42 U.S.C. § 297b — Loan provisions

Page 1098 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 297b 1 So in original. Subsec. (b)(4). Pub. L. 90–490, § 222(a)(2), substituted ‘‘1971’’ for ‘‘1969’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1985 AMENDMENTS Amendment by Pub. L. 99–129 effective June 30, 1984, see section 228(b)(5) of Pub. L. 99–129, set out as a note under section 254l of this title. Pub. L. 99–92, § 10, Aug. 16, 1985, 99 Stat. 402, provided that: ‘‘(a) Except as provided in subsection (b), this Act [enacting section 297i of this title, transferring section 296c to section 298b–5 of this title, amending this sec- tion, sections 296k, 296l, 296m, 297, 297–1, 297b, 297d, 297e, 298, 298b, and 298b–5 of this title, sections 1332, 1333, 1336, and 1341 of Title 15, Commerce and Trade, and sec- tion 6103 of Title 26, Internal Revenue Code, repealing sections 296 to 296b, 296d to 296f, 296j, 297h, and 297j of this title, and enacting provisions set out as notes under sections 201 and 298b–5 of this title and section 1333 of Title 15] and the amendments and repeals made by this Act shall take effect on October 1, 1985. ‘‘(b)(1) The provisions of section 9(c) of this Act [transferring section 296c of this title to section 298b–5 of this title, amending section 298b–5 of this title, and enacting provisions set out as notes under section 298b–5 of this title] and the amendment made by para- graph (1) of such section shall take effect on the date of enactment of this Act [Aug. 16, 1985]. ‘‘(2) The amendment made by section 8(a) of this Act [amending section 297a of this title] shall take effect June 30, 1984.’’ EFFECTIVE DATE OF 1975 AMENDMENT Pub. L. 94–63, title IX, § 905, July 29, 1975, 89 Stat. 355, provided that: ‘‘Except as may otherwise be specifically provided, the amendments made by this part [part B (§§ 905–937) of title IX of Pub. L. 94–63, enacting sections 296j to 296m of this title, amending sections 296, 296a, 296d, 296e, 297 to 297c, 297e, and 297j of this title, repeal- ing sections 296d, 296g, 296i, 297f, and 298c–7 of this title, and enacting provisions set out as notes under sections 296, 296a, 296d, 296e, 296m, 297, 297b, and 297f of this title] shall take effect July 1, 1975. The amendments made by this part to provisions of title VIII of the Public Health Service Act [42 U.S.C. 296 et seq.] (hereinafter in this part referred to as the ‘Act’) are made to such provi- sions as amended by part A of this title [amending sec- tions 296, 296d, 296e, 296g, 296i, 297j, and 298c–7 of this title].’’ Pub. L. 94–63, title IX, § 942, July 29, 1975, 89 Stat. 367, provided that: ‘‘The amendments made by section 941 [enacting section 298b–3 of this title, amending sections 296a to 296d, 296f, 297a to 297e, 297g to 297k, 298, and 298b of this title, and repealing section 298c–8 of this title] shall take effect July 1, 1975. Except as otherwise spe- cifically provided, the amendments made by section 941 to provisions of title VIII of the Act [42 U.S.C. 296 et seq.] are made to such provisions as in effect July 1, 1975, and as amended by part B of this title [see note set out above].’’ EFFECTIVE DATE OF 1968 AMENDMENT Amendment by section 222(c)(2) of Pub. L. 90–490 ap- plicable with respect to loans made after June 30, 1969, see section 222(i) of Pub. L. 90–490, set out as a note under section 297b of this title. § 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 regula- tions of the Secretary) made by schools of nurs- ing 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 in- volved, such total may not exceed $5,200. The ag- gregate 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 stu- dents 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 condi- tions as the school may determine; subject, how- ever, to such conditions, limitations, and re- quirements 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 ena- bling the student to complete his course of study; and except that— (1) such a loan may be made only to a stu- dent 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 