38 U.S.C. § 7696 — Term of obligated service

Page 1284 TITLE 38—VETERANS’ BENEFITS § 7693 year under section 7692 of title 38, United States Code, as enacted by subsection (a), the Secretary of Veterans Affairs shall consider the anticipated needs of the Vet- erans Health Administration during the period 2 to 6 years in the future.’’ § 7693. Eligibility; preferences; covered costs (a) ELIGIBILITY.—An individual is eligible to participate in the Specialty Education Loan Re- payment Program if the individual— (1) will be eligible for appointment under section 7401 of this title to work in an occupa- tion described in section 7692 of this title; (2) owes any amount of principal or interest under a loan, the proceeds of which were used by or on behalf of that individual to pay costs relating to a course of education or training which led to a degree that qualified the indi- vidual for the position referred to in para- graph (1); and (3) is— (A) recently graduated from an accredited medical or osteopathic school and matched to an accredited residency program in a medical specialty described in section 7692 of this title; or (B) a physician in training in a medical specialty described in section 7692 of this title with more than 2 years remaining in such training. (b) PREFERENCES.—In selecting individuals for participation in the Specialty Education Loan Repayment Program under this subchapter, the Secretary may give preference to the following: (1) Individuals who are, or will be, partici- pating in residency programs in health care facilities— (A) located in rural areas; (B) operated by Indian tribes, tribal orga- nizations, or the Indian Health Service; or (C) affiliated with underserved health care facilities of the Department. (2) Veterans. (c) COVERED COSTS.—For purposes of sub- section (a)(2), costs relating to a course of edu- cation or training include— (1) tuition expenses; (2) all other reasonable educational ex- penses, including expenses for fees, books, equipment, and laboratory expenses; and (3) reasonable living expenses. (Added Pub. L. 115–182, title III, § 303(a), June 6, 2018, 132 Stat. 1464; amended Pub. L. 115–251, title II, § 211(a)(12), Sept. 29, 2018, 132 Stat. 3176.) Editorial Notes AMENDMENTS 2018—Subsec. (a)(1). Pub. L. 115–251 substituted ‘‘will be eligible for appointment’’ for ‘‘is hired’’. Statutory Notes and Related Subsidiaries PREFERENCE Pub. L. 115–182, title III, § 303(d), June 6, 2018, 132 Stat. 1467, as amended by Pub. L. 115–251, title II, § 211(b)(6)(A), Sept. 29, 2018, 132 Stat. 3176, provided that: ‘‘In granting preference under section 7693 of title 38, United States Code, as enacted by subsection (a), the Secretary of Veterans Affairs shall determine whether a facility of the Department of Veterans Affairs is un- derserved based on the criteria developed under section 401 of this Act [38 U.S.C. 8110 note].’’ § 7694. Specialty education loan repayment (a) IN GENERAL.—Payments under the Spe- cialty Education Loan Repayment Program shall consist of payments for the principal and interest on loans described in section 7682(a)(2) of this title for individuals selected to partici- pate in the Program to the holders of such loans. (b) FREQUENCY OF PAYMENT.—The Secretary shall make payments for any given participant in the Specialty Education Loan Repayment Program on a schedule determined appropriate by the Secretary. (c) MAXIMUM AMOUNT; WAIVER.—(1) The amount of payments made for a participant under the Specialty Education Loan Repayment Program may not exceed $160,000 over a total of 4 years of participation in the Program, of which not more than $40,000 of such payments may be made in each year of participation in the Program. (2)(A) The Secretary may waive the limita- tions under paragraph (1) in the case of a partic- ipant described in subparagraph (B). In the case of such a waiver, the total amount of payments payable to or for that participant is the total amount of the principal and the interest on the participant’s loans referred to in subsection (a). (B) A participant described in this subpara- graph is a participant in the Program who the Secretary determines serves in a position for which there is a shortage of qualified employees by reason of either the location or the require- ments of the position. (Added Pub. L. 115–182, title III, § 303(a), June 6, 2018, 132 Stat. 1465.) § 7695. Choice of location Each participant in the Specialty Education Loan Repayment Program who completes resi- dency may select, from a list of medical facili- ties of the Veterans Health Administration pro- vided by the Secretary, at which such facility the participant will work in a medical specialty described in section 7692 of this title. (Added Pub. L. 115–182, title III, § 303(a), June 6, 2018, 132 Stat. 1465.) § 7696. Term of obligated service (a) IN GENERAL.—In addition to any require- ments under section 5379(c) of title 5, a partici- pant in the Specialty Education Loan Repay- ment Program must agree, in writing and before the Secretary may make any payment to or for the participant, to— (1) obtain a license to practice medicine in a State; (2) successfully complete post-graduate training leading to eligibility for board certifi- cation in a specialty; (3) serve as a full-time clinical practice em- ployee of the Veterans Health Administration for 12 months for every $40,000 in such benefits that the employee receives, but in no case for fewer than 24 months; and Page 1285 TITLE 38—VETERANS’ BENEFITS § 7699 (4) except as provided in subsection (b), to begin such service as a full-time practice em- ployee by not later than 60 days after com- pleting a residency. (b) FELLOWSHIP.