[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: 42CFR62.74]



[Page 372-373]

 

                         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 D_Special Repayment Program

 

Sec. 62.74  How much credit will a Program participant receive for 

monetary repayments made, or for approved service performed, before 

beginning service under the Special Repayment Program?



    (a) Prior approved service performed by a Program participant will 

be credited to the Program participant for the purpose of calculating 

the Program participant's remaining service obligation under this 

Program. Thus, the Program participant's remaining service obligation 

will be calculated by subtracting the number of days of the Program 

participant's prior approved service from the number of days of the 

Program participant's original service obligation under the PH/NHSC 

Scholarship Training Program and/or the Scholarship Program. If a 

Program participant has made monetary payments, his or her remaining 

service obligation will be reduced by converting the monetary payments 

into days of service credit as set forth in paragraph (b) or (c) of this 

section, whichever is applicable.

    (b) Program participants who elect to serve pursuant to section 

204(b) and section 204(c)(2) of Pub. L. 100-177, will not receive a 

refund of any amounts previously paid but will receive service credit 

for those payments as follows:

    (1) The number of days of service credit will be calculated by 

dividing the total amount paid by the Program participant prior to the 

Program participant's service start date by the total debt as of the 

service start date and multiplying the result of that division by the 

number of days of the participant's remaining service obligation (as 

determined by the formula set forth in the second sentence of paragraph 

(a) of this section).

    (2) If the Program participant defaults on a contract under this 

Program, prior monetary payments will not be credited to service but 

will be applied to the monetary debt owed by the Program participant.

    (c) Program participants who elect to serve under section 204(c)(1) 

of Pub. L. 100-177 must pay an amount equal to the scholarship amount. 

Any amounts paid by the Program participant prior to or after entry into 

the Program, in accordance with Sec. 62.76 of this subpart, will be 

used to reduce the Program participant's financial obligation incurred 

under section 204(c)(1) of Pub. L. 100-177. In some cases, the amounts 

paid before or after entry into the Program will exceed the scholarship 

amount. These payments in excess of the scholarship amount will be 

converted into days of service credit under the formula set forth in 

paragraph (b)(1) of this section. If a Program participant defaults on a 

contract under this option, the monies paid in excess of the scholarship 

amount will not be credited to service but will be credited toward the 

monetary debt owed by the



[[Page 373]]



Program participant under section 338E(b) of the Act or section 

225(f)(1) of the Act, as in effect on September 30, 1977. The 

scholarship amount paid upon entering this option will be forfeited.