[Code of Federal Regulations]

[Title 34, Volume 3]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 34CFR611.43]



[Page 265-266]

 

                           TITLE 34--EDUCATION

 

 CHAPTER VI--OFFICE OF POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION

 

PART 611_TEACHER QUALITY ENHANCEMENT GRANTS PROGRAM--Table of Contents

 

                         Subpart E_Scholarships

 

Sec. 611.43  What are the consequences of a scholarship recipient's 

failure to meet the service obligation?



    (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 Sec. 

611.45.

    (2) Unless the service obligation is deferred as provided in Sec. 

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 Sec. Sec. 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.



[[Page 266]]



    (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 Sec. 

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 Sec. Sec. 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.



(Approved by the Office of Management and Budget under control number 

1840-0753)



(Authority: 20 U.S.C. 1024(e))



[64 FR 42839, Aug. 6, 1999, as amended at 65 FR 19613, Apr. 11, 2000]