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Frequently Asked Questions Pay & Leave

If an employee fails to complete the service requirement because of disability retirement or leaves Federal service because of a disabling condition, is he or she still subject to the reimbursement requirements?

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.  (See 5 U.S.C. 5379(c)(3) and 5 CFR 537.109(e).)

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