
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC254l]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                    CHAPTER 6A--PUBLIC HEALTH SERVICE
 
                SUBCHAPTER II--GENERAL POWERS AND DUTIES
 
                       Part D--Primary Health Care
 
       subpart iii--scholarship program and loan repayment program
 
Sec. 254l. National Health Service Corps Scholarship Program


(a) Establishment

    The Secretary shall establish the National Health Service Corps 
Scholarship Program to assure, with respect to the provision of primary 
health services pursuant to section 254d(a)(2) of this title--
        (1) an adequate supply of physicians, dentists, certified nurse 
    midwives, certified nurse practitioners, and physician assistants; 
    and
        (2) if needed by the Corps, an adequate supply of other health 
    professionals.

(b) Eligibility; application; written contract

    To be eligible to participate in the Scholarship Program, an 
individual must--
        (1) be accepted for enrollment, or be enrolled, as a full-time 
    student (A) in an accredited (as determined by the Secretary) 
    educational institution in a State and (B) in a course of study or 
    program, offered by such institution and approved by the Secretary, 
    leading to a degree in medicine, osteopathic medicine, dentistry, or 
    other health profession;
        (2) be eligible for, or hold, an appointment as a commissioned 
    officer in the Regular or Reserve Corps of the Service or be 
    eligible for selection for civilian service in the Corps;
        (3) submit an application to participate in the Scholarship 
    Program; and
        (4) sign and submit to the Secretary, at the time of submittal 
    of such application, a written contract (described in subsection (f) 
    of this section) to accept payment of a scholarship and to serve (in 
    accordance with this subpart) for the applicable period of obligated 
    service in a health professional shortage area.

(c) Review and evaluation of information and forms by prospective 
        applicant

    (1) In disseminating application forms and contract forms to 
individuals desiring to participate in the Scholarship Program, the 
Secretary shall include with such forms--
        (A) a fair summary of the rights and liabilities of an 
    individual whose application is approved (and whose contract is 
    accepted) by the Secretary, including in the summary a clear 
    explanation of the damages to which the United States is entitled 
    under section 254o \1\ of this title in the case of the individual's 
    breach of the contract; and
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    \1\ See References in Text note below.
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        (B) information respecting meeting a service obligation through 
    private practice under an agreement under section 254n \1\ of this 
    title and such other information as may be necessary for the 
    individual to understand the individual's prospective participation 
    in the Scholarship Program and service in the Corps, including a 
    statement of all factors considered in approving applications for 
    participation in the Program and in making assignments for 
    participants in the Program.

    (2) The application form, contract form, and all other information 
furnished by the Secretary under this subpart shall be written in a 
manner calculated to be understood by the average individual applying to 
participate in the Scholarship Program. The Secretary shall make such 
application forms, contract forms, and other information available to 
individuals desiring to participate in the Scholarship Program on a date 
sufficiently early to insure that such individuals have adequate time to 
carefully review and evaluate such forms and information.
    (3)(A) The Secretary shall distribute to health professions schools 
materials providing information on the Scholarship Program and shall 
encourage the schools to disseminate the materials to the students of 
the schools.
    (B)(i) In the case of any health professional whose period of 
obligated service under the Scholarship Program is nearing completion, 
the Secretary shall encourage the individual to remain in a health 
professional shortage area and to continue providing primary health 
services.
    (ii) During the period in which a health professional is planning 
and making the transition to private practice from obligated service 
under the Scholarship Program, the Secretary may provide assistance to 
the professional regarding such transition if the professional is 
remaining in a health professional shortage area and is continuing to 
provide primary health services.
    (C) In the case of entities to which participants in the Scholarship 
Program are assigned under section 254f of this title, the Secretary 
shall encourage the entities to provide options with respect to 
assisting the participants in remaining in the health professional 
shortage areas involved, and in continuing to provide primary health 
services, after the period of obligated service under the Scholarship 
Program is completed. The options with respect to which the Secretary 
provides such encouragement may include options regarding the sharing of 
a single employment position in the health professions by 2 or more 
health professionals, and options regarding the recruitment of couples 
where both of the individuals are health professionals.

