Arizona Loan Repayment Program

Contract Default – Avoiding Default

The loan repayment recipient must notify ADHS within ten (10) business days of his/her failure to complete the full term of service at the approved service site per Arizona Administrative Code (A.A.C.) R9-15-215 and R9-15-315.

Based on the provider's notification, the ADHS program manager will recommend one of two options:

  • Transfer Recommendation
    ADHS will assist the provider by providing resources that can facilitate transfer to a new eligible site. It is the responsibility of the provider to find and match with an eligible site. Once the provider finds a new eligible site to transfer to, he/she must contact ADHS. ADHS will require supporting documents to verify that the new site meets the program requirements. Once verified, the loan repayment contract will be amended to reflect the new service site.

    With any transfer, ADHS will recommend that the provider requests for a contract suspension to allow time for ADHS to process the transfer request and for the provider to transfer to the new approved site without going into a default status.

    The existing procedure for quarterly loan repayments will remain in force. [A.R.S. R9-24-412(B)]
  • Default Determination
    The provider will enter into default with the ALRP contract in the following conditions:
    • A provider who failed to find an eligible service site upon the expiration date of the six-month contract suspension period.
    • A provider who terminates employment at the approved service site and makes an independent decision not to complete service under the terms of the loan repayment contract.
    A provider in default will be bound by the Special Terms and Conditions of the contract regarding Contracted Services.