(a) In the event that the participant defaults on or otherwise fails to honor a loan-repayment contract with the board for any reason, the individual shall be liable for immediate repayment of the total principal loan amount plus interest at the rate of eight percent, or the prime lending rate, whichever is greater, accruing from the date of default or other failure to honor the contract.
Terms Used In Alabama Code 34-21-98
Contract: A legal written agreement that becomes binding when signed.
Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(b) If, for any reason, after graduation with a graduate degree to become a nurse educator and prior to completion of the repayment obligation set forth in Section 34-21-97, a participant defaults on or otherwise fails to honor a loan repayment contract with the board, the participant shall pay an additional penalty equal to 20 percent of the total principal amount of all loans received by the participant.(c) The failure of a participant to honor his or her contract with the board or to pay the amount he or she is liable for under this article shall constitute grounds for the revocation of his or her license to practice nursing.(d) The board may excuse repayment of a loan, in whole or in part, upon the death of a participant, the participant becoming disabled to the extent that he or she is no longer able to engage in the practice of nursing, or some other extreme hardship not the fault of the participant.