(d) Factors considered in providing contracts; priorities

    (1) Subject to section 254f-1 of this title, in providing contracts 
under the Scholarship Program--
        (A) the Secretary shall consider the extent of the demonstrated 
    interest of the applicants for the contracts in providing primary 
    health services; and
        (B) may consider such other factors regarding the applicants as 
    the Secretary determines to be relevant to selecting qualified 
    individuals to participate in such Program.

    (2) In providing contracts under the Scholarship Program, the 
Secretary shall give priority--
        (A) first, to any application for such a contract submitted by 
    an individual who has previously received a scholarship under this 
    section or under section 294z \1\ of this title;
        (B) second, to any application for such a contract submitted by 
    an individual who has characteristics that increase the probability 
    that the individual will continue to serve in a health professional 
    shortage area after the period of obligated service pursuant to 
    subsection (f) of this section is completed; and
        (C) third, subject to subparagraph (B), to any application for 
    such a contract submitted by an individual who is from a 
    disadvantaged background.

(e) Commencement of participation in Scholarship Program; notice

    (1) An individual becomes a participant in the Scholarship Program 
only upon the Secretary's approval of the individual's application 
submitted under subsection (b)(3) of this section and the Secretary's 
acceptance of the contract submitted by the individual under subsection 
(b)(4) of this section.
    (2) The Secretary shall provide written notice to an individual 
promptly upon the Secretary's approving, under paragraph (1), of the 
individual's participation in the Scholarship Program.

(f) Written contract; contents

    The written contract (referred to in this subpart) between the 
Secretary and an individual shall contain--
        (1) an agreement that--
            (A) subject to paragraph (2), the Secretary agrees (i) to 
        provide the individual with a scholarship (described in 
        subsection (g) of this section) in each such school year or 
        years for a period of years (not to exceed four school years) 
        determined by the individual, during which period the individual 
        is pursuing a course of study described in subsection (b)(1)(B) 
        of this section, and (ii) to accept (subject to the availability 
        of appropriated funds for carrying out sections 254d through 
        254h and section 254j of this title) the individual into the 
        Corps (or for equivalent service as otherwise provided in this 
        subpart); and
            (B) subject to paragraph (2), the individual agrees--
                (i) to accept provision of such a scholarship to the 
            individual;
                (ii) to maintain enrollment in a course of study 
            described in subsection (b)(1)(B) of this section until the 
            individual completes the course of study;
                (iii) while enrolled in such course of study, to 
            maintain an acceptable level of academic standing (as 
            determined under regulations of the Secretary by the 
            educational institution offering such course of study); and
                (iv) to serve for a time period (hereinafter in the 
            subpart referred to as the ``period of obligated service'') 
            equal to--
                    (I) one year for each school year for which the 
                individual was provided a scholarship under the 
                Scholarship Program, or
                    (II) two years,

          whichever is greater, as a provider of primary health services 
            in a health professional shortage area (designated under 
            section 254e of this title) to which he is assigned by the 
            Secretary as a member of the Corps, or as otherwise provided 
            in this subpart;

        (2) a provision that any financial obligation of the United 
    States arising out of a contract entered into under this subpart and 
    any obligation of the individual which is conditioned thereon, is 
    contingent upon funds being appropriated for scholarships under this 
    subpart and to carry out the purposes of sections 254d through 254h 
    and sections 254j and 254k of this title;
        (3) a statement of the damages to which the United States is 
    entitled, under section 254o \2\ of this title, for the individual's 
    breach of the contract; and
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    \2\ See References in Text note below.
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        (4) such other statements of the rights and liabilities of the 
    Secretary and of the individual, not inconsistent with the 
    provisions of this subpart.

(g) Scholarship provisions; contract with educational institution; 
        increase in monthly stipend

    (1) A scholarship provided to a student for a school year under a 
written contract under the Scholarship Program shall consist of--
        (A) payment to, or (in accordance with paragraph (2)) on behalf 
    of, the student of the amount (except as provided in section 292k 
    \2\ of this title) of--
            (i) the tuition of the student in such school year; and
            (ii) all other reasonable educational expenses, including 
        fees, books, and laboratory expenses, incurred by the student in 
        such school year; and

        (B) payment to the student of a stipend of $400 per month 
    (adjusted in accordance with paragraph (3)) for each of the 12 
    consecutive months beginning with the first month of such school 
    year.

