3104.1 In exchange for financial assistance, the applicant shall be obligated to:

1. (a) Be enrolled as a full-time student in a District of Columbia institution of higher education currently accredited by of nationally recognized accrediting agency or association;
2. (b) Pursue a course of study leading to a certificate or degree as determined by the educational institution, but not including graduate study, that is not required by D.C. Law 7-32;
3. (c) Maintain satisfactory progress as determined by the institution of higher education the student is attending;
4. (d) Practice nursing on a full-time basis for a participating D.C. agency for a period of not less than two (2) years for each year that he or she received tuition assistance.
5. (e) Fulfill the Practice obligation described in paragraph (d) immediately after completing the educational degree program for which financial assistance was awarded, unless the Director shall permit extra time in order to meet licensing requirements; and
6. (f) Provide, as required by the Director, evidence of compliance with the requirements described in this subsection.

3104.2 If the trainee fails to meet the conditions described in § 3104.1 and the Director determines that the trainee is no longer pursuing a course of study leading to a certificate or degree, the trainee shall:

1. (a) Repay the amount of financial aid received, prosaic according to the fraction of the practice obligation not completed, plus interest, as determined by the Director; and
2. (b) Pay all reasonable collection costs as determined by the Director.

3104.3 The interest charge shall accrue from the date of the initial financial assistance payment, if the Director has determined that the trainee is no longer pursuing a course of study leading to a certificate or degree, or the day after that portion of the financial assistance period for which the practice obligation has been fulfilled.

3104.4 The interest charge shall be adjusted annually, from the time interest begins to accrue to the time the repayment period begins, as described in § 3104.6, and is set at a rate which is the greater of either fourteen percent (14%) or five percent (5%) above the average ninety-one (91) day Treasury bill rate for the most recent quarter ending March 31.

3104.5 The interest charge applicable during the repayment period is the greater of these rates as determined when the repayment schedule is established.

3104.6 If the trainee is required to repay his or her tuition assistance, as required by § 3104.2, he or she shall:

1. (a) Enter repayment status on the first day of the first calendar month, after the agency has determined that the trainee is no longer pursuing a course of study leading to a certificate or degree, but not before six (6) months have elapsed after the cessation of the trainee's full-time enrollment in a course of study; on the date the trainee informs

the Director he or she does not plan to fulfill the practice obligation; or the latest date on which the trainee must have begun practicing in order to have completed with practice obligation within eighteen (18) months after completing the course of studies for which the financial assistance was awarded, as determined by the Director; and

(b) Make payments to the Director which cover principal, interest, and collection costs according to a schedule established by the agency which calls for complete repayment within five (5) years after the trainee enters repayment status, except as provided in § 3104.14.

3104.7 The Director shall not require from the trainee repayments amounting to more than one-thousand and two hundred dollars ($1,200) annually unless higher payments are needed to complete the entire repayment within the five (5) year period as described in § 3104.6.

3104.8 The Director shall capitalize any accrued unpaid interest at the time it establishes a trainee repayment schedule.

3104.9 The trainee may defer repayment if he or she is:

1. (a) Engaged in a full-time course of study at an institution of higher education that has a Department, School or College of Nursing or a course of study leading to a nursing degree or certificate, located in the District of Columbia;
2. (b) Serving, not in excess of three (3) years, on active duty as a member of the armed services of the United States;
3. (c) Temporarily totally disabled, for a period not to exceed three (3) years, as established by sworn affidavit of a qualified physician;
4. (d) Unable to secure employment for a period not to exceed twelve (12) months by reason of the care required by a spouse, child or parent who is disabled;
5. (e) Seeking and unable to find full-time employment for a single period not to exceed twelve (12) months; or
6. (f) Seeking but unable to find full-time employment as a professional nurse or Practical Nurse at the D.C. General Hospital, Department of Human Services, the D.C. Office on Aging, or other designated agency.

3104.10 To qualify for any of the exceptions, as described in § 3104.9, the trainee shall notify the Director of his or her claim to the exception.

3104.11 Upon receipt of the trainee's claim to an exception, the Director shall provide the trainee with a 'Request for Deferment' form on which the trainee shall document his or her claim.

3104.12 The Director shall not grant a deferment until the Director receives a properly completed and certified 'Request for Deferment' form from the trainee.

3104.13 During the time that the trainee qualifies for any of the exceptions described in § 3104.9, the trainee shall not be required to make the financial repayments described in § 3104.6, and interest shall not accrue.

3104.14 The Director shall extend the five (5) year financial repayment period described in § 3104.6 by a period equal to the length of time that a trainee meets any of the conditions set forth in § 3104.9, or if a trainee's inability to complete the financial repayment within the five (5) year period is due to his or her financial condition and this fact has been established to the Director's satisfaction.

3104.15 The Director shall cancel a trainee's repayment obligation if it determines that:

(a) On the basis of a sworn affidavit of a qualified physician, the trainee is unable to practice on a full-time basis because of an impairment that is expected to continue indefinitely or result in death; or

(b) On the basis of a death certificate or other evidence of death that is conclusive under District law, the trainee has died.

3104.16 The trainee shall inform the Director in writing whenever a significant change in his or her status occurs and provide the proper documentation to support it.

SOURCE: Final Rulemaking published at 37 DCR 8290, 8291 (December 21, 1990).