---
kind: "section"
citation: "38 U.S.C. § 7696"
title: "38"
title_heading: "Veterans’ Benefits"
number: "7696"
heading: "Term of obligated service"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/38/7696"
units:
  - "Part V — Boards, Administrations, and Services"
  - "Chapter 76 — Health Professionals Educational Assistance Program"
  - "Subchapter VIII — Specialty Education Loan Repayment Program"
---

# §7696. Term of obligated service

- (a) **In General.—** In addition to any requirements under [section 5379(c) of title 5](/usc/5/5379.md?p=c), a participant in the Specialty Education Loan Repayment Program must agree, in writing and before the [Secretary](/usc/38/101.md?p=1) may make any payment to or for the participant, to—
  - (1) obtain a license to practice medicine in a [State](/usc/38/101.md?p=20);
  - (2) successfully complete post-graduate training leading to eligibility for board certification in a specialty;
  - (3) serve as a full-time clinical practice employee of the [Veterans](/usc/38/101.md?p=2) Health Administration for 12 months for every $40,000 in such benefits that the employee receives, but in no case for fewer than 24 months; and
  - (4) except as provided in [subsection (b)](#b), to begin such service as a full-time practice employee by not later than 60 days after completing a residency.
- (b) **Fellowship.—** In the case of a participant who receives an accredited fellowship in a medical specialty other than a medical specialty described in [section 7692 of this title](/usc/38/7692.md), the [Secretary](/usc/38/101.md?p=1), on written request of the participant, may delay the term of obligated service under [subsection (a)](#a) for the participant until after the participant completes the fellowship, but in no case later than 60 days after completion of such fellowship.
- (c) **Penalty.—**
  - (1) An employee who does not complete a period of obligated service under this section shall owe the Federal Government an amount determined in accordance with the following formula: A = B × ((T − S) ÷ T).
  - (2) In the formula in [paragraph (1)](#c-1):
    - (A) “A” is the amount the employee owes the Federal Government.
    - (B) “B” is the sum of all payments to or for the participant under the Specialty Education Loan Repayment Program.
    - (C) “T” is the number of months in the period of obligated service of the employee.
    - (D) “S” is the number of whole months of such period of obligated service served by the employee.

## Source credit

(Added Pub. L. 115–182, title III, § 303(a), June 6, 2018, 132 Stat. 1465; amended Pub. L. 116–61, § 6(8), Sept. 30, 2019, 133 Stat. 1117.)

## Notes

### Editorial Notes

### Amendments

2019—Subsec. (c)(1). Pub. L. 116–61 struck out second closing parenthesis before period at end.