80 FR 48272 - National Institutes of Health Undergraduate Scholarship Program Regarding Professions Needed by National Research Institutes

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Federal Register Volume 80, Issue 155 (August 12, 2015)

The National Institutes of Health (NIH), through the Department of Health and Human Services (HHS), is issuing regulations to implement provisions of the Public Health Service Act authorizing the NIH Undergraduate Scholarship Program Regarding Professions Needed by National Research Institutes (UGSP). The purpose of the program is to recruit appropriately qualified undergraduate students from disadvantaged backgrounds to conduct research in the intramural research program as employees of the NIH by providing scholarship support.

[Federal Register Volume 80, Number 155 (Wednesday, August 12, 2015)]
[Rules and Regulations]
[Pages 48272-48277]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-19739]


-----------------------------------------------------------------------

DEPARTMENT OF HEALTH AND HUMAN SERVICES

42 CFR Part 68b

RIN 0925-AA10
[Docket No. NIH-2007-0930]


National Institutes of Health Undergraduate Scholarship Program 
Regarding Professions Needed by National Research Institutes

AGENCY: National Institutes of Health, HHS.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The National Institutes of Health (NIH), through the 
Department of Health and Human Services (HHS), is issuing regulations 
to implement provisions of the Public Health Service Act authorizing 
the NIH Undergraduate Scholarship Program Regarding Professions Needed 
by National Research Institutes (UGSP). The purpose of the program is 
to recruit appropriately qualified undergraduate students from 
disadvantaged backgrounds to conduct research in the intramural 
research program as employees of the NIH by providing scholarship 
support.

DATES: This final rule is effective September 11, 2015.

FOR FURTHER INFORMATION CONTACT: Jerry Moore, NIH Regulations Officer, 
Office of Management Assessment, NIH, 6011 Executive Boulevard, Room 
601, MSC 7669, Rockville MD 20852; by email at [email protected]; by fax on 
301-402-0169 (not a toll-free number); or by telephone

[[Page 48273]]

on 301-496-4607 (not a toll-free number).