bacca- laureate 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 of the school, of maintaining good standing in such course of study, and (C) with respect to any student enrolling in the school after June 30, 2000, is of financial need (as de- fined in regulations issued by the Secretary);; 1 (2) such a loan shall be repayable in equal or graduated periodic installments (with the right of the borrower to accelerate repayment) over the ten-year period which begins nine months after the student ceases to pursue a full-time or half-time course of study at a school of nursing, excluding from such 10-year period all (A) periods (up to three years) of (i) active duty performed by the borrower as a member of a uniformed service, or (ii) service as a volunteer under the Peace Corps Act [22 U.S.C. 2501 et seq.], (B) periods (up to ten years) during which the borrower is pursuing a full-time or half-time course of study at a col- legiate school of nursing leading to bacca- laureate degree in nursing or an equivalent de- gree, or to graduate degree in nursing, or is otherwise pursuing advanced professional training in nursing (or training to be a nurse anesthetist), and (C) such additional periods under the terms of paragraph (8) of this sub- section; (3) in the case of a student who received such a loan before September 29, 1995, an amount up to 85 per centum of any such loan made before such date (plus interest thereon) shall be can- celed for full-time employment as a profes- sional nurse (including teaching in any of the fields of nurse training and service as an ad- ministrator, supervisor, or consultant in any Page 1099 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 297b of the fields of nursing) in any public or non- profit private agency, institution, or organiza- tion (including neighborhood health centers), at the rate of 15 per centum of the amount of such loan (plus interest) unpaid on the first day of such service for each of the first, sec- ond, and third complete year of such service, and 20 per centum of such amount (plus inter- est) for each complete fourth and fifth year of such service; (4) the liability to repay the unpaid balance of such loan and accrued interest thereon shall be canceled upon the death of the borrower, or if the Secretary determines that he has be- come permanently and totally disabled; (5) such a loan shall bear interest on the un- paid balance of the loan, computed only for pe- riods during which the loan is repayable, at the rate of 5 percent per annum; (6) such a loan shall be made without secu- rity or endorsement, except that if the bor- rower is a minor and the note or other evi- dence of obligation executed by him would not, under the applicable law, create a binding obligation, either security or endorsement may be required; (7) no note or other evidence of any such loan may be transferred or assigned by the school making the loan except that, if the bor- rower transfers to another school partici- pating in the program under this part such note or other evidence of a loan may be trans- ferred to such other school; and (8) pursuant to uniform criteria established by the Secretary, the repayment period estab- lished under paragraph (2) for any student bor- rower who during the repayment period failed to make consecutive payments and who, dur- ing the last 12 months of the repayment pe- riod, has made at least 12 consecutive pay- ments may be extended for a period not to ex- ceed 10 years. (c) Cancellation Where all or any part of a loan, or interest, is canceled under this section, the Secretary shall pay to the school an amount equal to the school’s proportionate share of the canceled por- tion, as determined by the Secretary. (d) Installments Any loan for any year by a school from a stu- dent loan fund established pursuant to an agree- ment under this part shall be made in such in- stallments as may be provided in regulations of the Secretary or such agreement and, upon no- tice to the Secretary by the school that any re- cipient of a loan is