94-14594. Rehabilitation Training: Rehabilitation Long-Term Training; Final Rule DEPARTMENT OF EDUCATION  

  • [Federal Register Volume 59, Number 115 (Thursday, June 16, 1994)]
    [Unknown Section]
    [Page 0]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-14594]
    
    
    [[Page Unknown]]
    
    [Federal Register: June 16, 1994]
    
    
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    Part VII
    
    
    
    
    
    Department of Education
    
    
    
    
    
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    34 CFR Part 386
    
    
    
    
    Rehabilitation Training: Rehabilitation Long-Term Training; Final Rule
    DEPARTMENT OF EDUCATION
    
    34 CFR Part 386
    
    RIN 1820-AB21
    
     
    Rehabilitation Training: Rehabilitation Long-Term Training
    
    AGENCY: Department of Education.
    
    ACTION: Final regulations.
    
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    SUMMARY: The Secretary amends the regulations governing grants for 
    long-term training to implement the Rehabilitation Act Amendments of 
    1992 and the Technology-Related Assistance for Individuals With 
    Disabilities Act Amendments of 1994. The Rehabilitation Long-Term 
    Training program is authorized by section 302 of Title III of the 
    Rehabilitation Act of 1973, as amended (the Act). The purpose of this 
    discretionary grant program is to fund projects to provide academic 
    training in areas of personnel shortages identified by the Secretary.
    
    EFFECTIVE DATE: These regulations take effect either 45 days after 
    publication in the Federal Register or later if the Congress takes 
    certain adjournments. If you want to know the effective date of these 
    regulations, call or write the Department of Education contact person. 
    A document announcing the effective date will be published in the 
    Federal Register.
    
    FOR FURTHER INFORMATION CONTACT: Richard Melia, U.S. Department of 
    Education, 400 Maryland Avenue, SW., Room 3324 Switzer Building, 
    Washington, DC 20202-2649. Telephone (202) 205-9400. Individuals who 
    use a telecommunications device for the deaf (TDD) may call the Federal 
    Information Relay Service (FIRS) at 1-800-877-8339 between 8 a.m. and 8 
    p.m., Eastern time, Monday through Friday.
    
    SUPPLEMENTARY INFORMATION: These final regulations implement changes 
    made by the Rehabilitation Act Amendments of 1992 (Pub. L. 102-569) and 
    the Technology-Related Assistance for Individuals With Disabilities Act 
    Amendments of 1994 (Pub. L. 103-218). These amendments direct the 
    Secretary to issue regulations, as appropriate, to carry out the 
    provisions of the Rehabilitation Act of 1973, as amended.
        This program supports the National Education Goal that, by the year 
    2000, every adult American be literate and possess the knowledge and 
    skills necessary to compete in a global economy and exercise the rights 
    and responsibilities of citizenship. The Department supports a variety 
    of training activities for vocational rehabilitation personnel so that 
    they may assist individuals with disabilities in gaining the knowledge 
    and skills to obtain employment and compete in a global economy.
        On October 8, 1993, the Secretary published a notice of proposed 
    rulemaking (NPRM) for the Rehabilitation Long-Term Training program in 
    the Federal Register (58 FR 52606). The major issues related to this 
    program are discussed in the preamble to the NPRM. Significant changes 
    resulting from public comment since publication of the NPRM include--
    (1) A waiver provision for part of the non-Federal share of the cost of 
    a project if an applicant demonstrates that it does not have sufficient 
    resources for the entire match; (2) An exemption for existing projects 
    from the requirement to direct 75 percent of the total award to 
    scholarships; and (3) A broadening of the term ``deaf'' to include 
    individuals who are ``hard of hearing'' and of the term ``blind'' to 
    include individuals who have ``vision impairment.''
        In addition, after the NPRM was published, the Technology-Related 
    Assistance for Individuals With Disabilities Act Amendments of 1994 
    (Pub. L. 103-218) was enacted. Those amendments included a technical 
    change to the Rehabilitation Act of 1973, as amended, in the area of 
    rehabilitation training. That statutory change has been incorporated 
    into these regulations by adding the use, applications, and benefits of 
    assistive technology devices and assistive technology services to the 
    list of areas of personnel shortages identified in Sec. 386.1.
    
    Analysis of Comments and Changes
    
        In response to the Secretary's invitation in the NPRM, 386 parties 
    submitted comments on the proposed regulations. An analysis of the 
    comments and of the changes in the regulations since publication of the 
    NPRM follows.
        Major issues are grouped according to subject, with appropriate 
    sections of the regulations referenced in parentheses. Other 
    substantive issues are discussed under the section of the regulations 
    to which they pertain. Technical and other minor changes are not 
    addressed.
    
    General Comments
    
    Intent of Change in Long-Term Training Regulations
        Comment: A commenter expressed the opinion that since university 
    programs have long been addressed in the long-term category, the change 
    in regulations appears to be intended to eliminate any training that 
    results in less than an academic degree.
        Discussion: Approximately 70 percent of grants under the 
    Rehabilitation Long-Term Training program are currently for academic 
    training. The 30 percent that are non-academic are concentrated in 
    several areas: Administration, prosthetics and orthotics, community 
    rehabilitation personnel, mental illness, independent living, client 
    assistance program, supported employment, and deafness. The intent is 
    not to eliminate any training for less than an academic degree, but to 
    clarify and focus the specific mission of each training authority to 
    improve program management. Regulations that accurately reflect the 
    program purpose of providing academic training in areas of personnel 
    shortages identified by the Secretary permit targeted allocations of 
    funds to specific personnel needs, facilitate pertinent outcome 
    measures, and ensure that administrative requirements relating to 
    proposal evaluations, scholarships, recordkeeping, matching, and 
    reporting are appropriate.
        Changes: None.
    Insufficient Public Input in the Regulations Development Process
        Comments: There were a number of comments stating that the proposed 
    regulations were developed without participation of the rehabilitation 
    field.
        Discussion: The Secretary agrees that open and extensive public 
    participation strengthens the regulations process. In fact, extensive 
    public input was obtained when the Rehabilitation Services 
    Administration (RSA) convened a public meeting on rehabilitation 
    training and published a notice requesting written public comments in 
    May 1991. Comments received provided useful information that was 
    considered in crafting the regulations. Also, training meetings were 
    held throughout the United States in 1993 on the Rehabilitation Act 
    Amendments.
        Changes: None.
    The Department Should Conduct a Needs Assessment Before Enacting New 
    Regulations That Reduce or Eliminate Post-Employment Training for 
    Rehabilitation Personnel
        Comments: Most of the comments calling for needs assessments were 
    from direct service providers who were concerned that the academic 
    program emphasis in the Rehabilitation Long-Term Training program would 
    reduce or eliminate crucial training for current service delivery 
    personnel.
        Discussion: The Department has conducted needs assessments of the 
    training needs of personnel providing vocational rehabilitation 
    services to individuals with disabilities since 1983 and will continue 
    to do so in the future, as the authorizing statute requires it.
        Changes: None.
    Funding Post-Employment Training if Long-Term Training Regulations Are 
    Enacted
        Comments: A number of commenters expressed concern that there 
    appears to be no money to provide post-employment training under 
    training authorities other than long-term training. Commenters 
    requested that, if the Rehabilitation Long-Term Training program is to 
    be substantially changed, new regional networks of community-based 
    continuing education units be established. These units would be similar 
    to the Rehabilitation Continuing Education Programs and would be 
    focused on individuals at the front lines of service delivery. Several 
    commenters suggested that separate regulations could be developed for 
    university and non-university grant recipients.
        Discussion: The Secretary agrees that post-employment training 
    needs of community rehabilitation training providers should be 
    addressed, in part, by a network of regional continuing education 
    programs. The Secretary annually allocates funds to address personnel 
    shortages of qualified rehabilitation personnel. These funds are 
    targeted to address training needs by professional discipline and 
    rehabilitation jobs. The Secretary submits an annual report to the 
    Congress containing and justifying rehabilitation training allocations 
    in detail. The Secretary has authority to allocate funds from the long-
    term training area to continuing education or other short-term or 
    specialized training for post-employment training of community 
    rehabilitation personnel.
        Changes: None.
    
