§7617 Breach of agreement: liability

Summary

If a scholarship recipient refuses or tells their school not to accept the scholarship money, they must pay $1,500 to the United States. That $1,500 is in addition to any other service or money the person still owes under the scholarship agreement. A recipient must also repay any scholarship money the government paid if any of these happen: they lose acceptable grades, they are kicked out for discipline, they quit their training early, a medical trainee fails to finish required post‑graduate training for board eligibility, they do not get the required license to practice within the time set by the Secretary, or a part‑time student stops working as a Department employee at the assigned health facility while enrolled. If the person does not complete their required service, the government can recover an amount calculated by a formula. The formula uses these terms: A = amount to be recovered; Φ = total paid plus interest figured as if the payments were loans at the maximum legal prevailing interest rate set by the Treasurer of the United States; t = total months of required service (including any extra months under section 7616(b)(4)); s = months actually served under section 7613. Any money the United States can recover must be paid within one year after the breach.