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(A) by striking ‘‘(b)’’ and all that follows
through ‘‘a scholarship’’ and inserting ‘‘(b) AS-
SISTANCE.—(1) Under the program under this
section, the Secretary of Defense may award a
scholarship or fellowship’’;
(B) in paragraph (1)(B), by inserting ‘‘ac-
credited’’ before ‘‘institution of higher edu-
cation’’;
(C) in paragraph (2)—
(i) by inserting ‘‘or fellowship’’ after
‘‘scholarship’’;
(ii) by inserting ‘‘equipment expenses,’’
after ‘‘laboratory expenses,’’; and
(iii) by striking the second sentence;
and
(D) by adding at the end the following new
paragraph:
‘‘(3) Any assistance payable to a person under this
subsection may be paid directly to the person awarded such
assistance or to an administering entity that shall disburse
such assistance to the person.’’; and
(2) in subsection (c)(2)—
(A) by striking ‘‘a scholarship’’ and insert-
ing ‘‘financial assistance’’;
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(B) by striking ‘‘the financial assistance
provided under the scholarship’’ and inserting
‘‘such financial assistance’’; and
(C) by striking ‘‘the scholarship.’’ and in-
serting ‘‘such financial assistance.’’.
(c) EMPLOYMENT OF PROGRAM PARTICIPANTS.—Such
section is further amended—
(1) by redesignating subsections (d), (e), (f), (g),
and (h) as subsections (e), (f), (g), (h), and (i), respec-
tively; and
(2) by inserting after subsection (c) the following
new subsection (d):
‘‘(d) EMPLOYMENT OF PROGRAM PARTICIPANTS.—(1)
The Secretary of Defense may—
‘‘(A) appoint or retain a person participating in
the program under this section in a position on an
interim basis during the period of such person’s pur-
suit of a degree under the program and for a period
not to exceed 2 years after completion of the degree,
but only if, in the case of the period after completion
of the degree—
‘‘(i) there is no readily available appro-
priate permanent position for such person; and
‘‘(ii) there is an active and ongoing effort to
identify and assign such person to an appro-
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priate permanent position as soon as prac-
ticable; and
‘‘(B) if there is no appropriate permanent posi-
tion available after the end of the periods described in
subparagraph (A), separate such person from employ-
ment with the Department without regard to any
other provision of law, in which event the service
agreement of such person under subsection (c) shall
terminate.
‘‘(2) The period of service of a person covered by para-
graph (1) in a position on an interim basis under that
paragraph shall, after completion of the degree, be treated
as a period of service for purposes of satisfying the obligated
service requirements of the person under the service agree-
ment of the person under subsection (c).’’.
(d) REFUND FOR PERIOD OF UNSERVED OBLIGATED
SERVICE.—Paragraph (1) of subsection (e) of such section,
as redesignated by subsection (c)(1) of this section, is
amended to read as follows:
‘‘(1)(A) A participant in the program under this sec-
tion who is not an employee of the Department of Defense
and who voluntarily fails to complete the educational pro-
gram for which financial assistance has been provided
under this section, or fails to maintain satisfactory aca-
demic progress as determined in accordance with regula-