(a) Any person granted a scholarship under the provisions of sections 171–175 of this title shall be required as a prior condition to such grant to execute a proper contract to the effect that he will accept employment by the Government of the Virgin Islands for as many years as the person shall have pursued education and training under such scholarship.
(b) The Board of Education is further empowered to award student loans to applicants who meet the qualifications, and upon such terms and conditions as shall be determined by said Board; provided that all loans shall be:
(1) evidenced by promissory notes which shall bear interest on the unpaid balance at a rate of six percent (6%) per annum; and
(2) repaid by assignment of not more than 10 percent of the recipient's earning[s] after leaving school.
(3) not subject to the limitations of actions established in title 5 chapter 3 of the Virgin Islands Code with respect actions for debt collection.
(c) The Virgin Islands Board of Education shall have the right and power to determine from year to year whether any scholarship or loan shall be renewed. Before approving the renewal of any scholarship grants or loans the Board shall first examine into the record of the student who has benefited from such grant or loan.
(d) The Board of Education is authorized and directed to promulgate rules and regulations to provide for a delinquency charge for any loan which is deemed by the Board to be in default. The charge shall not exceed two percent (2%) per annum of the unpaid principal, interest due, and administrative costs for the collection of such loan. As used in this chapter, the term “administrative costs” means any administrative costs incurred by the Board which are directly related to the collection of the loan, including the attributable compensation of collection personnel, attorney's fees, fees paid to collection agencies, postage, equipment, supplies, telephone and similar charges. The term “administrative costs” does not include the overhead costs of the Board, whether or not attributable to the collection of a delinquent loan.