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42 U.S.C. § 297n — Loan repayment and scholarship programs

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42 U.S.C. § 297n — Loan repayment and scholarship programs

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Source file: Laws/federal/codes/united-states-code/title-42/section-297n-loan-repayment-and-scholarship-programs--0f7f8c8cbc.md
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Source location: Title 42, Chapter 6A, § 297n; chapter-6a-public-health-service.md

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**(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,11 See References in Text note below. or (B) any other educational loan for nurse training costs; and (3) who enters into an agreement with the Secretary to serve as nurse for a period of not less than two years at a health care facility with a critical shortage of nurses, or in a 22 So in original. Probably should be “an”. accredited school of nursing, as defined by [section 296(2) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section296/2&num=0&edition=prelim), as nurse faculty; the Secretary shall make payments in accordance with subsection (b), 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) 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), the Secretary shall pay 30 percent of the principal of, and the interest on each loan of such individual described in subsection (a)(2) which is outstanding on the date the individual 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), 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), 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) Scholarship program** (1) **In general** — The Secretary shall (for fiscal years 2003 and 2004) and may (for fiscal years thereafter) carry out a program of entering into contracts with eligible individuals under which such individuals agree to serve as nurses for a period of not less than 2 years at a health care facility with a critical shortage of nurses, in consideration of the Federal Government agreeing to provide to the individuals scholarships for attendance at schools of nursing. (2) **Eligible individuals** — In this subsection, the term “eligible individual” means an individual who is enrolled or accepted for enrollment as a full-time or part-time student in a school of nursing. (3) **Service requirement** (A) *In general* — The Secretary may not enter into a contract with an eligible individual under this subsection unless the individual agrees to serve as a nurse at a health care facility with a critical shortage of nurses for a period of full-time service of not less than 2 years, or for a period of part-time service in accordance with subparagraph (B). (B) *Part-time service* — An individual may complete the period of service described in subparagraph (A) on a part-time basis if the individual has a written agreement that— (i) is entered into by the facility and the individual and is approved by the Secretary; and (ii) provides that the period of obligated service will be extended so that the aggregate amount of service performed will equal the amount of service that would be performed through a period of full-time service of not less than 2 years. (4) **Applicability of certain provisions** — The provisions of subpart III of part D of subchapter II shall, except as inconsistent with this section, apply to the program established in paragraph (1) in the same manner and to the same extent as such provisions apply to the National Health Service Corps Scholarship Program established in such subpart. **(e) Preferences regarding participants** In entering into agreements under subsection (a) or (d), the Secretary shall give preference to qualified applicants with the greatest financial need. **(f) Condition of agreement** The Secretary may make payments under subsection (a) 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. **(g) 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. **(h) Reports** Not later than 18 months after August 1, 2002, and annually thereafter, the Secretary shall prepare and submit to the Congress a report describing the programs carried out under this section, including statements regarding— (1) the number of enrollees, scholarships, loan repayments, and grant recipients; (2) the number of graduates; (3) the amount of scholarship payments and loan repayments made; (4) which educational institution the recipients attended; (5) the number and placement location of the scholarship and loan repayment recipients at health care facilities with a critical shortage of nurses; (6) the default rate and actions required; (7) the amount of outstanding default funds of both the scholarship and loan repayment programs; (8) to the extent that it can be determined, the reason for the default; (9) the demographics of the individuals participating in the scholarship and loan repayment programs; (10) justification for the allocation of funds between the scholarship and loan repayment programs; and (11) an evaluation of the overall costs and benefits of the programs. **(i) Allocations** Of the amounts appropriated under [section 298d(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section298d/b&num=0&edition=prelim),,33 So in original. the Secretary may, as determined appropriate by the Secretary, allocate amounts between the program under subsection (a) and the program under subsection (d).

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Federal law — U.S. Code and appendices · legal_authorities

42 U.S.C. § 254b — Health centers

**(a) “Health center” defined** (1) **In general** — For purposes of this section, the term “health center” means an entity that serves a population that is medically underserved, or a special medically underserved population comprised of migratory and seasonal agricultural workers, the homeless, and residents of public housing, by providing, either through the staff and supporting resources of the center or through contracts or cooperative arrangements— (A) required primary health services (as defined in subsection (b)(1)); and (B) as may be appropriate for particular centers, additional health services (as defined in subsection (b)(2)) necessary for the adequate support of the primary health services required under subparagraph (A); for all residents of the area served by the center (hereafter referred to in this section as the “catchment area”). (2) **Limitation** — The requirement in paragraph (1) to provide services for all residents within a catchment area shall not apply in the case of a health center receiving a grant only under subsection (g), (h), or (i). **(b) Definitions** For purposes of this section: (1) **Required primary health services** (A) *In general* — The term “required primary health services” means— (i) basic health services which, for purposes of this section, shall consist of— (I) health services related to family medicine, internal medicine, pediatrics, obstetrics, or gynecology that are furnished by physicians and where appropriate, physician assistants, nurse practitioners, and nurse midwives; (II) diagnostic laboratory and radiologic services; (III) preventive health services, including— (aa) prenatal and perinatal services; (bb) appropriate cancer screening; (cc) well-chil

