34 C.F.R. Subpart E—Scholarships
Title 34 - Education
(a) General: The service obligation. An individual, whom a grantee finds eligible to receive a scholarship funded under this part to attend a teacher preparation program, may receive the scholarship only after executing a binding agreement with the institution of higher education (IHE) offering the scholarship that, after completing the program, the individual will either— (1) Teach in a high-need school of a high-need LEA for a period of time equivalent to the period for which the individual receives the scholarship; or (2) Repay, as set forth in §611.43, the Teacher Quality Enhancement Grant Program funds provided as a scholarship. (b) Content of the scholarship agreement. To implement the service-obligation requirement, the scholarship agreement must include terms, conditions, and other information consistent with §§611.42–611.49 that the Secretary determines to be necessary. (Authority: 20 U.S.C. 1024(e)) (a) Calculation of period of scholarship assistance. (1) The Secretary calculates the period of time for which a student received scholarship assistance on the basis of information provided by the grantee under §611.50. (2) The period for which the recipient received scholarship assistance is the period during which an individual enrolled in the teacher preparation program on a full-time basis, excluding the summer period, would have completed the same course of study. (b) Calculation of period needed to teach to meet the service obligation. (1) The period of the scholarship recipient's service obligation is the period of the individual's receipt of scholarship assistance as provided in paragraph (a) of this section. (2) The Secretary calculates the period that a scholarship recipient must teach in a high-need school of a high-need LEA in order to fulfill his or her service obligation by— (i) Comparing the period in which the recipient received a scholarship as provided in paragraph (a) of this section with the information provided by the high-need LEA under §§611.46 and 611.47 on the period the recipient has taught in one of its high-need schools; and (ii) Adjusting the period in which the recipient has taught in a high-need school to reflect the individual's employment, if any, as a teacher on a part-time basis relative to classroom teachers the LEA employs on a full-time basis under the LEA's standard yearly contract (excluding any summer or intersession period). (c) The Secretary adjusts the period of a scholarship recipient's service obligation as provided in paragraph (b) of this section to reflect information the high-need LEA provides under §§611.46 and 611.47 that the scholarship recipient also has taught in a high-need school in a summer or intersession period. (Authority: 20 U.S.C. 1024(e)) (a) Obligation to repay: General. (1) A scholarship recipient who does not fulfill his or her service obligation must— (i) Repay the Department the full amount of the scholarship, including the principal balance, accrued interest, and any collection costs charged under paragraphs (c) and (d) of this section; or (ii) Be discharged of any repayment obligation as provided in §611.45. (2) Unless the service obligation is deferred as provided in §611.44 or the repayment requirement is discharged, the obligation to repay the amount provided in paragraph (a)(1) of this section begins six months after the date the recipient— (i) Completes the teacher training program without beginning to teach in a high-need school of a high-need LEA; or (ii) Is no longer enrolled in the teacher training program. (3) The Secretary determines whether a scholarship recipient has fulfilled the service obligation on the basis of information that the Department receives as provided in §§611.46 and 611.47. (b) Obligation to Repay: Partial performance of the service obligation. (1) A scholarship recipient who teaches in a high-need school of a high-need school district for less than the period of his or her service obligation must repay— (i) The amount of the scholarship that is proportional to the unmet portion of the service obligation; (ii) Interest that accrues on this portion of the scholarship beginning six months after the recipient's graduation from the teacher preparation program; and (iii) Costs of collection, if any. (2) Unless the service obligation is deferred or the repayment requirement is discharged, the obligation to repay the amount provided in paragraph (b)(1) of this section begins six months after the date the recipient is no longer employed as a teacher in a high-need school of a high-need LEA. (c) Availability of payment schedule. (1) Upon request to the Secretary, the scholarship recipient may repay the scholarship and accrued interest according to a payment schedule that the Secretary establishes. (2) A payment schedule must permit the full amount of the scholarship and accrued interest to be repaid within ten years. The minimum monthly payment is $50 unless a larger monthly payment is needed to enable the full amount that is due to be paid within this timeframe. (d) Interest. In accordance with 31 U.S.C. 3717 and 34 CFR part 30, the Secretary charges interest