c)
"(d)
"(e)
§12602a. Certifications of successful completion of terms of service
(a) Certifications
In making any authorized disbursement from the National Service Trust in regard to an eligible individual (including disbursement for a designated individual, as defined in
(b) Effect of erroneous certifications
If the Corporation determines that the certification under subsection (a) is erroneous or incorrect, the Corporation shall assess against the national service program a charge for the amount of any associated payment or potential payment from the National Service Trust. In assessing the amount of the charge, the Corporation shall consider the full facts and circumstances surrounding the erroneous or incorrect certification.
(
Statutory Notes and Related Subsidiaries
Effective Date
Section effective Oct. 1, 2009, see section 6101(a) of
§12603. Determination of the amount of the educational award
(a) Amount for full-time national service
Except as provided in subsection (c), an individual described in
(b) Amount for part-time national service
Except as provided in subsection (c), an individual described in
(c) Award for partial completion of service
If an individual serving in an approved national service position is released in accordance with
(d) Amount for summer of service
An individual described in
(e) Amount for silver scholars
An individual described in
(
Editorial Notes
Prior Provisions
A prior section 147 of
Amendments
2009—
Subsec. (a).
"(1) one-half of an amount equal to the aggregate basic educational assistance allowance provided in
"(2) one-half of the aggregate basic contribution required to be made by the member in section 3011(b) of such title (as in effect on July 28, 1993)."
Subsec. (b).
Subsecs. (d), (e).
Statutory Notes and Related Subsidiaries
Effective Date of 2009 Amendment
Amendment by
Effective Date
Section effective Oct. 1, 1993, see section 123 of
§12604. Disbursement of educational awards
(a) In general
Amounts in the Trust shall be available—
(1) to repay student loans in accordance with subsection (b);
(2) to pay all or part of the cost of attendance or other educational expenses at an institution of higher education in accordance with subsection (c);
(3) to pay expenses incurred in participating in an approved school-to-work program in accordance with subsection (d);
(4) to pay expenses incurred in enrolling in an educational institution or training establishment that is approved under
(5) to pay interest expenses in accordance with regulations prescribed pursuant to subsection (e).
(b) Use of educational award to repay outstanding student loans
(1) Application by eligible individuals
An eligible individual under
(A) identifies, or permits the Corporation to identify readily, the holder or holders of such loans;
(B) indicates, or permits the Corporation to determine readily, the amounts of principal and interest outstanding on the loans;
(C) specifies, if the outstanding balance is greater than the amount disbursed under paragraph (2), which of the loans the individual prefers to be paid by the Corporation; and
(D) contains or is accompanied by such other information as the Corporation may require.
(2) Disbursement of repayments
Upon receipt of an application from an eligible individual of an application that complies with paragraph (1), the Corporation shall, as promptly as practicable consistent with paragraph (5), disburse the amount of the national service educational award, the summer of service educational award, or the silver scholar educational award, as applicable, that the eligible individual has earned. Such disbursement shall be made by check or other means that is payable to the holder of the loan and requires the endorsement or other certification by the eligible individual.
(3) Application of disbursed amounts
If the amount disbursed under paragraph (2) is less than the principal and accrued interest on any qualified student loan, such amount shall be applied according to the specified priorities of the individual.
(4) Reports by holders
Any holder receiving a loan payment pursuant to this subsection shall submit to the Corporation such information as the Corporation may require to verify that such payment was applied in accordance with this subsection and any regulations prescribed to carry out this subsection.
(5) Notification of individual
The Corporation upon disbursing the national service educational award, the summer of service educational award, or the silver scholar educational award, as applicable, shall notify the individual of the amount paid for each outstanding loan and the date of payment.
(6) Authority to aggregate payments
The Corporation may, by regulation, provide for the aggregation of payments to holders under this subsection.
(7) "Qualified student loans" defined
As used in this subsection, the term "qualified student loans" means—
(A) any loan made, insured, or guaranteed pursuant to title IV of the Higher Education Act of 1965 (
(B) any loan made pursuant to title VII or VIII of the Public Health Service Act [
(C) any loan (other than a loan described in subparagraph (A) or (B)) determined by an institution of higher education 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 (
(ii) the direct student loan program under part D of title IV of such Act (
(iii) a State agency; or
(iv) a lender otherwise determined by the Corporation to be eligible to receive disbursements from the National Service Trust.
(8) "Holder" defined
As used in this subsection, the term "holder" with respect to any eligible loan means the original lender or, if the loan is subsequently sold, transferred, or assigned to some other person, and such other person acquires a legally enforceable right to receive payments from the borrower, such other person.
