
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: 42USC292a]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                    CHAPTER 6A--PUBLIC HEALTH SERVICE
 
               SUBCHAPTER V--HEALTH PROFESSIONS EDUCATION
 
                          Part A--Student Loans
 
    subpart i--insured health education assistance loans to graduate 
                                students
 
Sec. 292a. Scope and duration of loan insurance program


(a) In general

    The total principal amount of new loans made and installments paid 
pursuant to lines of credit (as defined in section 292o of this title) 
to borrowers covered by Federal loan insurance under this subpart shall 
not exceed $350,000,000 for fiscal year 1993, $375,000,000 for fiscal 
year 1994, and $425,000,000 for fiscal year 1995. If the total amount of 
new loans made and installments paid pursuant to lines of credit in any 
fiscal year is less than the ceiling established for such year, the 
difference between the loans made and installments paid and the ceiling 
shall be carried over to the next fiscal year and added to the ceiling 
applicable to that fiscal year, and if in any fiscal year no ceiling has 
been established, any difference carried over shall constitute the 
ceiling for making new loans (including loans to new borrowers) and 
paying installments for such fiscal year. Thereafter, Federal loan 
insurance pursuant to this subpart may be granted only for loans made 
(or for loan installments paid pursuant to lines of credit) to enable 
students, who have obtained prior loans insured under this subpart, to 
continue or complete their educational program or to obtain a loan under 
section 292d(a)(1)(B) of this title to pay interest on such prior loans; 
but no insurance may be granted for any loan made or installment paid 
after September 30, 1998. The total principal amount of Federal loan 
insurance available under this subsection shall be granted by the 
Secretary without regard to any apportionment for the purpose of chapter 
15 of title 31 and without regard to any similar limitation.

(b) Certain limitations and priorities

         (1) Limitations regarding lenders, States, or areas

        The Secretary may, if necessary to assure an equitable 
    distribution of the benefits of this subpart, assign, within the 
    maximum amounts specified in subsection (a) of this section, Federal 
    loan insurance quotas applicable to eligible lenders, or to States 
    or areas, and may from time to time reassign unused portions of 
    these quotas.

                  (2) Priority for certain lenders

        In providing certificates of insurance under section 292e of 
    this title through comprehensive contracts, the Secretary shall give 
    priority to eligible lenders that agree--
            (A) to make loans to students at interest rates below the 
        rates prevailing, during the period involved, for loans covered 
        by Federal loan insurance pursuant to this subpart; or
            (B) to make such loans under terms that are otherwise 
        favorable to the student relative to the terms under which 
        eligible lenders are generally making such loans during such 
        period.

(c) Authority of Student Loan Marketing Association

                           (1) In general

        Subject to paragraph (2), the Student Loan Marketing 
    Association, established under part B of title IV of the Higher 
    Education Act of 1965 [20 U.S.C. 1071 et seq.], is authorized to 
    make advances on the security of, purchase, service, sell, 
    consolidate, or otherwise deal in loans which are insured by the 
    Secretary under this subpart, except that if any loan made under 
    this subpart is included in a consolidated loan pursuant to the 
    authority of the Association under part B of title IV of the Higher 
    Education Act of 1965, the interest rate on such consolidated loan 
    shall be set at the weighted average interest rate of all such loans 
    offered for consolidation and the resultant per centum shall be 
    rounded downward to the nearest one-eighth of 1 per centum, except 
    that the interest rate shall be no less than the applicable interest 
    rate of the guaranteed student loan program established under part B 
    of title IV of the Higher Education Act of 1965. In the case of such 
    a consolidated loan, the borrower shall be responsible for any 
    interest which accrues prior to the beginning of the repayment 
    period of the loan, or which accrues during a period in which 
    principal need not be paid (whether or not such principal is in fact 
    paid) by reason of any provision of the Higher Education Act of 1965 
    [20 U.S.C. 1001 et seq.].

          (2) Applicability of certain Federal regulations

        With respect to Federal regulations for lenders, this subpart 
    may not be construed to preclude the applicability of such 
    regulations to the Student Loan Marketing Association or to any 
    other entity in the business of purchasing student loans, including 
    such regulations with respect to applications, contracts, and due 
    diligence.

(July 1, 1944, ch. 373, title VII, Sec. 702, as added Pub. L. 102-408, 
title I, Sec. 102, Oct. 13, 1992, 106 Stat. 1994.)

                       References in Text

    The Higher Education Act of 1965, referred to in subsec. (c)(1), is 
Pub. L. 89-329, Nov. 8, 1965, 79 Stat. 1219, as amended, which is 
classified principally to chapter 28 (Sec. 1001 et seq.) of Title 20, 
Education. Part B of title IV of the Act is classified generally to part 
B (Sec. 1071 et seq.) of subchapter IV of chapter 28 of Title 20. For 
complete classification of this Act to the Code, see Short Title note 
set out under section 1001 of Title 20 and Tables.


                            Prior Provisions

    A prior section 292a, act July 1, 1944, ch. 373, title VII, 
Sec. 701, formerly Sec. 724, as added Sept. 24, 1963, Pub. L. 88-129, 
Sec. 2(b), 77 Stat. 169; amended Oct. 22, 1965, Pub. L. 89-290, 
Sec. 2(b), 79 Stat. 1056; Nov. 2, 1966, Pub. L. 89-709, Sec. 2(c), 80 
Stat. 1103; Aug. 16, 1968, Pub. L. 90-490, title I, Sec. 105(c), 82 
Stat. 774; Nov. 18, 1971, Pub. L. 92-157, title I, Sec. 102(c)(1)-(4), 
(f)(2)(B), 85 Stat. 431, 432, 435; renumbered Sec. 701 and amended Oct. 
12, 1976, Pub. L. 94-484, title II, Sec. 201(c), (e), 90 Stat. 2247; 
Aug. 13, 1981, Pub. L. 97-35, title XXVII, Sec. 2716, 95 Stat. 913; Oct. 
22, 1985, Pub. L. 99-129, title II, Secs. 201(a), (b), 202, 203, 204(a), 
(b), 99 Stat. 525-527; Nov. 4, 1988, Pub. L. 100-607, title VI, 
Secs. 620(a), 623, 628(1), 629(b)(1), (2), 102 Stat. 3141, 3142, 3145, 
3146; Aug. 16, 1989, Pub. L. 101-93, Sec. 5(l), 103 Stat. 613, defined 
terms for purposes of this subchapter, prior to the general revision of 
this subchapter by Pub. L. 102-408. See sections 292o and 295p of this 
title.
    Another prior section 292a, act July 1, 1944, ch. 373, title VII, 
Sec. 702, as added July 30, 1956, ch. 779, Sec. 2, 70 Stat. 717; amended 
Sept. 24, 1963, Pub. L. 88-129, Sec. 2(a), 77 Stat. 164, defined 
``Council'', ``construction'', ``cost of construction'', ``nonprofit 
institution'', and ``sciences related to health'' as applicable to 
grants for construction of health research facilities, prior to repeal 
by Pub. L. 94-484, title II, Sec. 201(a), Oct. 12, 1976, 90 Stat. 2246.
    A prior section 702 of act July 1, 1944, was classified to section 
292b of this title prior to the general revision of this subchapter by 
Pub. L. 102-408.

                  Section Referred to in Other Sections

    This section is referred to in sections 201, 285n-2, 285o-2, 292e, 
300u-5, 300w-9 of this title; title 20 section 1132i-1.