on the unpaid balance that the scholarship recipient owes. However, except as provided in §611.44(d), the Secretary does not charge interest for the period of time that precedes the date on which the scholarship recipient is required to begin repayment. (e) Failure to meet requirements. A scholarship recipient's failure to satisfy the requirements of §§611.42–611.48 in a timely manner results in the recipient being— (1) In non-compliance with the terms of the scholarship; (2) Liable for repayment of the scholarship and accrued interest; and (3) Subject to collection action. (f) Action by reason of default. The Secretary may take any action authorized by law to collect the amount of scholarship, accrued interest and collection costs, if any, on which a scholarship recipient obligated to repay under this section has defaulted. This action includes, but is not limited to, filing a lawsuit against the recipient, reporting the default to national credit bureaus, and requesting the Internal Revenue Service to offset the recipient's Federal income tax refund. (Authority: 20 U.S.C. 1024(e)) [64 FR 42839, Aug. 6, 1999, as amended at 65 FR 19613, Apr. 11, 2000] (a) Upon written request, the Secretary may defer a service obligation for a scholarship recipient who— (1) Has not begun teaching in a high-need school of a high-need LEA as required by §611.41(a); or (2) Has begun teaching in a high-need school of a high-need LEA, and who requests the deferment within six months of the date he or she no longer teaches in this school. (b) To obtain a deferment of the service obligation, the recipient must provide the Secretary satisfactory information of one or more of the following circumstances: (1) Serious physical or mental disability that prevents or substantially impairs the scholarship recipient's employability as a teacher. (2) The scholarship recipient's inability, despite due diligence (for reasons that may include the failure to pass a required teacher certification or licensure examination), to secure employment as a teacher in a high-need school of a high-need school LEA. (3) Membership in the armed forces of the United States on active duty for a period not to exceed three years. (4) Other extraordinary circumstances that the Secretary accepts. (c) Unless the Secretary determines otherwise— (1) A scholarship recipient must apply to renew a deferment of the service obligation on a yearly basis; and (2) The recipient has 60 days from the end of the deferment period to begin teaching in a high-need school of a high-need LEA or become liable for repayment of the scholarship, any accrued interest, and any costs of collection. (d)(1) As provided in §611.43(a)(2), during periods for which the Secretary defers a scholarship recipient's service obligation, the scholarship recipient does not have an obligation to repay the scholarship. However, interest continues to accrue on the amount of the scholarship. (2) If the scholarship recipient fulfills his or her service obligation after the end of the deferment, the Secretary waives the obligation to repay accrued interest. (Authority: 20 U.S.C. 1024(e)) (a) The Secretary discharges the obligation of a scholarship recipient to repay the scholarship, interest, and any costs for failure to meet the service obligation based on information acceptable to the Secretary of— (1) The recipient's death; or (2) The total and permanent physical or mental disability of the recipient that prevents the individual from being employable as a classroom teacher. (b) Upon receipt of acceptable documentation and approval of the discharge request, the Secretary returns to the scholarship recipient, or for a discharge based on death to the recipient's estate, those payments received after the date the eligibility requirements for discharge were met. The Secretary returns these payments whether they are received before or after the date the discharge was approved. (Authority: 20 U.S.C. 1024(e)) (a) Within six months of graduating from a teacher preparation program, a scholarship recipient must either— (1) Have the LEA in which the recipient is employed as a teacher provide the Department information, which the Secretary may require, to confirm— (i) The home address, phone number, social security number, and other identifying information about the recipient; (ii) That he or she is teaching in a high-need school of a high-need LEA; and (iii) Whether the individual is teaching full- or part-time and, if part-time, the full-time equivalency of this teaching compared to the LEA's full-time teachers; (2) Provide the Department— (i) A notarized statement that the scholarship recipient has asked the LEA to provide the Department the information identified in paragraph (a)(1) of this section, including the name and telephone number of the LEA official to whom the request was made; and (ii) A copy of the information identified in paragraph (a)(1) of this section that the recipient has asked the LEA to provide to the Department; or (3) Provide the Department a current home address and telephone number, a work address and telephone number, the recipient's social security number, and one of the following: (i) The