42 U.S.C. § 292c — Sources of funds

Page 991 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 292d title I, § 102(k)(2)(A), 85 Stat. 437, related to National Advisory Council on Health Research Facilities, pro- viding for its establishment, composition, selection of members; its functions; and use of its services in ad- ministration of grants for construction of health re- search facilities, prior to repeal by Pub. L. 94–484, title II, § 201(a), Oct. 12, 1976, 90 Stat. 2246. A prior section 703 of act July 1, 1994, was classified to section 292c of this title prior to repeal by Pub. L. 99–129. AMENDMENTS 1998—Subsec. (a). Pub. L. 105–392 substituted ‘‘or be- havioral and mental health practice, including clinical psychology’’ for ‘‘or clinical psychology’’ in first sen- tence. § 292c. Sources of funds Loans made by eligible lenders in accordance with this subpart shall be insurable by the Sec- retary whether made from funds fully owned by the lender or from funds held by the lender in a trust or similar capacity and available for such loans. (July 1, 1944, ch. 373, title VII, § 704, as added Pub. L. 102–408, title I, § 102, Oct. 13, 1992, 106 Stat. 1996.) Editorial Notes PRIOR PROVISIONS A prior section 292c, act July 1, 1944, ch. 373, title VII, § 703, formerly § 799, as added Nov. 2, 1970, Pub. L. 91–519, title II, § 206, 84 Stat. 1354; amended Nov. 18, 1971, Pub. L. 92–157, title I, § 109, 85 Stat. 461; renumbered § 703 and amended Oct. 12, 1976, Pub. L. 94–484, title II, §§ 201(c), 203, 90 Stat. 2247, 2248; Aug. 13, 1981, Pub. L. 97–35, title XXVII, § 2717, 95 Stat. 914, related to advance funding for grants and contracts, prior to repeal by Pub. L. 99–129, title II, § 220(a), Oct. 22, 1985, 99 Stat. 543. Another prior section 292c, act July 1, 1944, ch. 373, title VII, § 704, as added July 30, 1956, 779, § 2, 70 Stat. 718; amended Aug. 27, 1958, Pub. L. 85–777, § 1(a), 72 Stat. 933; Oct. 5, 1961, Pub. L. 87–395, § 8(a), (d), 75 Stat. 827; Oct. 17, 1962, Pub. L. 87–838, § 4(a), 76 Stat. 1074; Aug. 9, 1965, Pub. L. 89–115, § 2(a), 79 Stat. 448; Aug. 16, 1968, Pub. L. 90–490, title IV, § 401(a), 82 Stat. 789, related to authorization of appropriations and availability of funds for grants for construction of health research fa- cilities, prior to repeal by Pub. L. 94–484, title II, § 201(a), Oct. 12, 1976, 90 Stat. 2246. A prior section 704 of act July 1, 1944, was classified to section 292d of this title prior to the general revision of this subchapter by Pub. L. 102–408. § 292d. Eligibility of borrowers and terms of in- sured loans (a) In general A loan by an eligible lender shall be insurable by the Secretary under the provisions of this subpart only if— (1) made to— (A) a student who— (i)(I) has been accepted for enrollment at an eligible institution, or (II) in the case of a student attending an eligible institution, is in good standing at that institution, as determined by the institution; (ii) is or will be a full-time student at the eligible institution; (iii) has agreed that all funds received under such loan shall be used solely for tuition, other reasonable educational ex- penses, including fees, books, and labora- tory expenses, and reasonable living ex- penses, incurred by such students; and (iv) in the case of a pharmacy student, has satisfactorily completed three years of training; or (B) an individual who— (i) has previously had a loan insured under this subpart when the individual was a full-time student at an eligible institu- tion; (ii) is in a period during which, pursuant to paragraph (2), the principal amount of such previous loan need not be paid; and (iii) has agreed that all funds received under the proposed loan shall be used sole- ly for repayment of interest due on pre- vious loans made under this subpart; (2) evidenced by a note or other written agreement which— (A) is made without security and without endorsement, except that if the borrower is a minor and such note or other written agreement executed by him would not, under the applicable law, create a binding obliga- tion, an endorsement may be required; (B) provides for repayment of the principal amount of the loan in installments over a period of not less than 10 years (unless soon- er repaid) nor more than 25 years beginning not earlier than 9 months nor later than 12 months after the date of— (i) the date on which— (I) the borrower ceases to be a partici- pant in an accredited internship or resi- dency program of not more than four years in duration; (II) the borrower completes the fourth year of an accredited internship or resi- dency program of more than four years in duration; or (III) the borrower, if not a participant in a program described in subclause (I) or (II), ceases to carry, at an eligible in- stitution, the normal full-time academic workload as determined by the institu- tion; or (ii) the date on which a borrower who is a graduate of an eligible institution ceases to be a participant in a fellowship training program not in excess of two years or a participant in a full-time educational ac- tivity not in excess of two years, which— (I) is directly related to the health pro- fession for which the borrower prepared at an eligible institution, as determined by the Secretary; and (II) may be engaged in by the borrower during such a two-year period which be- gins within twelve months after the completion of the borrower’s participa- tion in a program described in subclause (I) or (II) of clause (i) or prior to the completion of the borrower’s participa- tion in such program, except as provided in subparagraph (C), ex- cept that the period of the loan may not ex- ceed 33 years from the date of execution of the note or written agreement evidencing it, and except that the note or other written in-