Nurse Corps 2017-2018 Breach of Contract

[NamasteNurse8, BSN, RN]

Hello Colleagues,

I was awarded a scholarship from Nurse Corps for the 2017-2018 cycle, graduated on time and passed the NCLEX August 2018. The state where I applied denied my application due to mistakes in my youth.  As a result, Nurse Corps claims I Breached the Contract on the basis that I “failed to begin [the] service obligation within the 9 month timeframe.” I’m unable to repay the amount they converted into a loan at $800/month. The loan has since gone into default and now a collections agency is threatening to garnish my wages. Has anyone gone through the same process but contested the breach with HRSA? After carefully reviewing the 2017-2018 program guidelines and signed contract, the program could have offered a suspension based on the fact that “compliance by the applicant with the obligation is impossible”.

 

Simply seeing if any former scholars faced a similar situation, contested the breach through HRSA or via legal means. I’m in New York state. 
 

Many thanks.