SUPPLEMENTARY INFORMATION: On June 10, 1993, the NIH Revitalization Act 
of 1993 (Pub. L. 103-43) was enacted. Section 1631 of this law amended 
the Public Health Service (PHS) Act by adding section 487D (42 U.S.C. 
288-4). Section 487D authorizes the Secretary, acting through the 
Director of the NIH, to carry out a program of entering into contracts 
with individuals under which the Director agrees to provide 
scholarships for pursuing, as undergraduates at accredited institutions 
of higher education, academic programs appropriate for careers in 
professions needed by the NIH. In return, the individuals agree to 
serve as employees of the NIH in positions that are needed by the NIH 
and for which the individuals are qualified. The individuals must be 
enrolled or accepted for enrollment as full-time undergraduates at 
accredited institutions of higher education and must be from 
disadvantaged backgrounds. Section 487D of the PHS Act further states 
that, concerning penalties for breach of scholarship contract, the 
provisions of section 338E of the PHS Act shall apply to the program to 
the same extent and in the same manner as such provisions apply to the 
National Health Service Corps Loan Repayment Program established in 
section 338B.
    The 1993 amendment of the PHS Act led to the establishment of the 
UGSP. The purpose of the program, since it began selecting participants 
in 1997, is to recruit appropriately qualified undergraduate students 
from disadvantaged backgrounds to conduct research in the intramural 
research program as employees of the NIH by providing scholarship 
support. The UGSP provides a diverse and highly qualified cadre of 
individuals seeking careers compatible with NIH employment 
opportunities.
    The NIH is amending title 42 of the Code of Federal Regulations by 
adding Part 68b governing the administration of the UGSP. This final 
rule establishes program regulations necessary to implement and enforce 
important aspects of the UGSP. In general, this final rule specifies 
the scope and purpose of the program, the eligibility criteria, the 
application process, the selection criteria, and the terms and 
conditions of the program.
    The rationale used by the NIH in developing the eligibility and 
selection criteria of this final rule is explained as follows. For 
eligibility, the definition for ``Individual from Disadvantaged 
Background'' used in section Sec.  68b.2 of this proposed rule is the 
same definition used for other similar programs in HHS such as the NIH 
Loan Repayment Program and the Health Resources and Services 
Administration Scholarships for Disadvantaged Students Program. That 
is, an individual from a disadvantaged background, as section Sec.  
68b.2 states, means ``an individual who: (1) Comes from an environment 
that inhibited (but did not prevent) him or her from obtaining the 
knowledge, skills, and abilities required to enroll in an undergraduate 
institution; or (2) comes from a family with an annual income below 
established low-income thresholds. These low-income thresholds are 
based on family size, published by the U.S. Bureau of the Census, 
adjusted annually for changes in the Consumer Price Index, and adjusted 
by the Secretary for use in all health professions programs.'' 
Previously, the UGSP used this definition, but switched to another 
definition that did not take into consideration any other factors other 
than economics in defining ``Individual from a Disadvantaged 
Background.'' The program used that approach for several UGSP cycles 
and noted a decrease in the qualifications of applicants. The NIH 
believes that returning to the original definition, stated above, will 
ensure the largest, most diverse pool of applicants for the UGSP.
    Regarding selection criteria, the applications are prioritized in 
Sec.  68b.5 to give preference to students that have already completed 
two years of undergraduate studies and have excellent grades in the 
core science courses because the NIH wants to ensure a pool of 
candidates that likely possess the traits required to complete their 
undergraduate training and their required service obligation to the 
NIH.
    The NIH announced its intentions to take this rulemaking action, 
through HHS, in the notice of proposed rulemaking (NPRM) titled 
``National Institutes of Health Undergraduate Scholarship Program 
Regarding Professions Needed by National Research Institutes'' 
published in the Federal Register on May 28, 2014 (79 FR 30531-30535). 
In the NPRM we provided a sixty day public comment period. The comment 
period expired July 28, 2014. We received a total of two comments. One 
respondent questioned the need for the program, and expressed concerns 
about the impact of government spending on taxpayers. This respondent 
stated that the program was ``an unnecessary gouging of taxpayers'' and 
that ``graduate students can pay their own way and do not need to be 
coddled by taking tax dollars from working people making $30,000 a 
year.'' We disagree with these comments and did not consider other 
comments made by the respondent as relevant because the comments did 
not specifically address the proposed regulations. The UGSP does not 
provide scholarship support to graduate or professional school 
students. Furthermore, for the past 15 years, the UGSP has been 
instrumental in funding over 200 undergraduate students from 
disadvantaged backgrounds. With the support of the UGSP, 59 percent of 
these students have gone onto acquire a terminal graduate degree and 23 
percent are currently pursuing terminal graduate degrees. Many of these 
students could not foresee completing their undergraduate academic 
training without UGSP support. The UGSP has been very successful at 
creating a very high caliber cadre of professionals who effectively 
support the ongoing biomedical research and public health goals of NIH.
    The second respondent expressed concern that the rule might have an 
internal conflict between eligibility and selection criteria set forth 
in Sec.  68b.2 and Sec.  68b.5, respectively. The respondent suggested 
that matriculating through the first two years of undergraduate studies 
and achieving junior and senior class undergraduate status indicates 
that an individual has overcome obstacles that would have rendered the 
individual disadvantaged, therefore placing priority on recruiting 
undergraduate students at the junior and senior year grade levels would 
be contradictory and it undermines the program's initiative to recruit 
students from disadvantaged backgrounds.
    We disagree with the respondent's reasoning. Accomplishing academic 
success and research experience does not preclude or nullify 
environmental or financial disadvantage. Disadvantaged backgrounds 
affect individuals at a host of training levels, which is evidenced by 
the NIH Loan Repayment Programs and other Federal aid programs for 
professionals that recognize and award individuals from disadvantaged 
backgrounds after achieving a fair amount of success, i.e., 
matriculation into and graduation from professional school).
    The UGSP has very specific reasons for placing priority on 
recruiting upperclassman candidates. First, students who have 
matriculated into their junior and senior years of undergraduate study 
have usually completed the challenging core courses required to pursue 
research-specific careers. Since students selected into the

