HPSL/NSL Legislation

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Health Professions Student Loan and Nursing Student Loan Programs - Forms

HPSL/NSL Legislation

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Attachment 1- Legislative Authority


Public Health Service Act, 42 U.S.C. 292q-292y



01/19/04

TITLE 42 - THE PUBLIC HEALTH AND WELFARE


CHAPTER 6A - PUBLIC HEALTH SERVICE


SUBCHAPTER V - HEALTH PROFESSIONS EDUCATION


Part A - Student Loans


subpart ii - federally-supported student loan funds

-HEAD-


Sec. 292q. Agreements for operation of school loan funds


-STATUTE-


(a) Fund agreements


The Secretary is authorized to enter into an agreement for the


establishment and operation of a student loan fund in accordance


with this subpart with any public or other nonprofit school of


medicine, osteopathic medicine, dentistry, pharmacy, podiatric


medicine, optometry, or veterinary medicine.


(b) Requirements


Each agreement entered into under this section shall –


provide for establishment of a student loan fund by the


school;


(2) provide for deposit in the fund of –


(A) the Federal capital contributions to the fund;


(B) an amount equal to not less than one-ninth of such


Federal capital contributions, contributed by such institution;


(C) collections of principal and interest on loans made from


the fund;


(D) collections pursuant to section 292r(j) of this title;


And


(E) any other earnings of the fund;


(3) provide that the fund shall be used only for loans to



students of the school in accordance with the agreement and for



costs of collection of such loans and interest thereon;



(4) provide that loans may be made from such funds only to



students pursuing a full-time course of study at the school



leading to a degree of doctor of medicine, doctor of dentistry or



an equivalent degree, doctor of osteopathy, bachelor of science



in pharmacy or an equivalent degree, doctor of pharmacy or an



equivalent degree, doctor of podiatric medicine or an equivalent



degree, doctor of optometry or an equivalent degree, or doctor of



veterinary medicine or an equivalent degree;



(5) provide that the school shall advise, in writing, each



applicant for a loan from the student loan fund of the provisions



of section 292r of this title under which outstanding loans from



the student loan fund may be paid (in whole or in part) by the



Secretary; and



(6) contain such other provisions as are necessary to protect



the financial interests of the United States.



(c) Failure of school to collect loans



(1) In general



Any standard established by the Secretary by regulation for the



collection by schools of medicine, osteopathic medicine,



dentistry, pharmacy, podiatric medicine, optometry, or veterinary



medicine of loans made pursuant to loan agreements under this



subpart shall provide that the failure of any such school to



collect such loans shall be measured in accordance with this



subsection. This subsection may not be construed to require such



schools to reimburse the student loan fund under this subpart for



loans that became uncollectible prior to August 1985 or to



penalize such schools with respect to such loans.



(2) Extent of failure



The measurement of a school's failure to collect loans made



under this subpart shall be the ratio (stated as a percentage)



that the defaulted principal amount outstanding of such school



bears to the matured loans of such school.



(3) Definitions



For purposes of this subsection:



(A) The term "default" means the failure of a borrower of a



loan made under this subpart to -



(i) make an installment payment when due; or



(ii) comply with any other term of the promissory note for



such loan,


except that a loan made under this subpart shall not be



considered to be in default if the loan is discharged in



bankruptcy or if the school reasonably concludes from written



contracts with the borrower that the borrower intends to repay



the loan.



(B) The term "defaulted principal amount outstanding" means



the total amount borrowed from the loan fund of a school that



has reached the repayment stage (minus any principal amount



repaid or canceled) on loans -



(i) repayable monthly and in default for at least 120 days;



and



(ii) repayable less frequently than monthly and in default



for at least 180 days;


(C) The term "grace period" means the period of one year



beginning on the date on which the borrower ceases to pursue a



full-time course of study at a school of medicine, osteopathic



medicine, dentistry, pharmacy, podiatric medicine, optometry,



or veterinary medicine; and



(D) The term "matured loans" means the total principal amount



of all loans made by a school under this subpart minus the



total principal amount of loans made by such school to students



who are -



(i) enrolled in a full-time course of study at such school;



or



(ii) in their grace period.


-SOURCE-



(July 1, 1944, ch. 373, title VII, Sec. 721, as added Pub. L.



102-408, title I, Sec. 102, Oct. 13, 1992, 106 Stat. 2011.)


42 USC Sec. 292r 01/19/04


-EXPCITE-



TITLE 42 - THE PUBLIC HEALTH AND WELFARE



CHAPTER 6A - PUBLIC HEALTH SERVICE



SUBCHAPTER V - HEALTH PROFESSIONS EDUCATION



Part A - Student Loans



subpart ii - federally-supported student loan funds


-HEAD-



Sec. 292r. Loan provisions


-STATUTE-



(a) Amount of loan



(1) In general



Loans from a student loan fund (established under an agreement



with a school under section 292q of this title) may not, subject



to paragraph (2), exceed for any student for a school year (or



its equivalent) the cost of attendance (including tuition, other



reasonable educational expenses, and reasonable living costs) for



that year at the educational institution attended by the student



(as determined by such educational institution).



(2) Third and fourth years of medical school



For purposes of paragraph (1), the amount of the loan may, in



the case of the third or fourth year of a student at a school of



medicine or osteopathic medicine, be increased to the extent



necessary to pay the balances of loans that, from sources other



than the student loan fund under section 292q of this title, were



made to the individual for attendance at the school. The



authority to make such an increase is subject to the school and



the student agreeing that such amount (as increased) will be



expended to pay such balances.



(b) Terms and conditions



Subject to section 292s of this title, any such loans shall be



made on such terms and conditions as the school may determine, but



may be made only to a student -



(1) who is in need of the amount thereof to pursue a full-time



course of study at the school leading to a degree of doctor of



medicine, doctor of dentistry or an equivalent degree, doctor of



osteopathy, bachelor of science in pharmacy or an equivalent



degree, doctor of pharmacy or an equivalent degree, doctor of



podiatric medicine or an equivalent degree, doctor of optometry



or an equivalent degree, or doctor of veterinary medicine or an



equivalent degree; and



(2) who, if required under section 453 of title 50, Appendix,



to present himself for and submit to registration under such



section, has presented himself and submitted to registration



under such section.



(c) Repayment; exclusions from repayment period



Such loans shall be repayable in equal or graduated periodic



installments (with the right of the borrower to accelerate



repayment) over the period of not less than 10 years nor more than



25 years, at the discretion of the institution, which begins one



year after the student ceases to pursue a full-time course of study



at a school of medicine, osteopathic medicine, dentistry, pharmacy,



podiatry, optometry, or veterinary medicine, excluding from such



period -



(1) all periods -



(A) not in excess of three years of active duty performed by



the borrower as a member of a uniformed service;



(B) not in excess of three years during which the borrower



serves as a volunteer under the Peace Corps Act [22 U.S.C. 2501



et seq.];



(C) during which the borrower participates in advanced



professional training, including internships and residencies;



and



(D) during which the borrower is pursuing a full-time course



of study at such a school; and


(2) a period -



(A) not in excess of two years during which a borrower who is



a full-time student in such a school leaves the school, with



the intent to return to such school as a full-time student, in



order to engage in a full-time educational activity which is



directly related to the health profession for which the



borrower is preparing, as determined by the Secretary; or



(B) not in excess of two years during which a borrower who is



a graduate of such a school is a participant in a fellowship



training program or a full-time educational activity which -



(i) is directly related to the health profession for which



such borrower prepared at such school, as determined by the



Secretary; and



(ii) may be engaged in by the borrower during such a



two-year period which begins within twelve months after the



completion of the borrower's participation in advanced



professional training described in paragraph (1)(C) or prior



to the completion of such borrower's participation in such



training.



(d) Cancellation of liability



The liability to repay the unpaid balance of such a loan and



accrued interest thereon shall be canceled upon the death of the



borrower, or if the Secretary determines that he has become



permanently, and totally disabled.



(e) Rate of interest



Such loans shall bear interest, on the unpaid balance of the



loan, computed only for periods for which the loan is repayable, at



the rate of 5 percent per year.



(f) Security or endorsement



Loans shall be made under this subpart without security or



endorsement, except that if the borrower is a minor and the note or



other evidence of obligation executed by him would not, under the



applicable law, create a binding obligation, either security or



endorsement may be required.



(g) Transferring and assigning loans



No note or other evidence of a loan made under this subpart may



be transferred or assigned by the school making the loan except



that, if the borrowers transfer to another school participating in



the program under this subpart, such note or other evidence of a



loan may be transferred to such other school.



(h) Charge with respect to insurance for certain cancellations



Subject to regulations of the Secretary, a school may assess a



charge with respect to loans made this subpart (!1) to cover the



costs of insuring against cancellation of liability under



subsection (d) of this section.


(i) Charge with respect to late payments



Subject to regulations of the Secretary, and in accordance with



this section, a school shall assess a charge with respect to a loan



made under this subpart for failure of the borrower to pay all or



any part of an installment when it is due and, in the case of a



borrower who is entitled to deferment of the loan under subsection



(c) of this section, for any failure to file timely and



satisfactory evidence of such entitlement. No such charge may be



made if the payment of such installment or the filing of such



evidence is made within 60 days after the date on which such



installment or filing is due. The amount of any such charge may not



exceed an amount equal to 6 percent of the amount of such



installment. The school may elect to add the amount of any such



charge to the principal amount of the loan as of the first day



after the day on which such installment or evidence was due, or to



make the amount of the charge payable to the school not later than



the due date of the next installment after receipt by the borrower



of notice of the assessment of the charge.



