42 U.S.C. § 292h — Office for Health Education Assistance

Page 999 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 292h borrower seeking a loan for attendance at the institution, shall be subject to sub- section (b)(3) to the same extent and in the same manner as eligible institutions and borrowers described in such subsection. (e) Payoff to reduce risk category An institution may pay off the outstanding principal and interest owed by the borrowers of such institution who have defaulted on loans made under this subpart in order to reduce the risk category of the institution. (July 1, 1944, ch. 373, title VII, § 708, as added Pub. L. 102–408, title I, § 102, Oct. 13, 1992, 106 Stat. 2004.) Editorial Notes PRIOR PROVISIONS A prior section 292g, act July 1, 1944, ch. 373, title VII, § 707, as added Oct. 12, 1976, Pub. L. 94–484, title II, § 205, 90 Stat. 2249; amended Aug. 1, 1977, Pub. L. 95–83, title III, § 307(r), 91 Stat. 395, related to delegation of author- ity by the Secretary, prior to the general revision of this subchapter by Pub. L. 102–408. Another prior section 292g, act July 1, 1944, ch. 373, title VII, § 708, as added July 30, 1956, ch. 779, § 2, 70 Stat. 720; amended Oct. 5, 1961, Pub. L. 87–395, § 8(d), 75 Stat. 827; Sept. 24, 1963, Pub. L. 88–129, § 2(a), 77 Stat. 164, pro- hibited Federal interference with administration of in- stitutions where grants were made for construction of health research facilities, prior to repeal by Pub. L. 94–484, title II, § 201(a), Oct. 12, 1976, 90 Stat. 2246. A prior section 708 of act July 1, 1944, was classified to section 292h of this title prior to the general revision of this subchapter by Pub. L. 102–408. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Jan. 1, 1993, and until such date, former section 294e(c) of this title, as in effect on the day before Oct. 13, 1992, to continue in effect in lieu of this section, see section 103 of Pub. L. 102–408, set out as a note under section 292 of this title. § 292h. Office for Health Education Assistance Loan Default Reduction (a) Establishment The Secretary shall establish, within the Divi- sion of Student Assistance of the Bureau of Health Professions, an office to be known as the Office for Health Education Assistance Loan De- fault Reduction (in this section referred to as the ‘‘Office’’). (b) Purpose and functions It shall be the purpose of the Office to achieve a reduction in the number and amounts of de- faults on loans guaranteed under this subpart. In carrying out such purpose the Office shall— (1) conduct analytical and evaluative studies concerning loans and loan defaults; (2) carry out activities designed to reduce loan defaults; (3) respond to special circumstances that may exist in the financial lending environ- ment that may lead to loan defaults; (4) coordinate with other Federal entities that are involved with student loan programs, including— (A) with respect to the Department of Edu- cation, in the development of a single stu- dent loan application form, a single student loan deferment form, a single disability form, and a central student loan database; and (B) with respect to the Department of Jus- tice, in the recovery of payments from health professionals who have defaulted on loans guaranteed under this subpart; and (5) provide technical assistance to bor- rowers, lenders, holders, and institutions con- cerning deferments and collection activities. (c) Additional duties In conjunction with the report submitted under subsection (b), the Office shall— (1) compile, and publish in the Federal Reg- ister, a list of the borrowers who are in default under this subpart; and (2) send the report and notices of default with respect to these borrowers to relevant Federal agencies and to schools, school asso- ciations, professional and specialty associa- tions, State licensing boards, hospitals with which such borrowers may be associated, and any other relevant organizations. (d) Allocation of funds for Office In the case of amounts reserved under section 292i(a)(2)(B) of this title for obligation under