38 U.S.C. § 7674 — Obligated service

Page 1279 TITLE 38—VETERANS’ BENEFITS § 7674 (2) A participant in the Program may not re- ceive a scholarship under subsection (a) for more than the equivalent of three years of full-time coursework. (d) PAYMENT OF EDUCATIONAL EXPENSES BY EDUCATIONAL INSTITUTIONS.—The Secretary may arrange with an educational institution in which a participant in the Program is enrolled for the payment of the educational expenses de- scribed in subsection (a). Such payments may be made without regard to subsections (a) and (b) of section 3324 of title 31. (e) FULL-TIME COURSEWORK.—For purposes of this section, full-time coursework shall consist of the following: (1) In the case of undergraduate coursework, 30 semester hours per undergraduate school year. (2) In the case of graduate coursework, 18 se- mester hours per graduate school year. (Added Pub. L. 105–368, title VIII, § 802(a), Nov. 11, 1998, 112 Stat. 3353; amended Pub. L. 107–135, title I, § 101(c)–(e), Jan. 23, 2002, 115 Stat. 2447, 2448.) Editorial Notes AMENDMENTS 2002—Subsec. (b)(1). Pub. L. 107–135, § 101(c)(1), sub- stituted ‘‘for the equivalent of one year of full-time coursework’’ for ‘‘for any 1 year’’. Subsec. (b)(2). Pub. L. 107–135, § 101(c)(2), added par. (2) and struck out former par. (2) which read as follows: ‘‘in the case of a participant in the Program who is a part-time student, shall be the amount specified in paragraph (1) reduced in accordance with the propor- tion that the number of credit hours carried by the par- ticipant in that school year bears to the number of credit hours required to be carried by a full-time stu- dent in the course of education or training being pur- sued by the participant.’’ Subsec. (c). Pub. L. 107–135, § 101(d), amended heading and text of subsec. (c) generally. Prior to amendment, text read as follows: ‘‘(1) Subject to paragraph (2), a participant in the Program may not receive a scholarship under sub- section (a) for more than three school years. ‘‘(2) The Secretary may extend the number of school years for which a scholarship may be awarded to a par- ticipant in the Program who is a part-time student to a maximum of six school years if the Secretary deter- mines that the extension would be in the best interest of the United States.’’ Subsec. (e). Pub. L. 107–135, § 101(e), added subsec. (e). § 7674. Obligated service (a) IN GENERAL.—Each participant in the Pro- gram shall provide service as a full-time em- ployee of the Department for the period of obli- gated service provided in the agreement of the participant entered into under section 7603 of this title. Such service shall be provided in the full-time clinical practice of such participant’s profession or in another health-care position in an assignment or location determined by the Secretary. (b) DETERMINATION OF SERVICE COMMENCEMENT DATE.—(1) Not later than 60 days before a par- ticipant’s service commencement date, the Sec- retary shall notify the participant of that serv- ice commencement date. That date is the date for the beginning of the participant’s period of obligated service. (2) As soon as possible after a participant’s service commencement date, the Secretary shall— (A) in the case of a participant who is not a full-time employee in the Veterans Health Ad- ministration, appoint the participant as such an employee; and (B) in the case of a participant who is an em- ployee in the Veterans Health Administration but is not serving in a position for which the participant’s course of education or training prepared the participant, assign the partici- pant to such a position. (3)(A) In the case of a participant receiving a degree from a school of medicine, osteopathy, dentistry, optometry, or podiatry, the partici- pant’s service commencement date is the date upon which the participant becomes licensed to practice medicine, osteopathy, dentistry, op- tometry, or podiatry, as the case may be, in a State. (B) In the case of a participant receiving a de- gree from a school of nursing, the participant’s service commencement date is the later of— (i) the participant’s course completion date; or (ii) the date upon which the participant be- comes licensed as a registered nurse in a State. (C) In the case of a participant not covered by subparagraph (A) or (B), the participant’s serv- ice commencement date is the later of— (i) the participant’s course completion date; or (ii) the date the participant meets any appli- cable licensure or certification requirements. (4) The Secretary shall by regulation prescribe the service commencement date for participants who were part-time students. Such regulations shall prescribe terms as similar as practicable to the terms set forth in paragraph (3). (c) COMMENCEMENT OF OBLIGATED SERVICE.—(1) Except as provided in paragraph (2), a partici- pant in the Program shall be considered to have begun serving the participant’s period of obli- gated service— (A) on the date, after the participant’s course completion date, on which the partici- pant (in accordance with subsection (b)) is ap- pointed as a full-time employee in the Vet- erans Health Administration; or (B) if the participant is a full-time employee in the Veterans Health Administration on such course completion date, on the date thereafter on which the participant is assigned to a position for which the participant’s course of training prepared the participant. (2) A participant in the Program who on the participant’s course completion date is a full- time employee in the Veterans Health Adminis- tration serving in a capacity for which the par- ticipant’s course of training prepared the partic- ipant shall be considered to have begun serving the participant’s period of obligated service on such course completion date. (d) COURSE COMPLETION DATE DEFINED.