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.
| File Type | application/msword |
| File Title | Tab A |
| Author | HRSA |
| Last Modified By | Hrsa |
| File Modified | 2009-03-12 |
| File Created | 2006-01-10 |