§7675 Breach of agreement: liability

Summary

If a participant refuses a scholarship payment or tells their school not to take it, they must pay $1,500 to the United States. That $1,500 is in addition to any service time or other duties they already agreed to. If the participant fails to meet program rules — for example, losing good academic standing, being kicked out for discipline, quitting the course, not getting a required license in time, or not keeping a Department job while in training — they must pay back the money the government paid for them instead of doing the required service. If they break the agreement by not finishing their required service, the amount owed is worked out by a formula using these terms: A is the amount owed; Φ is the total paid plus interest calculated as if those payments were loans at the maximum legal prevailing rate set by the U.S. Treasurer; t is the total months of required service (including any extra months); s is the months actually served. If a participant lost their Department job because of a staffing change, they do not owe money under the rules above. Any money due must be paid to the United States within one year from the date of the breach.