
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: 42USC297n]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                    CHAPTER 6A--PUBLIC HEALTH SERVICE
 
              SUBCHAPTER VI--NURSING WORKFORCE DEVELOPMENT
 
                          Part E--Student Loans
 
Sec. 297n. Loan repayment program


(a) In general

    In the case of any individual--
        (1) who has received a baccalaureate or associate degree in 
    nursing (or an equivalent degree), a diploma in nursing, or a 
    graduate degree in nursing;
        (2) who obtained (A) one or more loans from a loan fund 
    established under subpart II,\1\ or (B) any other educational loan 
    for nurse training costs; and
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    \1\ See References in Text note below.
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        (3) who enters into an agreement with the Secretary to serve as 
    nurse for a period of not less than two years in an Indian Health 
    Service health center, in a Native Hawaiian health center, in a 
    public hospital, in a migrant health center, in a community health 
    center, in a rural health clinic, or in a public or nonprofit 
    private health facility determined by the Secretary to have a 
    critical shortage of nurses;

the Secretary shall make payments in accordance with subsection (b) of 
this section, for and on behalf of that individual, on the principal of 
and interest on any loan of that individual described in paragraph (2) 
of this subsection which is outstanding on the date the individual 
begins the service specified in the agreement described in paragraph (3) 
of this subsection.

(b) Manner of payments

    The payments described in subsection (a) of this section shall be 
made by the Secretary as follows:
        (1) Upon completion by the individual for whom the payments are 
    to be made of the first year of the service specified in the 
    agreement entered into with the Secretary under subsection (a) of 
    this section, the Secretary shall pay 30 percent of the principal 
    of, and the interest on each loan of such individual described in 
    subsection (a)(2) of this section which is outstanding on the date 
    he began such practice.
        (2) Upon completion by that individual of the second year of 
    such service, the Secretary shall pay another 30 percent of the 
    principal of, and the interest on each such loan.
        (3) Upon completion by that individual of a third year of such 
    service, the Secretary shall pay another 25 percent of the principal 
    of, and the interest on each such loan.

(c) Payment by due date

    Notwithstanding the requirement of completion of practice specified 
in subsection (b) of this section, the Secretary shall, on or before the 
due date thereof, pay any loan or loan installment which may fall due 
within the period of service for which the borrower may receive payments 
under this subsection, upon the declaration of such borrower, at such 
times and in such manner as the Secretary may prescribe (and supported 
by such other evidence as the Secretary may reasonably require), that 
the borrower is then serving as described by subsection (a)(3) of this 
section, and that the borrower will continue to so serve for the period 
required (in the absence of this subsection) to entitle the borrower to 
have made the payments provided by this subsection for such period; 
except that not more than 85 percent of the principal of any such loan 
shall be paid pursuant to this subsection.

(d) Breach of agreement

    The Secretary may make payments under subsection (a) of this section 
on behalf of an individual only if the agreement under such subsection 
provides that section 298b-7(c) \1\ of this title is applicable to the 
individual.

(e) Preferences regarding participants

    In entering into agreements under subsection (a) of this section, 
the Secretary shall give preference--
        (1) to qualified applicants with the greatest financial need; 
    and
        (2) to qualified applicants that, with respect to health 
    facilities described in such subsection, agree to serve in such 
    health facilities located in geographic areas with a shortage of and 
    need for nurses, as determined by the Secretary.

(f) Definitions

    For purposes of this section:
        (1) The term ``community health center'' has the meaning given 
    such term in section 254c(a) \1\ of this title.
        (2) The term ``migrant health center'' has the meaning given 
    such term in section 254b(a)(1) \1\ of this title.
        (3) The term ``rural health clinic'' has the meaning given such 
    term in section 1395x(aa)(2) of this title.

(g) Authorization of appropriations

    For the purpose of payments under agreements entered into under 
subsection (a) of this section, there are authorized to be appropriated 
$5,000,000 for fiscal year 1993, and $6,000,000 for fiscal year 1994.

