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Sample Service Agreement

In consideration of the repayment of my outstanding Federally-insured student loan balance as described below, I [Insert: Employee Name] agree to remain in the service of the [Insert: Component Name] for a period of [Insert: term of at least 36 months], beginning on the date that the [Insert, if more than one: "first"] repayment is made. The loan(s) subject to this agreement [is not/are not] in default.

I agree to reimburse the Government for any repaid amounts if I do not complete this period of service due to:

  • voluntary departure from the Department of Justice, [including/excluding] voluntary separation or transfer from the Department of Justice to enter service in another Federal agency; or
  • involuntary separation on account of misconduct or performance.

I enter into this agreement with the understanding that:

  • The loan repayment schedule will be as follows: the [Insert: Component Name] will repay $[Insert: dollar amount] in outstanding Federally-insured student loans under [Insert: statutory basis for loan-e.g, "Part B of Title IV of the Higher Education Act of 1965"] directly to [Insert: name of loan source] in [Insert: payment frequency and amount-e.g., "one repayment of $4,000 in Fiscal Year 2001 and one repayment of $4,000 in Fiscal Year 2002"];
  • Appropriate tax withholding will be made at the time of each repayment;
  • I am responsible for any applicable taxes on the repaid amounts;
  • I am responsible for the repayment of any outstanding loan amounts not covered by the loan repayment schedule, and for any applicable late fees;
  • I will lose eligibility for continued loan repayment benefits under the terms of this agreement if:
    • I separate from the Department of Justice,
    • the loan(s) goes [go] into default;
    • I do not maintain a "Fully Successful" job performance level, as reflected in my most recent performance rating; or
    • I violate any of the conditions of this agreement.
  • I may request waiver of any required reimbursement to the Government;
  • This agreement in no way constitutes a right, promise, or entitlement for continued employment [Insert if applicable: "or noncompetitive conversion to the competitive service."]; and
  • [Optional: By mutual agreement, the amount to be repaid may be increased without requiring a new service agreement.]
______________________________
Signed (Employee)
____________________________________________________________
Signed For [Insert: Component Name]
______________________________
Date
____________________________________________________________
Date

Last revised: November 2001



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