(j) Authority of schools regarding rate of payment



A school may provide, in accordance with regulations of the



Secretary, that during the repayment period of a loan from a loan



fund established pursuant to an agreement under this subpart



payments of principal and interest by the borrower with respect to



all the outstanding loans made to him from loan funds so



established shall be at a rate equal to not less than $40 per



month.



(k) Authority regarding repayments by Secretary



Upon application by a person who received, and is under an



obligation to repay, any loan made to such person as a health



professions student to enable him to study medicine, osteopathy,



dentistry, veterinary medicine, optometry, pharmacy, or podiatry,



the Secretary may undertake to repay (without liability to the



applicant) all or any part of such loan, and any interest or



portion thereof outstanding thereon, upon his determination,



pursuant to regulations establishing criteria therefore, that the



applicant -



(1) failed to complete such studies leading to his first



professional degree;



(2) is in exceptionally needy circumstances;



(3) is from a low-income or disadvantaged family as those terms



may be defined by such regulations; and



(4) has not resumed, or cannot reasonably be expected to



resume, the study of medicine, osteopathy, dentistry, veterinary



medicine, optometry, pharmacy, or podiatric medicine, within two



years following the date upon which he terminated such studies.



(l) Collection efforts by Secretary



The Secretary is authorized to attempt to collect any loan which



was made under this subpart, which is in default, and which was



referred to the Secretary by a school with which the Secretary has



an agreement under this subpart, on behalf of that school under



such terms and conditions as the Secretary may prescribe (including



reimbursement from the school's student loan fund for expenses the



Secretary may reasonably incur in attempting collection), but only



if the school has complied with such requirements as the Secretary



may specify by regulation with respect to the collection of loans



under this subpart. A loan so referred shall be treated as a debt



subject to section 5514 of title 5. Amounts collected shall be



deposited in the school's student loan fund. Whenever the Secretary



desires the institution of a civil action regarding any such loan,



the Secretary shall refer the matter to the Attorney General for



appropriate action.



(m) Elimination of statute of limitation for loan collections



(1) Purpose



It is the purpose of this subsection to ensure that obligations



to repay loans under this section are enforced without regard to



any Federal or State statutory, regulatory, or administrative



limitation on the period within which debts may be enforced.



(2) Prohibition



Notwithstanding any other provision of Federal or State law, no



limitation shall terminate the period within which suit may be



filed, a judgment may be enforced, or an offset, garnishment, or



other action may be initiated or taken by a school that has an



agreement with the Secretary pursuant to section 292q of this



title that is seeking the repayment of the amount due from a



borrower on a loan made under this subpart after the default of



the borrower on such loan.


-SOURCE-



(July 1, 1944, ch. 373, title VII, Sec. 722, as added Pub. L.



102-408, title I, Sec. 102, Oct. 13, 1992, 106 Stat. 2012; amended



Pub. L. 103-43, title XX, Sec. 2014(b), June 10, 1993, 107 Stat.



215; Pub. L. 105-392, title I, Sec. 134(a), (b)(1), Nov. 13, 1998,



112 Stat. 3577, 3578.)

-CITE-



42 USC Sec. 292s 01/19/04


-EXPCITE-



TITLE 42 - THE PUBLIC HEALTH AND WELFARE



CHAPTER 6A - PUBLIC HEALTH SERVICE



SUBCHAPTER V - HEALTH PROFESSIONS EDUCATION



Part A - Student Loans



subpart ii - federally-supported student loan funds


-HEAD-



Sec. 292s. Medical schools and primary health care


-STATUTE-



(a) Requirements for students



(1) In general



Subject to the provisions of this subsection, in the case of



student loan funds established under section 292q of this title



by schools of medicine or osteopathic medicine, each agreement



entered into under such section with such a school shall provide



(in addition to the provisions required in subsection (b) of such



section) that the school will make a loan from such fund to a



student only if the student agrees -



(A) to enter and complete a residency training program in



primary health care not later than 4 years after the date on



which the student graduates from such school; and



(B) to practice in such care through the date on which the



loan is repaid in full.



(2) Inapplicability to certain students



(A) The requirement established in paragraph (1) regarding the



student loan fund of a school does not apply to a student if -



(i) the first loan to the student from such fund is made



before July 1, 1993; or



(ii) the loan is made from -



(I) a Federal capital contribution under section 292q of



this title that is made from amounts appropriated under



section 292t(f) (!1) of this title (in this section referred



to as an "exempt Federal capital contribution"); or


(II) a school contribution made under section 292q of this



title pursuant to such a Federal capital contribution (in



this section referred to as an "exempt school contribution").


(B) A Federal capital contribution under section 292q of this



title may not be construed as being an exempt Federal capital



contribution if the contribution was made from amounts



appropriated before October 1, 1990. A school contribution under



section 292q of this title may not be construed as being an



exempt school contribution if the contribution was made pursuant



to a Federal capital contribution under such section that was



made from amounts appropriated before such date.



(3) Noncompliance by student



Each agreement entered into with a student pursuant to



paragraph (1) shall provide that, if the student fails to comply



with such agreement, the loan involved will begin to accrue



interest at a rate of 18 percent per year beginning on the date



of such noncompliance.



(4) Waivers



(A) With respect to the obligation of an individual under an



agreement made under paragraph (1) as a student, the Secretary



shall provide for the partial or total waiver or suspension of



the obligation whenever compliance by the individual is



impossible, or would involve extreme hardship to the individual,



and if enforcement of the obligation with respect to the



individual would be unconscionable.



(B) For purposes of subparagraph (A), the obligation of an



individual shall be waived if -



(i) the status of the individual as a student of the school



involved is terminated before graduation from the school,



whether voluntarily or involuntarily; and



(ii) the individual does not, after such termination, resume



attendance at the school or begin attendance at any other



school of medicine or osteopathic medicine.


(C) If an individual resumes or begins attendance for purposes



of subparagraph (B), the obligation of the individual under the



agreement under paragraph (1) shall be considered to have been



suspended for the period in which the individual was not in



attendance.



(D) This paragraph may not be construed as authorizing the



waiver or suspension of the obligation of a student to repay, in



accordance with section 292r of this title, loans from student



loan funds under section 292q of this title.



(b) Requirements for schools



(1) In general



Subject to the provisions of this subsection, in the case of



student loan funds established under section 292q of this title



by schools of medicine or osteopathic medicine, each agreement



entered into under such section with such a school shall provide



(in addition to the provisions required in subsection (b) of such



section) that, for the 1-year period ending on June 30, 1997;



(!2) and for the 1-year period ending on June 30 of each



subsequent fiscal year, the school will meet not less than 1 of



the conditions described in paragraph (2) with respect to



graduates of the school whose date of graduation from the school



occurred approximately 4 years before the end of the 1-year



period involved.


(2) Description of conditions



With respect to graduates described in paragraph (1) (in this



paragraph referred to as "designated graduates"), the conditions



referred to in such paragraph for a school for a 1-year period



are as follows:



(A) Not less than 50 percent of designated graduates of the



school meet the criterion of either being in a residency



training program in primary health care, or being engaged in a



practice in such care (having completed such a program).



(B) Not less than 25 percent of the designated graduates of



the school meet such criterion, and such percentage is not less



than 5 percentage points above the percentage of such graduates



meeting such criterion for the preceding 1-year period.



(C) In the case of schools of medicine or osteopathic



medicine with student loans funds under section 292q of this



title, the school involved is at or above the 75th percentile



of such schools whose designated graduates meet such criterion.



(3) Determinations by Secretary



Not later than 90 days after the close of each 1-year period



described in paragraph (1), the Secretary shall make a



determination of whether the school involved has for such period



complied with such paragraph and shall in writing inform the



school of the determination. Such determination shall be made



only after consideration of the report submitted to the Secretary



by the school under paragraph (6).



(4) Noncompliance by school



(A)(i) Subject to subparagraph (C), each agreement under



section 292q of this title with a school of medicine or



osteopathic medicine shall provide that, if the school fails to



comply with paragraph (1) for a 1-year period under such



paragraph, the school -



(I) will pay to the Secretary the amount applicable under



subparagraph (B) for the period; and



(II) will pay such amount not later than 90 days after the



school is informed under paragraph (3) of the determination of



the Secretary regarding such period.


(ii) Any amount that a school is required to pay under clause



(i) may be paid from the student loan fund of the school under



section 292q of this title.



(B) For purposes of subparagraph (A), the amount applicable for



a school, subject to subparagraph (C), is -



(i) for the 1-year period ending June 30, 1997, an amount



equal to 10 percent of the income received during such period



by the student loan fund of the school under section 292q of



this title;



(ii) for the 1-year period ending June 30, 1998, an amount



equal to 20 percent of the income received during such period



by the student loan fund; and



(iii) for any subsequent 1-year period under paragraph (1),



an amount equal to 30 percent of the income received during



such period by the student loan fund.


(C) In determining the amount of income that a student loan



fund has received for purposes of subparagraph (B), the Secretary



shall exclude any income derived from exempt contributions.



Payments made to the Secretary under subparagraph (A) may not be



made with such contributions or with income derived from such



contributions.



(5) Expenditure of payments



(A) Amounts paid to the Secretary under paragraph (4) shall be



expended to make Federal capital contributions to student loan



funds under section 292q of this title of schools that are in



compliance with paragraph (1).



