§ 24-02-42 — Scholarships authorized

The director is authorized to establish continuing grants of financial aid for study in
undergraduate coursework, which meets the needs and mission of the department, at
institutions of higher learning in this state. Expenditure from highway operating funds is
authorized. No individual may receive financial aid in any year exceeding the tuition of the
institution for which the student is enrolled. The director shall establish the annual expenditure in
the department's budget, which includes individual student financial aid limitations to be
determined by the director dependent on the available funds. Before any student shall receive
the financial aid authorized by this section, the student shall enter into a contract with the
department, which must provide that such student shall upon graduation accept employment
with the department for a period of time at least equal to the time the student received financial
aid benefits, the salary to be in the grade established for the classification assigned. In the event
such student is inducted into the armed forces before graduation, such education may then be

completed upon that student's return to civil life, and in the event such induction into the armed
services is made after graduation the employment contract does not take effect until after such
period of service in the armed forces has been completed. Leave of absence without pay will be
granted to one whose induction occurs during the period of the life of such contract and the
employment will be resumed for the balance of the contract period after such employee has
been discharged from the service.
If such student fails to graduate with a degree, or fails to accept employment with the
department as above provided, such student shall repay the department, with interest at the rate
of six percent per annum, all sums received by the student in financial aid benefits under the
contract herein provided, such repayment to be made within a period equal to the time the
student received such benefits. For the purpose of this section, defenses of minority or statute
of limitations are removed as to any applicant granted a loan by the director and such contracts
are in all respects legal and binding. Salary increases to employees having received financial
aid by virtue of this section must be based on the same considerations as other employees
employed by the department.
The director, with the cooperation and concurrence of the board of higher education, shall
prescribe rules for determining the selection of recipients, qualifications, and courses of study.
Such rules may cover any areas as may be necessary to assure a source of qualified trained
employees for the department.