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dures and requirements established by the Surgeon General.

PART 62-NATIONAL HEALTH SERV

ICE CORPS SCHOLARSHIP AND LOAN REPAYMENT PROGRAMS

of household goods and personal efects, in conjunction with travel auhorized by the Service

(1) From place of residence, within or utside the continental United States, ɔ first duty station, (2) For any change of duty station orered by the Service during the term of he fellowship, and (3) From last duty station to the lace of residence which he left to acept the fellowship, or to some other lace at no greater cost to the Governient.

service fellow shall be entitled to avel allowances or transportation ad per diem while traveling on official usiness away from his permanent ity station during the term of the felwship. Except as otherwise provided Prein, a service fellow shall be entied to travel and transportation allowaces authorized in this part at the ime rates as may be authorized by iw and regulations for other civilian "mployees of the Public Health Seryce. If a service fellow dies during the erm of a fellowship, and his place of esidence which he left to accept the

allowship was outside the continental nited States, the payment of expenses preparing the remains for burial and ansporting them to the place of resience for interment may be authorized. 1 the case of deceased service fellows

'hose place of resident was within the continental United States, payment of he expenses of preparing the remains end transporting them to the place of

esidence for interment may be authorsed as provided for other civilian emloyees of the Public Health Service.

(c) Benefits. In addition to other beneits provided herein, service fellows hall be entitled to benefits as provided y law or regulation for other civilian mployees of the Public Health Servce. ; (d) Training. Service fellows are eligile for training at Government expense in the same basis as other civilian emloyees.

Subpart A-National Health Service Corps

Scholarship Program Sec. 62.1 What is the scope and purpose of the

National Health Service Corps scholar

ship program? 62.2 Definitions. 62.3 Who is eligible to apply for a scholar

ship program award? 62.4 To whom will scholarship program

awards be available in addition to those individuals pursuing courses of study leading to degrees in medicine, osteop

athy or dentistry? 62.5 How is application made for a scholar

ship program award? 62.6 How will individuals be selected to par

ticipate in the scholarship program? 62.7 What will an individual be awarded for

participating in the scholarship pro

gram? 62.8 What does an individual have to do in

return for the scholarship program

award? 62.9 Under what circumstances can the pe

riod of obligated service be deferred to

complete approved graduate training? 62.10 What will happen if an individual does

not comply with the terms and conditions of participating in the scholarship

program? 62.11 When can a scholarship program pay

ment obligation be discharged in bank

ruptcy? 62.12 Under what circumstances can the

service or payment obligation be can

celed, waived or suspended? 62.13 What are the limitations on the re

ceipt of concurrent benefits? 62.14 What are the special provisions relat

ing to recipients of awards under the PH NHSC scholarship training program who will also receive awards under the scholarship program?

Subpart B-National Health Service Corps

Loan Repayment Program

61.38 Duration of service fellowships.

Initial appointments to service felowships may be made for varying periods not in excess of 2 years. Such appointments may be extended on a yearco-year basis in accordance with proce

62.21 What is the scope and purpose of the

National Health Service Corps Loan Re

payment Program? 62.22 Definitions. 62.23 How will individuals be selected to

participate in the Loan Repayment Pro

gram? 62.24 Who is eligible to apply for the Lor

Repayment Program?

862.4 To whom will scholarship pro- she determines necessary to assure e

gram awards be available in addi- fective participation in the Scholarsk, tion to those individuals pursuing Program. These factors may include courses of study leading to degrees but not be limited to (i) work expert in medicine, osteopathy, or den

ence, (ii) community background, (0 tistry?

career goals, (iv) faculty recommende The Secretary will, from time-to- tion, and (v) academic performance. time, publish in the FEDERAL REGISTER (2) Special consideration will be a list of those health professions in ad- given to (i) medical and osteopatia dition to medicine, osteopathy, and students who indicate their intention dentistry for which the National to enter family practice, internal med 129 Health Service Corps has need and for cine, pediatrics, or osteopathic gener which support is available. The Sec- practice residencies, (i) dental stof retary will also publish any other eligi- dents who indicate their intention the bility criteria, in addition to those in undertake general practice training 862.3, that may be required to assure following graduation or who plan se that participants can be utilized during

postgraduate training, and (ill) the their periods of obligated service in a individuals who indicate an intent of manner that will best meet the needs pursue other types of clinical practice of the National Health Service Corps. or specialized training for which is

National Health Service Corps but 8 62.5 How is application made for a

particular need. scholarship program award?