(B) A Federal capital contribution under section 292q of this



title may not be construed as being an exempt Federal capital



contribution if the contribution is made from payments under



subparagraph (A). A school contribution under such section may



not be construed as being an exempt school contribution if the



contribution is made pursuant to a Federal capital contribution



from such payments.



(6) Reports by schools



Each agreement under section 292q of this title with a school



of medicine or osteopathic medicine shall provide that the school



will submit to the Secretary a report for each 1-year period



under paragraph (1) that provides such information as the



Secretary determines to be necessary for carrying out this



subsection. Each such report shall include statistics concerning



the current training or practice status of all graduates of such



school whose date of graduation from the school occurred



approximately 4 years before the end of the 1-year period



involved.



(c) Definitions



For purposes of this section:



(1) The term "exempt contributions" means exempt Federal



capital contributions and exempt school contributions.



(2) The term "exempt Federal capital contribution" means a



Federal capital contribution described in subclause (I) of



subsection (a)(2)(A)(ii) of this section.



(3) The term "exempt school contribution" means a school



contribution described in subclause (II) of subsection



(a)(2)(A)(ii) of this section.



(4) The term "income", with respect to a student fund under



section 292q of this title, means payments of principal and



interest on any loan made from the fund, and any other earnings



of the fund.



(5) The term "primary health care" means family medicine,



general internal medicine, general pediatrics, preventive



medicine, or osteopathic general practice.


-SOURCE-



(July 1, 1944, ch. 373, title VII, Sec. 723, as added Pub. L.



102-408, title I, Sec. 102, Oct. 13, 1992, 106 Stat. 2015; amended



Pub. L. 103-43, title XX, Sec. 2014(c), June 10, 1993, 107 Stat.



216; Pub. L. 105-392, title I, Sec. 131, Nov. 13, 1998, 112 Stat.



3574.)


-REFTEXT-



CITE-



42 USC Sec. 292t 01/19/04


-EXPCITE-



TITLE 42 - THE PUBLIC HEALTH AND WELFARE



CHAPTER 6A - PUBLIC HEALTH SERVICE



SUBCHAPTER V - HEALTH PROFESSIONS EDUCATION



Part A - Student Loans



subpart ii - federally-supported student loan funds


-HEAD-



Sec. 292t. Individuals from disadvantaged backgrounds


-STATUTE-



(a) Fund agreements regarding certain amounts



With respect to amounts appropriated under subsection (f) of this



section, each agreement entered into under section 292q of this



title with a school shall provide (in addition to the provisions



required in subsection (b) of such section) that -



(1) any Federal capital contribution made to the student loan



fund of the school from such amounts, together with the school



contribution appropriate under subsection (b)(2)(B) of such



section to the amount of the Federal capital contribution, will



be utilized only for the purpose of -



(A) making loans to individuals from disadvantaged



backgrounds; and



(B) the costs of the collection of the loans and interest on



the loans; and


(2) collections of principal and interest on loans made



pursuant to paragraph (1), and any other earnings of the student



loan fund attributable to amounts that are in the fund pursuant



to such paragraph, will be utilized only for the purpose



described in such paragraph.



(b) Minimum qualifications for schools



The Secretary may not make a Federal capital contribution for



purposes of subsection (a) of this section for a fiscal year unless



the health professions school involved -



(1) is carrying out a program for recruiting and retaining



students from disadvantaged backgrounds, including racial and



ethnic minorities; and



(2) is carrying out a program for recruiting and retaining



minority faculty.



(c) Certain agreements regarding education of students; date



certain for compliance



The Secretary may not make a Federal capital contribution for



purposes of subsection (a) of this section for a fiscal year unless



the health professions school involved agrees -



(1) to ensure that adequate instruction regarding minority



health issues is provided for in the curricula of the school;



(2) with respect to health clinics providing services to a



significant number of individuals who are from disadvantaged



backgrounds, including members of minority groups, to enter into



arrangements with 1 or more such clinics for the purpose of



providing students of the school with experience in providing



clinical services to such individuals;



(3) with respect to public or nonprofit private secondary



educational institutions and undergraduate institutions of higher



education, to enter into arrangements with 1 or more such



institutions for the purpose of carrying out programs regarding



the educational preparation of disadvantaged students, including



minority students, to enter the health professions and regarding



the recruitment of such individuals into the health professions;



(4) to establish a mentor program for assisting disadvantaged



students, including minority students, regarding the completion



of the educational requirements for degrees from the school;



(5) to be carrying out each of the activities specified in any



of paragraphs (1) through (4) by not later than 1 year after the



date on which the first Federal capital contribution is made to



the school for purposes of subsection (a) of this section; and



(6) to continue carrying out such activities, and the



activities specified in paragraphs (1) and (2) of subsection (b)



of this section, throughout the period during which the student



loan fund established pursuant to section 292q(b) of this title



is in operation.



(d) Availability of other amounts



With respect to Federal capital contributions to student loan



funds under agreements under section 292q(b) of this title, any



such contributions made before October 1, 1990, together with the



school contributions appropriate under paragraph (2)(B) of such



section to the amount of the Federal capital contributions, may be



utilized for the purpose of making loans to individuals from



disadvantaged backgrounds, subject to section 292s(a)(2)(B) of this



title.



(e) "Disadvantaged" defined



For purposes of this section, the term "disadvantaged", with



respect to an individual, shall be defined by the Secretary.



(f) Authorization of appropriations



(1) Repealed. Pub. L. 105-392, title I, Sec. 132(b), Nov. 13,



1998, 112 Stat. 3575



(2) Special consideration for certain schools



In making Federal capital contributions to student loan funds



for purposes of subsection (a) of this section, the Secretary



shall give special consideration to health professions schools



that have enrollments of underrepresented minorities above the



national average for health professions schools.


-SOURCE-



(July 1, 1944, ch. 373, title VII, Sec. 724, as added Pub. L.



102-408, title I, Sec. 102, Oct. 13, 1992, 106 Stat. 2018; amended



Pub. L. 105-392, title I, Sec. 132, Nov. 13, 1998, 112 Stat. 3575.)


-MISC1-



PRIOR PROVISIONS



A prior section 724 of act July 1, 1944, was classified to



section 293d of this title prior to the general revision of this



subchapter by Pub. L. 102-408.


AMENDMENTS



1998 - Subsec. (f)(1). Pub. L. 105-392, Sec. 132(b), struck out



heading and text of par. (1). Text read as follows: "With respect



to making Federal capital contributions to student loan funds for



purposes of subsection (a) of this section, there is authorized to



be appropriated for such contributions $8,000,000 for each of the



fiscal years 1998 through 2002."



Pub. L. 105-392, Sec. 132(a), substituted "$8,000,000 for each of



the fiscal years 1998 through 2002" for "$15,000,000 for fiscal



year 1993".


EFFECTIVE DATE OF 1998 AMENDMENT



Pub. L. 105-392, title I, Sec. 132(b), Nov. 13, 1998, 112 Stat.



3575, provided that the repeal of subsec. (f)(1) of this section is



effective Oct. 1, 2002.


-CITE-



42 USC Sec. 292u 01/19/04


-EXPCITE-



TITLE 42 - THE PUBLIC HEALTH AND WELFARE



CHAPTER 6A - PUBLIC HEALTH SERVICE



SUBCHAPTER V - HEALTH PROFESSIONS EDUCATION



Part A - Student Loans



subpart ii - federally-supported student loan funds


-HEAD-



Sec. 292u. Administrative provisions


-STATUTE-



The Secretary may agree to modifications of agreements or loans



made under this subpart, and may compromise, waive, or release any



right, title, claim, or demand of the United States arising or



acquired under this subpart.


-SOURCE-



(July 1, 1944, ch. 373, title VII, Sec. 725, as added Pub. L.



102-408, title I, Sec. 102, Oct. 13, 1992, 106 Stat. 2019.)


-MISC1-



PRIOR PROVISIONS



A prior section 725 of act July 1, 1944, was classified to



section 293e of this title prior to the general revision of this



subchapter by Pub. L. 102-408.


HEALTH PROFESSIONS EDUCATION FUND; AVAILABILITY OF FUND; DEPOSIT IN



FUND OF: INTEREST PAYMENTS OR REPAYMENTS OF PRINCIPAL ON LOANS;



TRANSFER OF EXCESS MONEYS TO GENERAL FUND OF THE TREASURY;



AUTHORIZATION OF APPROPRIATIONS FOR PAYMENTS UNDER AGREEMENTS



Section 406(b), (c) of Pub. L. 94-484 provided that:



"(b) The health professions education fund created within the



Treasury by section 744(d)(1) of the Public Health Service Act (as



in effect before the date of enactment of this Act) [former section



294d(d)(1) of this title] shall remain available to the Secretary



of Health, Education, and Welfare [now Health and Human Services]



for the purpose of meeting his responsibilities respecting



participations in obligations acquired under such section. The



Secretary shall continue to deposit in such fund all amounts



received by him as interest payments or repayments of principal on



loans under such section 744 [former section 294d of this title].



If at any time the Secretary determines the moneys in the fund



exceed the present and any reasonable prospective future



requirements of such fund, such excess may be transferred to the



general fund of the Treasury.



"(c) There are authorized to be appropriated without fiscal year



limitation such sums as may be necessary to enable the Secretary to



make payments under agreements entered into under section 744(b)



[former section 294d(b) of this title] of the Public Health Service



Act before September 30, 1977."


