42 U.S.C. § 292n — Additional requirements for institutions

Page 1001 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 292n 1 So in original. Probably should be ‘‘of’’. lenders, and borrowers in case of default, and relating to such other matters as the Sec- retary determines to be necessary to assure that the purposes of this subpart will be achieved. Any term, condition, and covenant made pursuant to this paragraph or any other provisions of this subpart may be modified by the Secretary if the Secretary determines that modification is necessary to protect the finan- cial interest of the United States. (4) Subject to the specific limitations in the subpart, to consent to the modification of any note or other instrument evidencing a loan which has been insured by him under this sub- part (including modifications with respect to the rate of interest, time of payment of any installment of principal and interest or any portion thereof, or any other provision). (5) To enforce, pay, compromise, waive, or release any right, title, claim, lien, or demand, however acquired, including any equity or any right or 1 redemption. (b) Annual budget; accounts The Secretary shall, with respect to the finan- cial operations arising by reason of this sub- part— (1) prepare annually and submit a budget program as provided for wholly owned Govern- ment corporations by chapter 91 of title 31; and (2) maintain with respect to insurance under this subpart an integral set of accounts. (July 1, 1944, ch. 373, title VII, § 711, as added Pub. L. 102–408, title I, § 102, Oct. 13, 1992, 106 Stat. 2007.) Editorial Notes CODIFICATION In subsec. (b)(1), ‘‘chapter 91 of title 31’’ was sub- stituted for ‘‘the Government Corporation Control Act’’ on authority of Pub. L. 97–258, § 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Finance. PRIOR PROVISIONS A prior section 292j, act July 1, 1944, ch. 373, title VII, § 709, formerly § 710, as added Oct. 12, 1976, Pub. L. 94–484, title II, § 208, 90 Stat. 2252; renumbered § 709 and amended Aug. 13, 1981, Pub. L. 97–35, title XXVII, §§ 2720(b), 2721, 95 Stat. 915; Oct. 22, 1985, Pub. L. 99–129, title II, § 206, 99 Stat. 527, related to payment under grants, prior to the general revision of this subchapter by Pub. L. 102–408. Another prior section 292j, act July 1, 1944, ch. 373, title VII, § 711, as added Sept. 24, 1963, Pub. L. 88–129, § 3(b), 77 Stat. 173; amended Nov. 18, 1971, Pub. L. 92–157, title I, § 102(k)(2)(A), 85 Stat. 437, provided for technical assistance in connection with grants for construction of health research facilities, prior to repeal by Pub. L. 94–484, title II, § 201(a), Oct. 12, 1976, 90 Stat. 2246. § 292k. Participation by Federal credit unions in Federal, State, and private student loan in- surance programs Notwithstanding any other provision of law, Federal credit unions shall, pursuant to regula- tions of the Administrator of the National Cred- it Union Administration, have power to make insured loans to eligible students in accordance with the provisions of this subpart relating to Federal insured loans. (July 1, 1944, ch. 373, title VII, § 712, as added Pub. L. 102–408, title I, § 102, Oct. 13, 1992, 106 Stat. 2008.) Editorial Notes PRIOR PROVISIONS A prior section 292k, act July 1, 1944, ch. 373, title VII, § 710, formerly § 711, as added Oct. 12, 1976, Pub. L. 94–484, title II, § 209, 90 Stat. 2253; renumbered § 710 and amended Aug. 13, 1981, Pub. L. 97–35, title XXVII, §§ 2720(b), 2722, 95 Stat. 915, related to differential tui- tion and fees, prior to the general revision of this sub- chapter by Pub. L. 102–408. Statutory Notes and Related Subsidiaries TRANSFER OF FUNCTIONS Functions vested in Administrator of National Credit Union Administration transferred and vested in Na- tional Credit Union Administration Board pursuant to section 1752a of Title 12, Banks and Banking. § 292l. Determination of eligible students For purposes of determining eligible students under this part, in the case of a public school in a State that offers an accelerated, integrated program of study combining undergraduate premedical education and medical education leading to advanced entry, by contractual agree- ment, into an accredited four-year school of medicine which provides the remaining training leading to a degree of doctor of medicine, when- ever in this part a provision refers to a student at a school of medicine, such reference shall in- clude only a student enrolled in any of the last four years of such accelerated, integrated pro- gram of study. (July 1, 1944, ch. 373, title VII, § 713, as added Pub. L. 102–408, title I, § 102, Oct. 13, 1992, 106 Stat. 2008.) § 292m. Repayment by Secretary of loans of de- ceased or disabled borrowers If a borrower who has received a loan dies or becomes permanently and totally disabled (as determined in accordance with regulations of the Secretary), the Secretary shall discharge the borrower’s liability on the loan by repaying the amount owed on the loan from the account established under section 292i of this title. (July 1, 1944, ch. 373, title VII, § 714, as added Pub. L. 102–408, title I, § 102, Oct. 13, 1992, 106 Stat. 2008.) § 292n. Additional requirements for institutions and lenders (a) In general Notwithstanding any other provision of this subpart, the Secretary is authorized to prescribe such regulations as may be necessary to provide for— (1) a fiscal audit of an eligible institution with regard to any funds obtained from a bor- rower who has received a loan insured under this subpart; (2) the establishment of reasonable stand- ards of financial responsibility and appro- Page 1002 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 292o