(a) Except as otherwise specified in subsections (b) and (c), a program participant who fails to comply with all requirements for payment under the loan assumption agreement, including failure to complete a minimum of four consecutive years of full time employment in an eligible position as a registered nurse in a state-operated facility or failure to maintain full-time enrollment or satisfactory academic progress while attending a pre-licensure nursing program, shall be withdrawn from the program and assume full liability for all student loan obligations remaining after the Commission's payment of any loan liability for any year of qualifying registered nursing service.

(b) If a program participant is unable to complete one of the four consecutive years of work as a registered nurse in a state-operated facility, due to serious illness, pregnancy, or other natural causes, the term of the loan assumption agreement shall be extended for a period not to exceed one year. The Commission shall make no further payments under the loan assumption agreement until the applicable work requirements specified have been satisfied. 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.

(c) If a natural disaster prevents a program participant from completing one of the four consecutive years of employment at the state-operated facility, the term of the loan assumption agreement shall be extended for the period of time equal to the period from the date that the participant's employment at the facility temporarily ceased to the date on which the participant resumed employment at the facility. The Commission shall make no further payments under the loan assumption agreement until the applicable work requirements have been satisfied. The program participant, however, shall retain responsibility to continue to make any payments required under the terms of any outstanding loans to avoid defaulting on those loans.

(d) If a program participant self-withdraws or is withdrawn from the program within the award year he or she applies for the program, the Commission will reallocate the award to the next eligible applicant.