42 U.S.C. § 292w — Procedures for appeal of termination of

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.) Page 1011 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 292y Editorial Notes PRIOR PROVISIONS A prior section 727 of act July 1, 1944, was classified to section 294 of this title prior to the general revision of this subchapter by Pub. L. 102–408. Another prior section 727 of act July 1, 1944, was clas- sified to section 293g of this title prior to renumbering by Pub. L. 94–484. § 292x. Distribution of assets from loan funds (a) Distribution after termination of fund If a school terminates a loan fund established under an agreement pursuant to section 292q(b) of this title, or if the Secretary for good cause terminates the agreement with the school, there shall be a capital distribution as follows: (1) The Secretary shall first be paid an amount which bears the same ratio to such balance in such fund on the date of termi- nation of the fund as the total amount of the Federal capital contributions to such fund by the Secretary pursuant to section 292q(b)(2)(A) of this title bears to the total amount in such fund derived from such Federal capital con- tributions and from funds deposited therein pursuant to section 292q(b)(2)(B) of this title. (2) The remainder of such balance shall be paid to the school. (b) Payment of proportionate share to Secretary If a capital distribution is made under sub- section (a), the school involved shall, after the capital distribution, pay to the Secretary, not less often than quarterly, the same propor- tionate share of amounts received by the school in payment of principal or interest on loans made from the loan fund established pursuant to section 292q(b) of this title as was determined by the Secretary under subsection (a). (July 1, 1944, ch. 373, title VII, § 728, as added Pub. L. 102–408, title I, § 102, Oct. 13, 1992, 106 Stat. 2021.) Editorial Notes PRIOR PROVISIONS A prior section 728 of act July 1, 1944, was classified to section 294a of this title prior to the general revision of this subchapter by Pub. L. 102–408. Another prior section 728 of act July 1, 1944, was clas- sified to section 293h of this title prior to renumbering by Pub. L. 94–484. § 292y. General provisions (a) Date certain for applications The Secretary shall from time to time set dates by which schools must file applications for Federal capital contributions. (b) Contingent reduction in allotments If the total of the amounts requested for any fiscal year in such applications exceeds the amounts appropriated under this section for that fiscal year, the allotment to the loan fund of each such school shall be reduced to which- ever of the following is the smaller: (A) the amount requested in its application; or (B) an amount which bears the same ratio to the amounts appropriated as the number of students estimated by the Secretary to be enrolled in such school during such fiscal year bears to the estimated total number of students in all such schools during such year. Amounts remaining after allotment under the preceding sentence shall be reallotted in accordance with clause (B) of such sentence among schools whose applica- tions requested more than the amounts so allot- ted to their loan funds, but with such adjust- ments as may be necessary to prevent the total allotted to any such school’s loan fund from ex- ceeding the total so requested by it. (c) Allotment of excess funds Funds available in any fiscal year for payment to schools under this subpart which are in excess of the amount appropriated pursuant to this sec- tion for that year shall be allotted among schools in such manner as the Secretary deter- mines will best carry out the purposes of this subpart. (d) Payment of installments to schools Allotments to a loan fund of a school shall be paid to it from time to time in such install- ments as the Secretary determines will not re- sult in unnecessary accumulations in the loan fund at such school. (e) Disposition of funds returned to Secretary (1) Expenditure for Federal capital contribu- tions Subject to section 292s(b)(5) of this title, any amounts from student loan funds under sec- tion 292q of this title that are returned to the Secretary by health professions schools shall be expended to make Federal capital contribu- tions to such funds. (2) Date certain for contributions Amounts described in paragraph (1) that are returned to the Secretary shall be obligated before the end of the succeeding fiscal year. (3) Preference in making contributions In making Federal capital contributions to student loans funds under section 292q of this title for a fiscal year from amounts described in paragraph (1), the Secretary shall give pref- erence to health professions schools of the same disciplines as the health professions schools returning such amounts for the period during which the amounts expended for such contributions were received by the Secretary. Any such amounts that, prior to being so re- turned, were available only for the purpose of loans under this subpart to individuals from disadvantaged backgrounds shall be available only for such purpose. (f) Funding for certain medical schools (1) Authorization of appropriations For the purpose of making Federal capital contributions to student loan funds estab- lished under section 292q of this title by schools of medicine or osteopathic medicine, there is authorized to be appropriated $10,000,000 for each of the fiscal years 1994 through 1996. (2) Minimum requirements (A) Subject to subparagraph (B), the Sec- retary may make a Federal capital contribu- tion pursuant to paragraph (1) only if the