[[Page 48274]]

UGSP are under contract to maintain a minimum 3.5 GPA, this achievement 
minimizes the potential for attrition due to academic performance below 
the required eligible GPA. Additionally, this early achievement also 
greatly solidifies a candidate's choice to seek a research-centered 
career. Furthermore, these upperclassman students also are more likely 
already to have had a research experience, giving them an opportunity 
to explore whether they enjoy research and are committed to a career 
path where a post-graduation work commitment at NIH would be 
beneficial. Combined these criteria increase the UGSP's likelihood of 
selecting a high performing student that will complete their 
undergraduate studies and successfully pursue a career that involves 
some aspect of social, behavioral or biomedical research. This specific 
pool of academically successful junior and senior undergraduate 
candidates also frequently meets the exceptional financial need 
criteria and qualifies as being from a disadvantaged background. 
Therefore, the eligibility criteria in Sec.  68b.2 and the selection 
criteria in Sec.  68b.5 are not in conflict, and placing priority on 
selecting junior and senior undergraduates allow the UGSP to accomplish 
the objectives of both sets of criteria.
    Consequently, we did not make any changes to what we proposed in 
the previous NPRM in response to the two public comments that we 
received. The final rule is the same as what we proposed in the 
previous NPRM.
    The following is provided as public information.

Regulatory Impact Analysis

    We have examined the impacts of this final rule as required by 
Executive Order 12866, Regulatory Planning and Review (September 30, 
1993); Executive Order 13563, Improving Regulation and Regulatory 
Review (January 18, 2011); the Regulatory Flexibility Act (September 
19, 1980, 5 U.S.C. chapter 6); section 202 of the Unfunded Mandates 
Reform Act of 1995 (Pub. L. 104-4); and Executive Order 13132, 
Federalism (August 4, 1999).

Executive Order 12866

    Executive Order 12866, supplemented by Executive Order 13563, 
directs agencies to assess all costs and benefits of available 
regulatory alternatives and, if regulation is necessary, to select 
regulatory approaches that maximize net benefits (including potential 
economic, environmental, public health and safety and other advantages, 
distributive impacts, and equity). A regulatory impact analysis must be 
prepared for major rules with economically significant effects ($100 
million or more in any 1 year). Based on our analysis, we believe that 
the final rule is not a major rule and it will not constitute an 
economically significant regulatory action. Therefore, a regulatory 
assessment is not required.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C., chapter 6) requires 
agencies to analyze options that would minimize any significant impact 
of the rule on small entities. For the purpose of this analysis, small 
entities include small business concerns as defined by the Small 
Business Administration, usually businesses with fewer than 500 
employees. Applicants who are eligible to apply for the UGSP are 
individuals and not small entities. It is certified that this final 
rule will not have a significant impact on a significant number of 
small entities. Therefore, a Regulatory Flexibility Analysis is not 
required.

Section 202(a) of the Unfunded Mandates Reform Act of 1995

    Section 202(a) of the Unfunded Mandates Reform Act of 1995 requires 
agencies to prepare a written statement that includes an assessment of 
anticipated costs and benefits before proposing ``any rule that 
includes any federal mandate that may result in the expenditure by 
state, local, and tribal organizations, in the aggregate, or by the 
private sector, of $100,000,000 or more (adjusted annually for 
inflation with base year of 1995) in any one year.'' The inflation-
adjusted threshold for 2014 is approximately $141 million. 
Participation in the UGSP is voluntary and not mandated. Therefore, it 
is certified that this final rule does not mandate any spending by 
state, local, or tribal government in the aggregate or by the private 
sector.