(d) Duration of Scholarship med Each individual desiring a scholar- Subject to the availability of funs i ship under this part must submit an the Scholarship Program, the s application (including a signed con- retary will award a participants tract as required under section 751(f) of arship under this part for a perist the Act) in the form and at the time school year. prescribed by the Secretary.

(e) Continuation awards. Subject !

the availability of funds for the Sekti 862.6 How will individuals be selected

arship Program, the Secretary to participate in the scholarship

award a continuation scholarship program?

the participant requests & conto (a) General. In deciding which appli- ation, (2) the award will not extend ** cations for participation in the Schol- total period of Scholarship Proces arship Program will be approved, the support beyond 4 years, and (3) the pri Secretary will place the applications ticipant is eligible for continued sl into categories based upon the selec- ticipation in the Scholarship Program tion priorities described in paragraph (b) of this section. Except for continu- 862.7 What will an individual ation awards (see paragraph (e) of this

awarded for participating in section) the Secretary will then evalu

scholarship program? ate each applicant under paragraph (c) (a) Amount of scholarship. (1) Asche of this section.

arship award for each school year (b) Priorities. (1) First priority will be consist of (i) tuition, (ii) reason given to individuals who have pre- educational expenses, including viously received a scholarship under quired fees, books, supplies, and the PHNHSC Scholarship Training quired educational equipment, and Program, a scholarship under this a monthly stipend for the 12-mont: Scholarship Program, or a scholarship riod beginning with the first mort under section 758 of the Act, authoriz- each school year in which the inde ing scholarships for first-year students ual is a participant. For purpose: of exceptional financial need. (2) Sec- this section “required fees" may ond priority will be given to applicants those fees which are charged by who are entering their first year of school to all students pursuing a study.

lar curriculum and "required (c) Selection. (1) In selecting partici- cational equipment" pants, the Secretary will take into con- cational equipment which mus sideration those factors which he or rented or purchased by all stuk

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suing a similar curriculum at that retary as soon as possible following: (i) -Tool.

the completion of the participant's **) The Secretary may enter into a course of study leading to a degree in -2 tract with the school in which the medicine, osteopathy, dentistry, or an

icipant is enrolled for the direct equivalent credential for a particular iment of tuition and reasonable edu- health profession, and (ii) appointment 2onal expenses in the participant's of the participant as a Commissioned Elf.

Officer in the Regular or Reserve Corps * Payment of scholarship: Leave-of- of the Service or as a civilian member EC ***ince; repeated course work. The Sec- of the National Health Service Corps. pory will suspend scholarship pay- (2) For purposes of this paragraph, its to or on behalf of a participant "appointment” means only those ap

te school (1) approves a leave-of-ab- pointments as Commissioned Officers size for the participant for health, in the Regular or Reserve Corps of the ennal, or other reasons, or (2) re- Service or as civilian members of the

8 the participant to repeat course National Health Service Corps made Di for which the Secretary has pre- specifically for the purpose of serving a

made scholarship payments participant's period of obligated serv? $62.7. However, if the repeated ice. de work does not delay the partici- (c) Duration of service. Except as pro

graduation date, scholarship vided in $62.14(b)(1), the period for ients will continue except for any which the Scholarship Program particional costs relating to the re- ipant is obligated to serve is equal to 1

d course work. Any scholarship year for each school year for which the Lorements suspended under this para

participant receives scholarship will be resumed by the Secretary award under this part, or 2 years, notification by the school that whichever is greater. articipant has returned from the (d) Service by detail. If the Secretary -of-absence or has completed the determines that there is no need in a ted course work and is pursuing health manpower shortage area for a full-time student the course of member of the profession in which the

for which the scholarship was Scholarship Program participant is obled.