—In this section, the term ‘‘course completion date’’ means the date on which a participant in the Program completes the participant’s course of education or training under the Program. Page 1280 TITLE 38—VETERANS’ BENEFITS § 7675 (Added Pub. L. 105–368, title VIII, § 802(a), Nov. 11, 1998, 112 Stat. 3354.) § 7675. Breach of agreement: liability (a) LIQUIDATED DAMAGES.—A participant in the Program (other than a participant described in subsection (b)) who fails to accept payment, or instructs the educational institution in which the participant is enrolled not to accept pay- ment, in whole or in part, of a scholarship under the agreement entered into under section 7603 of this title shall be liable to the United States for liquidated damages in the amount of $1,500. Such liability is in addition to any period of ob- ligated service or other obligation or liability under the agreement. (b) LIABILITY DURING COURSE OF EDUCATION OR TRAINING.—(1) Except as provided in subsection (d), a participant in the Program shall be liable to the United States for the amount which has been paid to or on behalf of the participant under the agreement if any of the following oc- curs: (A) The participant fails to maintain an ac- ceptable level of academic standing in the edu- cational institution in which the participant is enrolled (as determined by the educational institution under regulations prescribed by the Secretary). (B) The participant is dismissed from such educational institution for disciplinary rea- sons. (C) The participant voluntarily terminates the course of education or training in such educational institution before the completion of such course of education or training. (D) The participant fails to become licensed to practice medicine, osteopathy, dentistry, podiatry, or optometry in a State, fails to be- come licensed as a registered nurse in a State, or fails to meet any applicable licensure re- quirement in the case of any other health-care personnel who provide either direct patient- care services or services incident to direct pa- tient-care services, during a period of time de- termined under regulations prescribed by the Secretary. (E) The participant fails to maintain em- ployment, while enrolled in the course of training being pursued by the participant, as a Department employee. (2) Liability under this subsection is in lieu of any service obligation arising under a partici- pant’s agreement. (c) LIABILITY DURING PERIOD OF OBLIGATED SERVICE.—(1) Except as provided in subsection (d), if a participant in the Program breaches the agreement by failing for any reason to complete such participant’s period of obligated service, the United States shall be entitled to recover from the participant an amount determined in accordance with the following formula: t¥s A=3Φ ( —— ) t (2) In such formula: (A) ‘‘A’’ is the amount the United States is entitled to recover. (B) ‘‘Φ’’ is the sum of— (i) the amounts paid under this subchapter to or on behalf of the participant; and (ii) the interest on such amounts which would be payable if at the time the amounts were paid they were loans bearing interest at the maximum legal prevailing rate, as de- termined by the Treasurer of the United States. (C) ‘‘t’’ is the total number of months in the participant’s period of obligated service, in- cluding any additional period of obligated service in accordance with section 7673(c)(2) of this title. (D) ‘‘s’’ is the number of months of such pe- riod served by the participant in accordance with section 7673 of this title. (d) LIMITATION ON LIABILITY FOR REDUCTIONS- IN-FORCE.—Liability shall not arise under sub- section (b)(1)(E) or (c) in the case of a partici- pant otherwise covered by the subsection con- cerned if the participant fails to maintain em- ployment as a Department employee due to a staffing adjustment. (e) PERIOD FOR PAYMENT OF DAMAGES.—Any amount of damages which the United States is entitled to recover under this section shall be paid to the United States within the 1-year pe- riod beginning on the date of the breach of the agreement. (Added Pub. L. 105–368, title VIII, § 802(a), Nov. 11, 1998, 112 Stat. 3355; amended Pub. L. 114–315, title VI, § 616, Dec. 16, 2016, 130 Stat. 1577.) Editorial Notes AMENDMENTS 2016—Subsec. (b)(1)(E). Pub. L. 114–315 substituted ‘‘The’’ for ‘‘In the case of a participant who is a part- time student, the’’. [§ 7676. Repealed. Pub. L. 107–135, title I, § 101(a)(1), Jan. 23, 2002, 115 Stat. 2447] Section, added Pub. L. 105–368, title VIII, § 802(a), Nov. 11, 1998, 112 Stat. 3356, provided that the Secretary could not furnish scholarships to individuals who had not commenced participation in the Program before Dec. 31, 2001. SUBCHAPTER VII—EDUCATION DEBT REDUCTION PROGRAM § 7681. Authority for program (a) IN GENERAL.—(1) As part of the Edu- cational Assistance Program, the Secretary may carry out an education debt reduction program under this subchapter. The program shall be known as the Department of Veterans Affairs Education Debt Reduction Program (hereinafter in this subchapter referred to as the ‘‘Education Debt Reduction Program’’). (2) The purpose of the Education Debt Reduc- tion Program is to assist in the recruitment and retention of qualified health care professionals for positions in the Veterans Health Administra- tion for which recruitment or retention of an adequate supply of qualified personnel is dif- ficult. (b) RELATIONSHIP TO EDUCATIONAL ASSISTANCE PROGRAM.—Education debt reduction payments under the Education Debt Reduction Program may be in addition to other assistance available to individuals under the Educational Assistance Program.