Cal. Code Regs. Tit. 22, § 97747 - Penalties for Non-Compliance by a Loan Repayment Program Participant

(a) If a participant or student breaches the contract with the Office by failing to either begin the service obligation or to complete it, the Office shall be entitled to recover from the individual an amount determined by the following formula, plus interest:

Click here to view image

in which "A" is the amount the Office is entitled to recover; "F" is the sum of the amounts paid under this chapter to or on behalf of the individual; "T" is the total number of months in the individual's period of obligated service; and "S" is the number of months of such period already served by the individual. Interest shall be charged on the outstanding principal at the rate of 10 percent per year. Interest shall begin to accrue from the date of the breach, as determined by the Office. Repayment shall be required in quarterly installments, in amounts calculated by the Office to permit repayment in seven years.

Notes

Cal. Code Regs. Tit. 22, § 97747

1. New section filed 5-24-90 as an emergency; operative 5-24-90 (Register 90, No. 27). Section remains in effect pursuant to Education Code section 69801 unless amended or repealed by the Office of Statewide Health Planning and Development.
2. Change without regulatory effect amending NOTE filed 7-3-2017 pursuant to section 100, title 1, California Code of Regulations (Register 2017, No. 27).

Note: Authority cited: Section 128360, Health and Safety Code. Reference: Sections 128345 and 128350, Health and Safety Code.

1. New section filed 5-24-90 as an emergency; operative 5-24-90 (Register 90, No. 27). Section remains in effect pursuant to Education Code section 69801 unless amended or repealed by the Office of Statewide Health Planning and Development.
2. Change without regulatory effect amending Note filed 7-3-2017 pursuant to section 100, title 1, California Code of Regulations (Register 2017, No. 27).