‘‘(iv) to serve through full-time em-
ployment at an eligible school for a time 
period (referred to in this section as the 
‘period of obligated service’) equal to the 
greater of— 
‘‘(I) 1 year for the equivalent of 
each school year for which the indi-
vidual was provided a scholarship 
under the Indian educator scholarship 
program; or 
‘‘(II) 2 years. 
‘‘(C) A statement of the damages to which 
the United States is entitled, under subsection 
(e), for the individual’s breach of the contract. 
‘‘(D) Such other statement of the rights 
and liabilities of the Secretary and of the indi-
vidual, in accordance with the provisions of this 
section. 
‘‘(2) PERIOD OF OBLIGATED SERVICE.— 
‘‘(A) ELIGIBLE
SCHOOLS.—An individual 
shall meet the requirement for the period of ob-
ligated service under the written contract be-
tween the individual and the Secretary, as de-
scribed in paragraph (1), if such individual is 
employed full-time— 
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‘‘(i) in a school funded by the Bureau 
of Indian Education; or 
‘‘(ii) in a public school that serves a 
significant number of Indian students. 
‘‘(B) 
DEFERMENT
FOR
ADVANCED 
STUDY.—At the request of an individual who 
has entered into a contract described in this 
subsection and who has receive a baccalaureate 
degree in education, the Secretary shall defer 
the period of obligated service of such individual 
under such contract to enable such individual to 
complete a course of study leading to an ad-
vanced degree in education, or needed to be-
come certified for an appropriate period (in 
years, as determined by the Secretary), subject 
to the following conditions: 
‘‘(i) A period of advanced study shall 
not be counted as satisfying any period of 
obligated service that is required under 
this section. 
‘‘(ii) The period of obligated service of 
the individual shall commence at the later 
of— 
‘‘(I) 90 days after the completion 
of the advanced course of study; 
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‘‘(II) at the commencement of 
the first school year that begins after 
the completion of the advanced course 
of study; or 
‘‘(III) by a date specified by the 
Secretary. 
‘‘(C) PART-TIME STUDY.—In the case of 
an individual receiving a scholarship under this 
section who is enrolled part-time in an approved 
course of study— 
‘‘(i) a scholarship under this section 
shall be for a period of years not to exceed 
the part-time equivalent of 4 years, as de-
termined by the Secretary; 
‘‘(ii) the period of obligated service 
shall be equal to the greater of— 
‘‘(I) the part-time equivalent of 1 
year for each year for which the indi-
vidual was provided a scholarship, as 
determined by the Secretary; or 
‘‘(II) 2 years; and 
‘‘(iii) the amount of the monthly sti-
pend specified in subsection (d) shall be re-
duced pro rata, as determined by the Sec-
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retary, based on the number of hours of 
study in which such individual is enrolled. 
‘‘(d) SCHOLARSHIP.— 
‘‘(1) IN GENERAL.—A scholarship provided to a 
student under the Indian educator scholarship pro-
gram for a school year shall consist of payment to, 
or in accordance with paragraph (2), on behalf of, 
the student in the amount of— 
‘‘(A) the tuition of the student for the 
school year or, for a part-time student, the tui-
tion for the appropriate portion of the school 
year; 
‘‘(B) all other reasonable educational ex-
penses, including fees, books, and laboratory ex-
penses, incurred by the student in such school 
year; and 
‘‘(C) a stipend of $800 per month (ad-
justed in accordance with paragraph (3)) for 
each of the 12 consecutive months beginning 
with the first month of such school year. 
‘‘(2) PAYMENT TO AN INSTITUTION OF HIGHER 
EDUCATION.—The Secretary may contract with an 
institution of higher education in which a participant 
in the Indian educator scholarship program is en-
rolled for the payment to such institution of the 
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amounts of tuition and other reasonable educational 
expenses described in subparagraph (A) and (B) of 
paragraph (1). Payment to such institution may be 
made without regard to section 3324(a) and (b) of 
title 31. 
‘‘(3) STIPEND.—The amount of the monthly 
stipend described in paragraph (1)(C) shall be in-
creased by the Secretary for each school year ending 
in a fiscal year beginning after September 30, 2011, 
by an amount (rounded to the next highest multiple 
of $1) equal to the amount of such stipend multi-
plied by the overall percentage (under section 5303 
of title 5) of the adjustment (if such adjustment is 
an increase) in the rates of pay under the General 
Schedule made effective in the fiscal year in which 
such school year ends. 
‘‘(e) LIABILITY; FAILURE TO COMPLETE THE PE-
RIOD OF OBLIGATED SERVICE; REPAYMENT.— 
‘‘(1) LIABILITY.—An individual who has en-
tered into a written contract with the Secretary 
under this section shall be liable to the United 
States for the amount which has been paid to, or on 
behalf of, such individual under the contract, if such 
individual— 
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