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Arizona Loan Repayment Program

Contract Default

Loan repayment recipients who do not complete the service obligation as specified in the contract will be in default of their contract and will be liable to ADHS for liquidated damages. The liquidated damages penalty for failure to complete obligated service per the ARS § 36-2172 (J) is an amount equivalent to twice the total un-credited amount of the loan repayment award. At the discretion of ADHS, a loan repayment award recipient may be allowed to transfer to another eligible service site in Arizona to complete a service obligation.