priate institutional capability for the adminis- tration by an eligible institution of a program of student financial aid with respect to funds obtained from a student who has received a loan insured under this subpart; (3) the limitation, suspension, or termi- nation of the eligibility under this subpart of any otherwise eligible institution, whenever the Secretary has determined, after notice and affording an opportunity for hearing, that such institution has violated or failed to carry out any regulation prescribed under this sub- part; (4) the collection of information from the borrower, lender, or eligible institution to as- sure compliance with the provisions of section 292d of this title; (5) the assessing of tuition or fees to bor- rowers in amounts that are the same or less than the amount of tuition and fees assessed to nonborrowers; (6) the submission, by the institution or the lender to the Office of Health Education As- sistance Loan Default Reduction, of informa- tion concerning each loan made under this subpart, including the date when each such loan was originated, the date when each such loan is sold, the identity of the loan holder and information concerning a change in the borrower’s status; (7) the withholding of services, including academic transcripts, financial aid tran- scripts, and alumni services, by an institution from a borrower upon the default of such bor- rower of a loan under this subpart, except in case of a borrower who has filed for bank- ruptcy; and (8) the offering, by the lender to the bor- rower, of a variety of repayment options, in- cluding fixed-rate, graduated repayment with negative amortization permitted, and income dependent payments for a limited period fol- lowed by level monthly payments. (b) Recording by institution of information on students The Secretary shall require an eligible institu- tion to record, and make available to the lender and to the Secretary upon request, the name, address, postgraduate destination, and other reasonable identifying information for each stu- dent of such institution who has a loan insured under this subpart. (c) Workshop for student borrowers Each participating eligible institution must have, at the beginning of each academic year, a workshop concerning the provisions of this sub- part that all student borrowers shall be required to attend. (July 1, 1944, ch. 373, title VII, § 715, as added Pub. L. 102–408, title I, § 102, Oct. 13, 1992, 106 Stat. 2009.) § 292o. Definitions For purposes of this subpart: (1) The term ‘‘eligible institution’’ means, with respect to a fiscal year, a school of medi- cine, osteopathic medicine, dentistry, veteri- nary medicine, optometry, podiatric medicine, pharmacy, public health, allied health, or chiropractic, or a graduate program in health administration or behavioral and mental health practice, including clinical psychology. (2) The term ‘‘eligible lender’’ means an eli- gible institution that became a lender under this subpart prior to September 15, 1992, an agency or instrumentality of a State, a finan- cial or credit institution (including an insur- ance company) which is subject to examina- tion and supervision by an agency of the United States or of any State, a pension fund approved by the Secretary for this purpose, or a nonprofit private entity designated by the State, regulated by the State, and approved by the Secretary. (3) The term ‘‘line of credit’’ means an ar- rangement or agreement between the lender and the borrower whereby a loan is paid out by the lender to the borrower in annual install- ments, or whereby the lender agrees to make, in addition to the initial loan, additional loans in subsequent years. (4) The term ‘‘school of allied health’’ means a program in a school of allied health (as de- fined in section 295p of this title) which leads to a masters’ degree or a doctoral degree. (5)(A) The term ‘‘default rate’’, in the case of an eligible entity, means the percentage con- stituted by the ratio of— (i) the principal amount of loans insured under this subpart— (I) that are made with respect to the en- tity and that enter repayment status after April 7, 1987; and (II) for which amounts have been paid under section 292f(a) of this title to insur- ance beneficiaries, exclusive of any loan for which amounts have been so paid as a result of the death or total and permanent disability of the borrower; exclusive of any loan for which the borrower begins pay- ments to the Secretary on the loan pursu- ant to section 292f(b) of this title and maintains payments for 12 consecutive months in accordance with the agreement involved (with the loan subsequently being included or excluded, as the case may be, as amounts paid under section 292f(a) of this title according to whether further de- faults occur and whether with respect to the default involved compliance with such requirement regarding 12 consecutive months occurs); and exclusive of any loan on which payments may not be recovered by reason of the obligation under the loan being discharged in bankruptcy under title 11; to (ii) the total principal amount of loans in- sured under this subpart that are made with respect to the entity and that enter repay- ment status after April 7, 1987. (B) For purposes of subparagraph (A), a loan insured under this subpart shall be considered to have entered repayment status if the appli- cable period described in subparagraph (B) of section 292d(a)(2) of this title regarding the loan has expired (without regard to whether any period described in subparagraph (C) of such section is applicable regarding the loan). (C) For purposes of subparagraph (A), the term ‘‘eligible entity’’ means an eligible insti-