42 C.F.R. § 62.10

What will happen if an individual does not comply with the terms and conditions of participating in the scholarship program?

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(a) If a participant, other than one described in paragraph (b) of this section, fails to accept payment or instructs the school not to accept payment of the scholarship provided by the Secretary, the participant must, in addition to any service or other obligation incurred under the contract, pay to the United States the amount of $1,500 liquidated damages. Payment of this amount must be made within 30 days of the date on which the participant fails to accept payment of the scholarship award or instructs the school not to accept payment.

(b) When a participant fails to maintain an acceptable level of academic standing, is dismissed from the school for disciplinary reasons, or voluntarily terminates the course of study or program for which the scholarship was awarded before completing the course of study or program, the participant must, instead of performing any service obligation, pay to the United States an amount equal to all scholarship funds awarded under § 62.7. Payment of this amount must be made within 3 years of the date the participant becomes liable to make payment under this paragraph.

(c) If a participant fails to begin or complete the period of obligated service incurred under § 62.8, including failing to comply with the applicable terms and conditions of a deferment granted by the Secretary, the participant must pay to the United States an amount determined by the formula set forth in section 754(c) of the Act. Payment of this amount shall be made within 1 year of the date that the participant failed to begin or complete the period of obligated service, as determined by the Secretary.

Notes of Decisions

Cited in 10 cases, 1986–2007 · leading case: United States v. Levin, 496 F. Supp. 2d 116 (D.D.C. 2007).

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United States v. Levin, 496 F. Supp. 2d 116 (D.D.C. 2007). · cites it 7× “) See also 42 C.F.R. § 62.10 (b). Levin struggled academically her first several semesters in medical school due to alleged medical problems.”

United States v. Thomas K. Bills, M.D., 822 F.2d 373 (3rd Cir. 1987). · cites it 4× “This breach and his failure to satisfy the conditions of his deferment triggered application of the treble damages provision provided in 42 C.F.R. § 62.10 (c). 2 Because the defendant had not applied for nor secured the Secretary’s prior approval, the district court refused to…”

United States v. Fred C. Williams, 994 F.2d 646 (9th Cir. 1993). · cites it 3× “” 42 C.F.R. § 62.10 (c) (emphasis added). Whether an individual has been “appointed to the Corps” is irrelevant for purposes of 42 C.”

United States v. Redovan, 656 F. Supp. 121 (E.D. Pa. 1986). “§ 254o (b)(1); 42 C.F.R. § 62.10 (c). The relevant provisions of the statute provide that the defaulter must repay within one year damages equal to three times the amount of the scholarship award plus interest after taking into account any service performed.”

United States v. Bloom, 925 F. Supp. 426 (E.D. La. 1996). · cites it 2× “§ 254o(b)(l); 42 C.F.R. § 62.10 (c). The defaulter must repay within one year damages equal to three times the amount of the scholarship award, plus interest, after taking into account any service performed.”

United States v. Hector L. Westerband-Garcia, AKA Hector L. Westerband, 35 F.3d 418 (9th Cir. 1994). · cites it 2× “42 C.F.R. § 62.10 (e). Westerband-Garcia maintains that the right of action accrued on September 30,1984, one year after the .”

United States v. Hayes, 633 F. Supp. 1183 (M.D.N.C. 1986). “Any amount of such damages which the United States is entitled to recover under this subsection shall, within the one year period beginning on the date of the breach of the written contract, be paid to the United States.”

United States v. Bills, 639 F. Supp. 825 (D.N.J. 1986). “42 C.F.R. § 62.10 (c). His contention that he was unaware or misinformed by the government regarding the conditions and requirements of his deferment is unsupported by the record in this case.”

In Re Owens, 82 B.R. 960 (Bankr. N.D. Ill. 1988). “42 C.F.R. § 62.10 (b). On August 21, 1984 the Debtor requested that HHS waive her scholarship debt based upon emotional and financial hardship.”

United States v. Gross, 725 F. Supp. 892 (W.D. La. 1989). “§ 254o (b)(1); 42 C.F.R. § 62.10 (c). The relevant provisions of the statute provide that the defaulter must repay within one year damages equal to three times the amount of the scholarship award plus interest after taking into account any service performed.”

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