U.S. Office of Personnel Management
If an employee voluntarily separates from Federal service and does not complete the terms of the service agreement, he or she is obligated to reimburse the paying agency for the full amount of the loan repayment benefits provided (gross before any tax deductions from the loan payment). For example, if an employee’s agreement states that he or she will receive $10,000 per year for 3 years, and the employee leaves with 6 months remaining on the service agreement after receiving $25,000 in loan repayment benefits, the employee must reimburse the paying agency for $25,000.Involuntary Dismissal
Any employee who does not satisfy the terms of the service agreement is required to reimburse the Government for all loan payments received. However, agencies may waive recovery if they determine it to be against equity and good conscience or contrary to the public interest.Against Equity and Good Conscience
Agencies are responsible for making their own determination regarding what this term means. In doing so, agencies should take into account consistency, fairness, and the cost to taxpayers of recovering monies owed to the Government.
Return to Student Loan Repayment page.