|
Payback FAQs
1. When in the scholarship award process
must the scholar sign the payback agreement?
An institution receiving a Long-term Training grant
from the Rehabilitation Services Administration (RSA), U.S. Department of
Education, must ensure that any student receiving scholarship assistance
from the grant signs and dates a "payback" agreement prior to
the initial disbursement of any scholarship funds on his/her behalf,
including the payment or crediting of tuition. The institution must fully
disclose to the RSA scholar the terms and conditions of the payback
requirement in the application for an RSA scholarship. The written
agreement must contain the terms and conditions required by the
regulations. [34 CFR 386.341]
2. What financial aid is included in the payback
requirement?
The requirement applies to all RSA financial
assistance to a scholar in an area of long-term rehabilitation training
and includes payments for tuition, stipends, books, fees, and travel. [34
CFR 386.41]
3. How is an academic year defined for purposes
of the payback requirement?
An academic year means a full-time course of study:
(1) taken for a period totaling at least 9 months; or (2) taken for the
equivalent of at least 2 semesters, 2 trimesters, or 3 quarters. The
employment obligation of a part-time scholar is based on the accumulated
academic years of training for which scholarship aid is received. If a
scholar attends school from September to June, his/her payback obligation
is two full years. Work requirements for portions of an academic year are
prorated. [34 CFR 386.4; 34 CFR 386.34]
4. When a scholar receives partial funding, what
are the payback requirements?
The amount of financial assistance disbursed,
whether partial or full, does not affect the obligation of the scholar to
meet an employment commitment. The employment obligation for a part-time
scholar will be based upon the "accumulated academic years" of
training for which the scholar received assistance. [34 CFR 386.84]
5. What is the relationship between the amount of
time that a student receives a scholarship and the length of time that
he/she must maintain employment to meet payback requirements? Also, how
much time does the student have to meet the payback requirements?
As of June 1, 1992, the student must satisfy the
following employment obligation:
(a) The student must work in a State vocational
agency, a non-profit rehabilitation agency, or a related agency, including
a professional practice group through which the individual has a service
arrangement with the State vocational rehabilitation agency;
(b) The length of the employment obligation is the
full-time equivalent of 2 years for each year of scholarship assistance
provided;
(c) The period of time that the student has in order
to satisfy the employment obligation begins immediately upon the
completion of the training and lasts for the duration of the employment
obligation plus a grace period of two more years;
(d) The student may work on a part-time basis as
long as the employment obligation is satisfied during the period of time
referred to in paragraph 3.
6. If a scholar is dismissed or drops out of a
program for academic or non-academic reasons, to what degree will he/she
be liable for payback?
The scholar is liable for repayment of the costs
received if he/she is dismissed or voluntarily leaves the program for
academic or non-academic reasons. If he/she seeks to meet the obligation
through employment, the employment must be in a position as defined in the
regulations. Circumstances for deferrals and exceptions are described in
the regulations. [34 CFR 386.41]
7. Must scholars work on a full-time basis in a
qualifying agency?
No. A scholar may work on a full- or part-time basis
for either the State rehabilitation agency or a related agency, facility,
or qualifying organization. If a scholar works part-time, he/she still has
an obligation to work the full-time equivalent of two years for each year
for which assistance was provided within a period of not more than the sum
of the number of years owed and two additional years. [34 CFR 386.34]
8. What is meant by a "related agency"?
The State-Federal programs of vocational
rehabilitation, supported employment, and independent living are the
programs intended to benefit from the payback provision. Congress
recognized, however, that State rehabilitation agencies often accomplish
their mission through agreements with other programs. Thus, the employment
obligation may be met by obtaining and maintaining employment in the field
in which the scholar was trained, in a nonprofit or related agency
providing services under an agreement with a State rehabilitation agency.
When seeking employment an RSA scholar should first
check with his/her appropriate training institution to obtain a listing of
employment sites that meet the statutory and regulatory definition of
"acceptable employment." Second, the student should determine if
the potential employer meets the definition of acceptable employment
(public or non- profit, or related agency, facility, or service provider).
The employer should also be able to provide information regarding whether
the program, agency or facility provides services to clients of the State
vocational rehabilitation (VR) agency, or whether it has a cooperative
working agreement regarding the referral or provision of services to VR
clients. If additional information is needed, an RSA scholar may wish to
contact the State VR agency to obtain additional information. In instances
where these questions cannot be clarified, scholars may wish to contact
the
appropriate RSA regional office (listing at the back
of this manual).
Note: The grantee (training institution) is required
to document that the State rehabilitation agency has an agreement with the
RSA scholar's employer in the area of specialty. An agreement may be an
arrangement by a related agency to accept referrals and provide services
to rehabilitation clients, or a purchase of service or contractual
arrangement with a service provider. [34 CFR 386.4; 34 CFR 386.34]
9. Does volunteer work count towards the payback
requirement?
