A. On registration at a state supported community college, college or university, any person who is eligible for and has applied for benefits for education available to veterans of the United States armed forces under federal law may apply for a deferment of payment of tuition, fees and required books and materials for a period not to exceed one hundred twenty days. The community college, college or university shall defer payment for that period on receipt of a signed and acknowledged promissory note for the amount of the tuition, fees and required books and materials, with no interest charge, that is due and payable at the end of the deferral period. This deferment is available during any registration in which a veteran is awaiting education benefits available to veterans of the United States armed forces under federal law.

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B. If at the end of the deferral period the person has not yet received from the veterans administration the initial benefit monies for tuition and fees, the person may be granted an extension until such time as the benefits are received.

C. In situations where deferred payments are granted, the community college, college or university shall not release the person’s grades or transfer credits until such time as the debt is satisfied.