failing to maintain satisfac- tory standing, any or all further installments of his loan shall be withheld, as may be appro- priate. (e) Availability to eligible students in need An agreement under this part with any school shall include provisions designed to make loans from the student loan fund established there- under reasonably available (to the extent of the available funds in such fund) to all eligible stu- dents in the school in need thereof. (f) Penalty for late payment Subject to regulations of the Secretary and in accordance with this section, a school shall as- sess a charge with respect to a loan from the loan fund established pursuant to an agreement under this part for failure of the borrower to pay all or any part of an installment when it is due and, in the case of a borrower who is entitled to deferment of the loan under subsection (b)(2) or cancellation of part or all of the loan under sub- section (b)(3), for any failure to file timely and satisfactory evidence of such entitlement. No such charge may be made if the payment of such installment or the filing of such evidence is made within 60 days after the date on which such installment or filing is due. The amount of any such charge may not exceed an amount equal to 6 percent of the amount of such install- ment. The school may elect to add the amount of any such charge to the principal amount of the loan as of the first day after the day on which such installment or evidence was due, or to make the amount of the charge payable to the school not later than the due date of the next installment after receipt by the borrower of notice of the assessment of the charge. (g) Minimum monthly repayment A school may provide in accordance with regu- lations of the Secretary, that during the repay- ment period of a loan from a loan fund estab- lished pursuant to an agreement under this part payments of principal and interest by the bor- rower with respect to all the outstanding loans made to him from loan funds so established shall be at a rate equal to not less than $40 per month. (h) Loan cancellation Notwithstanding the amendment made by sec- tion 6(b) of the Nurse Training Act of 1971 to this section— (A) any person who obtained one or more loans from a loan fund established under this part, who before November 18, 1971, became el- igible for cancellation of all or part of such loans (including accrued interest) under this section (as in effect on the day before such date), and who on such date was not engaged in a service for which loan cancellation was authorized under this section (as so in effect), may at any time elect to receive such can- cellation in accordance with this subsection (as so in effect); and (B) in the case of any person who obtained one or more loans from a loan fund established under this part and who on such date was en- gaged in a service for which cancellation of all or part of such loans (including accrued inter- est) was authorized under this section (as so in effect), this section (as so in effect) shall con- tinue to apply to such person for purposes of providing such loan cancellation until he ter- minates such service. (i) Loan repayment Upon application by a person who received, and is under an obligation to repay, any loan made to such person as a nursing student, the Secretary may undertake to repay (without li- ability to the applicant) all or any part of such loan, and any interest or portion thereof out- standing thereon, upon his determination, pur- suant to regulations establishing criteria there- for, that the applicant— Page 1100 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 297b (1) failed to complete the nursing studies with respect to which such loan was made; (2) is in exceptionally needy circumstances; and (3) has not resumed, or cannot reasonably be expected to resume, such nursing studies with- in two years following the date upon which the applicant terminated the studies with respect to which such loan was made. (j) Collection by Secretary of loan in default; pre- conditions and procedures