Section 577.230  Terms of Performance

a)         Each scholarship recipient shall sign a written contract.  The contract shall contain additional terms and conditions that ensure compliance with this Part, the laws of the State of Illinois, and enforcement of the contract.

b)         Scholarship recipients who fail to complete school because of academic failure (as documented by the recipient's school) or who fail to complete school because of voluntary actions on their part (e.g., withdrawing from school) or who complete school but fail to become licensed as a psychiatric physician in Illinois shall repay to the Department all scholarship monies that were disbursed.  This includes monies remitted to the school of medicine or school of osteopathy (as applicable) for tuition and fees as well as monies received by the recipient for stipends.  Repayment shall be made as agreed to by the recipient and the Department in the recipient's contract.  If a scholarship recipient fails to pay monies owed the Department, the Department shall refer the matter to the Illinois Attorney General, a collection agency, or a licensed attorney.

c)         If the scholarship recipient is disabled or is otherwise unable for reasons beyond the recipient's control to fulfill the scholarship obligations, these obligations shall be suspended until the scholarship recipient is able to resume the scholarship obligations.  However, the suspension shall not exceed two years.

1)         To request a suspension of the scholarship obligation, a recipient shall submit a suspension request in writing to the Department.  This request shall detail the reasons for the suspension and, if temporary, the duration of the suspension and shall be supported by clear and convincing documentation.

2)         The Department shall approve a request for a suspension if the request is supported by a letter from the recipient's licensed physician fully explaining and attesting to the recipient's inability (either temporarily or permanently) to continue either school or the practice of psychiatric medicine and if the recipient agrees not to continue either his or her medical education or the practice of psychiatric medicine in any state.

3)         If a scholarship recipient suffers total and permanent disability, is adjudicated as incompetent, or dies, the recipient shall be discharged from all obligations to the Department in connection with the Act and this Part.

4)         If the Department denies the suspension request, the recipient shall fulfill the scholarship obligation.

5)         Based on the information contained in the request, the Department's acceptance or denial of the request will be provided in writing, under the Director's signature.

d)         Misrepresentation of any material facts presented in the recipient's application shall be considered a breach of contract.  If the Department determines that a breach of contract has occurred, the recipient's school shall be notified to halt further disbursements of scholarship funds.  In addition, all funds provided by the Department to the student shall be due in full, immediately.