PUBLIC LAW 94-484—OCT. 12, 1976
90 STAT. 2283
mined under regulations of the Secretary by the educational institution offering such course of study); and "(iv) to serve for a time period (hereinafter in the subpart referred to as the 'period of obligated service') equal to— " (I) one year for each school year for which the individual was provided a scholarship under the Scholarship Program, or " ( II) two years, whichever is greater, in a health manpower shortage area (designated under section 332) to which he is assigned Ante, p. 2270. by the Secretary as a member of the Corps, or as otherwise provided in this subpart; "(2) a provision that any financial obligation of the United States arising out of a contract entered into under this subpart and any obligation of the individual which is conditioned thereon, is contingent upon funds being appropriated for scholarships under this subpart and to carry out the purposes of subpart II of part C of title III; Ante, p. 2268. "(3) a statement of the damages to which the United States is entitled, under section 754, for the individual's breach of the contract; and "(4) such other statements of the rights and liabilities of the Secretary and of the individual, not inconsistent with the provisions of this subpart. "(g)(1) A. scholarship provided to a student for a school year ^ = •* under a written contract under the Scholarship Program or under section 758 (relating to scholarships for first-year students of exceptional financial need), shall consist of—• "(A) payment to, or (in accordance with paragraph (2)) on behalf of, the student of the amount (except as provided in section 711) of—
- '(i) the tuition of the student in such school year; and
"(ii) all other reasonable educational expenses, including fees, books, and laboratory expenses, incurred by the student in such school year; and "(B) payment to the student of a stipend of $400 per month (adjusted in accordance with paragraph (3)) for each of the 12 consecutive months beginning with the first month of such school year. "(2) The Secretary may contract with an educational institution. Contract, in which a participant in the Scholarship Program is enrolled, for the payment to the educational institution of the amounts of tuition and other reasonable educational expenses described in paragraph (1)(A). Payment to such an educational institution may be made without regard to section 3648 of the Revised Statutes (31 U.S.C. 529). "(3) The amount of the monthly stipend, specified in paragraph (1)(B) and as previously adjusted (if at all) in accordance with this paragraph, shall be increased by the Secretary for each school year ending m a fiscal year beginning after September 30, 1978, by an amount (rounded to the next highest multiple of $1) equal to the amount of such stipend multiplied by the overall percentage (as set forth in the report transmitted to the Congress under section 5303 of title 5, United States Code) of the adjustment (if such adjustment is an increase) in the rates of pay under the General Schedule made effective in the fiscal year in which such school year ends.
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