applicable The Secretary is authorized to attempt to col- lect any loan which was made under this part, which is in default, and which was referred to the Secretary by a school of nursing with which the Secretary has an agreement under this part, on behalf of that school under such terms and conditions as the Secretary may prescribe (in- cluding reimbursement from the school’s stu- dent loan fund for expenses the Secretary may reasonably incur in attempting collection), but only if the school has complied with such re- quirements as the Secretary may specify by reg- ulation with respect to the collection of loans under this part. A loan so referred shall be treat- ed as a debt subject to section 5514 of title 5. Amounts collected shall be deposited in the school’s student loan fund. Whenever the Sec- retary desires the institution of a civil action regarding any such loan, the Secretary shall refer the matter to the Attorney General for ap- propriate action. (k) Elimination of statute of limitation for loan collections (1) Purpose It is the purpose of this subsection to ensure that obligations to repay loans under this sec- tion are enforced without regard to any Fed- eral or State statutory, regulatory, or admin- istrative limitation on the period within which debts may be enforced. (2) Prohibition Notwithstanding any other provision of Fed- eral or State law, no limitation shall termi- nate the period within which suit may be filed, a judgment may be enforced, or an offset, gar- nishment, or other action may be initiated or taken by a school of nursing that has an agreement with the Secretary pursuant to sec- tion 297a of this title that is seeking the re- payment of the amount due from a borrower on a loan made under this part after the de- fault of the borrower on such loan. (July 1, 1944, ch. 373, title VIII, § 836, formerly § 823, as added Pub. L. 88–581, § 2, Sept. 4, 1964, 78 Stat. 914; amended Pub. L. 89–290, § 4(g)(2), Oct. 22, 1965, 79 Stat. 1058; Pub. L. 90–490, title II, § 222(b), (c)(1), Aug. 16, 1968, 82 Stat. 783, 784; Pub. L. 92–158, § 6(a), (b)(1), (e), Nov. 18, 1971, 85 Stat. 475, 476, 478; renumbered § 836 and amended Pub. L. 94–63, title IX, §§ 936(b), 941(h)(1), (2), (5), (i)(1), July 29, 1975, 89 Stat. 363, 365; Pub. L. 96–76, title I, § 112, Sept. 29, 1979, 93 Stat. 580; Pub. L. 97–35, title XXVII, § 2757(b), Aug. 13, 1981, 95 Stat. 931; Pub. L. 99–92, § 8(b)–(d), Aug. 16, 1985, 99 Stat. 398; Pub. L. 100–607, title VII, §§ 713(b)–(g), 714(a)–(c), Nov. 4, 1988, 102 Stat. 3160, 3161; Pub. L. 101–93, § 5(r), Aug. 16, 1989, 103 Stat. 614; Pub. L. 102–408, title II, § 211(a)(1), Oct. 13, 1992, 106 Stat. 2078; Pub. L. 105–392, title I, § 133(a)–(c)(1), Nov. 13, 1998, 112 Stat. 3575; Pub. L. 111–148, title V, §§ 5202, 5310(b)(2)–(4), Mar. 23, 2010, 124 Stat. 607, 631.) Editorial Notes REFERENCES IN TEXT The Peace Corps Act, referred to in subsec. (b)(2), is Pub. L. 87–293, Sept. 22, 1961, 75 Stat. 612, which is clas- sified principally to chapter 34 (§ 2501 et seq.) of Title 22, Foreign Relations and Intercourse. For complete clas- sification of this Act to the Code, see Short Title note set out under section 2501 of Title 22 and Tables. Section 6(b) of the Nurse Training Act of 1971, re- ferred to in subsec. (h), is section 6(b) of Pub. L. 92–158, Nov. 18, 1971, 85 Stat. 477. Section 6(b)(1) amended sub- sec. (b)(3) of this section, added former subsec. (h) of this section, and enacted the provisions editorially classified to subsec. (i) [now (h)] of this section. Section 6(b)(2) enacted section 297i of this title which was transferred and redesignated as subsec. (j) [now (i)] of this section pursuant to section 941(h)(5) of Pub. L. 94–63. CODIFICATION Provisions of subsec. (h) of this section were, in the original, enacted by section 6(b)(1) of Pub. L. 92–158, without directory language with respect to classifica- tion in the Code and were editorially set out as subsec. (i) [now (h)] as the probable intent of Congress. AMENDMENTS 2010—Subsec. (a). Pub. L. 111–148, § 5310(b)(2), sub- stituted ‘‘this part’’ for ‘‘this subpart’’. Pub. L. 111–148, § 5202(a), substituted ‘‘$3,300’’ for ‘‘$2,500’’, ‘‘$5,200’’ for ‘‘$4,000’’, and ‘‘$17,000 in the case of any student during fiscal years 2010 and 2011. After fis- cal 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.’’ for ‘‘$13,000 in the case of any student.’’ Subsec. (b)(1)(C). Pub. L. 111–148, § 5202(b)(1), sub- stituted ‘‘2000’’ for ‘‘1986’’. Subsec. (b)(3). Pub. L. 111–148, § 5202(b)(2), substituted ‘‘September 29, 1995’’ for ‘‘September 29, 1979’’. Subsecs. (b)(7), (d) to (g). Pub. L. 111–148, § 5310(b)(2), substituted ‘‘this part’’ for ‘‘this subpart’’. Subsec. (h). Pub. L. 111–148, § 5310(b)(3), struck out concluding provisions which read as follows: ‘‘Nothing in this subsection shall be construed to prevent any person from entering into an agreement for loan can- cellation under subsection (h) of this section (as amended by section 6(b)(2) of the Nurse Training Act of 1971).’’ Pub. L. 111–148, § 5310(b)(2), substituted ‘‘this part’’ for ‘‘this subpart’’ in two places. Subsec. (j). Pub. L. 111–148, § 5310(b)(2), substituted ‘‘this part’’ for ‘‘this subpart’’ wherever appearing. Subsecs. (k), (l). Pub. L. 111–148, § 5310(b)(4), redesig- nated subsec. (l) as (k). Subsec. (l)(2). Pub. L. 111–148, § 5310(b)(2), substituted ‘‘this part’’ for ‘‘this subpart’’. 1998—Subsec. (b)(1). Pub. L. 105–392, § 133(a)(1), sub- stituted semicolon for period at end. Subsec. (b)(2)(C). Pub. L. 105–392, § 133(a)(2), added sub- par. (C). Subsec. (b)(8). Pub. L. 105–392, § 133(a)(3), (4), added par. (8). Subsec. (g). Pub. L. 105–392, § 133(b), substituted ‘‘$40’’ for ‘‘$15’’. Subsec. (l). Pub. L. 105–392, § 133(c)(1), added subsec. (l). 1992—Subsecs. (h) to (k). Pub. L. 102–408 redesignated subsecs. (i) to (k) as (h) to (j), respectively, and struck out former subsec. (h) which provided for a loan repay- ment program. See section 297n of this title. Page 1101 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 297b 1989—Subsec. (h)(6)(C). Pub. L. 101–93 substituted ‘‘means a skilled nursing facility, as such term is de- fined in section 1395x(j) of this title, and an inter- mediate care facility, as such term is defined in section 1396d(c) of this title’’ for ‘‘means an intermediate care facility and a skilled nursing facility, as such terms are defined in subsections (c) and (i), respectively, of sec- tion 1396d of this title’’. 1988—Subsec. (a). Pub. L. 100–607, § 713(b), (c), inserted in first sentence ‘‘, except that for the final two aca- demic years of the program involved, such total may not exceed $4,000’’, substituted ‘‘$13,000’’ for ‘‘$10,000’’ in second sentence, and inserted ‘‘, to persons with excep- tional financial need,’’ after ‘‘nurses’’ in third sentence. Subsec. (b)(1)(C). Pub. L. 100–607, § 713(d), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: ‘‘if a student who will enroll in the school after June 30, 1986, is of exceptional financial need (as defined by regulations of the Secretary)’’. Subsec. (b)(2)(B). Pub. L. 100–607, § 713(e), substituted ‘‘ten’’ for ‘‘five’’ and inserted ‘‘or half-time’’ after ‘‘a full-time’’. Subsec. (b)(5). Pub. L. 100–607, § 713(f), substituted ‘‘5 percent’’ for ‘‘6 per centum’’. Subsec. (h)(1)(C). Pub. L. 100–607, § 714(a), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: ‘‘who enters into an agreement with the Secretary to serve as a nurse for a period of at least two years in an area in a State determined by the Sec- retary, after consultation with the appropriate State health authority (as determined by the Secretary by regulations), to have a shortage of and need for nurses;’’. Subsecs. (h)(5), (6). Pub. L. 100–607, § 714(b), (c), added pars. (5) and (6). Subsec. (j)(2) to (4). Pub. L. 100–607, § 713(g), redesig- nated par. (4) as (3) and struck out former par. (3) which related to low-income or disadvantaged family. 