Virginia Administrative Code › Title 12 - HEALTH › Agency 5 - DEPARTMENT OF HEALTH › Chapter 520 - REGULATIONS GOVERNING THE DENTAL SCHOLARSHIP AND LOAN REPAYMENT PROGRAMS › Part VI - Default › Section 12VAC5-520-190 - Default

Current through Register Vol. 40, No. 24, July 15, 2024
A. With respect to
				  default, the contract shall provide that a scholarship or loan repayment
				  recipient who fails to fulfill his obligation to practice dentistry as
				  described in
				  12VAC5-520-160 shall be deemed in
				  default under the following circumstances and shall forfeit all monetary
				  scholarship or loan repayment awards made to him and shall repay the
				  Commonwealth of Virginia as provided for in this chapter. The contract shall:
1. Provide that if the scholarship recipient
				  defaults while still in dental school, by voluntarily notifying the
				  commissioner in writing that he will not practice dentistry in a Virginia
				  dental underserved area as required by his contract, by voluntarily not
				  proceeding to the next year of dental education, or by withdrawing from dental
				  school, the student shall pay the Commonwealth of Virginia all monetary
				  scholarship awards plus interest at the prevailing bank rate for similar
				  amounts of unsecured debt.
2.
				  Provide that the scholarship recipient who defaults by failing to maintain
				  grade levels that will allow the dental student to graduate, or by reason of
				  his dismissal from dental school for any reason, shall repay the Commonwealth
				  of Virginia all monetary scholarship awards plus interest at the prevailing
				  bank rate for similar amounts of unsecured debt.
3. Provide that if the scholarship or loan
				  repayment recipient is in default due to death or permanent disability so as
				  not to be able to engage in dental practice, the recipient or his personal
				  representative shall repay the Commonwealth all monetary awards plus 8.0%
				  interest on the amount of the award. Partial fulfillment of the recipient's
				  contractual obligation by the practice of dentistry as provided for in this
				  contract prior to death or permanent disability shall reduce the amount of
				  repayment plus interest due by a proportionate amount of money, such proportion
				  being determined as the ratio of the number of whole months that a recipient
				  has practiced dentistry in an approved location to the total number of months
				  of the contractual obligation the recipient has incurred. The commissioner may
				  waive all or part of the scholarship or loan repayment obligation under
				  application by the recipient or his estate under these conditions and consider
				  whole or partial forgiveness of payment or service in consideration of
				  individual cases of hardship or inability to pay.
4. Provide that any recipient of a
				  scholarship or loan repayment who defaults by evasion or refusal to fulfill the
				  obligation to practice dentistry in an underserved area or designated state
				  facility for a period of years equal to the number of annual scholarships or
				  loan repayment awards received shall make restitution to the Commonwealth of
				  Virginia.