required repayment of the scholarship. (ii) A request that the Secretary permit the recipient to repay the scholarship and accrued interest in installments as permitted by §611.43(c). (iii) A request that the Secretary defer the service obligation as permitted by §611.44. (b) If the recipient provides the Department the information identified in paragraph (a)(1) of this section, the Department accepts the information provisionally, but the recipient retains responsibility for working to have the LEA submit the information. (Authority: 20 U.S.C. 1024(e)) (a) At the close of the LEA's academic year, a scholarship recipient whose LEA reports under §611.46(a) that he or she is teaching in a high-need school of a high-need LEA must— (1) Have the LEA provide information to the Department, as the Secretary may require, that confirms the recipient's actual employment status for the preceding period; or (2) Provide the Department— (i) A notarized statement that the scholarship recipient has asked the LEA to provide the Department the information identified in paragraph (a)(1) of this section, including the name and telephone number of the LEA official to whom the request was made; and (ii) A copy of the information identified in paragraph (a)(1) of this section that the recipient has asked the LEA to provide to the Department. (b) If the recipient provides the Department the notarized statement and accompanying information identified in paragraph (a)(2) of this section, the Department accepts the information provisionally, but the recipient retains an ongoing responsibility for working to have the LEA submit the information directly to the Department. (c) In subsequent school years, the recipient must have the LEA continue to provide information to the Department on the recipient's employment as the Secretary may require, until the Department notifies the recipient that the service obligation has been fulfilled. The alternative procedures in paragraph (a)(2) of this section also apply in subsequent years. (d)(1) The Secretary provides a scholarship recipient with credit toward the service obligation for teaching in a high-need school of a high-need LEA during a summer or intersession period (for LEAs that operate year-round programs). (2) To receive this credit, the recipient must have the LEA at the end of the summer or intersession period provide information to the Department, as the Secretary may require, that confirms that the recipient has taught during this period in a high-need school. (Authority: 20 U.S.C. 1024(e)) (a)(1) Within six months of the date the scholarship recipient is no longer enrolled in the teacher training program, or within six months of the IHE's withdrawal of scholarship support for failure to maintain good academic standing, the recipient must submit to the Department— (i) The required repayment of the scholarship; (ii) A request that the Secretary establish a binding schedule under which the recipient is obligated to repay the scholarship, accrued interest, and any costs of collection; or (iii) A request that the Secretary defer the service obligation as permitted by §611.44. (2) Upon review of the repayment or information provided under paragraph (a)(1) of this section, the Department notifies the recipient of the status of the recipient's obligations and of any schedule under which the recipient must repay the scholarship. (b) Until the Secretary determines that the individual either has satisfied his or her service obligation or has repaid the full amount of the scholarship, accrued interest, and any costs, the recipient also remains responsible for providing the Department— (1) The information identified in this part; and (2) A current home address and telephone number, and a current work address and work telephone number. (Authority: 20 U.S.C. 1024(e)) Before awarding scholarship assistance with funds provided under this part to any student attending a teacher preparation program, a grantee must— (a) Ensure that the student understands the terms and conditions that the Secretary has determined must be included in the scholarship agreement; (b) Have the student and the institution awarding the scholarship execute a scholarship agreement that contains these terms and conditions; and (c) Establish policies for— (1) The withdrawal of scholarship support for any student who does not remain in good academic standing; and (2) Determining when and if re-negotiation of a student's scholarship package over an extended period of time is appropriate. (Authority: 20 U.S.C. 1024(e)) (a) Within 30 days of the beginning of the teacher preparation program's academic term or within 30 days of the execution of any scholarship agreement, whichever is later, the grantee must provide to the Department the following information: (1) The identity of each scholarship recipient. (2) The amount of the scholarship provided with program funds to each recipient. (3) The full-time equivalency, over each academic year, of each recipient's enrollment in the teacher training program for which he or she receives scholarship assistance. (4) Other information as the Secretary may require. (b) Within 30 days of a