    (2) The Secretary may contract with an educational institution, in 
which a participant in the Scholarship Program is enrolled, for the 
payment to the educational institution of the amounts of tuition and 
other reasonable educational expenses described in paragraph (1)(A). 
Payment to such an educational institution may be made without regard to 
section 3324(a) and (b) of title 31.
    (3) The amount of the monthly stipend, specified in paragraph (1)(B) 
and as previously adjusted (if at all) in accordance with this 
paragraph, shall be increased by the Secretary for each school year 
ending in a fiscal year beginning after September 30, 1978, by an amount 
(rounded to the next highest multiple of $1) equal to the amount of such 
stipend multiplied by the overall percentage (under section 5303 of 
title 5) of the adjustment (if such adjustment is an increase) in the 
rates of pay under the General Schedule made effective in the fiscal 
year in which such school year ends.

(h) Employment ceiling of Department unaffected

    Notwithstanding any other provision of law, individuals who have 
entered into written contracts with the Secretary under this section, 
while undergoing academic training, shall not be counted against any 
employment ceiling affecting the Department.

(i) Annual report to Congress; contents

    Not later than March 1 of each year, the Secretary shall submit to 
the Congress a report providing, with respect to the preceding fiscal 
year--
        (1) the number, and type of health profession training, of 
    students receiving scholarships under the Scholarship Program;
        (2) the educational institutions at which such students are 
    receiving their training;
        (3) the number of applications filed under this section in the 
    school year beginning in such year and in prior school years;
        (4) the amount of scholarship payments made for each of tuition, 
    stipends, and other expenses, in the aggregate and at each 
    educational institution for the school year beginning in such year 
    and for prior school years;
        (5)(A) the number, and type of health professions training, of 
    individuals who have breached the contract under subsection (f) of 
    this section through any of the actions specified in subsection (a) 
    or (b) of section 254o of this title; and
        (B) with respect to such individuals--
            (i) the educational institutions with respect to which 
        payments have been made or were to be made under the contract;
            (ii) the amounts for which the individuals are liable to the 
        United States under section 254o of this title;
            (iii) the extent of payment by the individuals of such 
        amounts; and
            (iv) if known, the basis for the decision of the individuals 
        to breach the contract under subsection (f) of this section; and

        (6) the effectiveness of the Secretary in recruiting health 
    professionals to participate in the Scholarship Program, and in 
    encouraging and assisting such professionals with respect to 
    providing primary health services to health professional shortage 
    areas after the completion of the period of obligated service under 
    such Program.

(July 1, 1944, ch. 373, title III, Sec. 338A, formerly title VII, 
Sec. 751, as added Pub. L. 94-484, title IV, Sec. 408(b)(1), Oct. 12, 
1976, 90 Stat. 2281; amended Pub. L. 95-215, Sec. 5, Dec. 19, 1977, 91 
Stat. 1506; Pub. L. 95-623, Sec. 12(c), Nov. 9, 1978, 92 Stat. 3457; 
Pub. L. 95-626, title I, Sec. 113(b), Nov. 10, 1978, 92 Stat. 3563; Pub. 
L. 96-32, Sec. 7(i), July 10, 1979, 93 Stat. 84; renumbered Sec. 338A 
and amended Pub. L. 97-35, title XXVII, Sec. 2709(a), (b), Aug. 13, 
1981, 95 Stat. 908; Pub. L. 99-129, title II, Sec. 210(b), Oct. 22, 
1985, 99 Stat. 537; Pub. L. 100-607, title VI, Sec. 629(a)(2), Nov. 4, 
1988, 102 Stat. 3146; Pub. L. 101-509, title V, Sec. 529 [title I, 
Sec. 101(b)(4)(K)], Nov. 5, 1990, 104 Stat. 1427, 1440; Pub. L. 101-597, 
title II, Sec. 201, title IV, Sec. 401(b)[(a)], Nov. 16, 1990, 104 Stat. 
3021, 3035.)

