Guam § 28203 - Service Credit.

§ 28203. 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

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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.