
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: 42USC292y]

 
                 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
 
Sec. 292y. General provisions


(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.

(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.)


                            Prior Provisions

    A prior section 735 of act July 1, 1944, was classified to section 
294h of this title prior to the general revision of this subchapter by 
Pub. L. 102-408.


                               Amendments

    1998--Subsec. (e)(2). Pub. L. 105-392 reenacted heading without 
change and amended text of par. (2) generally. Prior to amendment, text 
read as follows: ``Amounts described in paragraph (1) that are returned 
to the Secretary before the fourth quarter of a fiscal year shall be 
obligated before the end of such fiscal year, and may not be obligated 
before the fourth quarter. For purposes of the preceding sentence, 
amounts returned to the Secretary during the last quarter of a fiscal 
year are deemed to have been returned during the first three quarters of 
the succeeding fiscal year.''
    1993--Subsec. (f). Pub. L. 103-43 added subsec. (f).
    1992--Subsec. (b). Pub. L. 102-531 inserted designations for cls. 
(A) and (B) in first sentence.


                    Effective Date of 1992 Amendment

    Section 313(c) of Pub. L. 102-531 provided that: ``The amendments 
described in this section [amending this section and sections 293j, 
293l, 294n, 295j, 295l, 295n, 295o, 296k, and 298b-7 of this title, 
repealing section 297j of this title, redesignating subpart IV of part B 
of subchapter VI of this chapter as subpart III, and amending provisions 
set out as a note under section 295k of this title] are made, and take 
effect, immediately after the enactment of the bill, H.R. 3508, of the 
One Hundred Second Congress [Pub. L. 102-408, approved Oct. 13, 1992].''