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Federal law — U.S. Code and appendices · legal_authorities

42 U.S.C. § 296 — Definitions

As used in this subchapter: (1) **Eligible entities** — The term “eligible entities” means schools of nursing, nursing centers, academic health centers, State or local governments, and other public or private nonprofit entities determined appropriate by the Secretary that submit to the Secretary an application in accordance with [section 296a of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section296a&num=0&edition=prelim). (2) **School of nursing** — The term “school of nursing” means an accredited (as defined in paragraph 6) collegiate, associate degree, or diploma school of nursing in a State where graduates are— (A) authorized to sit for the National Council Licensure EXamination-Registered Nurse (NCLEX–RN); or (B) licensed registered nurses who will receive a graduate or equivalent degree or training to become an advanced education nurse as defined by [section 296j(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section296j/b&num=0&edition=prelim). (3) **Collegiate school of nursing** — The term “collegiate school of nursing” means a department, division, or other administrative unit in a college or university which provides primarily or exclusively a program of education in professional nursing and related subjects leading to the degree of bachelor of arts, bachelor of science, bachelor of nursing, or to an equivalent degree, or to a graduate degree in nursing, or to an equivalent degree, and including advanced training related to such program of education provided by such school, but only if such program, or such unit, college or university is accredited. (4) **Associate degree school of nursing** — The term “associate degree school of nursing” means a department, division, or ot

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Federal law — U.S. Code and appendices · legal_authorities

42 U.S.C. § 297b — Loan provisions

**(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 may not exceed $3,300 in the case of any student, except that for the final two academic years of the program involved, such total may not exceed $5,200. The aggregate of the loans for all years from such funds may not exceed $17,000 in the case of any student during fiscal years 2010 and 2011. After fiscal year 2011, such amounts shall be adjusted to provide for a cost-of-attendance increase for the yearly loan rate and the aggregate of the loans. 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

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Federal law — U.S. Code and appendices · legal_authorities

42 U.S.C. § 297o — Eligible individual student loan repayment

**(a) In general** The Secretary, acting through the Administrator of the Health Resources and Services Administration, may enter into an agreement with eligible individuals for the repayment of education loans, in accordance with this section, to increase the number of qualified nursing faculty. **(b) Agreements** Each agreement entered into under this subsection shall require that the eligible individual shall serve as a full-time member of the faculty of an accredited school of nursing, for a total period, in the aggregate, of at least 4 years during the 6-year period beginning on the later of— (1) the date on which the individual receives a master’s or doctorate nursing degree from an accredited school of nursing; or (2) the date on which the individual enters into an agreement under this subsection. **(c) Agreement provisions** Agreements entered into pursuant to subsection (b) shall be entered into on such terms and conditions as the Secretary may determine, except that— (1) not more than 10 months after the date on which the 6-year period described under subsection (b) begins, but in no case before the individual starts as a full-time member of the faculty of an accredited school of nursing 11 So in original. Probably should be followed by a comma. the Secretary shall begin making payments, for and on behalf of that individual, on the outstanding principal of, and interest on, any loan of that individual obtained to pay for such degree; (2) for an individual who has completed a master’s in nursing or equivalent degree in nursing— (A) payments may not exceed $10,000 per calendar year; and (B) total payments may not exceed $40,000 during the 2010 and 2011 fiscal years (after fiscal year 2011, such amounts shall be adjusted to provide for a cost-of-atten

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Federal law — U.S. Code and appendices · legal_authorities

42 U.S.C. § 297n — Loan repayment and scholarship pro-

Page 1106 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 297n 1 See References in Text note below. 2 So in original. Probably should be ‘‘an’’. (July 1, 1944, ch. 373, title VIII, § 842, as added Pub. L. 99–92, § 8(g), Aug. 16, 1985, 99 Stat. 399; amended Pub. L. 111–148, title V, § 5310(b)(2), Mar. 23, 2010, 124 Stat. 631.) Editorial Notes PRIOR PROVISIONS A prior section 297i, act July 1, 1944, ch. 373, title VIII, § 830, as added Nov. 18, 1971, Pub. L. 92–158, § 6(b)(2), 85 Stat. 477, relating to loan forgiveness, was trans- ferred 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, § 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, § 843, as added Nov. 4, 1988, Pub. L. 100–607, title VII, § 715, 102 Stat. 3162; amended Nov. 18, 1988, Pub. L. 100–690, title II, § 2616(a), 102 Stat. 4240; Aug. 16, 1989, Pub. L. 101–93, § 5(s), 103 Stat. 614, provided grant au- thority for scholarships for undergraduate education of professional nurses, prior to repeal by Pub. L. 102–531, title III, § 313(a)(11), (c), Oct. 27, 1992, 106 Stat. 3507, ef- fective 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, § 845, formerly § 860, as added Aug. 16, 1968, Pub. L. 90–490, title II, § 223(a), 82 Stat. 785; amended July 9, 1971,

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