No. Volunteer work does not count towards the
payback work requirement.
10. Does the payback requirement apply to
residency programs in Physical Medicine and Rehabilitation (PM&R)?
Yes. Residency programs receiving grants under the
Rehabilitation Long-term Training program in the field of PM&R must
adhere to the final Rehabilitation Long-term Training regulations
published in the FEDERAL REGISTER on June 16, 1992. (RSA-PPD-88-8, May 5,
1988]
11. Must scholars serve State rehabilitation
clients exclusively in full- or part-time employment in a qualifying
agency?
If a scholar works for a related agency, he/she is
not required to serve only rehabilitation clients of the State-Federal
programs of vocational rehabilitation, supported employment, or
independent living in his/her job. Rather, the requirement can be met if
he/she is employed on a full- or part-time basis by the qualifying
organization, and the work is on a continuing basis as a consultant or
practitioner serving rehabilitation clients under an agreement with a
State vocational rehabilitation agency. For example, if a rehabilitation
physician works for a qualifying organization whose clientele includes
individuals receiving
services through programs funded under the
Rehabilitation Act, the work would meet payback requirements. [34 CFR
386.4; 34 CFR 386.34]
12. If a scholar engages in employment for a
State agency or related rehabilitation agency while in training , will
that count toward payback?
Rehabilitation employment while in training for
which the scholarship was awarded does meet the work requirement.
Regulations state that the scholar will maintain employment in a
qualifying agency "beginning after the recipient completes the
training for which the scholarship was awarded." (emphasis supplied)
[34 CFR 386.34]
13. Why is June 1, 1992, a significant date in
relation to the payback requirement?
The Rehabilitation Act Amendments of 1992 (Pub. L.
103-569) revised the payback requirements that were enacted by the
Rehabilitation Act Amendments of 1986. The information in this manual and
the regulations published on June 16, 1994, apply to individuals receiving
scholarships for any academic year beginning after June 1, 1992.
14. What information in addition to this manual
will help an RSA scholar and the granting institution to understand their
responsibilities in complying with the payback requirements?
Scholars and institutions must become familiar with
the final regulations published in the FEDERAL REGISTER on June 16, 1994.
[59 FR 31000] As a condition of receiving this grant, scholars and
institutions are required to comply with the rules. The regulations spell
out the payback provisions and the scholar's requirements to comply with
them. Training institutions should identify additional rehabilitation
information, such as names and addresses of qualifying employers, for use
in assisting scholars.
15. What is the "exit certification"
that the grantee must provide in writing when a scholar completes his/her
program?
According to 386.34(f), the granting institution is
required to maintain the following information on file for each
scholarship:
(a) The scholar's name and identifying information
on the Federal grant that provided the scholarship;
(b) The scholar's field of study;
(c) The number of years the scholar needs to work to
satisfy the work requirement in 386.34(c)(1)(i)(C);
(d) The total amount of scholarship assistance
provided subject to the work-or-repay provision in 386.34(c)(1)(ii).
(e) The time period during which the scholar must
satisfy the work requirements in 386.34(c)(1)(i)(C).
(f) All the other obligations the scholar must meet
in 386.34, such as the need to inform the training institution of any
change of name, address, employment status, and information documenting
how he/she has satisfied the terms of his/her scholarship agreement.
The exit certification must include written
verification from the scholar acknowledging that the information in
his/her file is accurate and that he/she is aware of his/her work-or-repay
obligation.
16. Does RSA specify the geographical location in
which the work requirement must be satisfied?
Regulations implementing the payback requirement do
not specify the geographical location in which the work requirement must
be satisfied. An RSA scholar may select where he or she wishes to seek and
maintain employment, provided that within the required period of time
following the completion of his or her training, the employment obligation
is fulfilled with a State agency or related program. [34 CFR 386.34]
17. Will an RSA scholar be able to fulfill the
payback employment requirement if the private, for-profit, business for
which he/she works provides services to State agency rehabilitation
clients?
A for-profit organization may qualify as a
professional corporation or professional practice group provided it meets
the applicable definition in the Federal regulations. Professional
corporations and practice groups are not limited to non-profit status
organizations. If questions arise as to whether a particular organization
qualifies to meet an RSA scholar's work requirement, the grantee or
scholar should write a letter to the appropriate RSA regional office
representative (listed at the back of this manual) to request an official
reply to the question of whether the organization is qualified. [34 CFR
386.4(b)]
18. Under what circumstances may a scholar
receive an exception to the payback requirements?