                       References in Text

    Sections 254n and 254o of this title, referred to in subsecs. (c)(1) 
and (f)(3), were in the original references to sections 338C and 338D, 
respectively, of act July 1, 1944, which were renumbered sections 338D 
and 338E, respectively, by Pub. L. 100-177, title II, Sec. 201(2), Dec. 
1, 1987, 101 Stat. 992.
    Section 294z of this title, referred to in subsec. (d)(2)(A), was 
omitted in the general revision of subchapter V of this chapter by Pub. 
L. 102-408, title I, Sec. 102, Oct. 13, 1992, 106 Stat. 1994.
    Section 292k of this title, referred to in subsec. (g)(1)(A), was in 
the original a reference to section 711 of act July 1, 1944. Section 711 
of that Act was renumbered as section 710 by Pub. L. 97-35, title XXVII, 
Sec. 2720(b), Aug. 13, 1981, 95 Stat. 915, and subsequently omitted in 
the general revision of subchapter V of this chapter by Pub. L. 102-408, 
title I, Sec. 102, Oct. 13, 1992, 106 Stat. 1994. Pub. L. 102-408 
enacted a new section 710 of act July 1, 1944, relating to insurance 
accounts, a new section 711, relating to powers and responsibilities of 
the Secretary, and a new section 712, relating to participation by 
Federal credit unions, which are classified to sections 292i, 292j, and 
292k, respectively, of this title.

                          Codification

    In subsec. (g)(2), ``section 3324(a) and (b) of title 31'' 
substituted for ``section 3648 of the Revised Statutes (31 U.S.C. 529)'' 
on authority of Pub. L. 97-258, Sec. 4(b), Sept. 13, 1982, 96 Stat. 
1067, the first section of which enacted Title 31, Money and Finance.
    Section was formerly classified to section 294t of this title prior 
to its renumbering by Pub. L. 97-35.


