170 
‘‘(d) EMPLOYMENT OPTION.—The Secretary of De-
fense may— 
‘‘(1) retain an employee, in an over-strength po-
sition— 
‘‘(A) during pursuit of his or her degree, 
and 
‘‘(B) for a period not to exceed two years 
after completion of the degree, provided— 
‘‘(i) there is no readily available ap-
propriate position for the employee and 
‘‘(ii) there is an active and ongoing ef-
fort to identify and assign the employee to 
an appropriate position as soon as prac-
ticable. 
‘‘(2) if there is no appropriate position available 
after two years, separate an employee described 
under this subsection without regard to any other 
provisions of law. 
‘‘(3) require an employee appointed under this 
subsection to complete any remaining period of obli-
gated service under subsection (d) upon assignment 
to an available appropriate position. 
‘‘(4) apply subsections (1) through (3) of this 
section to the initial appointment to an appropriate 
position of any person who has—
171 
‘‘(A) received financial assistance under 
this program, or 
‘‘(B) completed his or her degree. 
‘‘(e) SERVICE AGREEMENT FOR RECIPIENTS OF AS-
SISTANCE.—(1) To receive financial assistance under this 
section— 
‘‘(A) in the case of an employee of the Depart-
ment of Defense, the employee shall be required to 
enter into a written agreement to continue in the 
employment of the department for the period of obli-
gated service determined under paragraph (2) of this 
subsection; and 
‘‘(B) in the case of a person not an employee 
of the Department of Defense, the person shall be 
required to enter into a written agreement to accept 
employment in the Department of Defense for the 
period of obligated service determined under para-
graph (2) of this subsection. 
‘‘(2) For the purposes of this section, the period of 
obligated service for a recipient of a scholarship or fellow-
ship shall be determined by the Secretary of Defense. Gen-
erally, the period of obligated service may not be less than 
the total period for which the recipient was provided finan-
cial assistance. The period of obligated service is in addi-
172 
tion to any other period for which the recipient is obligated 
to serve in the civil service of the United States. 
‘‘(3) An agreement entered into under this subsection 
shall include any terms and conditions that the Secretary 
of Defense determines necessary to protect the interests 
of the United States or otherwise appropriate for carrying 
out this section. 
‘‘(f) REFUND
FOR PERIOD
OF UNSERVED OBLI-
GATED SERVICE.—(1) A person who is not an employee 
under this program, but who receives financial assistance 
under this section and who voluntarily fails to complete 
the educational program for which financial assistance has 
been provided, or fails to maintain satisfactory academic 
progress as determined in accordance with regulations 
issued by the Secretary, shall refund to the United States 
an appropriate amount, as determined by the Secretary; 
‘‘(2) A person who is an employee under this program 
who— 
‘‘(A) voluntarily fails to complete the edu-
cational program for which financial assistance has 
been provided, or fails to maintain satisfactory aca-
demic progress as determined in accordance with 
regulations issued by the Secretary; or 
‘‘(B) before completion of the period of obli-
gated service required—
173 
‘‘(i) voluntarily terminates his or her em-
ployment, or 
‘‘(ii) is removed from his or her employ-
ment on the basis of misconduct, shall refund 
to the United States an appropriate amount, as 
determined by the Secretary of Defense. 
‘‘(3) An obligation to reimburse the United States 
imposed under paragraph (1) is for all purposes a debt 
owed to the United States. 
‘‘(4) The Secretary of Defense may waive, in whole 
or in part, a refund required under paragraph (1) of this 
subsection if the Secretary determines that recovery would 
be against equity and good conscience or would be con-
trary to the best interests of the United States. 
‘‘(5) A discharge in bankruptcy under title 11, United 
States Code, that is entered less than five years after the 
termination of an agreement under this section does not 
discharge the person signing such agreement from a debt 
arising under such agreement or under this subsection. 
‘‘(g) CRITICAL HIRING NEED.—Section 3304(a)(3) 
of title 5, United States Code, is amended by striking sub-
paragraph (B) and inserting the following new subpara-
graph: 
‘‘ ‘(B)(i) the Office of Personnel Manage-
ment has determined that there exists a severe
174 
shortage of candidates or there is a critical hir-
ing need; or 
‘‘ ‘(ii) the candidate is a participant in the 
Science, Mathematics, and Research for Trans-
formation (SMART) Defense Scholarship Pilot 
Program under section 1105 of the Ronald W. 
Reagan National Defense Authorization Act for 
Fiscal Year 2005 (Public Law 108–375; 118 
Stat. 2074); or 
‘‘ ‘(iii) the candidate is a participant in the 
Science, Mathematics, and Research for Trans-
formation (SMART) Defense Education Pro-
gram—National 
Defense 
Education 
Act 
(NDEA), Phase 1 for Fiscal Year 2006.’. 
‘‘(h) RELATIONSHIP
TO OTHER PROGRAMS.—The 
program under this section is in addition to the authorities 
provided in chapter 111 of title 10, United States Code. 
The Secretary of Defense shall coordinate the provision 
of financial assistance under the authority of this section 
with the provision of financial assistance under the au-
thorities provided in such chapter in order to maximize 
the benefits derived by the Department of Defense from 
the exercise of all such authorities. 
‘‘(i) AUTHORITY
TO
PROVIDE
ADVANCE
PAY-
MENTS—Not withstanding subsections (a) and (b) of sec-