this subsection, the Secretary may obligate the amounts for the purpose of administering the Office, including 7 full-time equivalent employ- ment positions for such Office. With respect to such purpose, amounts made available under the preceding sentence are in addition to amounts made available to the Health Resources and Services Administration for program manage- ment for the fiscal year involved. With respect to such employment positions, the positions are in addition to the number of full-time equiva- lent employment positions that otherwise is au- thorized for the Department of Health and Human Services for the fiscal year involved. (July 1, 1944, ch. 373, title VII, § 709, as added Pub. L. 102–408, title I, § 102, Oct. 13, 1992, 106 Stat. 2006; amended Pub. L. 105–392, title I, § 141(b), Nov. 13, 1998, 112 Stat. 3579.) Editorial Notes PRIOR PROVISIONS A prior section 292h, act July 1, 1944, ch. 373, title VII, § 708, as added Oct. 12, 1976, Pub. L. 94–484, title II, § 206, 90 Stat. 2250; amended Aug. 1, 1977, Pub. L. 95–83, title III, § 307(a), 91 Stat. 389; Nov. 9, 1978, Pub. L. 95–623, § 12(a), 92 Stat. 3457; Dec. 11, 1980, Pub. L. 96–511, § 4(c), 94 Stat. 2826; Aug. 13, 1981, Pub. L. 97–35, title XXVII, § 2719, 95 Stat. 914; Oct. 22, 1985, Pub. L. 99–129, title II, § 220(b), 99 Stat. 543; Nov. 4, 1988, Pub. L. 100–607, title VI, §§ 616(c)(1), 626, 102 Stat. 3139, 3144; Nov. 18, 1988, Pub. L. 100–690, title II, § 2615(a), 102 Stat. 4239; Aug. 16, 1989, Pub. L. 101–93, § 5(m), 103 Stat. 613, related to health professions data, prior to the general revision of this subchapter by Pub. L. 102–408. See section 295k of this title. Another prior section 292h, act July 1, 1944, ch. 373, title VII, § 709, as added July 30, 1956, ch. 779, § 2, 70 Stat. 720; amended Sept. 24, 1963, Pub. L. 88–129, § 2(a), 77 Stat. 164; Nov. 18, 1971, Pub. L. 92–157, title I, § 102(k)(2)(C), 85 Stat. 437, provided for issuance of general, administra- tive, and other regulations for implementation of 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. Page 1000 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 292i A prior section 709 of act July 1, 1944, was classified to section 292i of this title prior to repeal by Pub. L. 97–35, title XXVII, § 2720(a), Aug. 13, 1981, 95 Stat. 915. AMENDMENTS 1998—Subsec. (b). Pub. L. 105–392 inserted ‘‘and’’ at end of par. (4)(B), substituted a period for ‘‘; and’’ at end of par. (5), and struck out par. (6) which read as fol- lows: ‘‘prepare and submit a report not later than March 31, 1993, and annually, thereafter, to the Com- mittee on Labor and Human Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives concerning— ‘‘(A) the default rates for each— ‘‘(i) institution described in section 292o(1) of this title that is participating in the loan programs under this subpart; ‘‘(ii) lender participating in the loan program under this subpart; and ‘‘(iii) loan holder under this subpart; ‘‘(B) the total amounts recovered pursuant to sec- tion 292f(b) of this title during the preceding fiscal year; and ‘‘(C) a plan for improving the extent of such recov- eries during the current fiscal year.’’ § 292i. Insurance account (a) In general (1) Establishment There is hereby established a student loan insurance account (in this section referred to as the ‘‘Account’’) which shall be available without fiscal year limitation to the Sec- retary for making payments in connection with the collection and default of loans in- sured under this subpart by the Secretary. (2) Funding (A) Except as provided in subparagraph (B), all amounts received by the Secretary as pre- mium charges for insurance and as receipts, earnings, or proceeds derived from any claim or other assets acquired by the Secretary in connection with his operations under this sub- part, and any other moneys, property, or as- sets derived by the Secretary from the oper- ations of the Secretary in connection with this section, shall be deposited in the Account. (B) With respect to amounts described in subparagraph (A) that are received by the Sec- retary