                               Amendments

    1990--Subsec. (a). Pub. L. 101-597, Sec. 201(a)(1), substituted 
``Corps Scholarship Program to assure, with respect to the provision of 
primary health services pursuant to section 254d(a)(2) of this title--'' 
and pars. (1) and (2) for ``Corps Scholarship Program (hereinafter in 
this subpart referred to as the `Scholarship Program') to assure an 
adequate supply of trained physicians, dentists, and nurses for the 
National Health Service Corps (hereinafter in this subpart referred to 
as the `Corps') and, if needed by the Corps, podiatrists, optometrists, 
pharmacists, clinical psychologists, graduates of schools of veterinary 
medicine, graduates of schools of public health, graduates of programs 
in health administration, graduates of programs for the training of 
physician assistants, expanded function dental auxiliaries, and nurse 
practitioners (as defined in section 296m of this title), and other 
health professionals.''
    Subsec. (b)(4). Pub. L. 101-597, Sec. 401(b)[(a)], substituted 
reference to health professional shortage area for reference to health 
manpower shortage area.
    Subsec. (c). Pub. L. 101-597, Sec. 401(b)[(a)], substituted 
reference to health professional shortage area for reference to health 
manpower shortage area in par. (3)(B), (C).
    Pub. L. 101-597, Sec. 201(b), inserted par. (1) designation, 
redesignated former pars. (1) and (2) as subpars. (A) and (B), inserted 
before period at end of subpar. (B) ``, including a statement of all 
factors considered in approving applications for participation in the 
Program and in making assignments for participants in the Program'', 
inserted par. (2) designation, and added par. (3).
    Subsec. (d). Pub. L. 101-597, Sec. 401(b)[(a)], substituted 
reference to health professional shortage area for reference to health 
manpower shortage area in par. (2)(B).
    Pub. L. 101-597, Sec. 201(c), amended subsec. (d) generally. Prior 
to amendment, subsec. (d) read as follows: ``In determining which 
applications under the Scholarship Program to approve (and which 
contracts to accept), the Secretary shall give priority--
        ``(1) first, to applications made (and contracts submitted) by 
    individuals who have previously received scholarships under the 
    Scholarship Program or under section 294z of this title; and
        ``(2) second, to applications made (and contracts submitted)--
            ``(A) for the school year beginning in calendar year 1978, 
        by individuals who are entering their first, second, or third 
        year of study in a course of study or program described in 
        subsection (b)(1)(B) of this section in such school year;
            ``(B) for the school year beginning in calendar year 1979, 
        by individuals who are entering their first or second year of 
        study in a course of study or program described in subsection 
        (b)(1)(B) of this section in such school year; and
            ``(C) for each school year thereafter, by individuals who 
        are entering their first year of study in a course of study or 
        program described in subsection (b)(1)(B) of this section in 
        such school year.''
    Subsec. (f)(1)(B)(iv). Pub. L. 101-597, Sec. 401(b)[(a)], 
substituted reference to health professional shortage area for reference 
to health manpower shortage area in closing provisions.
    Pub. L. 101-597, Sec. 201(a)(2), substituted ``as a provider of 
primary health services'' after ``whichever is greater,''.
    Subsec. (g)(3). Pub. L. 101-509 substituted ``(under section 5303 of 
title 5)'' for ``(as set forth in the report transmitted to the Congress 
under section 5305 of title 5)''.
    Subsec. (i). Pub. L. 101-597, Sec. 201(d)(1), amended introductory 
provisions generally. Prior to amendment, introductory provisions read 
as follows: ``The Secretary shall report to Congress on March 1 of each 
year--''.
    Subsec. (i)(4), (5). Pub. L. 101-597, Sec. 201(d)(2), added pars. 
(4) and (5) and struck out former par. (4) which read as follows: ``the 
amount of tuition paid in the aggregate and at each educational 
institution for the school year beginning in such year and for prior 
school years.''
    Subsec. (i)(6). Pub. L. 101-597, Sec. 401(b)[(a)], substituted 
reference to health professional shortage area for reference to health 
manpower shortage area.
    Pub. L. 101-597, Sec. 201(d)(2)(C), added par. (6).
    1988--Subsec. (b)(1). Pub. L. 100-607 substituted ``osteopathic 
medicine'' for ``osteopathy''.
    1985--Subsec. (g)(1). Pub. L. 99-129 struck out ``or under section 
294z of this title (relating to scholarships for first-year students of 
exceptional financial need),'' after ``Scholarship Program''.
    1981--Subsec. (a). Pub. L. 97-35, Sec. 2709(b)(1), inserted 
reference to clinical psychologists.
    Subsec. (c). Pub. L. 97-35, Sec. 2709(b)(2), (3), substituted 
``254o'' for ``294w'' in par. (1), and inserted provisions relating to 
information concerning meeting the service obligation in par. (2).
    Subsec. (f). Pub. L. 97-35, Sec. 2709(b)(4)-(6), in par. (1) 
substituted reference to sections 254d to 254h and 254j of this title, 
for reference to subpart II of part D of subchapter II of this chapter, 
in par. (2) substituted reference to sections 254d to 254h, 254j and 
254k of this title, for reference to subpart II of part D of subchapter 
II of this chapter, and in par. (3) substituted ``254o'' for ``294w''.
    Subsec. (j). Pub. L. 97-35, Sec. 2709(b)(7), struck out subsec. (j) 
which related to consultation and participation of schools.
    1979--Subsec. (g)(3). Pub. L. 96-32 substituted ``section 5305 of 
title 5'' for ``section 5303 of title 5''.
    1978--Subsec. (f). Pub. L. 95-626 substituted ``subpart II of part 
D'' for ``subpart II of part C'' in pars. (1)(A) and (2).
    Subsec. (i). Pub. L. 95-623 substituted March 1 for December 1 as 
the date for Secretary's annual report to Congress.
    1977--Subsec. (d)(2). Pub. L. 95-215 substituted provisions relating 
to the school years beginning in calendar years 1978 and 1979 for 
provisions relating to the school year ending in the fiscal year 
beginning Oct. 1, 1977.


                    Effective Date of 1990 Amendment

    Amendment by Pub. L. 101-509 effective on such date as the President 
shall determine, but not earlier than 90 days, and not later than 180 
days, after Nov. 5, 1990, see section 529 [title III, Sec. 305] of Pub. 
L. 101-509, set out as a note under section 5301 of Title 5, Government 
Organization and Employees.


