(1)(a) A conditional scholarship awarded under this chapter is forgiven when the participant fulfills the terms of his or her service obligation. The office shall develop the service obligation terms for each conditional scholarship program under this chapter, including that participants must either:
(i) Serve as a certificated employee in an approved education program for two full-time school years for each year of conditional scholarship received; or
(ii) Serve as a certificated employee in a shortage area in an approved education program for one full-time school year for each year of conditional scholarship received.
(b) For participants who meet the terms of their service obligation, the office shall forgive the conditional scholarships according to the service obligation terms and shall maintain all necessary records of such forgiveness.
(2)(a) Participants who do not fulfill their service obligation as required under subsection (1) of this section incur an obligation to repay the conditional scholarship award, with interest and other fees. The office shall develop repayment terms for each conditional scholarship program under this chapter, including interest rate, other fees, minimum payment, and maximum repayment period.
(b) The office shall collect repayments from participants who do not fulfill their service obligation as required under subsection (1) of this section. Collection and servicing of repayments under this section must be pursued using the full extent of the law, including wage garnishment if necessary. The office shall exercise due diligence in maintaining all necessary records to ensure that maximum repayments are collected.
(3) The office shall establish a process for forgiveness, deferment, or forbearance for participants who fail to complete their service obligation due to circumstances beyond the participants' control, for example certain medical conditions, military deployment, declassification of a participant's shortage area, or hardship for a participant to relocate to an approved education program with a shortage area, provided the participant was serving as a certificated employee in a shortage area in an approved education program.