-CITE-



42 USC Sec. 292v 01/19/04


-EXPCITE-



TITLE 42 - THE PUBLIC HEALTH AND WELFARE



CHAPTER 6A - PUBLIC HEALTH SERVICE



SUBCHAPTER V - HEALTH PROFESSIONS EDUCATION



Part A - Student Loans



subpart ii - federally-supported student loan funds


-HEAD-



Sec. 292v. Provision by schools of information to students


-STATUTE-



(a) In general



With respect to loans made by a school under this subpart after



June 30, 1986, each school, in order to carry out the provisions of



sections 292q and 292r of this title, shall, at any time such



school makes such a loan to a student under this subpart, provide



thorough and adequate loan information on loans made under this



subpart to the student. The loan information required to be



provided to the student by this subsection shall include -



(1) the yearly and cumulative maximum amounts that may be



borrowed by the student;



(2) the terms under which repayment of the loan will begin;



(3) the maximum number of years in which the loan must be



repaid;



(4) the interest rate that will be paid by the borrower and the



minimum amount of the required monthly payment;



(5) the amount of any other fees charged to the borrower by the



lender;



(6) any options the borrower may have for deferral,



cancellation, prepayment, consolidation, or other refinancing of



the loan;



(7) a definition of default on the loan and a specification of



the consequences which will result to the borrower if the



borrower defaults, including a description of any arrangements



which may be made with credit bureau organizations;



(8) to the extent practicable, the effect of accepting the loan



on the eligibility of the borrower for other forms of student



assistance; and



(9) a description of the actions that may be taken by the



Federal Government to collect the loan, including a description



of the type of information concerning the borrower that the



Federal Government may disclose to (A) officers, employees, or



agents of the Department of Health and Human Services, (B)



officers, employees, or agents of schools with which the



Secretary has an agreement under this subpart, or (C) any other



person involved in the collection of a loan under this subpart.



(b) Statement regarding loan



Each school shall, immediately prior to the graduation from such



school of a student who receives a loan under this subpart after



June 30, 1986, provide such student with a statement specifying -



(1) each amount borrowed by the student under this subpart;



(2) the total amount borrowed by the student under this



subpart; and



(3) a schedule for the repayment of the amounts borrowed under



this subpart, including the number, amount, and frequency of



payments to be made.


-SOURCE-



(July 1, 1944, ch. 373, title VII, Sec. 726, as added Pub. L.



102-408, title I, Sec. 102, Oct. 13, 1992, 106 Stat. 2020.)


-MISC1-



CITE-



42 USC Sec. 292w 01/19/04


-EXPCITE-



TITLE 42 - THE PUBLIC HEALTH AND WELFARE



CHAPTER 6A - PUBLIC HEALTH SERVICE



SUBCHAPTER V - HEALTH PROFESSIONS EDUCATION



Part A - Student Loans



subpart ii - federally-supported student loan funds


-HEAD-



Sec. 292w. Procedures for appeal of termination of agreements


-STATUTE-



In any case in which the Secretary intends to terminate an



agreement with a school under this subpart, the Secretary shall



provide the school with a written notice specifying such intention



and stating that the school may request a formal hearing with



respect to such termination. If the school requests such a hearing



within 30 days after the receipt of such notice, the Secretary



shall provide such school with a hearing conducted by an



administrative law judge.


-SOURCE-



(July 1, 1944, ch. 373, title VII, Sec. 727, as added Pub. L.



102-408, title I, Sec. 102, Oct. 13, 1992, 106 Stat. 2020.)


CITE-



42 USC Sec. 292x 01/19/04


-EXPCITE-



TITLE 42 - THE PUBLIC HEALTH AND WELFARE



CHAPTER 6A - PUBLIC HEALTH SERVICE



SUBCHAPTER V - HEALTH PROFESSIONS EDUCATION



Part A - Student Loans



subpart ii - federally-supported student loan funds


-HEAD-



Sec. 292x. Distribution of assets from loan funds


-STATUTE-



(a) Distribution after termination of fund



If a school terminates a loan fund established under an agreement



pursuant to section 292q(b) of this title, or if the Secretary for



good cause terminates the agreement with the school, there shall be



a capital distribution as follows:



(1) The Secretary shall first be paid an amount which bears the



same ratio to such balance in such fund on the date of



termination of the fund as the total amount of the Federal



capital contributions to such fund by the Secretary pursuant to



section 292q(b)(2)(A) of this title bears to the total amount in



such fund derived from such Federal capital contributions and



from funds deposited therein pursuant to section 292q(b)(2)(B) of



this title.



(2) The remainder of such balance shall be paid to the school.



(b) Payment of proportionate share to Secretary



If a capital distribution is made under subsection (a) of this



section, the school involved shall, after the capital distribution,



pay to the Secretary, not less often than quarterly, the same



proportionate share of amounts received by the school in payment of



principal or interest on loans made from the loan fund established



pursuant to section 292q(b) of this title as was determined by the



Secretary under subsection (a) of this section.


-SOURCE-



(July 1, 1944, ch. 373, title VII, Sec. 728, as added Pub. L.



102-408, title I, Sec. 102, Oct. 13, 1992, 106 Stat. 2021.)


-CITE-



42 USC Sec. 292y 01/19/04


-EXPCITE-



TITLE 42 - THE PUBLIC HEALTH AND WELFARE



CHAPTER 6A - PUBLIC HEALTH SERVICE



SUBCHAPTER V - HEALTH PROFESSIONS EDUCATION



Part A - Student Loans



subpart ii - federally-supported student loan funds


-HEAD-



Sec. 292y. General provisions


-STATUTE-



(a) Date certain for applications



The Secretary shall from time to time set dates by which schools



must file applications for Federal capital contributions.



(b) Contingent reduction in allotments



If the total of the amounts requested for any fiscal year in such



applications exceeds the amounts appropriated under this section



for that fiscal year, the allotment to the loan fund of each such



school shall be reduced to whichever of the following is the



smaller: (A) the amount requested in its application; or (B) an



amount which bears the same ratio to the amounts appropriated as



the number of students estimated by the Secretary to be enrolled in



such school during such fiscal year bears to the estimated total



number of students in all such schools during such year. Amounts



remaining after allotment under the preceding sentence shall be



reallotted in accordance with clause (B) of such sentence among



schools whose applications requested more than the amounts so



allotted to their loan funds, but with such adjustments as may be



necessary to prevent the total allotted to any such school's loan



fund from exceeding the total so requested by it.



(c) Allotment of excess funds



Funds available in any fiscal year for payment to schools under



this subpart which are in excess of the amount appropriated



pursuant to this section for that year shall be allotted among



schools in such manner as the Secretary determines will best carry



out the purposes of this subpart.



(d) Payment of installments to schools



Allotments to a loan fund of a school shall be paid to it from



time to time in such installments as the Secretary determines will



not result in unnecessary accumulations in the loan fund at such



school.



(e) Disposition of funds returned to Secretary



(1) Expenditure for Federal capital contributions



Subject to section 292s(b)(5) of this title, any amounts from



student loan funds under section 292q of this title that are



returned to the Secretary by health professions schools shall be



expended to make Federal capital contributions to such funds.



(2) Date certain for contributions



Amounts described in paragraph (1) that are returned to the



Secretary shall be obligated before the end of the succeeding



fiscal year.



(3) Preference in making contributions



In making Federal capital contributions to student loans funds



under section 292q of this title for a fiscal year from amounts



described in paragraph (1), the Secretary shall give preference



to health professions schools of the same disciplines as the



health professions schools returning such amounts for the period



during which the amounts expended for such contributions were



received by the Secretary. Any such amounts that, prior to being



so returned, were available only for the purpose of loans under



this subpart to individuals from disadvantaged backgrounds shall



be available only for such purpose.



(f) Funding for certain medical schools



(1) Authorization of appropriations



For the purpose of making Federal capital contributions to



student loan funds established under section 292q of this title



by schools of medicine or osteopathic medicine, there is



authorized to be appropriated $10,000,000 for each of the fiscal



years 1994 through 1996.



(2) Minimum requirements



(A) Subject to subparagraph (B), the Secretary may make a



Federal capital contribution pursuant to paragraph (1) only if



the school of medicine or osteopathic medicine involved meets the



conditions described in subparagraph (A) of section 292s(b)(2) of



this title or the conditions described in subparagraph (C) of



such section.



(B) For purposes of subparagraph (A), the conditions referred



to in such subparagraph shall be applied with respect to



graduates of the school involved whose date of graduation



occurred approximately 3 years before June 30 of the fiscal year



preceding the fiscal year for which the Federal capital



contribution involved is made.


-SOURCE-



(July 1, 1944, ch. 373, title VII, Sec. 735, as added Pub. L.



102-408, title I, Sec. 102, Oct. 13, 1992, 106 Stat. 2021; amended



Pub. L. 102-531, title III, Sec. 313(a)(1), Oct. 27, 1992, 106



Stat. 3507; Pub. L. 103-43, title XX, Sec. 2014(d), June 10, 1993,



107 Stat. 217; Pub. L. 105-392, title I, Sec. 134(c), Nov. 13,



1998, 112 Stat. 3578.)








