R434-40-17. Release of Recipient from Service Obligation

  (1) The Department may cancel or release, in full or in part, a recipient from his service obligation under the grant agreement without penalty:

  (a) if the service obligation has been fulfilled;

  (b) if the recipient fails to meet the conditions of the award or if it reasonably appears the recipient will not meet the loan repayment or scholarship grant conditions;

  (c) if the recipient is unable to fulfill the service obligation due to permanent disability that prevents the recipient from performing any work for remuneration or profit;

  (d) if the recipient dies; or

  (e) for other good cause shown, as determined by the Department.

  (2) Extreme hardship sufficient to release the recipient without penalty includes:

  (a) inability to complete the required schooling or fulfill service obligation due to permanent disability that prevents the recipient from completing school or performing any work for remuneration or profit;

  (b) a family member, for which the recipient is the principal care giver, has a life-threatening chronic illness.

  (3) The Department may develop alternative service obligation criteria that a loan repayment or scholarship grant recipient may use to fulfill his service obligation if the loan repayment or scholarship grant recipient is unable to fulfill his service obligation at an approved site due to reasons beyond his control.