                    Effective Date of 1985 Amendment

    Section 228 of Pub. L. 99-129 provided that:
    ``(a) Except as provided in subsection (b), this Act and the 
amendments and repeals made by this Act [enacting sections 294q-1 to 
294q-3 of this title, amending this section and sections 292a, 292b, 
292h, 292j, 293c, 294a, 294b, 294d, 294e, 294g, 294j, 294m to 294p, 
294z, 295f to 295f-2, 295g, 295g-1, 295g-3, 295g-4, 295g-6 to 295g-8, 
295g-8b, 295h, 295h-1a to 295h-1c, 296k, 296l, 296m, 297a, 298b-5, and 
300aa-14 of this title, repealing sections 292c, 295 to 295e-5, 295g-2, 
295g-5, 295g-8a, and 295g-9 of this title, enacting provisions set out 
as notes under sections 201, 292h, 293c, 294d, 294n, and 300aa-14 of 
this title and section 462 of the Appendix to Title 50, War and National 
Defense, and amending provisions set out as a note under section 298b-5 
of this title] shall take effect on the date of enactment of this Act 
[Oct. 22, 1985].
    ``(b)(1) The amendments made by section 101(a) of this Act [amending 
section 294a of this title] shall take effect as of October 1, 1985.
    ``(2) The amendments made by section 208(e) of this Act [amending 
section 294e of this title] shall take effect nine months after the date 
of enactment of this Act [Oct. 22, 1985].
    ``(3) The amendment made by section 208(h) of this Act [amending 
section 294a of this title] shall take effect as of October 1, 1983.
    ``(4) The provisions of section 746 of the Public Health Service Act 
(as added by the amendment made by section 209(h)(2) of this Act) 
[section 294g-2 of this title] shall take effect as of June 30, 1984.
    ``(5) The amendments made by section 209(j) of this Act [amending 
sections 294m and 297a of this title] shall take effect as of June 30, 
1984.
    ``(6) The amendments made by section 213(a) of this Act [amending 
section 295g-1 of this title] shall take effect as of October 1, 1985.''


                    Effective Date of 1977 Amendment

    Section 5 of Pub. L. 95-215 provided that the amendment made by that 
section is effective Oct. 1, 1977.


                             Effective Date

    Section 408(b)(1) of Pub. L. 94-484 provided that the enactment of 
sections 254l to 254r of this title and repeal of section 234 of this 
title by Pub. L. 94-484 is effective Oct. 1, 1977.


 Effective Date; Savings Provision; Credit for Period of Internship or 
     Residency Before September 30, 1977, Towards Service Obligation

    Section 408(b)(2) of Pub. L. 94-484, as amended, eff. Oct. 12, 1976, 
by Pub. L. 95-83, title III, Sec. 307(p), Aug. 1, 1977, 91 Stat. 394, 
provided that:
    ``(A) Except as provided in subparagraphs (B) and (C), the amendment 
made by paragraph (1) of this subsection [enacting this section and 
sections 254l-1 to 254r of this title and repealing section 234 of this 
title] shall apply with respect to scholarships awarded under the 
National Health Service Corps Scholarship Program from appropriations 
for such Program for fiscal years beginning after September 30, 1977.
    ``(B) The provisions of section 225(f)(1) of the Public Health 
Service Act (as in effect on September 30, 1977) [former section 
234(f)(1) of this title] prescribing the financial obligation of a 
participant in the Public Health and National Health Service Corps 
Scholarship Program who fails to complete an active duty service 
obligation incurred under that Program shall apply to any individual who 
received a scholarship under such Program from appropriations for such 
Program for any fiscal year ending before October 1, 1977.
    ``(C) If an individual received a scholarship under the Public 
Health and National Health Service Corps Scholarship Program for any 
school year beginning before the date of the enactment of this Act [Oct. 
12, 1976], periods of internship or residency served by such individual 
in a facility of the National Health Service Corps or other facility of 
the Public Health Service shall be creditable in satisfying such 
individual's service obligation incurred under that Program for such 
scholarship or for any scholarship received under the National Health 
Service Corps Scholarship Program for any subsequent school year. If an 
individual received a scholarship under the Public Health and National 
Health Service Corps Program for the first time from appropriations for 
such Program for the fiscal year ending September 30, 1977, periods of 
internship or residency served by such individual in such a facility 
shall be creditable in satisfying such individual's service obligation 
incurred under that Program for such scholarship.''

                  Section Referred to in Other Sections

    This section is referred to in sections 254d, 254h-1, 254m, 254n, 
254o, 254o-1, 254q, 254q-1, 254s, 254t, 11709 of this title; title 25 
sections 1613a, 1616m.