Executive Order 13132

    Executive Order 13132, Federalism, requires that federal agencies 
consult with state and local government officials in the development of 
regulatory policies with federalism implications. This final rule has 
been reviewed as required under the Executive Order and it has been 
determined that the proposed rulemaking does not have any federalism 
implications. It is certified that this final rule will not have an 
effect on the States or on the distribution of power and 
responsibilities among the various levels of government.

Paperwork Reduction Act

    This final rule does not contain any new information collection 
requirements that are subject to Office of Management and Budget (OMB) 
approval under the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 
35). The application and contract forms used by the NIH Undergraduate 
Scholarship Program have been approved by OMB under OMB No. 0925-0299 
(expires August 31, 2016).

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance-numbered program 
affected by the proposed regulations is:

93.187--NIH Undergraduate Scholarship Program for Individuals from 
Disadvantaged Backgrounds

List of Subjects in 42 CFR Part 68b

    Education of disadvantaged, Health--medical research, Student aid--
education.

    For reasons presented in the preamble, title 42 of the Code of 
Federal Regulations is amended by adding part 68b to read as set forth 
below.

PART 68b--NATIONAL INSTITUTES OF HEALTH (NIH) UNDERGRADUATE 
SCHOLARSHIP PROGRAM REGARDING PROFESSIONS NEEDED BY NATIONAL 
RESEARCH INSTITUTES (UGSP)

Sec.
68b.1 What is the scope and purpose of the National Institutes of 
Health Undergraduate Scholarship Program Regarding Professions 
Needed by National Research Institutes?
68b.2 Definitions.
68b.3 Who is eligible to apply for a Scholarship Program award?
68b.4 How is an application made for a Scholarship Program award?
68b.5 How will applicants be selected to participate in the 
Scholarship Program?
68b.6 What will an individual be awarded for participating in the 
Scholarship Program?
68b.7 What does an individual have to do in return for the 
Scholarship Program award?
68b.8 Under what circumstances can the period of obligated service 
be deferred to complete approved graduate training?
68b.9 What will happen if an individual does not comply with the 
terms and conditions of participating in the Scholarship Program?
68b.10 When can a Scholarship Program payment obligation be 
discharged in bankruptcy?
68b.11 Under what circumstances can the service or payment 
obligation be canceled, waived, or suspended?

[[Page 48275]]

68b.12 What other regulations and statutes apply?

    Authority: 42 U.S.C. 288-4.


Sec.  68b.1  What is the scope and purpose of the National Institutes 
of Health Undergraduate Scholarship Program Regarding Professions 
Needed by National Research Institutes?

    This part applies to the award of scholarships under the National 
Institutes of Health Undergraduate Scholarship Program Regarding 
Professions Needed by National Research Institutes, authorized by 
section 487D of the Public Health Service Act (42 U.S.C. 288-4), to 
undergraduate students attending schools, as the term is defined in 
this part. The purpose of this program is to help ensure an adequate 
supply of trained health professionals for the National Institutes of 
Health, which has the mission to uncover new knowledge that will lead 
to better health.


Sec.  68b.2  Definitions.

