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Title: Section 47-1.8 - Default

Effective Date


47-1.8 Default.

(a) A recipient of an award will be considered in default if the recipient has not been granted a waiver or deferral by the Commissioner of Health and:

(1) the scholarship award is rescinded after disbursal of scholarship monies on the recipient's behalf; or

(2) the recipient is not available to fulfill his/her service obligation on the reporting date; or

(3) the recipient fails to complete a training program; or

(4) the recipient resigns, is dismissed from employment or otherwise fails, refuses or is unable to fulfill the service obligation.

(b) An individual found to be in default will be required to pay the State, within five years from the date of default, all monies received, plus interest, plus liquidated damages as determined by the following formula:

A = 2B (T-S) ________


"A" is the amount the State is entitled to recover; "B" is the sum of all payments made to the recipient and the interest on such amount which would be payable if at the time such awards were paid they were loans bearing interest at the maximum prevailing rate determined by the Higher Education Services Corporation; "T" is the total number of months in the recipient's period of obligated service; and "S" is the number of months of service actually rendered by the recipient.

(c) Department of Health shall advise the Higher Education Services Corporation of any default, and the Higher Education Services Corporation shall collect repayments and, where indicated, initiate action for prosecution to recover monies owed the State.


VOLUME A-1 (Title 10)