PUBLIC LAW 102-484—OCT. 23, 1992 106 STAT. 2737 which the individual has agreed to continue in the service of the Department of Defense. (2) If an individual fails to fulfill the agreement of the individual to pay to the United States the total amount of educational assistance provided under a program established under subsection (a), plus interest at the rate prescribed in paragraph (4), a sum equal to the £unount of the educational assistance (plus such interest, if applicable) shall be recoverable by the United States from the individual or his estate by— (A) in the case of an individual who is an employee of the Department of Defense or other Federal agency, set off ag£dnst accrued pay, compensation, amount of retirement credit, or other amount due the employee from the United States; and (B) such other method provided by law for the recovery of amounts owing to the United States. (3) The Secretary may waive in whole or in part a required repayment under this subsection if the Secretary determines the recovery would be against equity and good conscience or would be contrary to the best interests of the United States. (4) The total amount of educational assistance provided to an individual under a program established under subsection (a) shall, for purposes of repayment under this section, bear interest at the applicable rate of interest under section 427A(c) of the Higher Education Act of 1965 (20 U.S.C. 1077a(c)). (g) PREFERENCE.—In evaluating applicants for the award of a scholeu'ship or fellowship under a program established under subsection (a), the Secretary shall give a preference to— (1) individuals who are, or have been, employed by the Department of Defense or its contractors and subcontractors who have been engaged in defense-related activities; and (2) individuals who are or have been members of the Armed Forces. (h) CCKDRDINATION OF BENEFITS.— ^A scholarship or fellowship awarded under this section shall be taken into account in determining the eligibility of the individual for Federal student financial assistance provided under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.). (i) AWARD OF SCHOLARSHIPS AND FELLOWSHIPS. —The Secretary may award to qualified applicants not more than 100 scholarships (for undergraduate students) and not more than 30 fellowships (for graduate students) in fiscal year 1993. (j) REPORT TO CONGRESS. —Not later than January 1, 1994, the Secretary shall submit to the Congress a report on activities undertaken under the programs established under subsection (a) and recommendations for future activities under the programs. (k) FUNDING FOR FISCAL YEAR 1993. —O f the amount authorized to be appropriated in section 301(5)— (1) $7,000,000 shall be available to carry out the scholarship and fellowship programs established in subsection (a); ana (2) $3,000,000 shall be available to provide training to Department of Defense personnel to obtain the skills required to comply with existing environmental statutory and regiuatory reqmrements.