Guam § 28303 - Repayment of Benefits and Service Credit.

§ 28303. 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,

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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

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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 off-

island, 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 off-

island 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

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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.