ligated to provide service, the Scholar

ship Program participant may be deWhat does an individual have to

tailed to serve the period of obligated i of sy in return for the scholarship service as a full-time member of the

profession for which the participant a General. Except as provided in has been trained, in any unit of the Dethe graphs (d), (f), and (g) of this sec- partment of Health and Human Serv

each participant is obligated to ices as the Secretary may determine. come a member of the National (e) Creditability of approved graduate h Service Corps employed as a training. Except provided

uissioned Officer in the Regular or $62.14(b)(2), no period of approved gradof schove Corps of the Service or as a uate training will be credited toward

al civilian in the full-time clini- satisfying the period of obligated servDo ractice of the participant's profes- ice incurred under the Scholarship Proeget ind (2) serve in the health man- gram.

shortage area to which the par- (f) Service under the National Research 11032 nt is assigned by the National Service Award Program. (1) A Scholari pendoh Service Corps.

ship Program participant who demDT-Beginning of service. (1) The period onstrates exceptional promise for medçears igated service will begin when the ical research may perform the period of tícipsi arship Program participant be- obligated service owed under this sec

mesto provide services in the health tion by participating in the National hich ower shortage area to which he or Research Service Award Program for studes assigned by the Secretary. Ex- individual postdoctoral fellows author

ized under section 472 of the Act. uns or those participants who receive we rral under $ 62.9 (a) or (b), this as

(2) Exceptional promise for medical

research will be demonstrated if the li predi lent will be made by the Sec

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participant applies for a National Research Service Award for individual postdoctoral fellows, is selected to participate in this research program, and accepts the offer of participation. A Scholarship Program participant in the National Research Service Award Program will receive credit toward satisfying the period of obligated service incurred under this section for any period of time he or she is engaged in activities which meet the service requirements of the National Research Service Award Program.

(3) If the time served under the National Research Service Award Program is less than the total period of obligated service owed under the Scholarship Program, the participant will serve the remainder of the Scholarship Program service obligation (i) in activities which meet the criteria for service under the National Research Service Award Program, as approved by the Secretary or (ii) as a member of the National Health Service Corps providing health services in the full-time clinical practice of his or her health profession. A participant who fails to begin or complete the service requirements under the National Research Service Award Program may be subject to the default penalty under $62.10(c) of this part and the default penalties under the National Research Service Award Program.

(8) Release from service obligation to engage in private practice. The Secretary will release a participant from all or part of the service obligation if the participant applies for a release under section 753 of the Act and agrees in writing to engage for a period equal to the remaining period of the participant's service obligation in the fulltime private clinical practice of the participant's health profession, under the requirements of section 753 of the Act.

the Secretary will defer the beginning date of the obligated service to allow the participant to complete an approved graduate training program. The period of this deferment may not exceed (1) three years for any participant receiving a degree from a school of medicine, osteopathy or dentistry, or (2) one year for any participant recieving a degree from a school of veterinary medicine, optometry, podiatry or pharmacy. The Secretary may, however, extend this period of deferment if the Secretary determines that the ex tension is consistent with the needs of the National Health Service Corps.

(b) Required deferment. Each particpant receiving a degree in medicine or osteopathy who does not intend to enter training which can be completed within the deferment period granted under paragraph (a) of this section must complete at least one year of ap proved graduate training before bertaning the period of obligated service This one year of training must be ad an allopathic flexible first-year gram whose sponsorship includes 47 proved residencies in family practice

, internal medicine, pediatrics, or a categorical first-year program in family practice, internal medicine, or pediatrics; (2) a rotating internship in osteopathic medicine; or (3) such other programs as the Secretary determines provides comparable experience. Any per ticipant receiving a degree in medicine or osteopathy who fails to complete the one year of required training of an approved graduate training program for which a deferment was granted under paragraph (a) of this section will be subject to the default penalties ! 862.10(c).

