PUBLIC LAW 102-325—JULY 23, 1992 106 STAT. 681 school and who rank in the top 10 percent of their graduating class. The State educational agency shall make applications available to public and private nonprofit secondary schools in the State and in other locations convenient to applicants, parents, and others. The statewide psinel shall develop criteria and procedures for the selection of Paul Douglas Scholars. Such criteria may include the apphcant's secondary school grade point average, involvement in extracurricular activities, financial need, and expression of interest in teaching as expressed in an essay written by the applicant. The panel may also require the appHcant to furnish letters of recommendation from teachers and otners. "(c) WAIVER. —The Secretary may waive the requirements of section 523(d) for not more than 25 percent of all individuals receiving a scholarship under this subpart. "SEC. 526. SCHOLARSHIP CONDITIONS. 20 USC 1104e. "Recipients of scholarship assistance vmder this subpart shall continue to receive such scholarship pa5mients only during such periods that the State agency finds that the recipient is— "(1) enrolled as a full-time student in an accredited postsecondary institution; "(2) pursuing a course of study leading to teacher certification; and "(3) maintaining satisfactory progress as determined by the postsecondsiry institution the recipient is attending. "SEC. 527. SCHOLARSHIP REPAYMENT PROVISIONS. 20 USC 1104f. "Recipients found by the State agency to be in noncompliance' Regulations, with the agreement entered into under section 523(b)(5) of this subpart shall be required to repay a pro rata amount of the scholarship awards received, plus interest (but in no event at an interest rate higher than the rate ^plicable to loans in the applicable period under part B of title IV of this Act) and, where applicable, reasonable coUection fees, on a schedule and at a rate of interest to be prescribed by the Secretary by regulations issued pursuant to this subpart. "SEC. 528. EXCEPTIONS TO REPAYMENT PROVISIONS. "(a) DEFERRAL DURING CERTAIN PERIODS. —A recipient shall not be considered in violation of the agreement entered into pursuant to section 523(b)(5)(C) during any period in which the recipient— "(1) is pursuing a full-time course of study related to the field of teaching at an eligible institution; "(2) is serving, not in excess of 3 years, as a member of the armed services of the United States; "(3) is temporarily totally disabled for a period of time not to exceed 3 yeaia as established by sworn affidavit of a qualified physician; "(4) is unable to secure employment for a period not to exceed 12 months by reason of the care required by a spouse who is disabled; "(5) is seeking and unable to find full-time employment for a single period not to exceed 12 months; "(6) is seeking and imable to find full-time employment as a teacher in a public or private nonprofit preschool, elementary or secondary school, or education program for a single period not to exceed 27 months; or 20 USC 1104g.
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