    Specific Comments by Section
    
    The Program Purpose of Rehabilitation Long-Term Training (Secs. 386.1 
    and 386.20(g)(2)
        Comments: A number of commenters supported inclusion of academic 
    training as the primary purpose of the Rehabilitation Long-Term 
    Training program. They stated that the emphasis on academic outcomes is 
    consistent with the requirements of the Rehabilitation Act Amendments 
    of 1992 (1992 Amendments) to the Rehabilitation Act, which stress the 
    use of ``qualified'' personnel. However, a number of other commenters 
    asked about the statutory authority for funding only academic programs 
    and excluding continuing education programs under the Rehabilitation 
    Long-Term Training program. These commenters argued that there is no 
    justification in the Rehabilitation Act for stating that the purpose of 
    RSA's Long-Term Training program is to provide ``academic'' training.
        Discussion: Section 302 of the Rehabilitation Act, as amended, is 
    the statutory basis for the rehabilitation training programs. Except 
    for the in-service training program, which now is included in the Act, 
    the specific rehabilitation training programs, including the 
    Rehabilitation Long-Term Training program, are established in 
    regulations issued by the Secretary based on the statutory authority in 
    section 302. The Secretary establishes programs so that each has a 
    specific mission defined in regulations with appropriate outcome 
    measures. The Secretary believes that the long-term training program 
    should be focused on academic training.
        Changes: None
    Client Assistance Program (CAP) (Sec. 386.1)
        Comments: Several commenters observed that preparation for 
    employment in client assistance programs is not currently offered in 
    academic training settings and that CAP training should continue to be 
    provided under long-term training.
        Discussion: The Secretary agrees that no current academic training 
    exists for preparing individuals to work in client assistance programs 
    and that there is a demonstrated need for continued post-employment 
    training of CAP personnel. Existing CAP training projects will continue 
    to be funded until their current grant periods end. The Secretary plans 
    to invite future applications for CAP training under the provisions in 
    section 302 of the Act and in the general regulations for 
    Rehabilitation Training in 34 CFR part 385. Future CAP training notices 
    will be targeted to specific needs for training and technical 
    assistance and published for public comment before applications are 
    solicited.
        Changes: None.
    Fields of Study Under the Rehabilitation Long-Term Training Program 
    (Sec. 386.1)
        Comments: Several commenters suggested revisions in the listing of 
    fields of study to conform with the listing of fields of study in 
    section 302(b)(1)(B) of the Rehabilitation Act and to include 
    additional, specific fields, such as vision therapy and rehabilitation 
    computer systems.
        Discussion: The listing of fields in the Rehabilitation Act does 
    not provide enough detail. For example, a specific category is needed 
    for the Secretary to target training resources for the preparation of 
    specialized personnel for individuals who are blind or have vision 
    impairment. The list of 30 areas established in regulations builds upon 
    the listing in the Act by using areas that have been included in past 
    long-term training competitions because they are areas where needs 
    assessments show continuing needs. The Secretary has the authority 
    under Sec. 386.1(b)(30) of the regulations to invite applications in 
    other fields, such as vision therapy and rehabilitation computer 
    systems, contributing to the rehabilitation of individuals with 
    disabilities. Also, the Experimental and Innovative Training program 
    (34 CFR part 387) offers opportunities for submittal of proposals to 
    develop new types of training programs for rehabilitation personnel.
        Changes: None.
    Use of the Term ``Blind'' and the Term ``Deaf'' (Sec. 386.1)
        Comments: One commenter suggested that the term ``blind'' be 
    eliminated because it connotes the absence of vision, and the vast 
    majority of individuals who are targeted for rehabilitation under this 
    category have residual vision (i.e., are partially sighted). Another 
    commenter suggested substituting a broader category that would include 
    blind individuals as well as other individuals with visual impairment. 
    One Commenter suggested elimination of the term ``deaf'' as it connotes 
    the absence of hearing, and many individuals served under the 
    Rehabilitation Act have partial hearing loss. The commenter suggested 
    use of a more inclusive phrase, such as persons with hearing loss.
        Discussion: The Secretary agrees that a change is needed in the 
    identification of these categories of training. In the past, the Act 
    included specialized personnel in providing services to individuals who 
    are blind and to individuals who are deaf among the targeted areas of 
    personnel shortages to which training projects might be directed. The 
    terms ``blind'' and ``deaf'' were not specifically defined, but were 
    broadly interpreted to include individuals with partial or total vision 
    or hearing loss. The 1992 Amendments removed the terms ``blind'' and 
    ``deaf'' from the listing of training areas in section 302(b)(1) and 
    substituted training of personnel to provide services to individuals 
    with specific disabilities. Since the regulations in 34 CFR part 386 
    provide the basis for specific allocations of training funds to 
    targeted areas of personnel shortages, it is particularly important 
    that the listing of targeted areas be as specific and inclusive as 
    possible.
        Changes: The Secretary has included ``specialized personnel for 
    rehabilitation of individuals who are blind or have vision impairment'' 
    and ``specialized personnel for rehabilitation of individuals who are 
    deaf or hard of hearing'' as targeted areas within Sec. 386.1 for 
    training allocations.
    Lack of Academic Training in Guam (Sec. 386.1)
        Comment: One commenter expressed concern that rehabilitation 
    training in Guam, which in the past has been provided through 
    continuing education projects under the long-term training program, 
    will no longer be available.
        Discussion: The Secretary recognizes the need for improved access 
    to rehabilitation training for Guam and other remote and isolated 
    areas. The Secretary believes that these needs will be met, in part, by 
    distance learning training, which was first funded in fiscal year 1993 
    as a result of the 1992 Amendments (section 803(a) of the 
    Rehabilitation Act of 1973, as amended).
        Changes: None.
    Eligibility of State Agencies and Other Public or Nonprofit Agencies 
    and Organizations, Including Institutions of Higher Education, Under 
    the Rehabilitation Long-Term Training Program (Sec. 386.2)
        Comment: One commenter noted that, since State agencies and other 
    public or nonprofit agencies do not offer degrees or certificates, 
    maintaining those organizations as eligible applicants implies the 
    intent to continue non-academic long-term training.
        Discussion: Section 302(a) of the Act establishes the broad 
    eligibility criteria for applicants under the Rehabilitation Long-Term 
    Training program. The Secretary is aware of the rapidly changing 
    auspices and circumstances under which specialized academic and 
    certificate training is offered in the field of rehabilitation. 
    Consortia and partnerships of States, public or nonprofit private 
    agencies and organizations, and institutions of higher education may be 
    formed to address rehabilitation training needs. The Secretary 
    encourages those efforts and desires regulations that will facilitate 
    new approaches through flexibility in eligibility requirements.
        Changes: None.
    Professional Corporation or Professional Practice (Sec. 386.4)
        Comment: One commenter wrote in support of the provisions in the 
    regulations that define professional corporation or professional 
    practice.
        Discussion: The Secretary appreciates the support for the 
    definition of professional corporation or professional practice.
        Changes: None.
    Related Agency (Sec. 386.4)
        Comment: One commenter suggested substituting the legislative 
    definition of ``community rehabilitation program'' in place of the 
    language proposed in Sec. 386.4(b) describing related agencies that are 
    not American Indian rehabilitation programs.
        Discussion: Section 7(25) of the Act includes an expanded 
    definition of ``community rehabilitation program.'' The Secretary 
    reviewed the definition of community rehabilitation program in 
    preparing regulations implementing the Rehabilitation Act Amendments of 
    1992. There is not an exact match between the expanded definition of 
    community rehabilitation program in Title I of the Act and the 
    legislative definition of related agency in Title III. Therefore, 
    ``community rehabilitation program'' was not used in the definition of 
    related agency.
        Changes: None.
    Including Specific References to Culturally Diverse Populations in 
    Appropriate Sections of the Regulations (Secs. 386.1, 386.20, 386.33, 
    and 386.40)
        Comments: Several commenters felt that, although individuals who 
    are unserved or underserved by programs under the Act are specifically 
    referenced in the description of the Rehabilitation Long-Term Training 
    program, policies and procedures to include culturally diverse 
    recruitment and retention efforts should be implemented for all 30 
    categories of rehabilitation training. Selection criteria should be 
    modified to give credit for program development related to culturally 
    diverse populations.
        Discussion: The Secretary agrees that it is essential that all 
    requirements in the Rehabilitation Act of 1973, as amended, are 
    implemented to ensure equal access and outreach for traditionally 
    underserved populations, including minorities. At present, the primary 
    method for directing rehabilitation training program grantees to meet 
    those requirements is through the assurances mandated for each 
    applicant. The Department is currently working to implement section 21 
    of the Act, including outreach services and other related activities, 
    to enhance the capacity of minority institutions to compete for grants, 
    contracts, and cooperative agreements. In the future, the Department 
    may propose specific priorities or selection criteria that address 
    needs of traditionally underserved populations across the range of 
    rehabilitation discretionary programs.
        Changes: None.
    Minimum 10 Percent Matching Requirement (Sec. 386.30)
        Comments: Many comments were received objecting to the requirement 
    that the Federal share of an award may not be more than 90 percent of 
    the total cost of a project under this program. A number of commenters 
    pointed out that the eight percent indirect costs currently allowed by 
    the Department on training awards do not cover current administrative 
    costs. Concern was expressed that many universities would not provide a 
    10 percent match. Some commenters observed that the present negotiated 
