(1) If (for any reason not specified in subsection (a) of this section or section
254p (d) of this title) an individual breaches the written contract of the individual under section
254l–1 of this title by failing either to begin such individuals service obligation in accordance with section
254m or
254n of this title or to complete such service obligation, the United States shall be entitled to recover from the individual an amount equal to the sum of
(A) the total of the amounts paid by the United States under section
254l–1 (g) of this title on behalf of the individual for any period of obligated service not served;
(B) an amount equal to the product of the number of months of obligated service that were not completed by the individual, multiplied by $7,500; and
(C) the interest on the amounts described in subparagraphs (A) and (B), at the maximum legal prevailing rate, as determined by the Treasurer of the United States, from the date of the breach;
except that the amount the United States is entitled to recover under this paragraph shall not be less than $31,000.
(2) The Secretary may terminate a contract with an individual under section
254l–1 of this title if, not later than 45 days before the end of the fiscal year in which the contract was entered into, the individual
(A) submits a written request for such termination; and
(B) repays all amounts paid on behalf of the individual under section
254l–1 (g) of this title.