(h) Breach of agreement

                           (1) In general

        In the case of any program under this section under which an 
    individual makes an agreement to provide health services for a 
    period of time in accordance with such program in consideration of 
    receiving an award of Federal funds regarding education as a nurse 
    (including an award for the repayment of loans), the following 
    applies if the agreement provides that this subsection is 
    applicable:
            (A) In the case of a program under this section that makes 
        an award of Federal funds for attending an accredited program of 
        nursing (in this section referred to as a ``nursing program''), 
        the individual is liable to the Federal Government for the 
        amount of such award (including amounts provided for expenses 
        related to such attendance), and for interest on such amount at 
        the maximum legal prevailing rate, if the individual--
                (i) fails to maintain an acceptable level of academic 
            standing in the nursing program (as indicated by the program 
            in accordance with requirements established by the 
            Secretary);
                (ii) is dismissed from the nursing program for 
            disciplinary reasons; or
                (iii) voluntarily terminates the nursing program.

            (B) The individual is liable to the Federal Government for 
        the amount of such award (including amounts provided for 
        expenses related to such attendance), and for interest on such 
        amount at the maximum legal prevailing rate, if the individual 
        fails to provide health services in accordance with the program 
        under this section for the period of time applicable under the 
        program.

                (2) Waiver or suspension of liability

        In the case of an individual or health facility making an 
    agreement for purposes of paragraph (1), the Secretary shall provide 
    for the waiver or suspension of liability under such subsection if 
    compliance by the individual or the health facility, as the case may 
    be, with the agreements involved is impossible, or would involve 
    extreme hardship to the individual or facility, and if enforcement 
    of the agreements with respect to the individual or facility would 
    be unconscionable.

                    (3) Date certain for recovery

        Subject to paragraph (2), any amount that the Federal Government 
    is entitled to recover under paragraph (1) shall be paid to the 
    United States not later than the expiration of the 3-year period 
    beginning on the date the United States becomes so entitled.

                          (4) Availability

        Amounts recovered under paragraph (1) with respect to a program 
    under this section shall be available for the purposes of such 
    program, and shall remain available for such purposes until 
    expended.

(July 1, 1944, ch. 373, title VIII, Sec. 846, as added Pub. L. 102-408, 
title II, Sec. 211(a)(3), Oct. 13, 1992, 106 Stat. 2078; amended Pub. L. 
105-392, title I, Sec. 133(d), Nov. 13, 1998, 112 Stat. 3576.)

                       References in Text

    Subpart II, referred to in subsec. (a)(2), probably should be ``this 
part'' to reflect the redesignation of subpart II of former 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.
    Section 298b-7(c) of this title, referred to in subsec. (d), was 
repealed by Pub. L. 105-392, title I, Sec. 123(1), Nov. 13, 1998, 112 
Stat. 3562.
    Sections 254b and 254c of this title, referred to in subsec. (f)(1), 
(2), were in the original references to sections 329 and 330, meaning 
sections 329 and 330 of act July 1, 1944, which were omitted in the 
general amendment of subpart I (Sec. 254b et seq.) of part D of 
subchapter II of this chapter by Pub. L. 104-299, Sec. 2, Oct. 11, 1996, 
110 Stat. 3626. Sections 2 and 3(a) of Pub. L. 104-299 enacted new 
sections 330 and 330A of act July 1, 1944, which are classified, 
respectively, to sections 254b and 254c of this title.


                            Prior Provisions

    A prior section 297n, act July 1, 1944, ch. 373, title VIII, 
Sec. 847, as added Nov. 4, 1988, Pub. L. 100-607, title VII, Sec. 716, 
102 Stat. 3163; amended Nov. 18, 1988, Pub. L. 100-690, title II, 
Sec. 2616(b), 102 Stat. 4240, established a demonstration program for 
student loans with respect to service in certain health care facilities 
in underserved areas, prior to repeal by Pub. L. 102-408, title II, 
Sec. 210, Oct. 13, 1992, 106 Stat. 2078.
    A prior section 846 of act July 1, 1944, was classified to section 
297k of this title and was repealed by Pub. L. 97-35.


                               Amendments

    1998--Subsec. (h). Pub. L. 105-392 added subsec. (h).


  Reference to Community, Migrant, Public Housing, or Homeless Health 
              Center Considered Reference to Health Center

    Reference to community health center, migrant health center, public 
housing health center, or homeless health center considered reference to 
health center, see section 4(c) of Pub. L. 104-299, set out as a note 
under section 254b of this title.