    system offers flexibility. Many commenters pointed out that post-
    employment training programs for community rehabilitation personnel 
    would have difficulty with the 10 percent required match. Some 
    university commenters indicated that their institutions face 
    substantial resource problems. Other commenters asked if the match 
    could be in-kind. One commenter wrote that the limitation of 90 percent 
    Federal support for proposed projects is fair and reasonable.
        Discussion: The Rehabilitation Act of 1973, as amended, requires a 
    matching component for rehabilitation training grants. The Secretary 
    believes that, if the Department states the minimum matching amount in 
    advance of negotiations, the award process is more understandable and 
    efficient. Most current academic grantees under the Rehabilitation 
    Long-Term Training program have negotiated awards with a match in 
    excess of 10 percent. The Secretary is aware that a number of non-
    academic, post-employment training grantees under this program have 
    experienced difficulty meeting even a 10 percent matching requirement. 
    This problem will be solved, in part, by funding some future awards 
    with a post-employment focus under the Rehabilitation Continuing 
    Education program in which the current matching requirement as 
    presented in recent closing date announcements is four percent. In all 
    instances, the applicant share may be in-kind. As a result of a recent 
    program audit that identified problems in the use of faculty time for 
    in-kind matching, the Secretary prefers that the applicant share in the 
    Rehabilitation Long-Term Training program by directly funding student 
    scholarship assistance as the designated match.
        Changes: The 10 percent matching requirement remains, but a new 
    provision has been added indicating that the Secretary may waive part 
    of the non-Federal share of the cost of the project if the applicant 
    demonstrates during the negotiations process that it does not have 
    sufficient resources to contribute the entire match.
    Requirements for Directing Grant Funds: Adverse Impact of the 
    Requirement That a Grantee Must Use at Least 75 Percent of Total Award 
    for Scholarships as Defined in Sec. 386.4 (Sec. 386.31)
        Comments: Numerous commenters, primarily from community 
    rehabilitation programs and related personnel training programs, 
    expressed concern that the proposed 75 percent scholarship requirement 
    would limit access of community rehabilitation program personnel to 
    needed continuing education programs.
        Discussion: The Secretary agrees that personnel employed in 
    community rehabilitation programs should continue to receive short-
    term, continuing rehabilitation training. This will be accomplished by 
    offering that training under other, more appropriate Rehabilitation 
    Training program categories, including 34 CFR part 389 (Rehabilitation 
    Continuing Education Programs) and 34 CFR part 390 (Rehabilitation 
    Short-Term Training). The Secretary believes that the availability of 
    needed post-employment training for community rehabilitation personnel 
    will be provided through regional continuing education programs. 
    However, the Secretary wants to ensure that all currently funded multi-
    year long-term training projects continue for the remainder of their 
    project period.
        Changes: A new provision has been added (Sec. 386.31(c)) stating 
    that the requirement for a grantee to use at least 75 percent of the 
    total award for scholarships does not apply for the remainder of the 
    project period for multi-year projects in existence as of October 1, 
    1994.
        Comments: One commenter expressed concern that directing long-term 
    training programs to use at least 75 percent of their total award for 
    scholarships will reduce cross-training of professionals who work with 
    individuals with disabilities.
        Discussion: The Secretary believes that rehabilitation short-term, 
    continuing education, and in-service training programs offer excellent 
    opportunities for cross-training of rehabilitation professionals. In 
    addition, the Secretary believes that existing professional program 
    accreditation processes and individual licensure and certification 
    procedures by national, State, and professional organizations are 
    attentive to cross-training needs.
        Changes: None.
        Comments: Several commenters observed that scholarships are not 
    needed in a prosthetic or orthotic curriculum because programs attract 
    more than enough qualified students. Moreover, it was noted that 
    prosthetic and orthotic programs are costly to operate. Students attend 
    labor intensive lab classes with a low student to instructor ratio. 
    Although programs are making changes that will reduce expenses, supply 
    and equipment costs are high, and without additional Federal support, 
    it would be difficult to operate them. Many students now take loans to 
    pay for their education, are supported by employers, or are self-
    supporting. Supplementation of these resources with direct student 
    support from RSA could be useful, but the commenters do not feel this 
    should be the primary method of support.
        Discussion: The Secretary acknowledges that prosthetics and 
    orthotics (P & O) rehabilitation training is highly individualized and 
    often requires intensive lab supervision and high equipment costs. The 
    Secretary will take these unique circumstances, to the extent that they 
    are supported with evidence in the proposal, into consideration in 
    reviewing the requirement to direct at least 75 percent of the total 
    award for scholarships. The Secretary is concerned by the argument that 
    scholarships are not needed in PP & O because the field attracts more 
    than enough students. The purpose of the Rehabilitation Long-Term 
    Training program is to provide academic training in areas of personnel 
    shortages identified by the Secretary. P & O has been identified as an 
    area with personnel shortages, and providing students with scholarships 
    ensures that the work-or-repay provisions of the Rehabilitation Act 
    will direct graduates to service in support of State rehabilitation 
    agencies in areas of personnel shortages.
        Changes: None.
        Comments: A number of commenters requested that the current 
    regulations be maintained to address specialized nonacademic programs 
    in deafness, blindness, mental illness, independent living, and in 
    vocational evaluation because unique, one-of-a-kind projects currently 
    funded under long-term training would no longer be eligible for support 
    under the new regulations.
        Discussion: The Secretary believes that the Rehabilitation Long-
    Term Training program cannot be expected to meet all specialized 
    training needs, particularly in nonacademic areas. The Secretary plans 
    to make greater use of the extensive flexibility provided by section 
    302 of the Act and the six specific rehabilitation training programs to 
    ensure that specialized training needs are addressed.
        Changes: None.
        Comments: Several representatives of tribal-controlled colleges 
    commented that, because of support that they receive from the Bureau of 
    Indian Affairs for each Native American student, there is less need for 
    stipends and scholarships as student incentives. Tribal-controlled 
    colleges, however, need greater levels of financial support to maintain 
    national and regional networks through faculty travel, for supervision 
    at internship sites, for course development, and for materials 
    development. Commenters were concerned that the 75 percent limit would 
    hurt program growth and quality and would be detrimental to 
    undergraduate rehabilitation programs in rural regions where graduates 
    work with American Indian clients.
        Discussion: The Secretary agrees that tribal-controlled colleges 
    and other training programs for Native Americans often conduct 
    rehabilitation training under unique circumstances. Under 
    Sec. 386.31(b), the Secretary may award grants that use less than 75 
    percent of the total award for scholarships based on the unique nature 
    of the project. It will be particularly important for applicants to 
    document the unique circumstances that apply in their proposals to 
    assist the Secretary in making this determination.
        Changes: None.
        Comments: Two commenters observed that, if a quantitative 
    requirement regarding the percentage of funds directed to scholarships 
    is necessary, there should be a reduction in the limit and a broadening 
    of the unique circumstances under Sec. 386.31(b) if less than 75 
    percent of the funds are devoted to scholarships. The Department should 
    provide examples of circumstances of projects funded with less than 75 
    percent in scholarships. In addition, projects should be approved that 
    demonstrate that the shortage they intend to meet is best met by 
    funding training program resources such as faculty and equipment. Many 
    traditional degree or certificate granting disciplines, such as 
    physical medicine and rehabilitation and its residency programs, are 
    limited because of the lack of adequate numbers of faculty and, 
    therefore, programs. Also, there should be an exception for training 
    programs in newly emerging areas, such as independent living, that do 
    not have degrees or certificates.
        Discussion: The Secretary believes that a quantitative limit is 
    necessary to establish clear standards for all applicants. Current 
    long-term training grants average over $100,000 per year; therefore, a 
    grant with 75 percent of the award targeted for scholarships will still 
    have more than $25,000 for other related costs. Broadening the 
    circumstances under which unique projects may be supported that use 
    less than 75 percent of the total award for scholarships is not 
    consistent with the overall objective of the long-term training 
    program.
        Changes: None.
        Comments: Many commenters from university rehabilitation training 
    programs expressed concern that programs at their institutions might be 
    discontinued if Federal funds were required to be directed to student 
    support rather than for paying for instructional costs.
        Discussion: Existing regulations require academic training projects 
    with a multi-year project period to increase the grantee's share of 
    teaching costs progressively in each succeeding year so that total 
    personnel costs are fully absorbed by the grantee at the termination of 
    the project period. The 75 percent requirement provides greater 
    latitude than existing regulations.
        Changes: None.
    Requirements for Directing Grant Funds: The Department of Education 
    Should Target Priorities To Require Grantees To Award Specific Degrees 
    or Certificates (Sec. 386.31).
        Comments: One commenter requested that the Secretary use program 
    announcements to target programs on degrees and certificates in 
    appropriate areas. Two commenters requested that the Secretary be 
    sensitive to individual student preferences for attending degree or 
    certificate programs.
        Discussion: The Secretary believes that current professional 
    accreditation by the designated accrediting agency in the professional 
    field in which grant support is being provided is adequate assurance 