(c) Altering deferment. Before alteria the length or type of approved TB uate training for which the period of obligated service was deferred under paragraphs (a) or (b) of this section

, the participant must request and ob tain the Secretary's approval of the alteration.

(d) Additional terms of deferment. The Secretary may prescribe additiona terms and conditions for deferment under paragraphs (a), (b), and (c) of this section as necessary to carry out the purposes of the Scholarship Program.

862.9 Under what circumstances can

the period of obligated service be deferred to complete approved

graduate training? (a) Requested deferment. Upon the request of any participant receiving a degree from a school of medicine, osteop athy, or dentistry, veterinary medicine, optometry, podiatry or pharmacy,

(e) Beginning of service after deferment. granted by the Secretary, the particiny participant whose period of obli- pant must pay to the United States an rated service has been deferred under amount determined by the formula set aragraphs (a) or (b) of this section forth in section 754(c) of the Act. Paynust begin the obligated service when ment of this amount shall be made he participant begins to provide within 1 year of the date that the parnealth services in the health manpower ticipant failed to begin or complete the hortage area to which he or she is as- period of obligated service, as deterigned by the Secretary. This assign- mined by the Secretary. nent will be made by the Secretary as oon as possible following (1) the com

862.11 When can a scholarship proletion of the requested or required

gram payment obligation be disraduate training for which the

charged in bankruptcy? eferment was granted, and (2) appoint- In accordance with section 754(d)(3) nent as a Commissioned Officer in the of the Act, any payment obligation inregular or Reserve Corps of the Serv- curred under $62.10 may not be dise or as a civilian member of the Na- charged in bankruptcy under title XI of ional Health Service Corps.

the United States Code until 5 years

after the date on which the payment 62.10 What will happen if an individ- obligation is due.

ual does not comply with the terms and conditions of participating in 862.12 Under what circumstances can the scholarship program?

the service or payment obligation (a) If a participant, other than one

be canceled, waived or suspended? escribed in paragraph (b) of this sec- (a) Any obligation of a participant ion, fails to accept payment or in- for service or payment will be canceled tructs the school not to accept pay- upon the death of the participant. nent of the scholarship provided by (b)(1) A participation may seek a he Secretary, the participant must, in waiver or suspension of the service or ddition to any service or other obliga- payment obligations incurred under fon incurred under the contract, pay this part by written request to the Sec

the United States the amount of retary setting forth the bases, cir1,500 liquidated damages. Payment of cumstances, and causes which support bis amount must be made within 30 the requested action. The Secretary ays of the date on which the partici- may approve a request for a suspension ant fails to accept payment of the for a period of 1 year. A renewal of this cholarship award or instructs the suspension may also be granted. chool not to accept payment.

(2) The Secretary may waive or sus(b) When a participant fails to main- pend any service or payment obligation in an acceptable level of academic incurred by a participant whenever tanding, is dismissed from the school compliance by the participant (1) is imor disciplinary reasons, or voluntarily possible, or (ii) would involve extreme erminates the course of study or pro- hardship to the participant and if enram for which the scholarship was forcement of the service or payment warded before completing the course obligation would be against equity and I study or program, the participant good conscience. iust, instead of performing any serv- (c) Compliance by a participant with e obligation, pay to the United States a service or payment obligation will be o amount equal to all scholarship considered impossible if the Secretary inds awarded under $62.7. Payment of determines, on the basis of information his amount must be made within 3 and documentation as may be required, ears of the date the participant be- that the participant suffers from a omes liable to make payment under physical or mental disability resulting his paragraph.

in the permanent inability of the par(c) If a participant fails to begin or ticipant to perform the service or other omplete the period of obligated serv- activities which would be necessary to ce incurred under $ 62.8, including fail- comply with the obligation. ng to comply with the applicable (d) In determining whether to waive erms and conditions of a deferment or suspend any or all of the service or

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