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Applicant Information Bulletin: School Year 2009-2010
Defaulting on
the Scholarship Commitment: Breach of
Contract
If a participant:
- fails to maintain an acceptable level of academic
standing in the nursing program;
- is dismissed from the nursing program for disciplinary
reasons;
- voluntarily terminates the nursing program; or
- fails to provide health services in an NSP service
site for the applicable period of time as specified
in his or her NSP contract; then the participant
will be liable to the Federal Government to:
- repay all funds paid to the participant, or on
the participant’s behalf, under the NSP and;
- pay interest on such amounts at the maximum legal
prevailing rate from the date of default.
The amount owed, including interest, must be paid
within 3 years of the date of the participant's default.
Delinquent Debt
Failure to repay the NSP debt within 3 years has
the following consequences:
- The debt will be reported to credit reporting
agencies. — During the three-year repayment
period, the debt will be reported to credit reporting
agencies as “current.” If the debt becomes past
due, it will be reported as “delinquent.”
- The debt will be referred to a debt collection
agency and the Department of Justice. — Any
NSP debt past due for 45 days may be referred to
a debt collection agency. If the debt collection
agency is unsuccessful in receiving payment in full,
the debt may be referred to the U.S. Department
of Justice for enforced collection.
- Administrative offset — Federal and/or
State payments due to the participant (e.g., an
IRS income tax refund) may be offset by the U.S.
Department of Treasury to repay a delinquent NSP
debt. Also, recovery through Administrative Wage
Garnishment may be enforced to repay a delinquent
NSP debt.
- Medicare/Medicaid Exclusion. — Delinquent
defaulters who are unwilling to enter into, or stay
in compliance with, an agreement to repay their
scholarship debt can be excluded from participation
in Medicare, Medicaid and other Federal health care
programs. See section 1128 of the Social Security
Act.
Next Section > Waiver,
Suspension or Cancellation of the Service Obligation
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To Apply
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On-Line
Application: Complete and submit by 5 pm ET May 14
BCRSIS
Online Banking Form: Complete and submit by 5 pm ET May 14 if you
meet the first funding preference
Supplemental
Forms (PDF - 382 KB): Complete, print, sign and mail. Must be received
or postmarked by May 14
Documentation: Compile and mail. Received
or postmarked by May 14
Mail to:
Nursing Scholarship Program
c/o HRSA Call Center
12530 Parklawn Drive, Suite 350
Rockville, MD 20852 |
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