    that an academic program offers an appropriate degree. From time to 
    time, the Secretary may assign an absolute priority to proposals 
    offering a specific degree or certificate if the Secretary has 
    determined that personnel shortages in the professional field require 
    that preference. Those priorities will be presented for public comment 
    before applications are solicited. The Secretary agrees that, to the 
    extent possible in responding to personnel shortages, a wide range of 
    degree and certificate programs offering Federal rehabilitation 
    scholarship assistance should be available to facilitate student 
    choice. However, no change in the regulations is required.
        Changes: None.
    Exclusion of Federal Employees From Receiving Training Scholarships 
    (Sec. 386.33(a)(2))
        Comment: One commenter protested that this is not a fair regulation 
    because it discriminates against a group of people--Federal employees. 
    The example was a full-time GS-7 Federal correctional officer enrolled 
    in a rehabilitation counseling program at a university with an RSA 
    grant.
        Discussion: The Secretary agrees that the limitation on Federal 
    employees serves no useful purpose.
        Changes: The restrictive language has been dropped.
    Grantee Disbursement and Scholarship Assurance Provisions (Secs. 386.33 
    Through 386.43)
        Comments: Several commenters called for a less adversarial phrasing 
    of scholarship conditions to enhance recruitment of trainees. Other 
    suggestions included placing the burden on the scholar (at the time of 
    the exit interview) to report to the grantee using a packet containing 
    several change-of-address forms, change-of-employment forms, and a 
    completion of work obligation form. Another commenter stated the belief 
    that any tracking or reporting activities pursuant to payback 
    obligations are the exclusive responsibility of the granting agency.
        Discussion: The regulations describe conditions that must be met by 
    a grantee after award in subpart D and conditions that must be met by a 
    scholar in subpart E. No adversarial system of grantee vs. scholar or 
    Federal agency vs. grantee is implied or intended. The intent is to 
    clearly identify the responsibilities of all parties. Tracking and 
    recordkeeping, which can be facilitated by change-of-address and 
    change-of-employment forms, are not excessively burdensome for the 
    numbers of students supported by the average grant under the 
    Rehabilitation Long-Term Training program.
        Changes: None.
    Work-or-Repay Requirements for Certificate Programs (Secs. 386.4 and 
    386.34)
        Comment: One commenter asked for assurances that the work-or-repay 
    provisions will be applied to all academic degree pre- or post-
    employment programs as well as to non-degree awarding, certificate 
    granting continuing education programs.
        Discussion: The Secretary agrees that the work-or-repay provision 
    applies to each individual who receives a scholarship, whether for a 
    degree or a certificate program. The term ``certificate'' is defined in 
    Sec. 386.4 of the regulations. Examples of certificate programs that 
    offer scholarships and are subject to the work-or-repay provision 
    include post-baccalaureate training in allied health areas, such as 
    occupational therapy, physical therapy, and prosthetics and orthotics. 
    The Secretary believes that the work-or-repay provision does not apply 
    to certificate programs in non-academic or emerging areas because no 
    scholarship assistance is provided to individuals. Assistance in the 
    form of per-diem expenses for short-term training is not considered to 
    be scholarship assistance subject to the work-or-repay provision. It 
    would be burdensome and inappropriate to enforce a work-or-repay 
    provision for that assistance. The Secretary believes that confusion 
    about the different types of certificates and the applicability of 
    repayment will be resolved by focusing the Rehabilitation Long-Term 
    Training program on academic scholarship training (degree and 
    certificate) subject to the work-or-repay provision and using other 
    more appropriate training authorities for non-academic, non-
    scholarship, post-employment training.
        Changes: None.
    Stricter Standards for Work-or-Repay Provision (Sec. 386.34)
        Comment: One commenter suggested that grantees be required to 
    arrange for all scholars to attend an extensive pre-enrollment work-or-
    repay seminar series at which participating agencies in the city or 
    State (along with the grantee) would provide clearly detailed 
    information regarding job opportunities for and subsequent 
    responsibilities of scholars.
        Discussion: The Secretary agrees that a job seminar would be 
    valuable for many scholarship recipients and potential rehabilitation 
    employers. Such an activity, however, should be at the discretion of 
    the grantee and not a regulatory requirement.
        Changes: None.
    Flexibility in Future Applications of Work-or-Repay Requirements 
    (Sec. 386.34)
        Comment: One commenter encouraged flexibility in the application of 
    this requirement to emerging fields like independent living.
        Discussion: The Secretary agrees that the work-or-repay provision 
    should apply only to academic training and that fields such as 
    independent living (IL) do not currently provide academic training 
    subject to the work-or-repay provision. The Secretary plans to support 
    future post-employment training grants in IL under training authorities 
    that are not subject to the work-or-repay provision. However, it 
    appears likely that research and curriculum development advances will 
    soon make academic training, particularly in community colleges, 
    possible. Therefore, in anticipation of the need to provide academic or 
    certificate training opportunities, the Secretary has also retained IL 
    as a Rehabilitation Long-Term Training program field.
        Changes: None.
    Work-or-Repay Tracking Systems (Sec. 386.34(g))
        Comments: Several commenters expressed concern that the proposed 
    regulations inappropriately place grantee institutions in watch-dog 
    roles. In particular, there was objection to the requirement for 
    documentation that the grantee has checked for addresses of missing 
    scholars with alumni organizations.
        Discussion: The Secretary does not believe that the requirement 
    that the grantee check with university-sponsored alumni organizations 
    if it is experiencing difficulty in locating a scholar is 
    inappropriate. The regulations do not constitute a basis for forcing 
    disclosure of records from any private organization. If a grantee 
    cannot document, because of the inability to locate a scholar who has 
    graduated, that requirements of the work-or-repay provision have been 
    met by an individual, the grantee will be responsible for reporting to 
    the Secretary that the individual has not completed the requirement. 
    The Secretary will then initiate enforcement actions as outlined in 
    Sec. 386.43. The intent of the regulations is to have the grantee 
    exhaust all possibilities to locate and contact the individual before 
    the matter is referred to the Secretary.
        Changes: None.
    Work-or-Repay Records (Sec. 386.34(h))
        Comments: Two commenters expressed concern that the proposed 
    regulations inappropriately obligate grantee institutions to perform 
    time-consuming and expensive database creation, maintenance, updating, 
    and reporting functions for as many as six years for which the grantee 
    receives no compensation from the Federal Government.
        Discussion: The Secretary believes that the work-or-repay provision 
    is a partnership between grantees and the Federal Government. Grantees 
    are closest to the individuals and are in the best position to advise, 
    assist, and admonish scholars on matters related to their work-or-repay 
    requirements. The Secretary believes that administrative costs for 
    these activities are minimal and are not feasible for line itemization. 
    Instead, the Secretary sees these costs as subsumed under grantee 
    indirect costs. The regulations have been written to state clearly that 
    the responsibility for recordkeeping extends until the repayment period 
    has ended for all students provided scholarships.
        Changes: None.
    June 1, 1992, Effective Date for New Work-or-Repay Provisions 
    (Sec. 386.34)
        Comment: A commenter expressed concern that this requirement is 
    being imposed a full five months before the 1992 Amendments to the 
    Rehabilitation Act were even approved. The commenter asked how, if 
    these proposed regulations are in response to the 1992 Amendments, can 
    this date be required since it predates the amendments?
        Discussion: The June 1992 effective date was set retroactively in 
    the Rehabilitation Act Amendments of 1992.
        Changes: None.
    Payback Requirements for Scholars Who Become University Educators 
    (Sec. 386.34)
        Comments: Two commenters observed that the proposed regulations do 
    not permit graduate and doctoral level scholarship recipients to meet 
    the work-or-repay provision by teaching at a university unless the 
    university has a formal agreement with the State agency identifying the 
    university as a ``related agency.''
        Discussion: The identification of a ``related agency'' derives from 
    the Rehabilitation Act of 1973, as amended. Educators whose college or 
    university employer meets the definition of a related agency 
    (Sec. 386.4) by providing services to individuals with disabilities 
    under an agreement with a designated State agency and who are employed 
    in the area of specialty for which Federal support for their training 
    was provided will have no problem meeting the requirement. Examples of 
    acceptable arrangements include educators who have agreements to 
    supervise field placements of students in training at State agencies 
    and related agencies, who serve as advisors or consultants to State 
    agencies and related agencies, and who provide direct services through 
    their universities, including the instruction of individuals with 
    disabilities. The key to meeting the work-or-repay requirement through 
    employment in an educational institution is that the institution have 
    an appropriate agreement with the designated State agency and that the 
    scholar work in his or her specialty area.
        Changes: None.
    Proposed Six-Year Repayment Period (Sec. 386.34)
        Comment: One commenter expressed concern that, after completing a 
    two-year graduate program, a scholar will have only six years for 
    repayment instead of the current ten-year repayment period.
        Discussion: The time limits are set in the Rehabilitation Act 
    Amendments of 1992.
        Changes: None.
    Work-or-Repay Provisions for Scholars Receiving Federal Benefits 
    (Sec. 386.43)
        Comment: One commenter suggested that the deferral of repayment due 
    to disability be modified to exclude circumstances under which the 
    individual achieves Social Security Disability Insurance (SSDI) earned 
    income status.
        Discussion: The Secretary does not believe that there is a need to 
    distinguish the repayment status of scholars by the type of disability 
    benefits a scholar may be receiving.
        Changes: None.
    
