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which he or she is provided a scholarship under such contract before the completion

of such training; or

"(iv) fails to accept payment, or instructs the educational institution in which he or she is enrolled not to accept payment, in whole or in part, of a scholarship under such contract;

in lieu of any service obligation arising under such contract, shall be liable to the United

States for the amount which has been paid to

him or her, or on his or her behalf, under the

contract.

"(B) FAILURE TO PERFORM SERVICE OBLIGATION.-If for any reason not specified in

subparagraph (A) an individual breaches his or

her written contract by failing either to begin

such individual's service obligation under this section or to complete such service obligation, the United States shall be entitled to recover

from the individual an amount determined in accordance with the formula specified in subsection (1) of section 110 in the manner pro

vided for in such subsection.

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“(C) DEATH.-Upon the death of an indi

vidual who receives an Indian Health Scholar

ship, any obligation of that individual for serv

ice or payment that relates to that scholarship shall be canceled.

"(D) WAIVER.-The Secretary shall provide for the partial or total waiver or suspension of any obligation of service or payment of a recipient of an Indian Health Scholarship if the Secretary, in consultation with the appropriate area office, Indian tribe, tribal organization, and urban Indian organization, determines that

"(i) it is not possible for the recipient to meet that obligation or make that pay

ment;

"(ii) requiring that recipient to meet that obligation or make that payment would result in extreme hardship to the recipient; or

"(iii) the enforcement of the require

ment to meet the obligation or make the

payment would be unconscionable.

"(E) HARDSHIP OR GOOD CAUSE.-Not

withstanding any other provision of law, in any

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case of extreme hardship or for other good

cause shown, the Secretary may waive, in whole

or in part, the right of the United States to recover funds made available under this section.

"(F) BANKRUPTCY.-Notwithstanding any other provision of law, with respect to a recipient of an Indian Health Scholarship, no obliga

tion for payment may be released by a discharge in bankruptcy under title 11, United States Code, unless that discharge is granted

after the expiration of the 5-year period begin

ning on the initial date on which that payment

is due, and only if the bankruptcy court finds

that the nondischarge of the obligation would

be unconscionable.

"(c) FUNDING FOR TRIBES FOR SCHOLARSHIP PRO

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"(1) PROVISION OF FUNDS.

"(A) IN GENERAL.-The Secretary shall make funds available, through area offices, to Indian tribes and tribal organizations for the purpose of assisting such tribes and tribal organizations in educating Indians to serve as health professionals in Indian communities.

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"(B) LIMITATION.-The Secretary shall ensure that amounts available for grants under

subparagraph (A) for any fiscal year shall not

exceed an amount equal to 5 percent of the

amount available for each fiscal year for Indian Health Scholarships under this section.

"(C) APPLICATION.-An application for funds under subparagraph (A) shall be in such form and contain such agreements, assurances and information as consistent with this section.

"(2) REQUIREMENTS.—

"(A) IN GENERAL.-An Indian tribe or tribal organization receiving funds under para

graph (1) shall agree to provide scholarships to Indians in accordance with the requirements of this subsection.

"(B) MATCHING REQUIREMENT.-With respect to the costs of providing any scholarship

pursuant to subparagraph (A)—

"(i) 80 percent of the costs of the scholarship shall be paid from the funds provided under paragraph (1) to the Indian tribe or tribal organization; and

"(ii) 20 percent of such costs shall be

paid from any other source of funds.

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"(3) ELIGIBILITY.-An Indian tribe or tribal

organization shall provide scholarships under this

subsection only to Indians who are enrolled or accepted for enrollment in a course of study (approved

by the Secretary) in one of the health professions

described in this Act.

"(4) CONTRACTS.-In providing scholarships under paragraph (1), the Secretary and the Indian

tribe or tribal organization shall enter into a written contract with each recipient of such scholarship. Such contract shall

"(A) obligate such recipient to provide service in an Indian health program (as defined in section 110(a)(2)(A)) in the same service

area where the Indian tribe or tribal organization providing the scholarship is located, for

"(i) a number of years equal to the number of years for which the scholarship is provided (or the part-time equivalent thereof, as determined by the Secretary), or for a period of 2 years, whichever period

is greater; or

"(ii) such greater period of time as the recipient and the Indian tribe or tribal

organization may agree;

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