Service Credit

The financial assistance granted under this Article shall be repaid on a one-to-one basis for each year that assistance was provided through employment on Guam. In the event that any portion of the assistance is not repaid through service credit, the amount unpaid in service credit shall become due and payable.

(a)In calculating the amount due and payable for failure to pay through service credit, the amount due shall be the total amount of assistance minus the number of years repaid through service credit. For purposes of this Section, a year of service credit is twelve

(12)months. The Board may also extend payments of cash repayment by executing a promissory note for a term not to exceed ten

(10)years at an annual percentage rate of not less than ten percent (10%). No amounts shall be considered due and payable during the time which the awardee is repaying service credit pursuant to the provisions in this Article.

(b)The Board may allow deferrals of repayment through service for the following reasons:

(1)pursuit of a graduate degree;

(2)a family or medical emergency; or

(3)Military service.

(c)Any awardee granted an award pursuant to the provisions of this Article must commence work on Guam within six

(6)months following the completion of studies, unless extended by the Board for extenuating circumstances, or will be considered in default of their obligation as of the date classes ended. The permanent transfer to an off-Guam office or branch of a Guam employer shall not count towards service credit and shall result in default on the date of transfer, and interest shall begin accruing on such a date of default. Permanent COL6/24/2021 CH. 28 STUDENT FINANCIAL ASSISTANCE PROGRAMS FOR HIGHER EDUCATION transfers, for purposes of this Section, are those that are longer than six

(6)months. The Board shall establish such policies prescribing the length and terms of repayment, the interest rates to be charged, and the collection of delinquent accounts.

(d)Death or total disability of the student shall terminate any obligations herein. Total disability for Purposes of this Section is defined as any physiological or psychological condition that will prevent the student from obtaining or maintaining any form of gainful employment for a period of not less than three

(3)years. The Board may defer repayment for temporary disability. Total and permanent disability requires the certification by two

(2)physicians licensed to practice in the United States.