    Waiver of Notice of Proposed Rulemaking
    
        In accordance with section 431(b)(2)(A) of the General Education 
    Provisions Act (20 U.S.C. 1232(b)(2)(A)) and the Administrative 
    Procedure Act (5 U.S.C. 553), it is the practice of the Secretary to 
    offer interested parties the opportunity to comment on proposed 
    regulations. However, the language added in Sec. 386.1(b)(30) merely 
    incorporates into the regulations a statutory change made by the 
    Technology-Related Assistance for Individuals With Disabilities Act 
    Amendments of 1994 to the Rehabilitation Act of 1973, as amended, and 
    does not implement substantive policy. Therefore, the Secretary has 
    determined, pursuant to 5 U.S.C. 553(b)(B), that public comment on the 
    change in the regulations is unnecessary and contrary to the public 
    interest.
    
    Intergovernmental Review
    
        This program is subject to the requirements of Executive Order 
    12372 and the regulations in 34 CFR Part 79. The objective of the 
    Executive order is to foster an intergovernmental partnership and 
    strengthened federalism by relying on processes developed by State and 
    local governments for coordination and review of proposed Federal 
    financial assistance.
        In accordance with the order, this document is intended to provide 
    early notification of the Department's specific plans and actions for 
    this program.
    
    Assessment of Educational Impact
    
        In the notice of proposed rulemaking, the Secretary requested 
    comments on whether the proposed regulations would require transmission 
    of information that is being gathered by or is available from any other 
    agency or authority of the United States.
        Based on the response to the proposed regulations and on its own 
    review, the Department has determined that the regulations in this 
    document do not require transmission of information that is being 
    gathered by or is available from any other agency or authority of the 
    United States.
    
    List of Subjects in 34 CFR Part 386
    
        Grant programs, Rehabilitation training. Reporting and 
    recordkeeping requirements.
    
        Dated: June 9, 1994.
    
    (Catalog of Federal Domestic Assistance Number 84.129, 
    Rehabilitation Training: Rehabilitation Long-Term Training)
    Judith E. Heumann,
    Assistant Secretary for Special Education and Rehabilitative Services.
    
        The Secretary amends title 34 of the Code of Federal Regulations by 
    revising part 386 to read as follows:
    
    PART 386--REHABILITATION TRAINING: REHABILITATION LONG-TERM 
    TRAINING
    
    Subpart A--General
    
    Sec.
    386.1  What is the Rehabilitation Long-Term Training program?
    386.2  Who is eligible for an award?
    386.3  What regulations apply?
    386.4  What definitions apply?
    
    Subpart B--[Reserved]
    
    Subpart C--How Does the Secretary Make an Award?
    
    386.20  What selection criteria does the Secretary use?
    
    Subpart D--What Conditions Must Be Met After an Award?
    
    386.30  What are the matching requirements?
    386.31  What are requirements for directing grant funds?
    386.32  What are allowable costs?
    386.33  What are the requirements for grantees in disbursing 
    scholarships?
    386.34  What assurances must be provided by a grantee that intends 
    to provide scholarships?
    386.35  What information must be provided by a grantee that is an 
    institution of higher education to assist designated State agencies?
    
    Subpart E--What Conditions Must Be Met by a Scholar?
    
    386.40  What are the requirements for scholars?
    386.41  Under what circumstances does the Secretary grant a deferral 
    or exception to performance or repayment under a scholarship 
    agreement?
    386.42  What must a scholar do to obtain a deferral or exception to 
    performance or repayment under a scholarship agreement?
    386.43  What are the consequences of a scholar's failure to meet the 
    terms and conditions of scholarship agreement?
    
        Authortiy: 29 U.S.C. 711(c) and 774, unless otherwise noted.
    
    Subpart A--General
    
    
    Sec. 386.1  What is the Rehabilitation Long-Term Training program?
    
