(a) Every student awarded a loan 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 studies for which the loan was approved. Said promissory note shall be non-interest bearing, except as to unpaid delinquent amounts due and payable under the note, which shall be subject to interest at the annual rate of ten percent (10%).

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

(1) at the rate of Five Hundred Dollars ($500.00) for each month during which the student is employed on Guam, or in the office of Guam’s Delegate to Congress. No amounts under the promissory note executed pursuant to this Section shall be considered due and payable during the period that any such person is so employed.

(c) Any student granted a loan pursuant to the provision of this Article who fails to return to Guam for work within six (6)
months after the completion of studies must repay the full amount of the loan. The Board shall establish such policies prescribing the length and terms of repayment, the interest rate to be charged, the collection of delinquent accounts or in the event of a default.

(d) If a student is recruited to serve in active duty in a branch of the U.S. Armed Services while in attendance or upon completion of studies, the service credit shall be postponed until such student begins work on Guam, but in no case longer than six (6) years; provided, however, that the student applies for the postponement within ninety (90) days of entering the Armed Services and continues to maintain Guam as such student’s place of residence.

(e) Death or total and permanent disability of the student shall terminate any obligations herein. Total and permanent 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. 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.

SOURCE: GC §11811. Repealed and reenacted by P.L. 11-138 (May 16,
1972). Subsections (c) and (d) added by P.L. 19-037:2 (Dec. 30, 1988). Last paragraph in subsection (b) repealed by P.L. 19-037:3 (Dec. 30,
1988). Subsection (b) amended by 21-0135:VI:19 (Sept. 24, 1992). Amended by P.L. 25-085:1 (Nov. 23, 1999).

2012 NOTE: In maintaining the general codification scheme of the GCA the Compiler changed the hierarchy of subsections beginning with “”Lowercase Roman Numerals”” to “”Numbers”” in subsection (b).