for fiscal year 1993 and subsequent fis- cal years, the Secretary may, before depos- iting such amounts in the Account, reserve from the amounts each such fiscal year not more than $1,000,000 for obligation under sec- tion 292h(d) of this title. (3) Expenditures All payments in connection with the default of loans insured by the Secretary under this subpart shall be paid from the Account. (b) Contingent authority for issuance of notes or other obligations If at any time the moneys in the Account are insufficient to make payments in connection with the collection or default of any loan in- sured by the Secretary under this subpart, the Secretary of the Treasury may lend the Account such amounts as may be necessary to make the payments involved, subject to the Federal Cred- it Reform Act of 1990 [2 U.S.C. 661 et seq.]. (July 1, 1944, ch. 373, title VII, § 710, as added Pub. L. 102–408, title I, § 102, Oct. 13, 1992, 106 Stat. 2007; amended Pub. L. 105–392, title I, § 143, Nov. 13, 1998, 112 Stat. 3581.) Editorial Notes REFERENCES IN TEXT The Federal Credit Reform Act of 1990, referred to in subsec. (b), is title V of Pub. L. 93–344, as added by Pub. L. 101–508, title XIII, § 13201(a), Nov. 5, 1990, 104 Stat. 1388–609, which is classified generally to subchapter III (§ 661 et seq.) of chapter 17A of Title 2, The Congress. For complete classification of this Act to the Code, see Short Title of 1990 Amendment note set out under sec- tion 621 of Title 2 and Tables. PRIOR PROVISIONS A prior section 292i, act July 1, 1944, ch. 373, title VII, § 709, as added Oct. 12, 1976, Pub. L. 94–484, title II, § 207, 90 Stat. 2252; amended Nov. 9, 1978, Pub. L. 95–623, § 12(b), 92 Stat. 3457, related to shared schedule resi- dency training positions, prior to repeal by Pub. L. 97–35, title XXVII, § 2720(a), Aug. 13, 1981, 95 Stat. 915. Another prior section 292i, act July 1, 1944, ch. 373, title VII, § 710, as added July 30, 1956, ch. 779, § 2, 70 Stat. 720; amended Sept. 24, 1963, Pub. L. 88–129, § 2(a), 77 Stat. 164; Nov. 18, 1971, Pub. L. 92–157, title I, § 102(k)(2)(A), 85 Stat. 437, related to preparation and submission of an- nual reports to the Congress through the President, in- cluding its contents, as to 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. A prior section 710 of act July 1, 1944, was classified to section 292k of this title prior to the general revision of this subchapter by Pub. L. 102–408. Another prior section 710 of act July 1, 1944, was re- numbered section 709 by Pub. L. 97–35 and was classified to section 292j of this title prior to the general revision of this subchapter by Pub. L. 102–408. AMENDMENTS 1998—Subsec. (a)(2)(B). Pub. L. 105–392 substituted ‘‘fiscal year 1993 and subsequent fiscal years’’ for ‘‘any of the fiscal years 1993 through 1996’’. § 292j. Powers and responsibilities of Secretary (a) In general In the performance of, and with respect to, the functions, powers, and duties vested in the Sec- retary by this subpart, the Secretary is author- ized as follows: (1) To prescribe such regulations as may be necessary to carry out the purposes of this subpart. (2) To sue and be sued in any district court of the United States. Such district courts shall have jurisdiction of civil actions arising under this subpart without regard to the amount in controversy, and any action instituted under this subsection by or against the Secretary shall survive notwithstanding any change in the person occupying the office of Secretary or any vacancy in that office. No attachment, in- junction, garnishment, or other similar proc- ess, mesne or final, shall be issued against the Secretary or property under the control of the Secretary. Nothing herein shall be constructed to except litigation arising out of activities under this subpart from the application of sec- tions 517 and 547 of title 28. (3) To include in any contract for Federal loan insurance such terms, conditions, and covenants relating to repayment of principal and payments of interest, relating to his obli- gations and rights and to those of eligible