R434-40-15. Release of Recipient from Service Obligation

(1) The department may cancel or release, partially or fully, a recipient from the service obligation under the grant agreement without penalty: (a) if the recipient fulfills the service obligation; (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, due to permanent disability that prevents the recipient from performing any work for remuneration or profit, the recipient cannot: (i) fulfill the service obligation; or (ii) complete the required schooling; (d) if the recipient dies; (e) if the recipient experiences extreme hardship, including if a family member for which the recipient is the principal caregiver has a life-threatening chronic illness; (f) if there are no funds appropriated by the Legislature or by the federal government for the program; or (g) for other good cause shown, as solely determined by the department. (2) The department may develop alternative service obligation criteria that a loan repayment grant or scholarship grant recipient may use to fulfill the service obligation if the recipient cannot fulfill the service obligation at an approved site due to reasons beyond the recipient's control.