Alabama · Through Act 2026-611

Ala. Code § 16-47-224: Liability Upon Default, Etc.; Penalties.

(a) If a participant defaults on or otherwise fails to honor a loan-repayment contract with the board, the individual shall be liable for immediate repayment of the total principal loan amount plus interest at the rate of 8 percent accruing from the date of default or other failure to honor the contract. In addition, the participant shall pay an additional penalty as specified:
(1) For default or other failure to honor a contract before graduation with a master’s degree in physician assistant studies, a penalty equal to 30 percent of the total principal amount of the loan or loans received by the participant.
(2) For default or other failure to honor a contract after graduation with a master’s degree in physician assistant studies but prior to completion of the repayment obligation set forth in Section 16-47-222, a penalty equal to 100 percent of the total principal amount of all loans received by the participant from the program.
(b) The failure of a participant to honor his or her contract with the board or to pay the amount he or she is liable for under this section shall constitute a ground for the revocation of his or her license to work as a physician’s assistant in Alabama.
(c) The board may excuse repayment of a loan, in whole or in part, upon the death of a participant, or upon the participant becoming disabled to the extent that he or she is no longer able to work as a physician’s assistant, or upon some other extreme hardship not the fault of the participant.

Where this section sits in the code

Title 16 Education.
Chapter 47 University of Alabama.
Article 9 Alabama Physician’s Assistants Service Program.

(1) For default or other failure to honor a contract before graduation with a master’s degree in physician assistant studies, a penalty equal to 30 percent of the total principal amount of the loan or loans received by the participant.

(2) For default or other failure to honor a contract after graduation with a master’s degree in physician assistant studies but prior to completion of the repayment obligation set forth in Section 16-47-222, a penalty equal to 100 percent of the total principal amount of all loans received by the participant from the program.

(b) The failure of a participant to honor his or her contract with the board or to pay the amount he or she is liable for under this section shall constitute a ground for the revocation of his or her license to work as a physician’s assistant in Alabama.

(c) The board may excuse repayment of a loan, in whole or in part, upon the death of a participant, or upon the participant becoming disabled to the extent that he or she is no longer able to work as a physician’s assistant, or upon some other extreme hardship not the fault of the participant.

Collected 2026-09-03T14:01:53Z. Source file · JSON

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