Public Health Service Act, 42 U.S.C. 297a-i




42 USC Sec. 297a 01/19/04


-EXPCITE-



TITLE 42 - THE PUBLIC HEALTH AND WELFARE



CHAPTER 6A - PUBLIC HEALTH SERVICE



SUBCHAPTER VI - NURSING WORKFORCE DEVELOPMENT



Part E - Student Loans


-HEAD-



Sec. 297a. Student loan fund


-STATUTE-



(a) Agreements to establish and operate fund authorized



The Secretary is authorized to enter into an agreement for the



establishment and operation of a student loan fund in accordance



with this part (!1) with any public or nonprofit private school of



nursing which is located in a State.


(b) Provisions of agreements



Each agreement entered into under this section shall -



(1) provide for establishment of a student loan fund by the



school;



(2) provide for deposit in the fund, except as provided in



section 297h of this title, of (A) the Federal capital



contributions paid from allotments under section 297d of this



title to the school by the Secretary, (B) an additional amount



from other sources equal to not less than one-ninth of such



Federal capital contributions, (C) collections of principal and



interest on loans made from the fund, (D) collections pursuant to



section 297b(f) of this title, and (E) any other earnings of the



fund;



(3) provide that the fund, except as provided in section 297h



of this title, shall be used only for loans to students of the



school in accordance with the agreement and for costs of



collection of such loans and interest thereon;



(4) provide that loans may be made from such fund only to



students pursuing a fulltime or half-time course of study at the



school leading to a baccalaureate or associate degree in nursing



or an equivalent degree or a diploma in nursing, or to a graduate



degree in nursing;



(5) contain such other provisions as are necessary to protect



the financial interests of the United States.



(c) Regulatory standards applicable to collection of loans



(1) Any standard established by the Secretary by regulation for



the collection by schools of nursing of loans made pursuant to loan



agreements under this part (!1) shall provide that the failure of



any such school to collect such loans shall be measured in



accordance with this subsection. With respect to the student loan



fund established pursuant to such agreements, this subsection may



not be construed to require such schools to reimburse such loan



fund for loans that became uncollectable prior to 1983.



(2) The measurement of a school's failure to collect loans made



under this part (!1) shall be the ratio (stated as a percentage)



that the defaulted principal amount outstanding of such school



bears to the matured loans of such school.



(3) For purposes of this subsection -



(A) the term "default" means the failure of a borrower of a



loan made under this part (!1) to -



(i) make an installment payment when due; or



(ii) comply with any other term of the promissory note for



such loan,


except that a loan made under this part (!1) shall not be



considered to be in default if the loan is discharged in



bankruptcy or if the school reasonably concludes from written



contacts with the borrower that the borrower intends to repay the



loan;



(B) the term "defaulted principal amount outstanding" means the



total amount borrowed from the loan fund of a school that has



reached the repayment stage (minus any principal amount repaid or



cancelled) on loans -



(i) repayable monthly and in default for at least 120 days;



and



(ii) repayable less frequently than monthly and in default



for at least 180 days;


(C) the term "grace period" means the period of nine months



beginning on the date on which the borrower ceases to pursue a



full-time or half-time course of study at a school of nursing;



and



(D) the term "matured loans" means the total principal amount



of all loans made by a school of nursing under this part (!1)



minus the total principal amount of loans made by such school to



students who are -



(i) enrolled in a full-time or half-time course of study at



such school; or



(ii) in their grace period.


-SOURCE-



(July 1, 1944, ch. 373, title VIII, Sec. 835, formerly Sec. 822, as



added Pub. L. 88-581, Sec. 2, Sept. 4, 1964, 78 Stat. 913; amended



Pub. L. 90-490, title II, Sec. 222(a), (c)(2), Aug. 16, 1968, 82



Stat. 783, 784; Pub. L. 92-158, Sec. 6(d)(3), (e), Nov. 18, 1971,



85 Stat. 478; Pub. L. 93-385, Sec. 3(b), Aug. 23, 1974, 88 Stat.



741; renumbered Sec. 835 and amended Pub. L. 94-63, title IX, Secs.



936(a), 941(h)(1)-(3), (i)(1), (2), July 29, 1975, 89 Stat. 362,



365, 366; Pub. L. 96-76, title I, Sec. 109(a), Sept. 29, 1979, 93



Stat. 579; Pub. L. 97-35, title XXVII, Sec. 2757(a), Aug. 13, 1981,



95 Stat. 931; Pub. L. 99-92, Sec. 8(a), Aug. 16, 1985, 99 Stat.



397; Pub. L. 99-129, title II, Sec. 209(j)(2), Oct. 22, 1985, 99



Stat. 536; Pub. L. 100-607, title VII, Sec. 713(a), Nov. 4, 1988,



102 Stat. 3160.)


-REFTEXT-

42 USC Sec. 297b 01/19/04


-EXPCITE-



TITLE 42 - THE PUBLIC HEALTH AND WELFARE



CHAPTER 6A - PUBLIC HEALTH SERVICE



SUBCHAPTER VI - NURSING WORKFORCE DEVELOPMENT



Part E - Student Loans


-HEAD-



Sec. 297b. Loan provisions


-STATUTE-



(a) Maximum amount per individual per year; preference to first



year students



The total of the loans for any academic year (or its equivalent,



as determined under regulations of the Secretary) made by schools



of nursing from loan funds established pursuant to agreements under



this part (!1) may not exceed $2,500 in the case of any student,



except that for the final two academic years of the program



involved, such total may not exceed $4,000. The aggregate of the



loans for all years from such funds may not exceed $13,000 in the



case of any student. In the granting of such loans, a school shall



give preference to licensed practical nurses, to persons with



exceptional financial need, and to persons who enter as first-year



students after enactment of this subchapter.


(b) Terms and conditions



Loans from any such student loan fund by any school shall be made



on such terms and conditions as the school may determine; subject,



however, to such conditions, limitations, and requirements as the



Secretary may prescribe (by regulation or in the agreement with the



school) with a view to preventing impairment of the capital of such



fund to the maximum extent practicable in the light of the



objective of enabling the student to complete his course of study;



and except that -



(1) such a loan may be made only to a student who (A) is in



need of the amount of the loan to pursue a full-time or half-time



course of study at the school leading to a baccalaureate or



associate degree in nursing or an equivalent degree, or a diploma



in nursing, or a graduate degree in nursing, (B) is capable, in



the opinion of the school, of maintaining good standing in such



course of study, and (C) with respect to any student enrolling in



the school after June 30, 1986, is of financial need (as defined



in regulations issued by the Secretary);; (!2)


(2) such a loan shall be repayable in equal or graduated



periodic installments (with the right of the borrower to



accelerate repayment) over the ten-year period which begins nine



months after the student ceases to pursue a full-time or



half-time course of study at a school of nursing, excluding from



such 10-year period all (A) periods (up to three years) of (i)



active duty performed by the borrower as a member of a uniformed



service, or (ii) service as a volunteer under the Peace Corps Act



[22 U.S.C. 2501 et seq.], (B) periods (up to ten years) during



which the borrower is pursuing a full-time or half-time course of



study at a collegiate school of nursing leading to baccalaureate



degree in nursing or an equivalent degree, or to graduate degree



in nursing, or is otherwise pursuing advanced professional



training in nursing (or training to be a nurse anesthetist), and



(C) such additional periods under the terms of paragraph (8) of



this subsection;



(3) in the case of a student who received such a loan before



September 29, 1979, an amount up to 85 per centum of any such



loan made before such date (plus interest thereon) shall be



canceled for full-time employment as a professional nurse



(including teaching in any of the fields of nurse training and



service as an administrator, supervisor, or consultant in any of



the fields of nursing) in any public or nonprofit private agency,



institution, or organization (including neighborhood health



centers), at the rate of 15 per centum of the amount of such loan



(plus interest) unpaid on the first day of such service for each



of the first, second, and third complete year of such service,



and 20 per centum of such amount (plus interest) for each



complete fourth and fifth year of such service;



(4) the liability to repay the unpaid balance of such loan and



accrued interest thereon shall be canceled upon the death of the



borrower, or if the Secretary determines that he has become



permanently and totally disabled;



(5) such a loan shall bear interest on the unpaid balance of



the loan, computed only for periods during which the loan is



repayable, at the rate of 5 percent per annum;



(6) such a loan shall be made without security or endorsement,



except that if the borrower is a minor and the note or other



evidence of obligation executed by him would not, under the



applicable law, create a binding obligation, either security or



endorsement may be required;



(7) no note or other evidence of any such loan may be



transferred or assigned by the school making the loan except



that, if the borrower transfers to another school participating



in the program under this part (!1) such note or other evidence



of a loan may be transferred to such other school; and



(8) pursuant to uniform criteria established by the Secretary,



the repayment period established under paragraph (2) for any



student borrower who during the repayment period failed to make



consecutive payments and who, during the last 12 months of the



repayment period, has made at least 12 consecutive payments may



be extended for a period not to exceed 10 years.



(c) Cancellation



Where all or any part of a loan, or interest, is canceled under



this section, the Secretary shall pay to the school an amount equal



to the school's proportionate share of the canceled portion, as



determined by the Secretary.



(d) Installments



Any loan for any year by a school from a student loan fund



established pursuant to an agreement under this part (!1) shall be



made in such installments as may be provided in regulations of the



Secretary or such agreement and, upon notice to the Secretary by



the school that any recipient of a loan is failing to maintain



satisfactory standing, any or all further installments of his loan



shall be withheld, as may be appropriate.



(e) Availability to eligible students in need



An agreement under this part (!1) with any school shall include



provisions designed to make loans from the student loan fund



established thereunder reasonably available (to the extent of the



available funds in such fund) to all eligible students in the



school in need thereof.



