Washington Administrative Code › Title 250 - Student Achievement Council › Chapter 250-25 - Health professional loan repayment and scholarship program - Rules and regulations › Section 250-25-080 - Repayment provisions

Current through Register Vol. 24-14, July 15, 2024
Participants in the health professional loan repayment and
				scholarship program incur an obligation to serve for no less than three years
				and no more than five years in a shortage area in return for financial support
				in the form of loan repayments and/or scholarships to attend school.
Loan repayments will be made quarterly on a yearly basis for no
				less than three years and no more than five years not to exceed the maximum
				debt incurred by the participant.
Loan repayment participants who serve less than the required
				service obligation shall be obligated to repay to the program an amount equal
				to twice the total amount paid by the program on their behalf. In addition,
				loan repayments on behalf of the participant shall cease on the date that the
				participant discontinues service. Payments on the unsatisfied portion of the
				principal and interest remain the responsibility of the participant. The board
				shall not be held responsible for any outstanding payments on principal and
				interest to any lenders once a participant's eligibility expires.
For scholarship participants, the entire principal and interest
				of each payment shall be forgiven for each payment period in which the
				participant serves in a health professional shortage area until the entire
				repayment obligation is satisfied or the borrower ceases to so serve.
Scholarship participants who serve less than the required
				service obligation shall be obligated to pay the unsatisfied portion of the
				principal and interest. The interest rate shall be eight percent for the first
				four years of repayment and ten percent beginning with the fifth year of
				repayment. Provisions for deferral of payment shall be determined by the board.
				In addition, scholarship participants who fail to fulfill the required service
				obligation shall be obliged to repay to the program an amount equal to twice
				the total amount paid by the program. The period for repayment shall coincide
				with the required service obligation, with payments accruing quarterly
				commencing no later than nine months from the date the participant completes or
				discontinues the course of study or completes or discontinues the required
				residency.
On the request of the participant, the board may waive, in full
				or in part, the obligation for service or its rights to recover financial
				damages whenever the board determines that failure to do so was due to
				circumstances beyond the participant's control. Conditions that would be
				considered as a waiver from default provisions may include: Participant becomes
				physically impaired to the degree that he or she can no longer function in his
				or her assigned duties; participant becomes mentally impaired to the degree
				that he or she can no longer function in his or her assigned duties; or
				death.
The board shall exercise due diligence in such collection,
				maintaining all necessary records to ensure that the maximum amount of payment
				made on behalf of the participant is recovered. Collection under this section
				shall be pursued using the full extent of the law, including wage garnishment
				if necessary.
Statutory Authority: 1993 c 423 and 492. 93-19-023, §
										250-25-080, filed 9/3/93,
				  effective 10/4/93. Statutory Authority: 1991 c 332. 92-03-002, §
										250-25-080, filed 1/3/92,
				  effective 2/3/92.