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Frequently Asked Questions Pay & Leave

Is an employee required to reimburse the paying agency for student loan repayment benefits received if he or she leaves the paying agency for another Federal agency before completion of the service requirement?

Under these circumstances, the employee is not required by law to reimburse the paying agency unless specified in the service agreement. (See 5 U.S.C. 5379(c)(2) and 5 CFR 537.109(d)(2).)   As provided by 5 CFR 537.107(e), the service agreement must contain a provision addressing whether the individual would be required to reimburse the paying agency for student loan repayment benefits if he or she voluntarily separates from the paying agency to work for another agency before the end of the service period.

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