1. (1) In the event a recipient discontinues to fulfill the terms of his/her agreement to pay-with-service (635-X-9-.04), he/she shall be obligated to repay the cash balance of his/her loan which did not receive repayment-with-service credit.
2. (2) Interest will accrue at the rate to be determined by the Board on the unpaid balance of the loan beginning at the date the repayment-with-service agreement was breached.
3. (3) The unpaid balance must be paid in annual payments approved by the Board. The final payment becomes due no later than eight (8) years after the recipient entered the practice of optometry.
4. (4) Failure to pay the balance of the loan amount as stated in (3) above shall constitute grounds for revocation of the loan recipient’s certificate or license to practice optometry in the state of Alabama.
5. (5) If Recipient is participating in the Alabama Optometric Service Program, the recipient shall pay an additional penalty for breach of contract as specified:
6. a. For breach of contract under which one (1) years worth of loans has been received, a penalty equal to twenty percent (20%) of the total principal amount of the loan.
7. b. For breach of contract under which two (2) years worth of loans have been received, a penalty equal to thirty (30%) percent of the total principal amount of the loan.
8. c. For breach of contract under which three (3) years worth of loans have been received, a penalty equal to forty percent (40%) of the total principal amount of the loan.
9. d. For breach of contract under which four (4) years worth of loans have been received, a penalty of fifty percent (50%) of the total principal amount of the loan.
10. e. If breach of contract occurs after graduation from optometry school but prior to completion of the repayment obligation set forth in Section 34-22-63(b), a penalty equal to one hundred percent (100%) of the total principal amount of all loans received by the Recipient.
11. (6) If for any reason a recipient participating in the Optometric Service Program discontinues practice before the required time to repay the total loan, the Recipient’s account will be credited with the amount earned provided the time of approved practice or service is more than one year. The balance of the loan plus penalties outlined above must be repaid in annual cash payments as provided in 34-22-63(a), the last payment being due eight (8) years after entering the practice of optometry. Any penalties accrued shall not bear interest.

Author: Board of Optometric Scholarship and Loan Awards

Statutory Authority: Code of Ala. 1975, §§34-22-60, et seq.

History: Filed September 7, 1984. Amended: Filed February 4, 2014; effective March 11, 2014. Amended: Published June 30, 2025; effective August 14, 2025.