NHSC Publications: 2003 Rolling Practice Selection and Assignment Bulletin for Physician Assistants, Certified Nurse-Midwives and Nurse Practitioners

VI. DEFAULT

WHAT ARE THE SCHOLARS' COMMITMENTS AND OPTIONS AFTER DEFAULT?

A NHSC scholar who fails to begin or complete service, for any reason, will be in breach of his/her scholarship service commitment. Such scholars shall be liable to the United States Government for THREE times the amount paid to, or on behalf of, the scholar, plus interest, proportionately reduced for any service performed. Full payment of the debt is due within 1 year of default.

If the debt becomes overdue, enforced collection activities are started (e.g., the debt is referred to a commercial collection agency, reported to credit bureaus, and the Department of Justice (DOJ) initiates legal action.)

The Department of Health and Human Services (DHHS), at its discretion, may agree to accept service in lieu of financial repayment if (1) the debtor meets certain credential and payment requirements, (2) the NHSC clears the debtor for service, and (3) the debtor agrees to serve in an approved practice selected by the NHSC on the basis of high priority needs. The debtor will not receive any choice of practice sites and will be responsible for paying for any site visit or relocation expenses.

If the debt has not yet been referred to the DOJ, service would be pursuant to a Forbearance Agreement. DHHS would forbear collection of the debt while the debtor serves in the approved practice designated by the NHSC. The debtor would remain in default until the service commitment is completed. If the debt has been referred to the DOJ, service would be pursuant to the terms of a judgment. Execution of the judgment would be stayed while the scholar serves in the approved practice designated by the NHSC.

Once the service commitment is completed, the scholarship debt is considered satisfied.

Next: Additional Questions Frequently Asked by NHSC Scholars