42 U.S.C. § 292t — Individuals from disadvantaged back-

Page 1009 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 292t Services Administration in accordance with the pre- ceding sentence.’’ § 292t. Individuals from disadvantaged back- grounds (a) Fund agreements regarding certain amounts With respect to amounts appropriated under subsection (f), each agreement entered into under section 292q of this title with a school shall provide (in addition to the provisions re- quired in subsection (b) of such section) that— (1) any Federal capital contribution made to the student loan fund of the school from such amounts, together with the school contribu- tion appropriate under subsection (b)(2)(B) of such section to the amount of the Federal cap- ital contribution, will be utilized only for the purpose of— (A) making loans to individuals from dis- advantaged backgrounds; and (B) the costs of the collection of the loans and interest on the loans; and (2) collections of principal and interest on loans made pursuant to paragraph (1), and any other earnings of the student loan fund attrib- utable to amounts that are in the fund pursu- ant to such paragraph, will be utilized only for the purpose described in such paragraph. (b) Minimum qualifications for schools The Secretary may not make a Federal capital contribution for purposes of subsection (a) for a fiscal year unless the health professions school involved— (1) is carrying out a program for recruiting and retaining students from disadvantaged backgrounds, including racial and ethnic mi- norities; and (2) is carrying out a program for recruiting and retaining minority faculty. (c) Certain agreements regarding education of students; date certain for compliance The Secretary may not make a Federal capital contribution for purposes of subsection (a) for a fiscal year unless the health professions school involved agrees— (1) to ensure that adequate instruction re- garding minority health issues is provided for in the curricula of the school; (2) with respect to health clinics providing services to a significant number of individuals who are from disadvantaged backgrounds, in- cluding members of minority groups, to enter into arrangements with 1 or more such clinics for the purpose of providing students of the school with experience in providing clinical services to such individuals; (3) with respect to public or nonprofit pri- vate secondary educational institutions and undergraduate institutions of higher edu- cation, to enter into arrangements with 1 or more such institutions for the purpose of car- rying out programs regarding the educational preparation of disadvantaged students, includ- ing minority students, to enter the health pro- fessions and regarding the recruitment of such individuals into the health professions; (4) to establish a mentor program for assist- ing disadvantaged students, including minor- ity students, regarding the completion of the educational requirements for degrees from the school; (5) to be carrying out each of the activities specified in any of paragraphs (1) through (4) by not later than 1 year after the date on which the first Federal capital contribution is made to the school for purposes of subsection (a); and (6) to continue carrying out such activities, and the activities specified in paragraphs (1) and (2) of subsection (b), throughout the period during which the student loan fund established pursuant to section 292q(b) of this title is in operation. (d) Availability of other amounts With respect to Federal capital contributions to student loan funds under agreements under section 292q(b) of this title, any such contribu- tions made before October 1, 1990, together with the school contributions appropriate under para- graph (2)(B) of such section to the amount of the Federal capital contributions, may be utilized for the purpose of making loans to individuals from disadvantaged backgrounds, subject to sec- tion 292s(a)(2)(B) of this title. (e) ‘‘Disadvantaged’’ defined For purposes of this section, the term ‘‘dis- advantaged’’, with respect to an individual, shall be defined by the Secretary. (f) Authorization of appropriations (1) Repealed. Pub. L. 105–392, title I, § 132(b), Nov. 13, 1998, 112 Stat. 3575 (2) Special consideration for certain schools In making Federal capital contributions to student loan funds for purposes of subsection (a), the Secretary shall give special consider- ation to health professions schools that have enrollments of underrepresented minorities above the national average for health profes- sions schools. (July 1, 1944, ch. 373, title VII, § 724, as added Pub. L. 102–408, title I, § 102, Oct. 13, 1992, 106 Stat. 2018; amended Pub. L. 105–392, title I, § 132, Nov. 13, 1998, 112 Stat. 3575.) Editorial Notes PRIOR PROVISIONS A prior section 724 of act July 1, 1944, was classified to section 293d of this title prior to the general revision of this subchapter by Pub. L. 102–408. AMENDMENTS 1998—Subsec. (f)(1). Pub. L. 105–392, § 132(b), struck out heading and text of par. (1). Text read as follows: ‘‘With respect to making Federal capital contributions to stu- dent loan funds for purposes of subsection (a) of this section, there is authorized to be appropriated for such contributions $8,000,000 for each of the fiscal years 1998 through 2002.’’ Pub. L. 105–392, § 132(a), substituted ‘‘$8,000,000 for each of the fiscal years 1998 through 2002’’ for ‘‘$15,000,000 for fiscal year 1993’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1998 AMENDMENT Pub. L. 105–392, title I, § 132(b), Nov. 13, 1998, 112 Stat. 3575, provided that the repeal of subsec. (f)(1) of this section is effective Oct. 1, 2002. Page 1010 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 292u § 292u. Administrative provisions The Secretary may agree to modifications of agreements or loans made under this subpart, and may compromise, waive, or release any right, title, claim, or demand of the United States arising or acquired under this subpart. (July 1, 1944, ch. 373, title VII, § 725, as added Pub. L. 102–408, title I, § 102, Oct. 13, 1992, 106 Stat. 2019.) Editorial Notes PRIOR PROVISIONS A prior section 725 of act July 1, 1944, was classified to section 293e of this title prior to the general revision of this subchapter by Pub. L. 102–408. Statutory Notes and Related Subsidiaries HEALTH PROFESSIONS EDUCATION FUND; AVAILABILITY OF FUND; DEPOSIT IN FUND OF: INTEREST PAYMENTS OR REPAYMENTS OF PRINCIPAL ON LOANS; TRANSFER OF EXCESS MONEYS TO GENERAL FUND OF THE TREASURY; AUTHORIZATION OF APPROPRIATIONS FOR PAYMENTS UNDER AGREEMENTS Pub. L. 94–484, title IV, § 406(b), (c), Oct. 12, 1976, 90 Stat. 2268, provided that: ‘‘(b) The health professions education fund created within the Treasury by section 744(d)(1) of the Public Health Service Act (as in effect before the date of en- actment of this Act) [former 42 U.S.C. 294d(d)(1)] shall remain available to the Secretary of Health, Edu- cation, and Welfare [now Health and Human Services] for the purpose of meeting his responsibilities respect- ing participations in obligations acquired under such section. The Secretary shall continue to deposit in such fund all amounts received by him as interest payments or repayments of principal on loans under such section 744 [former 42 U.S.C. 294d]. If at any time the Secretary determines the moneys in the fund exceed the present and any reasonable prospective future requirements of such fund, such excess may be transferred to the gen- eral fund of the Treasury. ‘‘(c) There are authorized to be appropriated without fiscal year limitation such sums as may be necessary to enable the Secretary to make payments under agree- ments entered into under section 744(b) [former 42 U.S.C. 294d(b)] of the Public Health Service Act before September 30, 1977.’’ § 292v. Provision by schools of information to students (a) In general With respect to loans made by a school under this subpart after June 30, 1986, each school, in order to carry out the provisions of sections 292q and 292r of this title, shall, at any time such school makes such a loan to a student under this subpart, provide thorough and adequate loan in- formation on loans made under this subpart to the student. The loan information required to be provided to the student by this subsection shall include— (1) the yearly and cumulative maximum amounts that may be borrowed by the student; (2) the terms under which repayment of the loan will begin; (3) the maximum number of years in which the loan must be repaid; (4) the interest rate that will be paid by the borrower and the minimum amount of the re- quired monthly payment; (5) the amount of any other fees charged to the borrower by the lender; (6) any options the borrower may have for deferral, cancellation, prepayment, consolida- tion, or other refinancing of the loan; (7) a definition of default on the loan and a specification of the consequences which will result to the borrower if the borrower defaults, including a description of any arrangements which may be made with credit bureau organi- zations; (8) to the extent practicable, the effect of ac- cepting the loan on the eligibility of the bor- rower for other forms of student assistance; and (9) a description of the actions that may be taken by the Federal Government to collect the loan, including a description of the type of information concerning the borrower that the Federal Government may disclose to (A) offi- cers, employees, or agents of the Department of Health and Human Services, (B) officers, employees, or agents of schools with which the Secretary has an agreement under this sub- part, or (C) any other person involved in the collection of a loan under this subpart. (b) Statement regarding loan Each school shall, immediately prior to the graduation from such school of a student who receives a loan under this subpart after June 30, 1986, provide such student with a statement specifying— (1) each amount borrowed by the student under this subpart; (2) the total amount borrowed by the stu- dent under this subpart; and (3) a schedule for the repayment of the amounts borrowed under this subpart, includ- ing the number, amount, and frequency of pay- ments to be made. (July 1, 1944, ch. 373, title VII, § 726, as added Pub. L. 102–408, title I, § 102, Oct. 13, 1992, 106 Stat. 2020.) Editorial Notes PRIOR PROVISIONS A prior section 726 of act July 1, 1944, was classified to section 293f of this title prior to the general revision of this subchapter by Pub. L. 102–408. Another prior section 726 of act July 1, 1944, was clas- sified to section 293f of this title prior to repeal by Pub. L. 94–484. § 292w. Procedures for appeal of termination of agreements In any case in which the Secretary intends to terminate an agreement with a school under this subpart, the Secretary shall provide the school with a written notice specifying such in- tention and stating that the school may request a formal hearing with respect to such termi- nation. If the school requests such a hearing within 30 days after the receipt of such notice, the Secretary shall provide such school with a hearing conducted by an administrative law judge. (July 1, 1944, ch. 373, title VII, § 727, as added Pub. L. 102–408, title I, § 102, Oct. 13, 1992, 106 Stat. 2020.)