1985—Subsec. (b)(1). Pub. L. 99–92, § 8(b), which di- rected that cl. (C) be inserted before period, was exe- cuted by inserting cl. (C) before the semicolon as the probable intent of Congress. Subsec. (f). Pub. L. 99–92, § 8(c), substituted ‘‘the Sec- retary and in accordance with this section, a school shall’’ for ‘‘the Secretary, a school may’’, and sub- stituted provisions relating to charges not allowed in certain cases and allowed where payment is late for provisions relating to maximum amount of late charges. Subsec. (k). Pub. L. 99–92, § 8(d), added subsec. (k). 1981—Subsec. (b)(5). Pub. L. 97–35 substituted ‘‘6’’ for ‘‘3’’. 1979—Subsec. (b)(3). Pub. L. 96–76 inserted provisions requiring conditions to be applicable to loans arising prior to Sept. 29, 1979. 1975—Subsec. (a). Pub. L. 94–63, § 941(h)(1), substituted ‘‘subpart’’ for ‘‘part’’. Subsec. (b). Pub. L. 94–63, § 941(h)(2), struck out ‘‘of Health, Education, and Welfare’’ after ‘‘Secretary’’. Subsec. (b)(2)(B). Pub. L. 94–63, § 936(b), inserted ‘‘(or training to be a nurse anesthetist)’’ after ‘‘professional training in nursing’’. Subsec. (b)(7). Pub. L. 94–63, § 941(h)(1), substituted ‘‘subpart’’ for ‘‘part’’. Subsec. (c). Pub. L. 94–63, § 941(h)(2), struck out ‘‘of Health, Education, and Welfare’’ after ‘‘Secretary’’. Subsecs. (d) to (i). Pub. L. 94–63, § 941(h)(1), sub- stituted ‘‘subpart’’ for ‘‘part’’ whenever appearing. Subsec. (j). Pub. L. 94–63, § 941(h)(5), added subsec. (j), formerly classified as section 297i of this title pursuant to enactment as section 830 of act July 1, 1944, ch. 373. Section 941(h)(5)(A) of Pub. L. 94–63 transferred such former section to this section and section 941(h)(5)(B) redesignated provision as subsec. (j). 1971—Subsec. (a). Pub. L. 92–158, § 6(a), substituted ‘‘$2,500’’ for ‘‘$1,500’’ and ‘‘$10,000’’ for ‘‘$60,000’’. Subsec. (b)(1). Pub. L. 92–158, § 6(e), substituted ‘‘full- time or half-time course of study’’ for ‘‘full-time course of study’’. Subsec. (b)(2). Pub. L. 92–158, § 6(e), in text preceding cl. (A), substituted ‘‘full-time or half-time course of study’’ for ‘‘full-time course of study’’. Subsec. (b)(3). Pub. L. 92–158, § 6(b)(1)(A), substituted provisions cancelling up to 85 per centum of loan, for provisions cancelling up to 50 per centum of loan, where borrower holds full-time employment as a pro- fessional nurse, added to areas of possible employment under this par. by inserting reference to any public or nonprofit organization including neighborhood health centers, substituted, with regard to the rate of can- cellation of loan, the rate of 15 per centum of the amount unpaid on the first day of service, continuing at such rate with each of the first, second and third complete years of such service and 20 per centum of such amount with each complete fourth and fifth year of service for the rate of 10 per centum of the amount unpaid on the first day of service and to continue with each complete year of service, and struck out reference to 15 per centum rate of cancellation per complete year of service plus, for the purpose of such higher rate, the cancellation of an additional 50 per centum of such loan where such service is in a public or nonprofit hospital in any area which is determined, in accordance with the regulations of the Secretary, to be in an area hav- ing a substantial shortage of such nurses at such hos- pitals. Subsec. (h). Pub. L. 92–158, § 6(b)(1)(B), added subsec. (h). 1968—Subsec. (a). Pub. L. 90–490, § 222(b)(1), increased limitation on amount of annual loans per student from $1,000 to $1,500, required preferences in granting of loans to licensed practical nurses, and limited aggre- gate of loans for all years to any one student to $6,000. Subsec. (b)(2). Pub. L. 90–490, § 222(b)(2), provided for commencement of repayment nine months, rather than one year, after student ceases to pursue full-time course of study, excluded from ten-year repayment pe- riod periods (up to three years) of active duty as mem- ber of a uniformed service or Peace Corps volunteer service and periods (up to five years) as undergraduate or graduate degree student in nursing, including ad- vanced professional training in nursing, and struck out prohibition against