        (a) The Rehabilitation Long-Term Training program provides 
    financial assistance for--
        (1) Projects that provide basic or advanced training leading to an 
    academic degree in one of those fields of study identified in paragraph 
    (b) of this section;
        (2) Projects that provide a specified series of courses or program 
    of study leading to award of a certificate in one of those fields of 
    study identified in paragraph (b) of this section; and
        (3) Projects that provide support for medical residents enrolled in 
    residency training programs in the specialty of physical medicine and 
    rehabilitation.
        (b) The Rehabilitation Long-Term Training program is designed to 
    provide academic training in areas of personnel shortages identified by 
    the Secretary and published in a notice in the Federal Register. These 
    areas may include--
        (1) Vocational rehabilitation counseling;
        (2) Rehabilitation technology;
        (3) Rehabilitation medicine;
        (4) Rehabilitation nursing;
        (5) Rehabilitation social work;
        (6) Rehabilitation psychiatry;
        (7) Rehabilitation psychology;
        (8) Rehabilitation dentistry;
        (9) Physical therapy;
        (10) Occupational therapy;
        (11) Speech pathology and audiology;
        (12) Physical education;
        (13) Therapeutic recreation;
        (14) Community rehabilitation program personnel;
        (15) Prosthetics and orthotics;
        (16) Specialized personnel for rehabilitation of individuals who 
    are blind or have vision impairment;
        (17) Rehabilitation of individuals who are deaf or hard of hearing;
        (18) Rehabilitation of individuals who are mentally ill;
        (19) Undergraduate education in the rehabilitation services;
        (20) Independent living;
        (21) Client assistance;
        (22) Administration of community rehabilitation programs;
        (23) Rehabilitation administration;
        (24) Vocational evaluation and work adjustment;
        (25) Services to individuals with specific disabilities or specific 
    impediments to rehabilitation, including individuals who are members of 
    populations that are unserved or underserved by programs under this 
    Act;
        (26) Job development and job placement services to individuals with 
    disabilities;
        (27) Supported employment services, including services of 
    employment specialists for individuals with disabilities;
        (28) Specialized services for individuals with severe disabilities;
        (29) Recreation for individuals with disabilities;
        (30) The use, applications, and benefits of assistive technology 
    devices and assistive technology services; and
        (31) Other fields contributing to the rehabilitation of individuals 
    with disabilities.
    
    (Authority: 29 U.S.C. 711 and 771a)
    
    
    Sec. 386.2  Who is eligible for an award?
    
        Those agencies and organizations eligible for assistance under this 
    program are described in 34 CFR 385.2.
    
    (Authority: 29 U.S.C. 771a(a))
    
    
    Sec. 386.3  What regulations apply?
    
        The following regulations apply to the Rehabilitation Training: 
    Rehabilitation Long-Term Training program:
        (a) The regulations in this part 386.
        (b) The regulations in 34 CFR part 385.
    
    (Authority: 29 U.S.C. 771a)
    
    
    Sec. 386.4  What definitions apply?
    
        The following definitions apply to this program:
        (a) Definitions in 34 CFR 385.4.
        (b) Other definitions. The following definitions also apply to this 
    part:
        Academic year means a full-time course of study--
        (1) Taken for a period totaling at least nine months; or
        (2) Taken for the equivalent of at least two semesters, two 
    trimesters, or three quarters.
        Certificate means a recognized educational credential awarded by a 
    grantee under this part that attests to the completion of a specified 
    series of courses or program of study.
        Professional corporation or professional practice means--
        (1) A professional service corporation or practice formed by one or 
    more individuals duly authorized to render the same professional 
    service, for the purpose of rendering that service; and
        (2) The corporation or practice and its members are subject to the 
    same supervision by appropriate State regulatory agencies as individual 
    practitioners.
        Related agency means--
        (1) An American Indian rehabilitation program; or
        (2) Any of the following agencies that provide services to 
    individuals with disabilities under an agreement with a designated 
    State agency in the area of specialty for which training is provided:
        (i) A Federal, State, or local agency.
        (ii) A nonprofit organization.
        (iii) A professional corporation or professional practice group.
        Scholar means an individual who is enrolled in a certificate or 
    degree granting course of study in one of the areas listed in 
    Sec. 386.1(b) and who receives scholarship assistance under this part.
        Scholarship means an award of financial assistance to a scholar for 
    training and includes all disbursements or credits for student 
    stipends, tuition and fees, and student travel in conjunction with 
    training assignments.
        State rehabilitation agency means the designated State agency.
    
    (Authority: 29 U.S.C. 711(c))
    
    Subpart B--[Reserved]
    
    Subpart C--How Does the Secretary Make an Award?
    
    
    Sec. 386.20  What selection criteria does the Secretary use?
    
        The Secretary uses the following criteria to evaluate an 
    application:
        (a) Plan of operation. (30 points) The Secretary evaluates each 
    application on the basis of the criterion in Sec. 385.32(a).
        (b) Quality of key personnel. (10 points) The Secretary evaluates 
    each application on the basis of the criterion in Sec. 385.32(b).
        (c) Budget and cost effectiveness. (10 points) The Secretary 
    evaluates each application on the basis of the criterion in 
    Sec. 385.32(c).
        (d) Evaluation plan. (5 points) The Secretary evaluates each 
    application on the basis of the criterion in Sec. 385.32(d).
        (e) Adequacy of resources. (5 points) The Secretary evaluates each 
    application on the basis of criterion in Sec. 385.32(e).
        (f)(1) Evidence of need. (10 points) The Secretary reviews each 
    application for information that shows that the need for the training 
    project has been adequately justified.
        (2) The Secretary looks for information that shows that the need 
    for the training project has been established in terms of 
    rehabilitation supply and demand for qualified rehabilitation personnel 
    and includes an assessment of how the project will respond to personnel 
    needs established in local, State, or national studies.
        (g)(1) Relevance to State-Federal rehabilitation service program. 
    (10 points) The Secretary reviews each application for information that 
    shows that the proposed project appropriately relates to the mission of 
    the State-Federal rehabilitation service program.
        (2) The Secretary looks for information that shows that the project 
    can be expected either to increase the supply of trained personnel 
    available to State and other public or nonprofit agencies involved in 
    the rehabilitation of individuals with physical or mental disabilities 
    through degree or certificate granting programs, or to improve the 
    skills and quality of professional personnel in the rehabilitation 
    field in which the training is to be provided through the granting of a 
    degree or certificate.
        (h)(1) Nature and scope of curriculum. (20 points) The Secretary 
    reviews each application for information that demonstrates the adequacy 
    of the proposed curriculum.
        (2) The Secretary looks for information that shows--
        (i) The scope and nature of the coursework reflect content that can 
    be expected to enable the achievement of the established project 
    objectives;
        (ii) The curriculum and teaching methods provide for an integration 
    of theory and practice relevant to the educational objectives of the 
    program;
        (iii) There is evidence of educationally focused practical and 
    other field experiences in settings that ensure student involvement in 
    the provision of vocational rehabilitation, supported employment, or 
    independent living rehabilitation services to individuals with 
    disabilities, especially individuals with severe disabilities;
        (iv) The coursework includes student exposure to vocational 
    rehabilitation, supported employment, or independent living 
    rehabilitation processes, concepts, programs, and services; and
        (v) If applicable, there is evidence of current professional 
    accreditation by the designated accrediting agency in the professional 
    field in which grant support is being requested.
    
    (Approved by the Office of Management and Budget under control 
    number 1820-0018.)
    
    (Authority: 29 U.S.C. 711(c) and 771a)
    
    Subpart D--What Conditions Must Be Met After an Award?
    
    
    Sec. 386.30  What are the matching requirements?
    
        The Federal share may not be more than 90 percent of the total cost 
    of a project under this program. The Secretary may waive part of the 
    non-Federal share of the cost of the project after negotiations if the 
    applicant demonstrates that it does not have sufficient resources to 
    contribute the entire match.
    
