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(5) CONTRACTS REGARDING DIRECT PAYMENTS
TO INSTITUTIONS.—The Secretary may enter into a
contractual agreement with an institution of higher
education under which the amounts provided for a
scholarship under this section for tuition, fees, and
other authorized expenses are paid directly to the in-
stitution with respect to which the scholarship is
provided.
(f) PERIOD OF OBLIGATED SERVICE.—
(1) DURATION
OF
SERVICE.—The period of
service for which an individual shall be obligated to
serve as an employee of the Department is, except
as provided in subsection (h)(2), 24 months for each
academic year for which a scholarship under this
section is provided.
(2) SCHEDULE FOR SERVICE.—
(A) IN GENERAL.—Except as provided in
subparagraph (B), obligated service under para-
graph (1) shall begin not later than 60 days
after the individual obtains the educational de-
gree for which the scholarship was provided.
(B) DEFERRAL.—The Secretary may defer
the obligation of an individual to provide a pe-
riod of service under paragraph (1) if the Sec-
retary determines that such a deferral is appro-
373
priate. The Secretary shall prescribe the terms
and conditions under which a service obligation
may be deferred through regulation.
(g) PENALTIES
FOR
BREACH
OF
SCHOLARSHIP
AGREEMENT.—
(1) FAILURE TO COMPLETE ACADEMIC TRAIN-
ING.—Scholarship recipients who fail to maintain a
high level of academic standing, as defined by the
Secretary by regulation, who are dismissed from
their educational institutions for disciplinary rea-
sons, or who voluntarily terminate academic training
before graduation from the educational program for
which the scholarship was awarded, shall be in
breach of their contractual agreement and, in lieu of
any service obligation arising under such agreement,
shall be liable to the United States for repayment
not later than 1 year after the date of default of all
scholarship funds paid to them and to the institution
of higher education on their behalf under the agree-
ment, except as provided in subsection (h)(2). The
repayment period may be extended by the Secretary
when determined to be necessary, as established by
regulation.
(2) FAILURE
TO
BEGIN
OR
COMPLETE
THE
SERVICE
OBLIGATION
OR
MEET
THE
TERMS
AND
374
CONDITIONS OF DEFERMENT.—A scholarship recipi-
ent who, for any reason, fails to begin or complete
a service obligation under this section after comple-
tion of academic training, or fails to comply with the
terms and conditions of deferment established by the
Secretary pursuant to subsection (f)(2)(B), shall be
in breach of the contractual agreement. When a re-
cipient breaches an agreement for the reasons stated
in the preceding sentence, the recipient shall be lia-
ble to the United States for an amount equal to—
(A) the total amount of scholarships re-
ceived by such individual under this section;
plus
(B) the interest on the amounts of such
awards which would be payable if at the time
the awards were received they were loans bear-
ing interest at the maximum legal prevailing
rate, as determined by the Treasurer of the
United States,
multiplied by 3.
(h) WAIVER OR SUSPENSION OF OBLIGATION.—
(1) DEATH OF INDIVIDUAL.—Any obligation of
an individual incurred under the Program (or a con-
tractual agreement thereunder) for service or pay-
375
ment shall be canceled upon the death of the indi-
vidual.
(2) IMPOSSIBILITY OR EXTREME HARDSHIP.—
The Secretary shall by regulation provide for the
partial or total waiver or suspension of any obliga-
tion of service or payment incurred by an individual
under the Program (or a contractual agreement
thereunder) whenever compliance by the individual is
impossible or would involve extreme hardship to the
individual, or if enforcement of such obligation with
respect to the individual would be contrary to the
best interests of the Government.
(i) DEFINITIONS.—In this section the following defi-
nitions apply:
(1) COST OF ATTENDANCE.—The term ‘‘cost of
attendance’’ has the meaning given that term in sec-
tion 472 of the Higher Education Act of 1965 (20
U.S.C. 1087ll).
(2) PROGRAM.—The term ‘‘Program’’ means
the Science and Technology Scholarship Program es-
tablished under this section.
SEC. 908. OFFICE OF SCIENTIFIC AND TECHNICAL INFOR-
MATION.
The Secretary shall maintain within the Department
the Office of Scientific and Technical Information.