‘‘(2) shall not be denied solely on the basis of the 
applicant’s scholastic achievement if such applicant 
has been admitted to, or maintained good standing 
at, an accredited institution; and 
‘‘(3) shall not be denied solely by reason of such 
applicant’s eligibility for assistance or benefits under 
any other Federal program. 
‘‘SEC. 104. INDIAN HEALTH PROFESSIONS SCHOLARSHIPS. 
‘‘(a) IN GENERAL.— 
‘‘(1) AUTHORITY.—The Secretary, acting through 
the Service, shall make scholarship grants to Indians 
who are enrolled full or part time in accredited 
schools pursuing courses of study in the health profes-
sions. Such scholarships shall be designated Indian 
Health Scholarships and shall be made in accordance 
with section 338A of the Public Health Services Act 
(42 U.S.C. 254l), except as provided in subsection (b) 
of this section. 
‘‘(2) DETERMINATIONS
BY
SECRETARY.—The 
Secretary, acting through the Service, shall deter-
mine— 
‘‘(A) who shall receive scholarship grants 
under subsection (a); and 
‘‘(B) the distribution of the scholarships 
among health professions on the basis of the rel-
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ative needs of Indians for additional service in 
the health professions. 
‘‘(3) CERTAIN DELEGATION NOT ALLOWED.—The 
administration of this section shall be a responsibility 
of the Assistant Secretary and shall not be delegated 
in a contract or compact under the Indian Self-Deter-
mination and Education Assistance Act (25 U.S.C. 
450 et seq.). 
‘‘(b) ACTIVE DUTY SERVICE OBLIGATION.— 
‘‘(1) OBLIGATION MET.—The active duty service 
obligation under a written contract with the Sec-
retary under this section that an Indian has entered 
into shall, if that individual is a recipient of an In-
dian Health Scholarship, be met in full-time practice 
equal to 1 year for each school year for which the par-
ticipant receives a scholarship award under this part, 
or 2 years, whichever is greater, by service in 1 or 
more of the following: 
‘‘(A) In an Indian Health Program. 
‘‘(B) In a program assisted under title V of 
this Act. 
‘‘(C) In the private practice of the applica-
ble profession if, as determined by the Secretary, 
in accordance with guidelines promulgated by 
the Secretary, such practice is situated in a phy-
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sician or other health professional shortage area 
and addresses the health care needs of a substan-
tial number of Indians. 
‘‘(D) In a teaching capacity in a tribal col-
lege or university nursing program (or a related 
health profession program) if, as determined by 
the Secretary, the health service provided to In-
dians would not decrease. 
‘‘(2) OBLIGATION DEFERRED.—At the request of 
any individual who has entered into a contract re-
ferred to in paragraph (1) and who receives a degree 
in medicine (including osteopathic or allopathic med-
icine), dentistry, optometry, podiatry, or pharmacy, 
the Secretary shall defer the active duty service obli-
gation of that individual under that contract, in 
order that such individual may complete any intern-
ship, residency, or other advanced clinical training 
that is required for the practice of that health profes-
sion, for an appropriate period (in years, as deter-
mined by the Secretary), subject to the following con-
ditions: 
‘‘(A) No period of internship, residency, or 
other advanced clinical training shall be counted 
as satisfying any period of obligated service 
under this subsection. 
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‘‘(B) The active duty service obligation of 
that individual shall commence not later than 90 
days after the completion of that advanced clin-
ical training (or by a date specified by the Sec-
retary). 
‘‘(C) The active duty service obligation will 
be served in the health profession of that indi-
vidual in a manner consistent with paragraph 
(1). 
‘‘(D) A recipient of a scholarship under this 
section may, at the election of the recipient, meet 
the active duty service obligation described in 
paragraph (1) by service in a program specified 
under that paragraph that— 
‘‘(i) is located on the reservation of the 
Indian Tribe in which the recipient is en-
rolled; or 
‘‘(ii) serves the Indian Tribe in which 
the recipient is enrolled. 
‘‘(3) PRIORITY WHEN MAKING ASSIGNMENTS.— 
Subject to paragraph (2), the Secretary, in making 
assignments of Indian Health Scholarship recipients 
required to meet the active duty service obligation de-
scribed in paragraph (1), shall give priority to as-
signing individuals to service in those programs spec-
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ified in paragraph (1) that have a need for health 
professionals to provide health care services as a re-
sult of individuals having breached contracts entered 
into under this section. 
‘‘(c) PART-TIME STUDENTS.—In the case of an indi-
vidual receiving a scholarship under this section who is en-
rolled part time in an approved course of study— 
‘‘(1) such scholarship shall be for a period of 
years not to exceed the part-time equivalent of 4 
years, as determined by the Secretary; 
‘‘(2) the period of obligated service described in 
subsection (b)(1) shall be equal to the greater of— 
‘‘(A) the part-time equivalent of 1 year for 
each year for which the individual was provided 
a scholarship (as determined by the Secretary); 
or 
‘‘(B) 2 years; and 
‘‘(3) the amount of the monthly stipend specified 
in section 338A(g)(1)(B) of the Public Health Service 
Act (42 U.S.C. 254l(g)(1)(B)) shall be reduced pro 
rata (as determined by the Secretary) based on the 
number of hours such student is enrolled. 
‘‘(d) BREACH OF CONTRACT.— 
‘‘(1) SPECIFIED
BREACHES.—An individual 
shall be liable to the United States for the amount 
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which has been paid to the individual, or on behalf 
of the individual, under a contract entered into with 
the Secretary under this section on or after the date 
of enactment of the Indian Health Care Improvement 
Act Amendments of 2007 if that individual— 
‘‘(A) fails to maintain an acceptable level of 
academic standing in the educational institution 
in which he or she is enrolled (such level deter-
mined by the educational institution under regu-
lations of the Secretary); 
‘‘(B) is dismissed from such educational in-
stitution for disciplinary reasons; 
‘‘(C) voluntarily terminates the training in 
such an educational institution for which he or 
she is provided a scholarship under such contract 
before the completion of such training; or 
‘‘(D) fails to accept payment, or instructs 
the educational institution in which he or she is 
enrolled not to accept payment, in whole or in 
part, of a scholarship under such contract, in 
lieu of any service obligation arising under such 
contract. 
‘‘(2) OTHER BREACHES.—If for any reason not 
specified in paragraph (1) an individual breaches a 
written contract by failing either to begin such indi-
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