accrual of interest on loans. Subsec. (b)(3). Pub. L. 90–490, § 222(b)(3), authorized cancellation of an additional 50 per centum of a nursing student loan (plus interest) at rate of 15 per centum for each complete year of service in a public or other non- profit hospital in an area with a substantial shortage of nurses. Subsec. (b)(5). Pub. L. 90–490, § 222(b)(4), struck out provisions for an interest rate which is the greater of 3 per centum or the going Federal rate at time loan is made, defining going Federal rate, and making rate de- termined for first loan applicable to any subsequent loan. Subsecs. (f), (g). Pub. L. 90–490, § 222(c)(1), added sub- secs. (f) and (g). 1965—Subsec. (b)(5). Pub. L. 89–290 applied rate of in- terest for first loan obtained by a student from a loan fund established under this part to any subsequent loan to such student from such fund during his course of study. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1998 AMENDMENT Pub. L. 105–392, title I, § 133(c)(2), Nov. 13, 1998, 112 Stat. 3576, provided that: ‘‘The amendment made by paragraph (1) [amending this section] shall be effective with respect to actions pending on or after the date of enactment of this Act [Nov. 13, 1998].’’ EFFECTIVE DATE OF 1985 AMENDMENT Amendment by Pub. L. 99–92 effective Oct. 1, 1985, see section 10(a) of Pub. L. 99–92, set out as a note under section 297a of this title. EFFECTIVE DATE OF 1975 AMENDMENT Pub. L. 94–63, title IX, § 936(b), July 29, 1975, 89 Stat. 363, provided that the amendment made by that section is effective with respect to periods of training to be a nurse anesthetist undertaken on or after July 29, 1975. Page 1102 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 297c 1 See References in Text note below. Amendment by section 941(h)(1), (2), (5), (i)(1) of Pub. L. 94–63 effective July 1, 1975, see section 942 of Pub. L. 94–63, set out as a note under section 297a of this title. EFFECTIVE DATE OF 1971 AMENDMENT Pub. L. 92–158, § 6(a)(1), Nov. 18, 1971, 85 Stat. 475, pro- vided that the amendment made by that section is ef- fective with respect to academic years (or their equiva- lent as determined under regulations of the Secretary of Health, Education, and Welfare under this section) beginning after June 30, 1971. EFFECTIVE DATE OF 1968 AMENDMENT Pub. L. 90–490, title II, § 222(i), Aug. 16, 1968, 82 Stat. 785, provided that: ‘‘The amendments made by sub- section (b)(1) and (2) [amending this section] shall apply with respect to all loans made after June 30, 1969, and with respect to loans made from a student loan fund established under an agreement pursuant to sec- tion 822 [now 835] [42 U.S.C. 297a], before July 1, 1969, to the extent agreed to by the school which made the loans and the Secretary (but then only for years begin- ning after June 30, 1968). The amendments made by sub- section (b)(4) [amending this section] and subsection (c) [amending this section and section 297a of this title] shall apply with respect to loans made after June 30, 1969. The amendment made by subsection (h) [enacting section 297h of this title] shall apply with respect to ap- propriations for fiscal years beginning after June 30, 1969. The amendment made by subsection (b)(3) [amend- ing this section] shall apply with respect to service, specified in section 823(b)(3) [now 836(b)(3)] of such Act [42 U.S.C. 297b(b)(3)] performed during academic years beginning after the enactment of this Act, whether the loan was made before or after such enactment [Aug. 16, 1968].’’ CONSTRUCTION OF 1992 AMENDMENT Pub. L. 102–408, title II, § 211(b), Oct. 13, 1992, 106 Stat. 2079, provided that: ‘‘With respect to section 836(h) of the Public Health Service Act [former 42 U.S.C. 297b(h)], as in effect prior to the date of the enactment of this Act [Oct. 13, 1992], any agreement entered into under such section that is in effect on the day before such date remains in effect in accordance with the terms of the agreement, notwithstanding the amend- ment made by subsection (a) of this section [enacting section 297n of this title, amending this section, and re- pealing section 297c–1 of this title].’’ § 297c. Repealed. Pub. L. 105–392, title I, § 123(3), Nov. 13, 1998, 112 Stat. 3562 Section, act July 1, 1944, ch. 373, title VIII, § 837, for- merly § 824, as added Pub. L. 88–581, § 2, Sept. 4, 1964, 78 Stat. 915; amended Pub. L. 89–751, § 6(b), Nov. 3, 1966, 80 Stat. 1235; Pub. L. 90–490, title II, § 222(d), Aug. 16, 1968, 82 Stat. 784; Pub. L. 92–52, § 3(a), July 9, 1971, 85 Stat. 144; Pub. L. 92–158, § 6(c), Nov. 18, 1971, 85 Stat. 477; Pub. L. 93–385, § 3(a), Aug. 23, 1974, 88 Stat. 741; renumbered § 837 and amended Pub. L. 94–63, title IX, §§ 936(c), 941(i)(1), (3), July 29, 1975, 89 Stat. 363, 365, 366; Pub. L. 96–76, title I, § 109(b), Sept. 29, 1979, 93 Stat. 580; Pub. L. 97–35, title XXVII, § 2757(c), Aug. 13, 1981, 95 Stat. 931, authorized appropriations for student loan funds for certain fiscal years. § 297c–1. Repealed. Pub. L. 102–408, title II, § 211(a)(2), Oct. 13, 1992, 106 Stat. 2078 Section, act July 1, 1944, ch. 373, title VIII, § 837A, as added Nov. 4, 1988, Pub. L. 100–607, title VII, § 714(d), 102 Stat. 3162, authorized appropriations for educational loan repayments for service in certain health facilities. § 297d. Allotments and payments of Federal cap- ital contributions (a) Application for allotment; reduction or ad- justment of amount requested in application; reallotment; continued availability of funds (1) The Secretary shall from time to time set dates by which schools of nursing must file ap- plications for Federal capital contributions. (2)(A) If the total of the amounts requested for any fiscal year in such applications exceeds the total amount appropriated under section 297c 1 of this title for that fiscal year, the allotment from such total amount to the loan fund of each school of nursing shall be reduced to whichever of the following is the smaller: (i) The amount requested in its application. (ii) An amount which bears the same ratio to the total amount appropriated as the number of students estimated by the Secretary to be enrolled on a full-time basis in such school during such fiscal year bears to the estimated total number of students enrolled in all such schools on a full-time basis during such year. (B) Amounts remaining after allotment under subparagraph (A) shall be reallotted in accord- ance with clause (ii) of such subparagraph among schools whose applications requested more than the amounts so allotted to their loan funds, but with such adjustments as may be nec- essary to prevent the total allotted to any such school’s loan fund under this paragraph and paragraph (3) from exceeding the total so re- quested by it. (3) Funds which, pursuant to section 297e(c) of this title or pursuant to a loan agreement under section 297a of this title are returned to the Sec- retary in any fiscal year, shall be available for allotment until expended. Funds described in the preceding sentence shall be allotted among schools of nursing in such manner as the Sec- retary determines will best carry out this part. (b) Installment payment of allotments 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. (c) Manner of payment The Federal capital contributions to a loan fund of a school under this part shall be paid to it from time to time in such installments as the Secretary determines will not result in unneces- sary accumulations in the loan fund at such school. (July 1, 1944, ch. 373, title VIII, § 838, formerly § 825, as added Pub. L. 88–581, § 2, Sept. 4, 1964, 78 Stat. 915; amended Pub. L. 89–751, § 6(c), Nov. 3, 1966, 80 Stat. 1235; Pub. L. 90–490, title II, § 222(e), Aug. 16, 1968, 82 Stat. 785; renumbered § 838 and amended Pub. L. 94–63, title IX, § 941(h)(1), (2), (4)(A), (i)(1), (4), July 29, 1975, 89 Stat. 365, 366; Pub. L. 99–92, § 8(e), Aug. 16, 1985, 99 Stat. 398; Pub. L. 100–607, title VII, § 713(h)(1), Nov. 4, 1988, 102 Stat. 3161; Pub. L. 102–408, title II, § 208(a), Oct. 13, 1992, 106 Stat. 2075; Pub. L. 111–148, title V, § 5310(b)(2), Mar. 23, 2010, 124 Stat. 631.)