When does a scholar enter financial “repayment” status?
Financial repayment status begins when it is apparent that all or part of the employment obligation will not be fulfilled by the payback completion date. Specifically, financial repayment status begins on the first day of the first calendar month after the earliest of the following dates, as applicable: (1) the date an RSA scholar informs the Commissioner of RSA (copy to training institution) that he/she does not plan to fulfill the employment obligation under the agreement; 2) any date when the RSA scholar’s failure to begin or maintain employment makes it impossible for him/her to complete his/her employment obligation within the number of years required in section 386.34(c)(1). If an RSA scholar partially meets his/her employment requirements, he/she must repay a prorated sum based upon the years/months of unmet employment in the payback agreement. As noted, the scholar should send a notice pursuant to repayment status to the Commissioner of the RSA in the U.S. Department of Educati