(c) Use of educational awards to pay current educational expenses
(1) Application by eligible individual
An eligible individual under
(2) Submission of requests for payment by institutions
An institution of higher education that receives one or more applications that comply with paragraph (1) shall submit to the Corporation a statement, in a manner prescribed by the Corporation, that—
(A) identifies each eligible individual filing an application under paragraph (1) for a disbursement of the individual's national service educational award, summer of service educational award, or silver scholar educational award, as applicable, under this subsection;
(B) specifies the amounts for which such eligible individuals are, consistent with paragraph (6), qualified for disbursement under this subsection;
(C) certifies that—
(i) the institution of higher education has in effect a program participation agreement under section 487 of the Higher Education Act of 1965 (
(ii) the institution's eligibility to participate in any of the programs under title IV of such Act (
(iii) individuals using national service educational awards, summer of service educational awards, or silver scholar educational awards, as applicable, received under this division to pay for educational costs do not comprise more than 15 percent of the total student population of the institution; and
(D) contains such provisions concerning financial compliance as the Corporation may require.
(3) Disbursement of payments
Upon receipt of a statement from an institution of higher education that complies with paragraph (2), the Corporation shall, subject to paragraph (4), disburse the total amount of the national service educational awards 1 summer of service educational awards, or silver scholar educational awards for which eligible individuals who have submitted applications to that institution under paragraph (1) are scheduled to receive. Such disbursement shall be made by check or other means that is payable to the institution and requires the endorsement or other certification by the eligible individual.
(4) Multiple disbursements required
The total amount required to be disbursed to an institution of higher education under paragraph (3) for any period of enrollment shall be disbursed by the Corporation in 2 or more installments, none of which exceeds ½ of such total amount. The interval between the first and second such installment shall not be less than ½ of such period of enrollment, except as necessary to permit the second installment to be paid at the beginning of the second semester, quarter, or similar division of such period of enrollment.
(5) Refund rules
The Corporation shall, by regulation, provide for the refund to the Corporation (and the crediting to the national service educational award, summer of service educational award, or silver scholar educational award, as applicable, of an eligible individual) of amounts disbursed to institutions for the benefit of eligible individuals who withdraw or otherwise fail to complete the period of enrollment for which the assistance was provided. Such regulations shall be consistent with the fair and equitable refund policies required of institutions pursuant to section 484B of the Higher Education Act of 1965 (
(6) Maximum award
The portion of an eligible individual's total available national service educational award, summer of service educational award, or silver scholar educational award that may be disbursed under this subsection for any period of enrollment shall not exceed the difference between—
(A) the eligible individual's cost of attendance and other educational expenses for such period of enrollment, determined in accordance with section 472 of the Higher Education Act of 1965 (
(B) the student's estimated financial assistance for such period under part A of title IV of such Act (
(d) Use of educational award to participate in approved school-to-work programs
The Corporation shall by regulation provide for the payment of national service educational awards, summer of service educational awards, and silver scholar educational awards to permit eligible individuals to participate in school-to-work programs approved by the Secretaries of Labor and Education.
(e) Interest payments during forbearance on loan repayment
The Corporation shall provide by regulation for the payment on behalf of an eligible individual of interest that accrues during a period for which such individual has obtained forbearance in the repayment of a qualified student loan (as defined in subsection (b)(7)), if the eligible individual successfully completes the individual's required term of service (as determined under
(f) Transfer of educational awards
(1) In general
An individual who is eligible to receive a national service educational award or silver scholar educational award due to service in a program described in paragraph (2) may elect to receive the award (in the amount described in the corresponding provision of
(2) Conditions for transfer
An educational award may be transferred under this subsection if—
(A)(i) the award is a national service educational award for service in a national service program that receives a grant under division C; and
(ii) before beginning the term of service involved, the eligible individual is age 55 or older; or
(B) the award is a silver scholarship educational award under
(3) Modification or revocation
(A) In general
An individual transferring an educational award under this subsection may, on any date on which a portion of the educational award remains unused, modify or revoke the transfer of the educational award with respect to that portion.
(B) Notice
A modification or revocation of the transfer of an educational award under this paragraph shall be made by the submission of written notice to the Corporation.
(4) Prohibition on treatment of transferred award as marital property
An educational award transferred under this subsection may not be treated as marital property, or the asset of a marital estate, subject to division in a divorce or other civil proceeding.
(5) Death of transferor
The death of an individual transferring an educational award under this subsection shall not affect the use of the educational award by the child, foster child, or grandchild to whom the educational award is transferred if such educational award is transferred prior to the death of the individual.
(6) Procedures to prevent waste, fraud, or abuse
The Corporation shall establish requirements to prevent waste, fraud, or abuse in connection with the transfer of an educational award and to protect the integrity of the educational award under this subsection.
(7) Technical assistance
The Corporation may, as appropriate, provide technical assistance, to individuals and eligible entities carrying out national service programs, concerning carrying out this subsection.
(8) Definition of a designated individual
In this subsection, the term "designated individual" is an individual—
(A) whom an individual who is eligible to receive a national service educational award or silver scholar educational award due to service in a program described in paragraph (2) designates to receive the educational award;
(B) who meets the eligibility requirements of paragraphs (3) and (4) of
(C) who is a child, foster child, or grandchild of the individual described in subparagraph (A).
