(a) A program participant who fails to comply with the terms of the loan assumption agreement shall be withdrawn from the program. Failure to comply includes but is not limited to failing to complete one of the four consecutive years of military service, or to maintain the required enrollment in an institution of higher education or vocational diploma program, unless the participant was on academic leave of absence for active duty or completed a baccalaureate degree or the vocational diploma program. The program participant shall retain responsibility to continue to make any payments required under the terms of any outstanding loans to avoid defaulting on those loans.

(b) A program participant who is entitled to an academic leave of absence because he or she is on active duty, pursuant to Section 66025.6 of the Education Code, shall retain responsibility to continue to make any payments required under the terms of any outstanding loans to avoid defaulting on these loans.