scholarship recipient's graduation or withdrawal from the teacher preparation program, the grantee must provide to the Department the following information: (1) The date of the recipient's graduation or withdrawal. (2) The total amount of program funds the grantee awarded as a scholarship to the recipient. (3) The original of any scholarship agreement executed by the scholarship recipient and the grantee (or its partnering IHE if the grantee is not an IHE) before the recipient was awarded a scholarship with program funds. (4) A statement of whether the institution has withdrawn scholarship support because of the recipient's failure to maintain good academic standing. (5) Other information as the Secretary may require. (Authority: 20 U.S.C. 1024(e)) (a) An institution that provides a scholarship with funds provided under this part must conduct an exit conference with each scholarship recipient before that individual leaves the institution. During the exit conference the institution must give the recipient a copy of any scholarship agreement the recipient has executed. (b) The institution also must review with the recipient the terms and conditions of the scholarship, including— (1) The recipient's service obligation; (2) How the recipient can confirm whether a school and LEA in which he or she would teach will satisfy the service obligation; (3) Information that the recipient will need to have the LEA provide to the Department to enable the Secretary to confirm that the recipient is meeting the service obligation; (4) How the recipient may request a deferment of the service obligation, and information that the recipient should provide the Department in any deferment request; (5) The consequences of failing to meet the service obligation including, at a minimum, the amount of the recipient's potential indebtedness; the possible referral of the indebtedness to a collection firm, reporting it to a credit bureau, and litigation; and the availability of a monthly payment schedule; (6) The amount of scholarship assistance and interest charges that the recipient must repay for failing to meet the service obligation; and (7) The recipient's responsibility to ensure that the Department has a home address and telephone number, and a work address and telephone number until the Secretary has determined that the recipient has fulfilled the service obligation or the recipient's debt has been paid or discharged; and (8) The follow-up services that the institution will provide the student during his or her first three years of teaching in a high-need school of a high-need LEA. (Authority: 20 U.S.C. 1024(e)) In implementing its approved project, the grantee must— (a) Provide scholarship recipients both before and after graduation with appropriate support services, including academic assistance, job counseling, placement assistance, and teaching support that will help to ensure that— (1) Upon graduation, scholarship recipients are able to secure teaching positions in high-need schools of high-need LEAs; and (2) After beginning to teach in a high-need school of a high-need LEA, former scholarship recipients have appropriate follow-up services and assistance during their first three years of teaching; (b) Provide LEAs with which the grantees collaborate in teacher recruitment activities with information and other assistance they need to recruit highly-qualified teachers effectively; and (c) Work with the high-need LEAs participating in its project to ensure that scholarship recipients are placed, to the extent possible, in highest-need schools of those LEAs. (Authority: 20 U.S.C. 1024(e))
Title 34: Education
PART 611—TEACHER QUALITY ENHANCEMENT GRANTS PROGRAM
Subpart E—Scholarships
§ 611.41 Under what circumstances may an individual receive a scholarship of program funds to attend a teacher training program?
§ 611.42 How does the Secretary calculate the period of the scholarship recipient's service obligation?
§ 611.43 What are the consequences of a scholarship recipient's failure to meet the service obligation?
§ 611.44 Under what circumstances may the Secretary defer a scholarship recipient's service obligation?
§ 611.45 Under what circumstances does the Secretary discharge a scholarship recipient's obligation to repay for failure to meet the service obligation?
§ 611.46 What are a scholarship recipient's reporting responsibilities upon graduation from the teacher preparation program?
§ 611.47 What are a scholarship recipient's reporting responsibilities upon the close of the LEA's academic year?
§ 611.48 What are a scholarship recipient's reporting responsibilities upon failure to graduate or withdrawal of scholarship support?
§ 611.49 What are a grantee's responsibilities for implementing the scholarship requirements before awarding a scholarship?
§ 611.50 What are a grantee's reporting responsibilities?
§ 611.51 How does a grantee ensure that a scholarship recipient understands the terms and conditions of the scholarship before the recipient leaves the teacher preparation program?
§ 611.52 What are a grantee's programmatic responsibilities for ensuring that scholarship recipients become successful teachers in high-need schools?
