Section 597.310  Repayment of Scholarship

a)          Any recipient who defaults on the terms of the contract shall pay to the Department an amount equal to the amount of scholarship funds received per year for each unfulfilled year of the nursing employment obligation, together with interest at 7% per year on the unpaid balance.

b)         Cash repayment must begin within 6 months following the date of the default action initiating the repayment. (Section 6 of the Law)

c)         Recipients in default shall enter into a Contract for Repayment with the Department as soon as the reason for default has been established.  This Contract for Repayment shall specify the amount due, the repayment schedule and all other terms of the cash repayment.  Interest charges shall be completely waived if the recipient repays the total scholarship amount prior to the first payment due date.

d)         In the event a recipient fails to pay monies owed to  the Department, the Department may require a recipient to reimburse the State for expenses, including but not limited to legal fees, incurred by the Department or other agent of the State for a successful legal action against the recipient for a breach of any provision of the scholarship contract and be referred to the Attorney General or to a collection agency.  The total 6-year interest shall be due if the recipient fails to fulfill the repayment requirements and the case is settled through authorized agencies outside the Department. (Section 4 of the Law)

e)         All cash repayments must be completed within 6 years from the date of the first annual cash payment. (Section 6 of the Law)

f)          In a breach of contract, the Department may utilize referral to the Department of Professional Regulation to revoke, suspend, refuse to renew, place on probationary status, or take other disciplinary action concerning the recipient's credentials. (Section 4 of the Law)

(Source:  Amended at 26 Ill. Reg. 16965, effective November 08, 2002)