    As used in this part:
    Academic year means all or part of a 9-month period during which an 
applicant is enrolled in an undergraduate school as a full-time 
student.
    Acceptable level of academic standing means the level at which a 
full-time student retains eligibility to continue in attendance under 
the school's standards and practices.
    Act means the Public Health Service Act, as amended.
    Applicant means an individual who applies to and meets the 
eligibility criteria for the UGSP.
    Application means forms that have been completed in such manner, 
and containing such agreements, assurances, and information, as 
determined to be necessary by the Director.
    Approved graduate training means graduate programs leading to a 
doctoral-level degree (e.g., Ph.D., M.D., D.O., D.D.S., D.V.M., M.D./
Ph.D., and equivalent degrees) in a profession needed by the National 
Institutes of Health.
    Director means the Director of the National Institutes of Health or 
his/her designee.
    Full-time student means an individual registered for a sufficient 
number of credit hours to be classified as full-time, as defined by the 
school attended.
    Individual from Disadvantaged Background means:
    (1) An individual who--
    (i) Comes from an environment that inhibited (but did not prevent) 
him or her from obtaining the knowledge, skills, and abilities required 
to enroll in an undergraduate institution; or
    (ii) Comes from a family with an annual income below established 
low-income thresholds.
    (2) These low-income thresholds are based on family size, published 
by the U.S. Bureau of the Census, adjusted annually for changes in the 
Consumer Price Index, and adjusted by the Secretary of Health and Human 
Services for use in the U.S. Department of Health and Human Services' 
health professions programs. The Secretary periodically publishes these 
income levels in the Federal Register.
    Scholarship Program means the National Institutes of Health 
Undergraduate Scholarship Program Regarding Professions Needed by 
National Research Institutes authorized by section 487D of the Act (42 
U.S.C. 288-4).
    Scholarship Program participant or participant means an individual 
whose application to the Scholarship Program has been approved and 
whose contract has been signed by the Director.
    Scholarship Program Review Committee means the committee that 
reviews, ranks, and accepts or declines applications for Program 
participation. This committee also ascertains whether a participant 
will be awarded continued scholarship support after his or her initial 
acceptance.
    School means a 4-year college or university that:
    (1) Is accredited by an agency recognized by the Commission on 
Recognition of Post-Secondary Accreditation; and
    (2) Is located in a State.
    State means one of the several U.S. States, the District of 
Columbia, the Commonwealth of Puerto Rico, the Northern Mariana 
Islands, the U.S. Virgin Islands, Guam, American Samoa, Palau, Marshall 
Islands, and the Federated States of Micronesia.


68b.3  Who is eligible to apply for a Scholarship Program award?

    (a) To be eligible for a scholarship under this part, applicants 
must meet the following requirements:
    (1) Applicants must be accepted for enrollment, or be enrolled, as 
full-time undergraduate students in a school;
    (2) Applicants must have an overall grade point average of at least 
3.5 or a 3.5 average in their major field of study (on a 4.0 scale) or 
be ranked within the top five percent of their current class (or those 
students entering, if applying in their freshman year);
    (3) Applicants must come from a disadvantaged background as defined 
by Sec.  68b.2;
    (4) Applicants must meet the citizenship requirements for federal 
employment; and
    (5) Applicants must submit an application to participate in the 
Scholarship Program together with a signed contract as outlined in 
sections 487D(a) and (f) of the Act.
    (b) Any applicant who owes an obligation for service to a State or 
other entity under an agreement entered into before filing an 
application under this part is ineligible for an award unless a written 
statement satisfactory to the Director is submitted from the State or 
entity that:
    (1) There is no potential conflict in fulfilling the service 
obligation to the State or entity and the Scholarship Program, and
    (2) The Scholarship Program service obligation will be served 
before the service obligation for professional practice owed to the 
State or entity.


Sec.  68b.4  How is an application made for a Scholarship Program 
award?

    Each individual desiring a scholarship under this part must submit 
an application (including a signed contract as required under section 
487D(a) of the Act) in such form and manner as the Director may 
prescribe.


Sec.  68b.5  How will applicants be selected to participate in the 
Scholarship Program?

    (a) General. In deciding which applications for participation in 
the Scholarship Program will be approved, the Director will place the 
applications into categories based upon the selection priorities 
described in paragraph (b) of this section. Except for renewal awards 
(see paragraph (e) of this section), the Director will then evaluate 
each applicant under paragraph (c) of this section.
    (b) Priorities. (1) First priority will be given to applicants who 
have completed at least 2 years of undergraduate course work, including 
four core science courses, and are classified by their educational 
institutions as juniors or seniors as of the beginning of the academic 
year of scholarship. (Core science courses include, but are not limited 
to, biology, chemistry, physics, and calculus.)
    (2) Second priority will be given to applicants who have completed 
four core science courses, as defined above.
    (3) Third priority will be given to applicants who are matriculated 
freshmen or sophomores.
    (c) Selection. In selecting participants and determining 
continuation of program support, the Director will take into 
consideration those factors determined necessary to ensure effective 
participation in the Scholarship Program. These factors may include, 
but are not limited to:

