Repayment of Benefits and Service Credit

The financial assistance granted under this Article shall be repaid on a two-to-one (2:1) 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, COL6/24/2021 CH. 28 STUDENT FINANCIAL ASSISTANCE PROGRAMS FOR HIGHER EDUCATION the amount unpaid m service credit shall become due and payable.

(a)Every student granted an award pursuant to this Article shall execute a promissory note agreeing to repay said loan over a period to be determined by the Board, but not in excess of ten

(10)years from the contemplated date of the termination or the completion of the course of study for which the award was approved. The amount of the note shall be left blank until the completion of studies, in which the amount of the note will be the total monetary amount of assistance provided by the award. Said promissory note shall be non-interest bearing, except as to amounts unpaid by service credit that are due and payable under the note, which shall be subject to interest at the annual rate of ten percent (10%). No amounts shall be considered due and payable during the time in which the awardee is repaying service credit pursuant to the provisions herein.

(b)Any student granted an award pursuant to this Article shall receive service credit against amounts due under the promissory note as follows:

(1)The amount of the note shall be the total amount of assistance provided. Service credit shall be applied in against the note in monthly installments.

(2)The number of monthly installments to be paid shall be based on the number of months for which assistance was provided multiplied by two (2).

(3)In the event of default, the balance due in monetary terms shall be the amount of assistance provided less the amount repaid through service credit. The amount repaid through service credit shall be the total amount of assistance provided divided by the number of installments of service credit due as calculated in Subsection (b)(2) multiplied by the number of installment paid through service credit.

(c)Any awardee granted an award pursuant to the provisions of this Article must commence work on Guam COL6/24/2021 CH. 28 STUDENT FINANCIAL ASSISTANCE PROGRAMS FOR HIGHER EDUCATION 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 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)If any temporary leave of absence is expected to last longer than forty-five

(45)days, the awardee shall inform the Board of the length of time expected to be offisland, the reason for such time off-island, and the awardee’s address while off-island. As long as the employee remains employed on Guam while off-island temporarily, the employee shall receive service credit for such employment, during the time the employee is offisland for the purposes described herein.

(e)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.

(f)The Board may grant deferrals of repayment through service in cases where a family medical emergency arises.

(g)In the event a student forfeits an award defined in § 28404, no service credit shall be granted and repaid COL6/24/2021 CH. 28 STUDENT FINANCIAL ASSISTANCE PROGRAMS FOR HIGHER EDUCATION according to the provisions herein for those years in which assistance was provided and all awards plus interest shall be repaid according to the provisions herein.