; (B) maintain a minimum level of academic standing during the period of the scholarship, as determined by the Secretary; (C) if applicable, complete an accredited residency training program; (D) become licensed in the applicant’s State of residence; and (E) serve as a provider for 1 year for every year that the applicant received a scholarship, within the applicant's State of residence, in— (i) a health professional shortage area (as defined by the National Health Service Corps under section 332); (ii) a medically underserved area (as defined for purposes of section 330); or (iii) any other shortage area defined by the State and approved by the Secretary. (d) Designation of areas To be eligible to receive a grant under this section, a State shall adequately demonstrate to the Secretary that the State has designated appropriate health professions or specialty shortage areas. (e) Required disclosures In disseminating application and contract forms to individuals desiring to participate in a scholarship program funded under this section, the State shall include with such forms a summary of the rights and liabilities of an individual whose application is approved (and whose contract is accepted), including a clear explanation of the damages to which the State is entitled in the case of the individual’s breach of the contract. (f) Awarding of contracts (1) In general A State that enters into a contract with an individual under subsection (c)(3) shall, with respect to the program in which the individual is enrolled, agree to pay— (A) all tuition and costs associated with the program; (B) any other reasonable educational expenses, including fees, books, and laboratory expenses, related to the program