[[Page 48276]]

    (1) Biomedical research experience and performance,
    (2) Academic performance,
    (3) Career goals, and
    (4) Recommendations.
    (d) Duration of Scholarship award. Subject to the availability of 
funds appropriated for the Scholarship Program, the Director may, at 
his/her discretion, award scholarships under this part for a period of 
one, two, or three academic years.
    (e) Continuation of scholarship support. Subject to the 
availability of funds for the Scholarship Program, the Director may 
continue scholarship support if:
    (1) The participant requests a continuation of scholarship support;
    (2) The scholarship will not extend the total period of Scholarship 
Program support beyond 4 years; and
    (3) The participant is eligible for continued participation in the 
Scholarship Program, as determined by the Scholarship Program Review 
Committee.


Sec.  68b.6  What will an individual be awarded for participating in 
the Scholarship Program?

    (a) Amount of scholarship. (1) Subject to a maximum annual award of 
$20,000, a scholarship award for each school year will consist of:
    (i) Tuition;
    (ii) Reasonable educational expenses, including required fees, 
books, supplies, and required educational equipment;
    (iii) Reasonable living expenses for the academic year as 
documented in the school's financial aid budget; and
    (iv) For purposes of this section, ``required fees'' means those 
fees that are charged by the school to all students pursuing a similar 
curriculum, and ``required educational equipment'' means educational 
equipment that must be purchased by all students pursuing a similar 
curriculum at that school.
    (2) The Director may enter into an agreement with the school in 
which the participant is enrolled for the direct payment of tuition and 
reasonable educational expenses on the participant's behalf.
    (b) Payment of scholarship: Leave-of-absence; repeated course work. 
The Director will suspend scholarship payments to or on behalf of a 
participant if the school:
    (1) Approves a leave-of-absence for the participant for health, 
personal, or other reasons; or
    (2) Requires the participant to repeat course work for which the 
Director has previously made scholarship payments under Sec.  68b.6. 
However, if the repeated course work does not delay the participant's 
graduation date, scholarship payments will continue except for any 
additional costs relating to the repeated course work. Any scholarship 
payments suspended under this paragraph will be resumed by the Director 
upon notification by the school that the participant has returned from 
the leave-of-absence or has completed the repeated course work and is 
pursuing as a full-time student the course of study for which the 
scholarship was awarded.


Sec.  68b.7  What does an individual have to do in return for the 
Scholarship Program award?

    (a) General. For each academic year of scholarship support 
received, participants must serve as full-time employees of the 
National Institutes of Health:
    (1) For not less than 10 consecutive weeks of each year during 
which the participant receives the scholarship; and
    (2) For 12 months for each academic year for which the scholarship 
has been provided.
    (b) Beginning of service. The period of obligated service under 
paragraph (a)(2) of this section must begin within 60 days of obtaining 
the undergraduate degree, except for participants who receive a 
deferment under Sec.  68b.8.


Sec.  68b.8  Under what circumstances can the period of obligated 
service be deferred to complete approved graduate training?

    (a) Requested deferment. Upon the request of any participant 
receiving an undergraduate degree, the Director may defer the beginning 
date of the obligated service to allow the participant to complete an 
approved graduate training program. Individuals desiring a deferment 
under this part must submit a request in such form and manner as the 
Director may prescribe.
    (b) Altering deferment. Before altering the length or type of 
approved graduate training for which the period of obligated service 
was deferred under paragraph (a) of this section, the participant must 
request and obtain the Director's approval of the alteration.
    (c) Additional terms of deferment. The Director may prescribe 
additional terms and conditions for deferment under paragraphs (a) and 
(b) of this section as necessary to carry out the purposes of the 
Scholarship Program.
    (d) Beginning of service after deferment. Any participant whose 
period of obligated service has been deferred under paragraph (a) of 
this section must begin the obligated service within 30 days of the 
expiration of their deferment.