    (Authority: 29 U.S.C. 711(c))
    
    
    Sec. 386.31  What are the requirements for directing grant funds?
    
        (a) A grantee must use at least 75 percent of the total award for 
    scholarships as defined in Sec. 386.4.
        (b) The Secretary may award grants that use less than 75 percent of 
    the total award for scholarships based upon the unique nature of the 
    project, such as the establishment of a new training program or long-
    term training in an emerging field that does not award degrees or 
    certificates.
        (c) For multi-year projects in existence on October 1, 1994, the 
    requirements of paragraph (a) of this section do not apply for the 
    remainder of the project period.
    
    (Authority: 29 U.S.C. 711(c) and 771a)
    
    
    Sec. 386.32  What are allowable costs?
    
        In addition to those allowable costs established in the Education 
    Department General Administrative Regulations in 34 CFR 75.530 through 
    75.562, the following items are allowable under long-term training 
    projects:
        (a) Student stipends.
        (b) Tuition and fees.
        (c) Student travel in conjunction with training assignments.
    
    (Authority: 29 U.S.C. 711(c) and 771a)
    
    
    Sec. 386.33  What are the requirements for grantees in disbursing 
    scholarships?
    
        (a) Before disbursement of scholarship assistance to an individual, 
    a grantee--
        (1)(i) Shall obtain documentation that the individual is--
        (A) A U.S. citizen or national; or
        (B) A permanent resident of the Republic of the Marshall Islands, 
    Federated States of Micronesia, Republic of Palau, or the Commonwealth 
    of the Northern Mariana Islands; or
        (ii) Shall confirm from documentation issued to the individual by 
    the U.S. Immigration and Naturalization Service that he or she--
        (A) Is a lawful permanent resident of the United States; or
        (B) Is in the United States for other than a temporary purpose with 
    the intention of becoming a citizen or permanent resident; and
        (2) Shall confirm that the applicant has expressed interest in a 
    career in clinical practice, administration, supervision, teaching, or 
    research in the vocational rehabilitation, supported employment, or 
    independent living rehabilitation of individuals with disabilities, 
    especially individuals with severe disabilities;
        (3) Shall have documentation that the individual expects to 
    maintain or seek employment in a designated State rehabilitation agency 
    or in a nonprofit rehabilitation, professional corporation, 
    professional practice group, or related agency providing services to 
    individuals with disabilities or individuals with severe disabilities 
    under an agreement with a designated State agency;
        (4) Shall reduce the scholarship by the amount in which the 
    combined awards would be in excess of the cost of attendance, if a 
    scholarship, when added to the amount the scholar is to receive for the 
    same academic year under Title IV of the Higher Education Act, would 
    otherwise exceed the scholar's cost of attendance;
        (5) Shall limit scholarship assistance to the individual's cost of 
    attendance at the institution for no more than four academic years 
    except that the grantee may provide an extension consistent with the 
    institution's accommodations under section 504 of the Act if the 
    grantee determines that an individual has a disability that seriously 
    affects the completion of the course of study; and
        (6) Shall obtain a Certification of Eligibility for Federal 
    Assistance from each scholar as prescribed in 34 CFR 75.60, 75.61, and 
    75.62.
    
    (Approved by the Office of Management and Budget under control 
    number 1820-0018.)
    
    (Authority: 29 U.S.C. 711(c) and 771a(b))
    
    
    Sec. 386.34  What assurances must be provided by a grantee that intends 
    to provide scholarships?
    
        A grantee under this part that intends to grant scholarships for 
    any academic year beginning after June 1, 1992, shall provide the 
    following assurances before an award is made:
        (a) Requirement for agreement. No individual will be provided a 
    scholarship without entering into a written agreement containing the 
    terms and conditions required by this section. An individual will sign 
    and date the agreement prior to the initial disbursement of scholarship 
    funds to the individual for payment of the individual's expenses, such 
    as tuition.
        (b) Disclosure to applicants. The terms and conditions of the 
    agreement that the grantee enters into with a scholar will be fully 
    disclosed in the application for scholarship.
        (c) Form and terms of agreement. Each scholarship agreement with a 
    grantee will be in the form and contain the terms that the Secretary 
    requires, including at a minimum the following provisions:
        (1) The scholar will--
        (i) Maintain employment--
        (A) In a nonprofit rehabilitation agency or related agency or in a 
    State rehabilitation agency or related agency, including a professional 
    corporation or professional practice group through which the individual 
    has a service arrangement with the designated State agency;
        (B) On a full- or part-time basis; and
        (C) For a period of not less than the full-time equivalent of two 
    years for each year for which assistance under this section was 
    received, within a period, beginning after the recipient completes the 
    training for which the scholarship was awarded, of not more than the 
    sum of the number of years required in this paragraph and two 
    additional years; and
        (ii) Repay all or part of any scholarship received, plus interest, 
    if the individual does not fulfill the requirements of paragraph 
    (c)(1(i) of this section, except as the Secretary by regulations may 
    provide for repayment exceptions and deferrals.
        (2) The employment obligation in paragraph (c)(1) of this section 
    as applied to a part-time scholar will be based on the accumulated 
    academic years of training for which the scholarship is received.
        (3) Until the scholar has satisfied the employment obligation 
    described in paragraph (c)(1) of this section, the scholar will inform 
    the grantee of any change of name, address, or employment status and 
    will document employment satisfying the terms of the agreement.
        (4) Subject to the provisions in Sec. 386.41 regarding a deferral 
    or exception, when the scholar enters repayment status under 
    Sec. 386.43(e), the amount of the scholarship that has not been retired 
    through eligible employment will constitute a debt owed to the United 
    States that--
        (i) Will be repaid by the scholar, including interest and costs of 
    collection as provided in Sec. 386.43; and
        (ii) May be collected by the Secretary in accordance with 34 CFR 
    Part 30, in the case of the scholar's failure to meet the obligation of 
    Sec. 386.43.
        (d) Executed agreement. The grantee will provide an original 
    executed agreement upon request to the Secretary.
        (e) Standards for satisfactory progress. The grantee will 
    establish, publish, and apply reasonable standards for measuring 
    whether a scholar is maintaining satisfactory progress in the scholar's 
    course of study. The Secretary considers an institution's standards to 
    be reasonable if the standards--
        (1) Conform with the standards of satisfactory progress of the 
    nationally recognized accrediting agency that accredits the 
    institution's program of study, if the institution's program of study 
    is accredited by such an agency, and if the agency has those standards;
        (2) For a scholar enrolled in an eligible program who is to receive 
    assistance under the Rehabilitation Act, are the same as or stricter 
    than the institution's standards for a student enrolled in the same 
    academic program who is not receiving assistance under the 
    Rehabilitation Act; and
        (3) Include the following elements:
        (i) Grades, work projects completed, or comparable factors that are 
    measurable against a norm.
        (ii) A maximum timeframe in which the scholar shall complete the 
    scholar's educational objective, degree, or certificate.
        (iii) Consistent application of standards to all scholars within 
    categories of students; e.g., full-time, part-time, undergraduates, 
    graduate students, and students attending programs established by the 
    institution.
        (iv) Specific policies defining the effect of course incompletes, 
    withdrawals, repetitions, and noncredit remedial courses on 
    satisfactory progress.
        (v) Specific procedures for appeal of a determination that a 
    scholar is not making satisfactory progress and for reinstatement of 
    aid.
        (f) Exit certification. The grantee has established policies and 
    procedures for receiving written certification from scholars at the 
    time of exit from the program acknowledging the following:
        (1) The name of the institution and the number of the Federal grant 
    that provided the scholarship.
        (2) The scholar's field of study.
        (3) The number of years the scholar needs to work to satisfy the 
    work requirements in Sec. 386.34(c)(1)(i)(C).
        (4) The total amount of scholarship assistance received subject to 
    the work-or-repay provision in Sec. 386.34(c)(1)(ii).
        (5) The time period during which the scholar must satisfy the work 
    requirements in Sec. 386.34(c)(1)(i)(C).
        (6) All other obligations of the scholar in Sec. 386.34.
        (g) Tracking system. The grantee has established policies and 
    procedures to determine compliance of the scholar with the terms of the 
    agreement. In order to determine whether a scholar has met the work-or-
    repay provision in Sec. 386.34(c)(1)(i), the tracking system must 
    include for each employment position maintained by the scholar--
        (1) Documentation of the employer's name, address, dates of the 
    scholar's employment, and the position the scholar maintained;
        (2) Documentation of how the employment meets the requirements in 
    Sec. 386.34(c)(1)(i); and
        (3) Documentation that the grantee, if experiencing difficulty in 
    locating a scholar, has checked with existing tracking systems operated 
    by alumni organizations.
        (h) Reports. The grantee shall make reports to the Secretary that 
    are necessary to carry out the Secretary's functions under this part.
        (i) Records. The grantee shall maintain the information obtained in 
    paragraphs (g) and (h) of this section for a period of time equal to 
    the time required to fulfill the obligation under 
    Sec. 386.34(c)(1)(i)(C).
    
