[Code of Federal Regulations]

[Title 42, Volume 1]

[Revised as of October 1, 2005]

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

[CITE: 42CFR62.10]



[Page 361]

 

                         TITLE 42--PUBLIC HEALTH

 

    CHAPTER I--PUBLIC HEALTH SERVICE, DEPARTMENT OF HEALTH AND HUMAN 

                                SERVICES

 

PART 62_NATIONAL HEALTH SERVICE CORPS SCHOLARSHIP AND LOAN REPAYMENT 

PROGRAMS--Table of Contents

 

       Subpart A_National Health Service Corps Scholarship Program

 

Sec. 62.10  What will happen if an individual does not comply with the 

terms and conditions of participating in the scholarship program?



    (a) If a participant, other than one described in paragraph (b) of 

this section, fails to accept payment or instructs the school not to 

accept payment of the scholarship provided by the Secretary, the 

participant must, in addition to any service or other obligation 

incurred under the contract, pay to the United States the amount of 

$1,500 liquidated damages. Payment of this amount must be made within 30 

days of the date on which the participant fails to accept payment of the 

scholarship award or instructs the school not to accept payment.

    (b) 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. 62.7. Payment of this amount must be made 

within 3 years of the date the participant becomes liable to make 

payment under this paragraph.

    (c) If a participant fails to begin or complete the period of 

obligated service incurred under Sec. 62.8, including failing to comply 

with the applicable terms and conditions of a deferment granted by the 

Secretary, the participant must pay to the United States an amount 

determined by the formula set forth in section 754(c) of the Act. 

Payment of this amount shall be made within 1 year of the date that the 

participant failed to begin or complete the period of obligated service, 

as determined by the Secretary.