(f) Penalty for late payment



Subject to regulations of the Secretary and in accordance with



this section, a school shall assess a charge with respect to a loan



from the loan fund established pursuant to an agreement under this



part (!1) for failure of the borrower to pay all or any part of an



installment when it is due and, in the case of a borrower who is



entitled to deferment of the loan under subsection (b)(2) of this



section or cancellation of part or all of the loan under subsection



(b)(3) of this section, for any failure to file timely and



satisfactory evidence for such entitlement. No such charge may be



made if the payment of such installment or the filing of such



evidence is made within 60 days after the date on which such



installment or filing is due. The amount of any such charge may not



exceed an amount equal to 6 percent of the amount of such



installment. The school may elect to add the amount of any such



charge to the principal amount of the loan as of the first day



after the day on which such installment or evidence was due, or to



make the amount of the charge payable to the school not later than



the due date of the next installment after receipt by the borrower



of notice of the assessment of the charge.



(g) Minimum monthly repayment



A school may provide in accordance with regulations of the



Secretary, that during the repayment period of a loan from a loan



fund established pursuant to an agreement under this part (!1)



payments of principal and interest by the borrower with respect to



all the outstanding loans made to him from loan funds so



established shall be at a rate equal to not less than $40 per



month.



(h) Loan cancellation



Notwithstanding the amendment made by section 6(b) of the Nurse



Training Act of 1971 to this section -



(A) any person who obtained one or more loans from a loan fund



established under this part, (!1) who before November 18, 1971,



became eligible for cancellation of all or part of such loans



(including accrued interest) under this section (as in effect on



the day before such date), and who on such date was not engaged



in a service for which loan cancellation was authorized under



this section (as so in effect), may at any time elect to receive



such cancellation in accordance with this subsection (as so in



effect); and



(B) in the case of any person who obtained one or more loans



from a loan fund established under this part (!1) and who on such



date was engaged in a service for which cancellation of all or



part of such loans (including accrued interest) was authorized



under this section (as so in effect), this section (as so in



effect) shall continue to apply to such person for purposes of



providing such loan cancellation until he terminates such



service.


Nothing in this subsection shall be construed to prevent any person



from entering into an agreement for loan cancellation under



subsection (h) (!1) of this section (as amended by section 6(b)(2)



of the Nurse Training Act of 1971).



(i) Loan repayment



Upon application by a person who received, and is under an



obligation to repay, any loan made to such person as a nursing



student, the Secretary may undertake to repay (without liability to



the applicant) all or any part of such loan, and any interest or



portion thereof outstanding thereon, upon his determination,



pursuant to regulations establishing criteria therefor, that the



applicant -



(1) failed to complete the nursing studies with respect to



which such loan was made;



(2) is in exceptionally needy circumstances; and



(3) has not resumed, or cannot reasonably be expected to



resume, such nursing studies within two years following the date



upon which the applicant terminated the studies with respect to



which such loan was made.



(j) Collection by Secretary of loan in default; preconditions and



procedures applicable



The Secretary is authorized to attempt to collect any loan which



was made under this part,(!1) which is in default, and which was



referred to the Secretary by a school of nursing with which the



Secretary has an agreement under this part,(!1) on behalf of that



school under such terms and conditions as the Secretary may



prescribe (including reimbursement from the school's student loan



fund for expenses the Secretary may reasonably incur in attempting



collection), but only if the school has complied with such



requirements as the Secretary may specify by regulation with



respect to the collection of loans under this part.(!1) A loan so



referred shall be treated as a debt subject to section 5514 of



title 5. Amounts collected shall be deposited in the school's



student loan fund. Whenever the Secretary desires the institution



of a civil action regarding any such loan, the Secretary shall



refer the matter to the Attorney General for appropriate action.



(k) Redesignated (j)



(l) Elimination of statute of limitation for loan collections



(1) Purpose



It is the purpose of this subsection to ensure that obligations



to repay loans under this section are enforced without regard to



any Federal or State statutory, regulatory, or administrative



limitation on the period within which debts may be enforced.



(2) Prohibition



Notwithstanding any other provision of Federal or State law, no



limitation shall terminate the period within which suit may be



filed, a judgment may be enforced, or an offset, garnishment, or



other action may be initiated or taken by a school of nursing



that has an agreement with the Secretary pursuant to section 297a



of this title that is seeking the repayment of the amount due



from a borrower on a loan made under this part (!1) after the



default of the borrower on such loan.


-SOURCE-



(July 1, 1944, ch. 373, title VIII, Sec. 836, formerly Sec. 823, as



added Pub. L. 88-581, Sec. 2, Sept. 4, 1964, 78 Stat. 914; amended



Pub. L. 89-290, Sec. 4(g)(2), Oct. 22, 1965, 79 Stat. 1058; Pub. L.



90-490, title II, Sec. 222(b), (c)(1), Aug. 16, 1968, 82 Stat. 783,



784; Pub. L. 92-158, Sec. 6(a), (b)(1), (e), Nov. 18, 1971, 85



Stat. 475, 476, 478; renumbered Sec. 836 and amended Pub. L. 94-63,



title IX, Secs. 936(b), 941(h)(1), (2), (5), (i)(1), July 29, 1975,



89 Stat. 363, 365; Pub. L. 96-76, title I, Sec. 112, Sept. 29,



1979, 93 Stat. 580; Pub. L. 97-35, title XXVII, Sec. 2757(b), Aug.



13, 1981, 95 Stat. 931; Pub. L. 99-92, Sec. 8(b)-(d), Aug. 16,



1985, 99 Stat. 398; Pub. L. 100-607, title VII, Secs. 713(b)-(g),



714(a)-(c), Nov. 4, 1988, 102 Stat. 3160, 3161; Pub. L. 101-93,



Sec. 5(r), Aug. 16, 1989, 103 Stat. 614; Pub. L. 102-408, title II,



Sec. 211(a)(1), Oct. 13, 1992, 106 Stat. 2078; Pub. L. 105-392,



title I, Sec. 133(a)-(c)(1), Nov. 13, 1998, 112 Stat. 3575.)


42 USC Sec. 297c 01/19/04


-EXPCITE-



TITLE 42 - THE PUBLIC HEALTH AND WELFARE



CHAPTER 6A - PUBLIC HEALTH SERVICE



SUBCHAPTER VI - NURSING WORKFORCE DEVELOPMENT



Part E - Student Loans


-HEAD-



Sec. 297c. Repealed. Pub. L. 105-392, title I, Sec. 123(3), Nov.



13, 1998, 112 Stat. 3562


-MISC1-



Section, act July 1, 1944, ch. 373, title VIII, Sec. 837,



formerly Sec. 824, as added Pub. L. 88-581, Sec. 2, Sept. 4, 1964,



78 Stat. 915; amended Pub. L. 89-751, Sec. 6(b), Nov. 3, 1966, 80



Stat. 1235; Pub. L. 90-490, title II, Sec. 222(d), Aug. 16, 1968,



82 Stat. 784; Pub. L. 92-52, Sec. 3(a), July 9, 1971, 85 Stat. 144;



Pub. L. 92-158, Sec. 6(c), Nov. 18, 1971, 85 Stat. 477; Pub. L.



93-385, Sec. 3(a), Aug. 23, 1974, 88 Stat. 741; renumbered Sec. 837



and amended Pub. L. 94-63, title IX, Secs. 936(c), 941(i)(1), (3),



July 29, 1975, 89 Stat. 363, 365, 366; Pub. L. 96-76, title I, Sec.



109(b), Sept. 29, 1979, 93 Stat. 580; Pub. L. 97-35, title XXVII,



Sec. 2757(c), Aug. 13, 1981, 95 Stat. 931, authorized



appropriations for student loan funds for certain fiscal years.



42 USC Sec. 297c-1 01/19/04


-EXPCITE-



TITLE 42 - THE PUBLIC HEALTH AND WELFARE



CHAPTER 6A - PUBLIC HEALTH SERVICE



SUBCHAPTER VI - NURSING WORKFORCE DEVELOPMENT



Part E - Student Loans


-HEAD-



Sec. 297c-1. Repealed. Pub. L. 102-408, title II, Sec. 211(a)(2),



Oct. 13, 1992, 106 Stat. 2078


-MISC1-



Section, act July 1, 1944, ch. 373, title VIII, Sec. 837A, as



added Nov. 4, 1988, Pub. L. 100-607, title VII, Sec. 714(d), 102



Stat. 3162, authorized appropriations for educational loan



repayments for service in certain health facilities.



42 USC Sec. 297d 01/19/04


-EXPCITE-



TITLE 42 - THE PUBLIC HEALTH AND WELFARE



CHAPTER 6A - PUBLIC HEALTH SERVICE



SUBCHAPTER VI - NURSING WORKFORCE DEVELOPMENT



Part E - Student Loans


-HEAD-



Sec. 297d. Allotments and payments of Federal capital contributions


-STATUTE-



(a) Application for allotment; reduction or adjustment of amount



requested in application; reallotment; continued availability of



funds



(1) The Secretary shall from time to time set dates by which



schools of nursing must file applications for Federal capital



contributions.



(2)(A) If the total of the amounts requested for any fiscal year



in such applications exceeds the total amount appropriated under



section 297c (!1) of this title for that fiscal year, the allotment



from such total amount to the loan fund of each school of nursing



shall be reduced to whichever of the following is the smaller:


(i) The amount requested in its application.



