5 C.F.R. § 537.109 Employee reimbursements to the Government.
Title 5 - Administrative Personnel
Title 5: Administrative Personnel
PART 537—REPAYMENT OF STUDENT LOANS
§ 537.109 Employee reimbursements to the Government.
(a) Except as provided in paragraph (d) of this section, an employee who fails to complete the period of employment established under a service agreement will be indebted to the Federal Government and must reimburse the paying agency for the amount of any student loan repayment benefits the employee received.
(b) Failure to complete the period of employment established under a service agreement occurs when the employee's service with the agency terminates before the employee completes the period of employment specified in the service agreement because:
(1) The employee is separated involuntarily on account of misconduct or performance; or
(2) The employee leaves the agency voluntarily.
(c) If an employee fails to reimburse the agency for the amount owed under paragraph (a) of this section, a sum equal to the amount outstanding must be recovered from the employee under the agency's regulations for collection by offset from an indebted Government employee under 5 U.S.C. 5514 and subpart K of part 550 of this chapter, or through the appropriate provisions governing debt collection if the individual is no longer a Federal employee.
(d) Paragraph (a) of this section does not apply when the employee fails to complete a period of employment established under a service agreement because:
(1) The employee is involuntarily separated for reasons other than misconduct or performance; or
(2) The employee leaves the agency voluntarily to enter into the service of any other agency, unless reimbursement to the paying agency is otherwise specified in the service agreement.
(e) The head of an agency may waive, in whole or in part, a right of recovery of an employee's debt if he or she determines that recovery would be against equity and good conscience or against the public interest.
(f) Any amount repaid, or recovered from, an employee under this section will be credited to the appropriation account from which the amount involved was originally paid. Any amount so credited will be merged with other sums in such account and will be available for the same purposes and period, and subject to the same limitations (if any), as the sums with which merged.
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