(a) The recipient of an Underwood-Smith Teacher Scholarship is eligible for scholarship renewal only during those periods when the recipient meets the following conditions:
(1) Is enrolled as a full-time student in an accredited institution of higher education in this state;
(2) Is pursuing a course of study leading to teacher certification at the preschool, elementary, middle or secondary level in this state;
(3) Is maintaining satisfactory progress as determined by the institution of higher education the recipient is attending; and
(4) Is complying with such other standards as the commission may establish by rule.
(b) Recipients found to be in noncompliance with the agreement entered into under section three of this article shall be required to repay the amount of the scholarship awards received, plus interest, and, where applicable, reasonable collection fees, on a schedule and at a rate of interest prescribed in the program guidelines. Guidelines also shall provide for proration of the amount to be repaid by a recipient who teaches for part of the period required under subsection (a), section three of this article and for appeal procedures under which a recipient may appeal any determination of noncompliance.
(c) A recipient is not in violation of the agreement entered into under section three of this article during any period in which the recipient is meeting any of the following conditions:
(1) Pursuing a full-time course of study at an accredited institution of higher education;
(2) Serving, not in excess of four years, as a member of the armed services of the United States;
(3) Seeking and unable to find full-time employment in accordance with paragraph (A), subdivision (2), subsection (a), section three of this article and is fulfilling any of the alternatives specified in paragraph (B) or (C) of that subdivision;
(4) Satisfying the provisions of additional repayment exemptions that may be prescribed by the commission by rule; or
(5) Failing to comply with the terms of the agreement due to death or permanent or temporary disability as established by sworn affidavit of a qualified physician.
(d) The rules adopted by the commission may provide guidelines under which the vice chancellor for administration may extend the period for fulfilling the obligation to fifteen years, if extenuating circumstances exist.