§1395ccc. Offset of payments to individuals to collect past-due obligations arising from breach of scholarship and loan contract — Inbound Citations

Citations to 42 U.S.C. § 1395ccc as a whole

• 25 U.S.C. § 1616a(l)

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  (1) An individual who has entered into a written contract with the Secretary under this section and who—

  (A) is enrolled in the final year of a course of study and who—

  (i) fails to maintain an acceptable level of academic standing in the educational institution in which he is enrolled (such level determined by the educational institution under regulations of the Secretary);

  (ii) voluntarily terminates such enrollment; or

  (iii) is dismissed from such educational institution before completion of such course of study; or

  (B) is enrolled in a graduate training program, fails to complete such training program, and does not receive a waiver from the Secretary under subsection (b)(1)(B)(ii),

  shall be liable, in lieu of any service obligation arising under such contract, to the United States for the amount which has been paid on such individual’s behalf under the contract.

  (2) If, for any reason not specified in paragraph (1), an individual breaches his written contract under this section by failing either to begin, or complete, such individual’s period of obligated service in accordance with subsection (f), the United States shall be entitled to recover from such individual an amount to be determined in accordance with the following formula:

  A=3Z(t-s/t)

  in which—

  (A) “A” is the amount the United States is entitled to recover;

  (B) “Z” is the sum of the amounts paid under this section to, or on behalf of, the individual and the interest on such amounts which would be payable if, at the time the amounts were paid, they were loans bearing interest at the maximum legal prevailing rate, as determined by the Treasurer of the United States;

  (C) “t” is the total number of months in the individual’s period of obligated service in accordance with subsection (f); and

  (D) “s” is the number of months of such period served by such individual in accordance with this section.

  Amounts not paid within such period shall be subject to collection through deductions in Medicare payments pursuant to section 1395ccc of title 42.

  (A) Any amount of damages which the United States is entitled to recover under this subsection shall be paid to the United States within the 1-year period beginning on the date of the breach or such longer period beginning on such date as shall be specified by the Secretary.

  (B) If damages described in subparagraph (A) are delinquent for 3 months, the Secretary shall, for the purpose of recovering such damages—

  (i) utilize collection agencies contracted with by the Administrator of the General Services Administration; or

  (ii) enter into contracts for the recovery of such damages with collection agencies selected by the Secretary.

  (C) Each contract for recovering damages pursuant to this subsection shall provide that the contractor will, not less than once each 6 months, submit to the Secretary a status report on the success of the contractor in collecting such damages. Section 3718 of title 31 shall apply to any such contract to the extent not inconsistent with this subsection.
• 42 U.S.C. § 254o(b)(1)(B)(i)

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  (i) Any amount of damages that the United States is entitled to recover under this subsection or under subsection (c) shall, within the 1-year period beginning on the date of the breach of the written contract (or such longer period beginning on such date as specified by the Secretary), be paid to the United States. Amounts not paid within such period shall be subject to collection through deductions in Medicare payments pursuant to section 1395ccc of this title.
• 42 U.S.C. § 292f(f)

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  (f) The Secretary shall, after notice and opportunity for a hearing, cause to be reduced Federal reimbursements or payments for health services under any Federal law to borrowers who are practicing their professions and have defaulted on their loans insured under this subpart in amounts up to the remaining balance of such loans. Procedures for reduction of payments under the medicare program are provided under section 1395ccc of this title. Notwithstanding such section 1395ccc of this title, any funds recovered under this subsection shall be deposited in the insurance fund established under section 292i of this title.