—In the case of a participant who receives an accredited fellowship in a med- ical specialty other than a medical specialty de- scribed in section 7692 of this title, the Sec- retary, on written request of the participant, may delay the term of obligated service under subsection (a) for the participant until after the participant completes the fellowship, but in no case later than 60 days after completion of such fellowship. (c) PENALTY.—(1) An employee who does not complete a period of obligated service under this section shall owe the Federal Government an amount determined in accordance with the fol- lowing formula: A = B × ((T ¥ S) ÷ T). (2) In the formula in paragraph (1): (A) ‘‘A’’ is the amount the employee owes the Federal Government. (B) ‘‘B’’ is the sum of all payments to or for the participant under the Specialty Education Loan Repayment Program. (C) ‘‘T’’ is the number of months in the pe- riod of obligated service of the employee. (D) ‘‘S’’ is the number of whole months of such period of obligated service served by the employee. (Added Pub. L. 115–182, title III, § 303(a), June 6, 2018, 132 Stat. 1465; amended Pub. L. 116–61, § 6(8), Sept. 30, 2019, 133 Stat. 1117.) Editorial Notes AMENDMENTS 2019—Subsec. (c)(1). Pub. L. 116–61 struck out second closing parenthesis before period at end. § 7697. Relationship to Educational Assistance Program Assistance under the Specialty Education Loan Repayment Program may be in addition to other assistance available to individuals under the Educational Assistance Program. (Added Pub. L. 115–182, title III, § 303(a), June 6, 2018, 132 Stat. 1466.) SUBCHAPTER IX—READJUSTMENT COUN- SELING SERVICE SCHOLARSHIP PRO- GRAM § 7698. Requirement for program As part of the Educational Assistance Pro- gram, the Secretary shall carry out a scholar- ship program under this subchapter. The pro- gram shall be known as the Department of Vet- erans Affairs Readjustment Counseling Service Scholarship Program (in this subchapter re- ferred to as the ‘‘Program’’). (Added Pub. L. 116–171, title V, § 502(a), Oct. 17, 2020, 134 Stat. 815.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 116–171, title V, § 502(c), Oct. 17, 2020, 134 Stat. 818, provided that: ‘‘The Secretary of Veterans Affairs shall begin awarding scholarships under subchapter IX of chapter 76 of title 38, United States Code, as added by subsection (a), for programs of study beginning not later than one year after the date of the enactment of this Act [Oct. 17, 2020].’’ § 7699. Eligibility; agreement (a) IN GENERAL.—An individual is eligible to participate in the Program, as determined by the Readjustment Counseling Service of the De- partment, if the individual— (1) is accepted for enrollment or enrolled (as described in section 7602 of this title) in a pro- gram of study at an accredited educational in- stitution, school, or training program leading to a terminal degree in psychology, social work, marriage and family therapy, or mental health counseling that would meet the edu- cation requirements for appointment to a po- sition under section 7402(b) of this title; and (2) enters into an agreement with the Sec- retary under subsection (c). (b) PRIORITY.—In selecting individuals to par- ticipate in the Program, the Secretary shall give priority to the following individuals: (1) An individual who agrees to be employed by a Vet Center located in a community that is— (A) designated as a medically underserved population under section 330(b)(3) of the Public Health Service Act (42 U.S.C. 254b(b)(3)); and (B) in a State with a per capita population of veterans of more than five percent accord- ing to the National Center for Veterans Analysis and Statistics and the Bureau of the Census. (2) An individual who is a veteran. (c) AGREEMENT.—An agreement between the Secretary and a participant in the Program shall (in addition to the requirements set forth in section 7604 of this title) include the fol- lowing: (1) An agreement by the Secretary to pro- vide the participant with a scholarship under the Program for a specified number of school years during which the participant pursues a program of study described in subsection (a)(1) that meets the requirements set forth in sec- tion 7602(a) of this title. (2) An agreement by the participant to serve as a full-time employee of the Department at a Vet Center for a six-year period following the completion by the participant of such pro- gram of study (in this subchapter referred to as the ‘‘period of obligated service’’). (d) VET CENTER DEFINED.—In this section, the term ‘‘Vet Center’’ has the meaning given that term in section 1712A(h) of this title. (Added Pub. L. 116–171, title V, § 502(a), Oct. 17, 2020, 134 Stat. 815.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Secretary of Veterans Affairs to begin awarding scholarships under this subchapter for programs of study beginning no later than one year after Oct. 17, 2020, see section 502(c) of Pub. L. 116–171, set out as a note under section 7698 of this title.