Failure to Complete Academic Training
Health Professions Scholarship participants who are dismissed from school for academic or disciplinary reasons, or who voluntarily terminate academic training before graduation from the educational program for which the scholarship was awarded, will be liable to the United States for repayment of all Scholarship Program funds paid to them and to the school on their behalf. Payment must be made within three years from the date of breach or such longer period as specified by the Secretary of Health and Human Services (HHS). No interest will be charged on any part of this indebtedness to the United States within the three-year period.
Failure to Begin or Complete the Service Obligation or Meet the Terms and Conditions of Deferment
Participants breach their scholarship contracts by failing to begin or complete their service obligation for any reason other than failure to complete academic training, or by failing to comply with the terms and conditions of deferment. In these cases, participants are liable to repay three times the amount of all scholarship funds paid to them and to the school on their behalf, plus interest, as determined by the formula: A=3(z)[(t-s)/t], in which:
- "A" is the amount the United States is entitled to recover;
- "z" is the sum of the amounts paid to or on behalf of the applicant and the interest on such amounts that would be payable, if, at the time the amounts were paid, they were loans bearing interest at the maximum legal prevailing rate, as determined by the Treasurer of the United States;
- "t" is the total number of months in the applicant’s period of obligated service;
- "s" is the number of months of the period of obligated service served by the participant.
The amount which the United States is entitled to recover shall be paid within one year of the date on which the applicant failed to begin or complete the period of obligated service, or failed to meet the terms and conditions of deferment, or a longer period beginning on a date specified by the Secretary of Health and Human Services (HHS).