Breaching Federal Nursing Scholarships Contract – What happens.
What does the breach of the NSP program Entail.
Under certain conditions a participant in the NSP scholarship program is considered to have breached his/her contract.
- If you fail to maintain an acceptable level of academic standing in the nursing program that the government is paying for.
- If a student gets disciplinary dismissal from the nursing program that he/she is participating in.
- If the student voluntarily terminates his nursing program.
- After graduation the participant fails to provide health services in a NSP service site of course the nsp is willing and able to be flexible if circumstances do occur and you want to move to another facility. Please make sure that you let the nsp program know exactly whats going on before walking away and breaching the contract.
What happens if the contract is Breached.
Automatically – the participant will be liable to the federal government to repay all funds paid to the student and interest on the amount paid which is based on the maximum legal prevailing rate fromt he date the default begins.
This amount must be paid within 3 years of the partcipants default.
What happens if the debt incurred is not paid
If the defaulting participant does not pay within 3 years – this results in a default which results in the following happening.
- Debt is reported to credit reporting agencies. During the 3 year repayment period; the debt is reported as current and if the debt becomes past due, the debt is reported as being delinquent.
- Debt will be referred to a collection agency and the department of justice. If the NSP debt becomes overdue by 45 days then its referred to a collection agency. If the debt collection agency fails to collect the debt then it may be referred to the U.s department of justice for enforced collection.
- An administrative offset can be enforced. What does this mean. Simply this – Federal/ state payments due to the participants may be offset by the u.s Treasury to repay the deliquent NSP debt. i.e income tax refund. Also recovery through Administrative wage Garnishment which may be enforced.
Deliquent defaulters may be excluded from participation in Medicare/ Medicaid and other Federal Health care programs. Its a pretty big deal when the government has paid all your school fees and you try to walk away so be careful with your choice. do your best to serve the 2 years and then walk away and do whatever you want after your service is complete.
The time you get from having your school paid for has no equal.
How do you obtain a waiver from your obligation from the NSP program.
Life happens and always remember we are all human. In some dire circumstances requests and waivers are necessary and they are processed and reviewed by the office of legal and compliance .
- Suspensions are granted if compliance with service is temporarily impossible (say maybe an accident and you are hurt and cant walk) or would temporarily involve extreme hardship that enforcement of obligation would not be normal.
- Waiver can be granted if compliance is impossible of course permanently, or would cause extreme hardship and would go completely against good conscience to enforce.
- Should the information about the patient come up with the participant suffering from physical or mental disability and the commitment cannot be performed then the waiver will be granted.
In this particular case – What is considered.
The participants present financial resources and obligation.
The graduate/ participants estimated future financial resources and obligations.
Extent of graduates/ participants physical or mental disability or terminal illness which can include the immediate family – this will be based on everything intruding on the present, future ability to perform and obligation will be incurred.
If you are seeking a waiver or suspension submit your request to the following adress.
ATTN: Division of Program Operations
Nursing Scholarship Program
Fax: 1-855-444-6032
Please include all the information included and of course constant communication is encouraged.
More information can be found here.
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