    (Approved by the Office of Management and Budget under control 
    number 1820-0018.)
    
    (Authority: 29 U.S.C. 711(c) and 771a(b))
    
    
    Sec. 386.35  What information must be provided by a grantee that is an 
    institution of higher education to assist designated State agencies?
    
        A grantee that is an institution of higher education provided 
    assistance under this part shall cooperate with the following requests 
    for information from a designated State agency:
        (a) Information required by section 101(a)(7) of the Act which may 
    include, but is not limited to--
        (1) The number of students enrolled by the grantee in 
    rehabilitation training programs; and
        (2) The number of rehabilitation professionals trained by the 
    grantee who graduated with certification or licensure, or with 
    credentials to qualify for certification or licensure, during the past 
    year.
        (b) Information on the availability of rehabilitation courses 
    leading to certification or licensure, or the credentials to qualify 
    for certification or licensure, to assist State agencies in the 
    planning of a program of staff development for all classes of positions 
    that are involved in the administration and operation of the State 
    agency's vocational rehabilitation program.
    
    (Approved by the Office of Management and Budget under control 
    number 1820-0018.)
    
    (Authority: 29 U.S.C. 711(c) and 771a)
    
    Subpart E--What Conditions Must Be Met by a Scholar?
    
    
    Sec. 386.40  What are the requirements for scholars?
    
        A scholar--
        (a) Shall receive the training at the educational institution or 
    agency designated in the scholarship; and
        (b) Shall not accept payment of educational allowances from any 
    other Federal, State, or local public or private nonprofit agency if 
    that allowance conflicts with the individual's obligation under 
    Sec. 386.33(a)(4) or Sec. 386.34(c)(1).
        (c) Shall enter into a written agreement with the grantee, before 
    starting training, that meets the terms and conditions required in 
    Sec. 386.34;
        (d) Shall be enrolled in a course of study leading to a certificate 
    or degree in one of the fields designated in Sec. 386.1(b); and
        (e) Shall maintain satisfactory progress toward the certificate or 
    degree as determined by the grantee.
    
    (Authority: 29 U.S.C. 711(c) and 771a(b))
    
    
    Sec. 386.41  Under what circumstances does the Secretary grant a 
    deferral or exception to performance or repayment under a scholarship 
    agreement?
    
        A deferral or repayment exception to the requirements of 
    Sec. 386.34(c)(1) may be granted, in whole or part, by the Secretary as 
    follows:
        (a) Repayment is not required if the scholar--
        (1) Is unable to continue the course of study or perform the work 
    obligation because of a disability that is expected to continue 
    indefinitely or result in death; or
        (2) Has died.
        (b) Repayment of a scholarship may be deferred during the time the 
    scholar is--
        (1) Engaging in a full-time course of study at an institution of 
    higher education;
        (2) Serving, not in excess of three years, on active duty as a 
    member of the armed services of the United States;
        (3) Serving as a volunteer under the Peace Corps Act;
        (4) Serving as a full-time volunteer under Title I of the Domestic 
    Volunteer Service Act of 1973;
        (5) Temporarily totally disabled, for a period not to exceed three 
    years; or
        (6) Unable to secure employment as required by the agreement by 
    reason of the care provided to a disabled spouse for a period not to 
    exceed 12 months.
    
    (Authority: 29 U.S.C. 771(c) and 771a(b))
    
    
    Sec. 386.42  What must a scholar do to obtain a deferral or exception 
    to performance or repayment under a scholarship agreement?
    
        To obtain a deferral or exception to performance or repayment under 
    a scholarship agreement, a scholar shall provide the following:
        (a) Written application. A written application must be made to the 
    Secretary to request a deferral or an exception to performance or 
    repayment of a scholarship.
        (b) Documentation. (1) Documentation must be provided to 
    substantiate the grounds for a deferral or exception.
        (2) Documentation necessary to substantiate an exception under 
    Sec. 386.41(a)(1) or a deferral under Sec. 386.41(b)(5) must include a 
    sworn affidavit from a qualified physician or other evidence of 
    disability satisfactory to the Secretary.
        (3) Documentation to substantiate an exception under 
    Sec. 386.41(a)(2) must include a death certificate or other evidence 
    conclusive under State law.
    
    (Approved by the Office of Management and Budget under control 
    number 1820-0018.)
    
    (Authority: 29 U.S.C. 711(c) and 771a)
    
    
    Sec. 386.43  What are the consequences of a scholar's failure to meet 
    the terms and conditions of a scholarship agreement?
    
        In the event of a failure to meet the terms and conditions of a 
    scholarship agreement or to obtain a deferral or an exception as 
    provided in Sec. 386.41, the scholar shall repay all or part of the 
    scholarship as follows:
        (a) Amount. The amount of the scholarship to be repaid is 
    proportional to the employment obligation not completed.
        (b) Interest rate. The Secretary charges the scholar interest on 
    the unpaid balance owed in accordance with 31 U.S.C. 3717.
        (c) Interest accrual. (1) Interest on the unpaid balance accrues 
    from the date the scholar is determined to have entered repayment 
    status under paragraph (e) of this section.
        (2) Any accrued interest is capitalized at the time the scholar's 
    repayment schedule is established.
        (3) No interest is charged for the period of time during which 
    repayment has been deferred under Sec. 386.41.
        (d) Collection costs. Under the authority of 31 U.S.C. 3717, the 
    Secretary may impose reasonable collection costs.
        (e) Repayment status. A scholar enters repayment status on the 
    first day of the first calendar month after the earliest of the 
    following dates, as applicable:
        (1) The date the scholar informs the Secretary he or she does not 
    plan to fulfill the employment obligation under the agreement.
        (2) Any date when the scholar's failure to begin or maintain 
    employment makes it impossible for that individual to complete the 
    employment obligation within the number of years required in 
    Sec. 386.34(c)(1).
        (f) Amounts and frequency of payment. The scholar shall make 
    payments to the Secretary that cover principal, interest, and 
    collection costs according to a schedule established by the Secretary.
    
    (Authority: 29 U.S.C. 711(c) and 771a(b))
    
    [FR Doc. 94-14594 Filed 6-15-94; 8:45 am]
    BILLING CODE 4000-01-P
    
    
    

Document Information

Published:
06/16/1994
Entry Type:
Uncategorized Document
Action:
Final regulations.
Document Number:
94-14594
Dates:
These regulations take effect either 45 days after publication in the Federal Register or later if the Congress takes certain adjournments. If you want to know the effective date of these regulations, call or write the Department of Education contact person. A document announcing the effective date will be published in the Federal Register.
Pages:
0-0 (1 pages)
Docket Numbers:
Federal Register: June 16, 1994
CFR: (33)
34 CFR 386.33(a)(4)
34 CFR 386.41(a)(1)
34 CFR 386.41(a)(2)
34 CFR 386.31(b)
34 CFR 386.1(b)
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