34 CFR 386.43 - What are the consequences of a scholar's failure to meet the terms and conditions of a scholarship agreement?
In the event of a failure to meet the terms and conditions of a scholarship agreement or to obtain a deferral or an exception as provided in § 386.41, the scholar shall repay all or part of the scholarship as follows:
(c) Interest accrual.
(2) Any accrued interest is capitalized at the time the scholar's repayment schedule is established.
(3) No interest is charged for the period of time during which repayment has been deferred under § 386.41.
(1) The date the scholar informs the Secretary he or she does not plan to fulfill the employment obligation under the agreement.
(2) Any date when the scholar's failure to begin or maintain employment makes it impossible for that individual to complete the employment obligation within the number of years required in § 386.34(c)(1).