(g) Exception
With the approval of the Chief Executive Officer, an approved national service program funded under
(h) "Institution of higher education" defined
Notwithstanding
(
Editorial Notes
References in Text
The Higher Education Act of 1965, referred to in subsecs. (b)(7)(A), (C)(ii) and (c)(2)(C)(ii), (6)(B), is
The Public Health Service Act, referred to in subsec. (b)(7)(B), is act July 1, 1944, ch. 373,
Prior Provisions
A prior section 148 of
Amendments
2009—
Subsec. (a)(2) to (5).
Subsec. (b)(1).
Subsec. (b)(2).
Subsec. (b)(5).
Subsec. (b)(7)(C).
Subsec. (c)(1).
Subsec. (c)(2)(A).
Subsec. (c)(2)(C)(iii).
Subsec. (c)(3).
Subsec. (c)(5).
Subsec. (c)(6).
Subsec. (c)(6)(A).
Subsec. (c)(6)(B).
"(i) the student's estimated financial assistance for such period under part A of title IV of such Act (
"(ii) the student's veterans' education benefits, determined in accordance with section 480(c) of such Act (
Subsec. (d).
Subsec. (e).
Subsec. (f).
Subsecs. (g), (h).
1998—Subsec. (g).
Statutory Notes and Related Subsidiaries
Effective Date of 2009 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by
Effective Date
Section effective Oct. 1, 1993, see section 123 of
1 So in original. Probably should be followed by a comma.
§12605. Repealed. Pub. L. 111–13, title I, §1406(b), Apr. 21, 2009, 123 Stat. 1521
Section,
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal effective Oct. 1, 2009, see section 6101(a) of
§12606. Approval process for approved positions
(a) Timing and recording requirements
(1) In general
Notwithstanding divisions C, D, and H, and any other provision of law, in approving a position as an approved national service position, an approved summer of service position, or an approved silver scholar position, the Corporation—
(A) shall approve the position at the time the Corporation—
(i) enters into an enforceable agreement with an individual participant to serve in a program carried out under division E of this subchapter,
(ii) except as provided in clause (i), awards a grant to (or enters into a contract or cooperative agreement with) an entity to carry out a program for which such a position is approved under
(B) shall record as an obligation an estimate of the net present value of the national service educational award, summer of service educational award, or silver scholar educational award associated with the position, based on a formula that takes into consideration historical rates of enrollment in such a program, and of earning and using national service educational awards, summer of service educational awards, or silver scholar educational awards, as appropriate, for such a program and remain available.
(2) Formula
In determining the formula described in paragraph (1)(B), the Corporation shall consult with the Director of the Congressional Budget Office.
(3) Certification report
The Chief Executive Officer of the Corporation shall annually prepare and submit to the authorizing committees a report that contains a certification that the Corporation is in compliance with the requirements of paragraph (1).
(4) Approval
The requirements of this subsection shall apply to each approved national service position, approved summer of service position, or approved silver scholarship position that the Corporation approves—
(A) during fiscal year 2010; and
(B) during any subsequent fiscal year.
(b) Reserve account
(1) Establishment and contents
(A) Establishment
Notwithstanding divisions C, D, and H, and any other provision of law, within the National Service Trust established under
(B) Contents
To ensure the availability of adequate funds to support the awards of approved national service positions, approved summer of service positions, and approved silver scholar positions, for each fiscal year, the Corporation shall place in the account—
(i) during fiscal year 2010, a portion of the funds that were appropriated for fiscal year 2010 or a previous fiscal year under
(ii) during fiscal year 2011 or a subsequent fiscal year, a portion of the funds that were appropriated for that fiscal year under
(2) Obligation
The Corporation shall not obligate the funds in the reserve account until the Corporation—
(A) determines that the funds will not be needed for the payment of national service educational awards associated with previously approved national service positions, summer of service educational awards associated with previously approved summer of service positions, and silver scholar educational awards associated with previously approved silver scholar positions; or
(B) obligates the funds for the payment of national service educational awards for such previously approved national service positions, summer of service educational awards for such previously approved summer of service positions, or silver scholar educational awards for such previously approved silver scholar positions, as applicable.
(c) Audits
The accounts of the Corporation relating to the appropriated funds for approved national service positions, approved summer of service positions, and approved silver scholar positions, and the records demonstrating the manner in which the Corporation has recorded estimates described in subsection (a)(1)(B) as obligations, shall be audited annually by independent certified public accountants or independent licensed public accountants certified or licensed by a regulatory authority of a State or other political subdivision of the United States in accordance with generally accepted auditing standards. A report containing the results of each such independent audit shall be included in the annual report required by subsection (a)(3).
(d) Availability of amounts
Except as provided in subsection (b), all amounts included in the National Service Trust under paragraphs (1), (2), and (3) of
(
Editorial Notes
References in Text
The Domestic Volunteer Service Act of 1973, referred to in subsecs. (a)(1)(A)(i) and (b)(1)(B)(i), (ii), is
Prior Provisions
A prior section 149 of
Statutory Notes and Related Subsidiaries
Effective Date
Section effective Oct. 1, 2009, see section 6101(a) of