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Title: Section 47-6.8 - Default

Effective Date


47-6.8 Default.

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

(1) the recipient fails to complete a primary care practitioner program;

(2) the recipient is not available to begin the service obligation on the reporting date;

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

(4) the scholarship award is rescinded pursuant to section 47-6.5(a) of this Subpart, after dispersal of scholarship monies to, or on behalf of, the recipient.

(b) Calculation of financial obligation. An individual found to be in default will be required to pay the President, 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) _______ T

where "A" is the amount the President is entitled to recover; "B" is the sum of all payments made to, or on behalf of, 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) The 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)