Sec.  68b.9  What will happen if an individual does not comply with the 
terms and conditions of participating in the Scholarship Program?

    (a) When a participant fails to maintain an acceptable level of 
academic standing, is dismissed from the school for disciplinary 
reasons, or voluntarily terminates the course of study or program for 
which the scholarship was awarded before completing the course of study 
or program, the participant must, instead of performing any service 
obligation, pay to the United States an amount equal to all scholarship 
funds awarded under Sec.  68b.6. Payment of this amount must be made 
within 3 years of the date the participant becomes liable to make 
payment under this paragraph (a).
    (b) If, for any reason not specified in Sec.  68b.11(b), a 
participant fails to begin or complete the period of obligated service 
incurred under Sec.  68b.7, including failing to comply with the 
applicable terms and conditions of a deferment granted by the Director, 
the participant must pay to the United States an amount determined by 
the penalties set forth in section 487D(e) of the Act. Payment of this 
amount shall be made within one year of the date that the participant 
failed to begin or complete the period of obligated service, as 
determined by the Director.


Sec.  68b.10  When can a Scholarship Program payment obligation be 
discharged in bankruptcy?

    Any payment obligation incurred under Sec.  68b.9 may be discharged 
in bankruptcy under Title 11 of the United States Code only if such 
discharge is granted after the expiration of the seven-year period 
beginning on the first date that payment is required and only if the 
bankruptcy court finds that a nondischarge of the obligation would be 
unconscionable.


Sec.  68b.11  Under what circumstances can the service or payment 
obligation be canceled, waived, or suspended?

    (a) Any obligation of a participant for service or payment to the 
federal government under this part will be canceled upon the death of 
the participant.
    (b) The Director may waive or suspend any service or payment 
obligation incurred by the participant upon request whenever compliance 
by the participant:
    (1) Is impossible, or
    (2)(i) Would involve extreme hardship, and
    (ii) If enforcement of the service or payment obligation would be 
unconscionable, as required by section 487 D(e) of the Act, 42 U.S.C. 
288-4(e).

[[Page 48277]]

    (c) The Director may approve a request for a suspension of the 
service or payment obligations for a period of one year. A renewal of 
this suspension may also be granted.
    (d) Compliance by a participant with a service or payment 
obligation will be considered impossible if the Director determines, on 
the basis of information and documentation as may be required, that the 
participant suffers from a physical or mental disability resulting in 
the permanent inability of the participant to perform the service or 
other activities that would be necessary to comply with the obligation.
    (e) In determining whether to waive or suspend any or all of the 
service or payment obligations of a participant as imposing an undue 
hardship and being against equity and good conscience, the Director, on 
the basis of information and documentation as may be required, will 
consider:
    (1) The participant's present financial resources and obligations;
    (2) The participant's estimated future financial resources and 
obligations; and
    (3) The extent to which the participant has problems of a personal 
nature, such as physical or mental disability or terminal illness in 
the immediate family, which so intrude on the participant's present and 
future ability to perform as to raise a presumption that the individual 
will be unable to begin or complete the obligation incurred.


Sec.  68b.12  What other regulations and statutes apply?

    Several other regulations and statutes apply to this part. These 
include, but are not necessarily limited to:
    (a) Debt Collection Act of 1982 (31 U.S.C. 3701 et seq.);
    (b) Debt Collection Improvement Act of 1996 (31 U.S.C. 3701 note);
    (c) Fair Credit Reporting Act (15 U.S.C. 1681 et seq.);
    (d) Federal Debt Collection Procedures Act of 1990 (28 U.S.C. 176); 
and
    (e) Privacy Act of 1974 (5 U.S.C. 552a).

    Dated: March 27, 2015.
Francis S. Collins,
Director, National Institutes of Health.
    Approved: July 29, 2015.
Sylvia M. Burwell,
Secretary.
[FR Doc. 2015-19739 Filed 8-11-15; 8:45 am]
 BILLING CODE 4140-01-P