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I am a new dental grad as of May. In January of 2017 I applied for an NHSC student to service scholarship as one of many options for employment. With this scholarship, you get $120,000 of loan forgiveness in exchange for 3 years of service in an under-served area as determined by the NHSC. I went on a medical mission trip and got extremely sick and I subsequently failed my part 2 board exams. Due to this failure, I was unable to start practicing by the August 1st deadline. August 1st the day that you were required to start working for the NHSC. I called up my contact at the NHSC before August 1st and told her about my situation and how I couldn't do the NHSC anymore. She said she would take care of the paperwork. Several weeks later I got an email saying I had been suspended from the NHSC. I assumed (stupidly) that my contract had been voided. After passing all the board exams, I accepted a job at a wonderful private practice where I currently work. Today I got a call from the NHSC asking me when I would start working for an NHSC site. I told them that I was under the impression I was no longer affiliated with the NHSC. They told me this was not the case and that I was expected to work at an NHSC site and was still under contract. I told them I would like to get out of the contract, as they had not given me a dime to payback my loans. They said this would be a breach of contract and as such it would cost me $7,500 per month of me not being employed at an NHSC site. Since my commitment was for 36 months, I would literally owe the federal government $270,000! I had never even taken any money from the NHSC! This is like indentured servitude! I have never in my life even heard of such a penalty for a breach in contract. I have hired a contract attorney but was wondering if anyone has heard of a way to safely get out of an NHSC contract? I was absolutely blown away by this. Please let me know if you have any questions and I would appreciate any help immensely. Attached is the contract.