(ii) An amount which bears the same ratio to the total amount



appropriated as the number of students estimated by the Secretary



to be enrolled on a full-time basis in such school during such



fiscal year bears to the estimated total number of students



enrolled in all such schools on a full-time basis during such



year.


(B) Amounts remaining after allotment under subparagraph (A)



shall be reallotted in accordance with clause (ii) of such



subparagraph among schools whose applications requested more than



the amounts so allotted to their loan funds, but with such



adjustments as may be necessary to prevent the total allotted to



any such school's loan fund under this paragraph and paragraph (3)



from exceeding the total so requested by it.



(3) Funds which, pursuant to section 297e(c) of this title or



pursuant to a loan agreement under section 297a of this title are



returned to the Secretary in any fiscal year, shall be available



for allotment until expended. Funds described in the preceding



sentence shall be allotted among schools of nursing in such manner



as the Secretary determines will best carry out this part.(!1)



(b) Installment payment of allotments



Allotments to a loan fund of a school shall be paid to it from



time to time in such installments as the Secretary determines will



not result in unnecessary accumulations in the loan fund at such



school.



(c) Manner of payment



The Federal capital contributions to a loan fund of a school



under this part (!1) shall be paid to it from time to time in such



installments as the Secretary determines will not result in



unnecessary accumulations in the loan fund at such school.


-SOURCE-



(July 1, 1944, ch. 373, title VIII, Sec. 838, formerly Sec. 825, as



added Pub. L. 88-581, Sec. 2, Sept. 4, 1964, 78 Stat. 915; amended



Pub. L. 89-751, Sec. 6(c), Nov. 3, 1966, 80 Stat. 1235; Pub. L.



90-490, title II, Sec. 222(e), Aug. 16, 1968, 82 Stat. 785;



renumbered Sec. 838 and amended Pub. L. 94-63, title IX, Sec.



941(h)(1), (2), (4)(A), (i)(1), (4), July 29, 1975, 89 Stat. 365,



366; Pub. L. 99-92, Sec. 8(e), Aug. 16, 1985, 99 Stat. 398; Pub. L.



100-607, title VII, Sec. 713(h)(1), Nov. 4, 1988, 102 Stat. 3161;



Pub. L. 102-408, title II, Sec. 208(a), Oct. 13, 1992, 106 Stat.



2075.)

42 USC Sec. 297e 01/19/04


-EXPCITE-



TITLE 42 - THE PUBLIC HEALTH AND WELFARE



CHAPTER 6A - PUBLIC HEALTH SERVICE



SUBCHAPTER VI - NURSING WORKFORCE DEVELOPMENT



Part E - Student Loans


-HEAD-



Sec. 297e. Distribution of assets from loan funds


-STATUTE-



(a) Capital distribution of balance of loan fund



If a school terminates a loan fund established under an agreement



pursuant to section 297a(b) of this title, or if the Secretary for



good cause terminates the agreement with the school, there shall be



a capital distribution as follows:



(1) The Secretary shall first be paid an amount which bears the



same ratio to such balance in such fund on the date of termination



of the fund as the total amount of the Federal capital



contributions to such fund by the Secretary pursuant to section



297a(b)(2)(A) of this title bears to the total amount in such fund



derived from such Federal capital contributions and from funds



deposited therein pursuant to section 297a(b)(2)(B) of this title.



(2) The remainder of such balance shall be paid to the school.



(b) Payment of principal or interest on loans



If a capital distribution is made under subsection (a) of this



section, the school involved shall, after such capital



distribution, pay to the Secretary, not less often than quarterly,



the same proportionate share of amounts received by the school in



payment of principal or interest on loans made from the loan fund



established under section 297a(b) of this title as determined by



the Secretary under subsection (a) of this section.



(c) Payment of balance of loan fund



(1) Within 90 days after the termination of any agreement with a



school under section 297a of this title or the termination in any



other manner of a school's participation in the loan program under



this part,(!1) such school shall pay to the Secretary from the



balance of the loan fund of such school established under section



297a of this title, an amount which bears the same ratio to the



balance in such fund on the date of such termination as the total



amount of the Federal capital contributions to such fund by the



Secretary pursuant to section 297a(b)(2)(A) of this title bears to



the total amount in such fund on such date derived from such



Federal capital contributions and from funds deposited in the fund



pursuant to section 297a(b)(2)(B) of this title. The remainder of



such balance shall be paid to the school.


(2) A school to which paragraph (1) applies shall pay to the



Secretary after the date on which payment is made under such



paragraph and not less than quarterly, the same proportionate share



of amounts received by the school after the date of termination



referred to in paragraph (1) in payment of principal or interest on



loans made from the loan fund as was determined for the Secretary



under such paragraph.


-SOURCE-



(July 1, 1944, ch. 373, title VIII, Sec. 839, formerly Sec. 826, as



added Pub. L. 88-581, Sec. 2, Sept. 4, 1964, 78 Stat. 916; amended



Pub. L. 89-751, Sec. 6(d), Nov. 3, 1966, 80 Stat. 1235; Pub. L.



90-490, title II, Sec. 222(f), Aug. 16, 1968, 82 Stat. 785; Pub. L.



92-52, Sec. 3(b), July 9, 1971, 85 Stat. 145; Pub. L. 92-158, Sec.



6(d)(1), Nov. 18, 1971, 85 Stat. 478; renumbered Sec. 839 and



amended Pub. L. 94-63, title IX, Secs. 936(d), 941(h)(1), (2),



(4)(B), (i)(1), (5), July 29, 1975, 89 Stat. 363, 365, 366; Pub. L.



96-32, Sec. 7(j), July 10, 1979, 93 Stat. 84; Pub. L. 96-76, title



I, Sec. 109(c), Sept. 29, 1979, 93 Stat. 580; Pub. L. 97-35, title



XXVII, Sec. 2757(d), Aug. 13, 1981, 95 Stat. 931; Pub. L. 99-92,



Sec. 8(f), Aug. 16, 1985, 99 Stat. 399; Pub. L. 100-607, title VII,



Sec. 713(i), Nov. 4, 1988, 102 Stat. 3161; Pub. L. 102-408, title



II, Sec. 208(b), Oct. 13, 1992, 106 Stat. 2075; Pub. L. 105-392,



title I, Sec. 133(e), Nov. 13, 1998, 112 Stat. 3577.)


42 USC Sec. 297f 01/19/04


-EXPCITE-



TITLE 42 - THE PUBLIC HEALTH AND WELFARE



CHAPTER 6A - PUBLIC HEALTH SERVICE



SUBCHAPTER VI - NURSING WORKFORCE DEVELOPMENT



Part E - Student Loans


-HEAD-



Sec. 297f. Repealed. Pub. L. 94-63, title IX, Sec. 936(e)(1), July



29, 1975, 89 Stat. 363


-MISC1-



Section, act July 1, 1944, ch. 373, title VIII, Sec. 827, as



added Sept. 4, 1964, Pub. L. 88-581, Sec. 2, 78 Stat. 917; amended



Nov. 3, 1966, Pub. L. 89-751, Sec. 6(a), 80 Stat. 1233; Aug. 16,



1968, Pub. L. 90-490, title II, Sec. 222(g), 82 Stat. 785; July 9,



1971, Pub. L. 92-52, Sec. 3(c), 85 Stat. 145; Nov. 18, 1971, Pub.



L. 92-158, Sec. 6(d)(2), 85 Stat. 478, set out provisions relating



to terms, conditions, limitations, manner of payment, etc., of



loans to schools of nursing to capitalize student loan funds.


EFFECTIVE DATE OF REPEAL



Repeal effective July 1, 1975, see section 905 of Pub. L. 94-63,



set out as an Effective Date of 1975 Amendment note under section



297a of this title.


AVAILABILITY OF NURSE TRAINING REVOLVING FUND FOR PAYMENT OF



OBLIGATIONS DEPOSITS INTO FUND; TRANSFER OF EXCESS AMOUNTS TO



GENERAL FUND OF TREASURY AUTHORIZATION OF APPROPRIATIONS



Section 936(e)(2), (3) of Pub. L. 94-63 provided that:



"(2) The nurse training fund created within the Treasury by



section 827(d)(1) of the Act [section 297f(d)(1) of this title]



shall remain available to the Secretary of Health, Education, and



Welfare [now Health and Human Services] for the purpose of meeting



his responsibilities respecting participations in obligations



acquired under section 827 of the Act [this section]. The Secretary



shall continue to deposit in such fund all amounts received by him



as interest payments or repayments of principal on loans under such



section 27[827]. If at any time the Secretary determines the moneys



in the funds exceed the present and any reasonable prospective



further requirements of such fund, such excess may be transferred



to the general fund of the Treasury.



"(3) There are authorized to be appropriated without fiscal year



limitation such sums as may be necessary to enable the Secretary to



make payments under agreements entered into under section 827(b) of



the Act [section 297f(b) of this title] before the date of the



enactment of this Act [July 29, 1975]."


CONVERSION OF FEDERAL CAPITAL CONTRIBUTION TO A LOAN UNDER SECTION



297F OF THIS TITLE



Pub. L. 89-751, Sec. 6(e)(2), Nov. 3, 1966, 80 Stat. 1236,



authorized the Secretary of Health, Education, and Welfare to



convert a Federal capital contribution to a student loan fund of a



particular institution, made under this subchapter, from funds



appropriated pursuant thereto for the fiscal year ending June 30,



1967, to a loan under section 297f of this title.