Before disbursement of a scholarship, grantees are
required to obtain documentation that the individual has
expressed interest in a career in the provision of
rehabilitation services and that the individual expects to maintain or
seek employment in an approved agency. [34 CFR 386.33]
Scholars are not required to repay if they are
unable to continue their course of study or complete their employment due
to a severe disability that is expected to continue indefinitely or result
in death, or if, in fact, they should die. [34 CFR 386.41(a)]
19. Under what circumstances may repayment of a
scholarship be deferred?
Repayment of a scholarship may be deferred during
the time the scholar is:
(a) engaging in a full-time course of study at an
institution of higher education;
(b) serving, not in excess of three years, on active
duty as a member of the armed services of the United
States;
(c) serving as a volunteer under the Peace Corps
Act;
(d) serving as a full-time volunteer under Title I
of the Domestic Volunteer Service Act of 1973;
(e) temporarily totally disabled, for a period not
to exceed three years; or
(f) 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 twelve months. [34
CFR 386.41(b)]
20. How would a scholar obtain a deferral or
exception for one of the reasons listed above?
The scholar, or when necessary the legally
responsible person acting on his/her behalf, must submit a written
application and documentation (as provided in 386.42) to the Commissioner,
Rehabilitation Services, U.S. Department of Education, 600 Independence
Avenue, S.W., Washington, D.C. 20202. [34 CFR 386.42]
21. To whom must the scholar report his/her
whereabouts, jobs, or noncompliance with the terms of his/her agreement?
The academic institution which administered the RSA
training grant is responsible for keeping track of the location of
scholars supported under the training grant, and their employment, until
the payback requirements are met. Regulations state that the individual
scholar is responsible for notifying the granting institution about
changes in his/her address, employment, or other significant facts related
to completion of the payback requirement. A reasonable approach that would
comply with the institution's tracking responsibility would be to contact
each former scholar once a year, with a follow-up mailing if he/she does
not respond. If an institution experiences difficulty in locating a
scholar, it is required to check with existing tracking systems operated
by alumni organizations. [34 CFR 386.34(c)(3) and 386.34(g)]
22. What types of reports must institutions that
accept RSA training grants make to the Department of Education about
scholars?
Training institutions (grantees) are required to
file the "RSA Training Payback Reporting Form" within 30 days
after the end of each project budget period for which the training
institution is funded. This form will allow RSA to obtain sufficient
information in order to determine whether the Long-term Training program
meets its broad purpose and to submit reports to Congress on whether
scholars meet their work requirements. The Payback Reporting Form must be
submitted by the grantee each year until all scholars have completed their
work obligations in order for the grantee to receive Federal scholarship
funding. Thus, forms will be submitted for a number of years beyond which
the project is supported with Federal funds. Training institutions must
report ALL scholars to whom scholarships have been provided since 1987.
Failure to report scholars may result in a cost disallowance found through
an audit and may affect their ability to receive future grants.
23. When does a scholar enter financial
"repayment" status?
Financial repayment status begins when it is
apparent that all or part of the employment obligation will not be
fulfilled by the payback completion date. Specifically, financial
repayment status begins on the first day of the first calendar month after
the earliest of the following dates, as applicable: (1) the date an RSA
scholar informs the Commissioner of RSA (copy to training institution)
that he/she does not plan to fulfill the employment obligation under the
agreement; 2) any date when the RSA scholar's failure to begin or maintain
employment makes it impossible for him/her to complete his/her employment
obligation within the number of years required in section 386.34(c)(1). If
an RSA scholar partially meets his/her employment requirements, he/she
must repay a prorated sum based upon the years/months of unmet employment
in the payback agreement. As noted, the scholar should send a notice
pursuant to repayment status to the Commissioner of the RSA in the U.S.
Department of Education, 600 Independence Avenue, S.W., Washington, D.C.
20202. [34 CFR 386.43(e)]
24. What happens if an RSA scholar's employment
obligation is not completed?
According to the terms and conditions of the RSA
scholar's written agreement with his/her training institution, he/she must
repay the amount of scholarship not satisfied through employment, as well
as the interest on the unpaid balance of the scholarship owed, and
reasonable collection costs, as determined by the Secretary of Education.
Interest charged is variable and is based on language contained in 34 CFR
386.34 and 34 CFR 386.43; 31 U.S.C. 3717.
25. Who collects the funds if a scholar does not
fulfill the payback requirement through qualifying employment?
The Secretary of the Department of Education is
responsible for collecting the funds if a scholar does not comply with the
regulations. [34 CFR 386-43]
26. What recourse will a scholar have to appeal a
finding of non-compliance with the regulations for the payback provision?
Appeals should be directed to the
Commissioner of RSA, U.S. Department of Education, 600 Independence
Avenue, S.W., Washington, D.C. 20202. The Commissioner will acknowledge
all such appeals in writing.
|