42 USC Sec. 297g 01/19/04


-EXPCITE-



TITLE 42 - THE PUBLIC HEALTH AND WELFARE



CHAPTER 6A - PUBLIC HEALTH SERVICE



SUBCHAPTER VI - NURSING WORKFORCE DEVELOPMENT



Part E - Student Loans


-HEAD-



Sec. 297g. Modification of agreements; compromise, waiver or



release


-STATUTE-



The Secretary may agree to modifications of agreements made under



this part,(!1) and may compromise, waive, or release any right,



title, claim, or demand of the United States arising or acquired



under this part.(!1)


-SOURCE-



(July 1, 1944, ch. 373, title VIII, Sec. 840, formerly Sec. 828, as



added Pub. L. 88-581, Sec. 2, Sept. 4, 1964, 78 Stat. 917;



renumbered Sec. 840 and amended Pub. L. 94-63, title IX, Sec.



941(h)(1), (4)(C), (i)(1), July 29, 1975, 89 Stat. 365.)


-REFTEXT-



REFERENCES IN TEXT



This part, referred to in text, was in the original "this



subpart" and was translated to reflect the probable intent of



Congress and the redesignation of subpart II of part B of this



subchapter as part E of this subchapter by Pub. L. 105-392, title



I, Sec. 123(2), Nov. 13, 1998, 112 Stat. 3562.


-MISC1-



AMENDMENTS



1975 - Pub. L. 94-63, Sec. 941(h)(1), (4)(C), substituted



"subpart" for "part" wherever appearing and struck out "or loans"



after "agreements".


EFFECTIVE DATE OF 1975 AMENDMENT



Amendment by Pub. L. 94-63 effective July 1, 1975, see section



942 of Pub. L. 94-63, set out as a note under section 297a of this



title.


42 USC Sec. 297h 01/19/04


-EXPCITE-



TITLE 42 - THE PUBLIC HEALTH AND WELFARE



CHAPTER 6A - PUBLIC HEALTH SERVICE



SUBCHAPTER VI - NURSING WORKFORCE DEVELOPMENT



Part E - Student Loans


-HEAD-



Sec. 297h. Repealed. Pub. L. 99-92, Sec. 9(a)(1), Aug. 16, 1985, 99



Stat. 400


-MISC1-



Section, act July 1, 1944, ch. 373, title VIII, Sec. 841,



formerly Sec. 829, as added Aug. 16, 1968, Pub. L. 90-490, title



II, Sec. 222(h), 82 Stat. 785; renumbered Sec. 841 and amended July



29, 1975, Pub. L. 94-63, title IX, Sec. 941(i)(1), (6), 89 Stat.



365, 366, related to transfers to the scholarship program.


EFFECTIVE DATE OF REPEAL



Repeal effective Oct. 1, 1985, see section 10(a) of Pub. L.



99-92, set out as an Effective Date of 1985 Amendment note under



section 297a of this title.


42 USC Sec. 297i 01/19/04


-EXPCITE-



TITLE 42 - THE PUBLIC HEALTH AND WELFARE



CHAPTER 6A - PUBLIC HEALTH SERVICE



SUBCHAPTER VI - NURSING WORKFORCE DEVELOPMENT



Part E - Student Loans


-HEAD-



Sec. 297i. Procedures for appeal of terminations


-STATUTE-



In any case in which the Secretary intends to terminate an



agreement with a school of nursing under this part,(!1) the



Secretary shall provide the school with a written notice specifying



such intention and stating that the school may request a formal



hearing with respect to such termination. If the school requests



such a hearing within 30 days after the receipt of such notice, the



Secretary shall provide such school with a hearing conducted by an



administrative law judge.


-SOURCE-



(July 1, 1944, ch. 373, title VIII, Sec. 842, as added Pub. L.



99-92, Sec. 8(g), Aug. 16, 1985, 99 Stat. 399.)


-REFTEXT-



REFERENCES IN TEXT



This part, referred to in text, was in the original "this



subpart" and was translated to reflect the probable intent of



Congress and the redesignation of subpart II of part B of this



subchapter as part E of this subchapter by Pub. L. 105-392, title



I, Sec. 123(2), Nov. 13, 1998, 112 Stat. 3562.


-MISC1-



PRIOR PROVISIONS



A prior section 297i, act July 1, 1944, ch. 373, title VIII, Sec.



830, as added Nov. 18, 1971, Pub. L. 92-158, Sec. 6(b)(2), 85 Stat.



477, relating to loan forgiveness, was transferred to and



redesignated as subsec. (j) of section 823 of act July 1, 1944,



which is classified to section 297b of this title, by Pub. L.



94-63, title IX, Sec. 941(h)(5), July 29, 1975, 89 Stat. 365.



A prior section 842 of act July 1, 1944, was renumbered section



852, and was classified to section 298a of this title prior to



repeal by Pub. L. 105-392.



A prior section 297j, act July 1, 1944, ch. 373, title VIII, Sec.



843, as added Nov. 4, 1988, Pub. L. 100-607, title VII, Sec. 715,



102 Stat. 3162; amended Nov. 18, 1988, Pub. L. 100-690, title II,



Sec. 2616(a), 102 Stat. 4240; Aug. 16, 1989, Pub. L. 101-93, Sec.



5(s), 103 Stat. 614, provided grant authority for scholarships for



undergraduate education of professional nurses, prior to repeal by



Pub. L. 102-531, title III, Sec. 313(a)(11), (c), Oct. 27, 1992,



106 Stat. 3507, effective immediately after enactment of Pub. L.



102-408, approved Oct. 13, 1992.



A prior section 843 of act July 1, 1944, was renumbered section



853, and was classified to section 298b of this title prior to



repeal by Pub. L. 105-392.



Another prior section 297j, act July 1, 1944, ch. 373, title



VIII, Sec. 845, formerly Sec. 860, as added Aug. 16, 1968, Pub. L.



90-490, title II, Sec. 223(a), 82 Stat. 785; amended July 9, 1971,



Pub. L. 92-52, Sec. 4, 85 Stat. 145; Nov. 18, 1971, Pub. L. 92-158,



Sec. 7, 85 Stat. 478; renumbered Sec. 845 and amended July 29,



1975, Pub. L. 94-63, title IX, Secs. 902(f), 937, 941(j)(1), (2),



89 Stat. 355, 363, 366; Sept. 29, 1979, Pub. L. 96-76, title I,



Sec. 110(a), (b), 93 Stat. 580; Aug. 13, 1981, Pub. L. 97-35, title



XXVII, Sec. 2758(a), (b), 95 Stat. 932, set forth provisions



relating to scholarship grants to schools of nursing, prior to



repeal by Pub. L. 99-92, Sec. 9(a)(2), Aug. 16, 1985, 99 Stat. 400,



eff. Oct. 1, 1985.



A prior section 845 of act July 1, 1944, was renumbered section



855, and was classified to section 298b-2 of this title prior to



repeal by Pub. L. 105-392.



A prior section 297k, act July 1, 1944, ch. 373, title VIII, Sec.



846, formerly Sec. 861, as added Aug. 16, 1968, Pub. L. 90-490,



title II, Sec. 223(a), 82 Stat. 786; renumbered Sec. 846 and



amended July 29, 1975, Pub. L. 94-63, title IX, Secs. 941(j)(1),



(3), 89 Stat. 366, related to transfers of funds to student loan



program, prior to repeal by Pub. L. 97-35, title XXVII, Sec.



2758(c), Aug. 13, 1981, 95 Stat. 932.


EFFECTIVE DATE



Section effective Oct. 1, 1985, see section 10(a) of Pub. L.



99-92, set out as an Effective Date of 1985 Amendment note under



section 297a of this title.














































Public Health Service Act, 42 U.S.C. 295o



42 USC Sec. 295o 01/19/04



TITLE 42 - THE PUBLIC HEALTH AND WELFARE



CHAPTER 6A - PUBLIC HEALTH SERVICE



SUBCHAPTER V - HEALTH PROFESSIONS EDUCATION



Part F - General Provisions


-HEAD-



Sec. 295o. Matching requirement


-STATUTE-



The Secretary may require that an entity that applies for a grant



or contract under this subchapter provide non-Federal matching



funds, as appropriate, to ensure the institutional commitment of



the entity to the projects funded under the grant. As determined by



the Secretary, such non-Federal matching funds may be provided



directly or through donations from public or private entities and



may be in cash or in-kind, fairly evaluated, including plant,



equipment, or services.


-SOURCE-



(July 1, 1944, ch. 373, title VII, Sec. 798, as added Pub. L.



105-392, title I, Sec. 106(a)(2)(F), Nov. 13, 1998, 112 Stat.



3558.)


-MISC1-



PRIOR PROVISIONS



A prior section 295o, act July 1, 1944, ch. 373, title VII, Sec.



798, as added Pub. L. 102-408, title I, Sec. 102, Oct. 13, 1992,



106 Stat. 2064; amended Pub. L. 102-531, title III, Sec. 313(a)(8),



Oct. 27, 1992, 106 Stat. 3507, set forth certain general provisions



relating to this subchapter, prior to repeal by Pub. L. 105-392,



title I, Sec. 106(a)(2)(D), Nov. 13, 1998, 112 Stat. 3557.



A prior section 798 of act July 1, 1944, was classified to



section 295h-7 of this title prior to the general amendment of this



subchapter by Pub. L. 102-408.



Another prior section 798 of act July 1, 1944, was classified to



section 295h-7 of this title prior to the general amendment of part



G of this subchapter by Pub. L. 94-484.




82


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