Agreements to establish and operate fund authorized
The Secretary is authorized to enter into an agreement for the establishment and operation of a student loan fund in accordance with this part with any public or nonprofit private school of nursing which is located in a State.
(b)
Provisions of agreements
Each agreement entered into under this section shall—
(1)
provide for establishment of a student loan fund by the school;
(2)
section 298d of this titlesection 297d of this titlesection 297b(f) of this title provide for deposit in the fund, except as provided in , of (A) the Federal capital contributions paid from allotments under to the school by the Secretary, (B) an additional amount from other sources equal to not less than one-ninth of such Federal capital contributions, (C) collections of principal and interest on loans made from the fund, (D) collections pursuant to , and (E) any other earnings of the fund;
(3)
section 298d of this title provide that the fund, except as provided in , shall be used only for loans to students of the school in accordance with the agreement and for costs of collection of such loans and interest thereon;
(4)
provide that loans may be made from such fund only to students pursuing a full-time or half-time course of study at the school leading to a baccalaureate or associate degree in nursing or an equivalent degree or a diploma in nursing, or to a graduate degree in nursing; and
(5)
contain such other provisions as are necessary to protect the financial interests of the United States.
(c)
Regulatory standards applicable to collection of loans
(1)
Any standard established by the Secretary by regulation for the collection by schools of nursing of loans made pursuant to loan agreements under this part shall provide that the failure of any such school to collect such loans shall be measured in accordance with this subsection. With respect to the student loan fund established pursuant to such agreements, this subsection may not be construed to require such schools to reimburse such loan fund for loans that became uncollectable prior to 1983.
(2)
The measurement of a school’s failure to collect loans made under this part shall be the ratio (stated as a percentage) that the defaulted principal amount outstanding of such school bears to the matured loans of such school.
(3)
For purposes of this subsection—
(A)
the term “default” means the failure of a borrower of a loan made under this part to—
(i)
make an installment payment when due; or
(ii)
comply with any other term of the promissory note for such loan,
except that a loan made under this part shall not be considered to be in default if the loan is discharged in bankruptcy or if the school reasonably concludes from written contacts with the borrower that the borrower intends to repay the loan;
(B)
the term “defaulted principal amount outstanding” means the total amount borrowed from the loan fund of a school that has reached the repayment stage (minus any principal amount repaid or cancelled) on loans—
(i)
repayable monthly and in default for at least 120 days; and
(ii)
repayable less frequently than monthly and in default for at least 180 days;
(C)
the term “grace period” means the period of nine months beginning on the date on which the borrower ceases to pursue a full-time or half-time course of study at a school of nursing; and
(D)
the term “matured loans” means the total principal amount of all loans made by a school of nursing under this part minus the total principal amount of loans made by such school to students who are—
(i)
enrolled in a full-time or half-time course of study at such school; or
Pub. L. 99–129, § 209(j)(2)(A)section 297b(b)(2) of this titleSubsec. (c)(3)(C). , substituted provisions defining “grace period” as the period of nine months beginning on the date on which the borrower ceases to pursue a full-time or half-time course of study at a school of nursing for former provisions defining “grace period” as the period of one year beginning on (i) the date on which the borrower ceased to pursue a full-time or half-time course of study at a school of nursing; or (ii) the date on which ended any period described in clause (A) or (B) of which was applicable to such borrower, whichever was later.
Pub. L. 97–351981—Subsec. (b)(4). struck out provisions respecting prohibition on loans to students attending school before .
Pub. L. 96–761979—Subsec. (b)(4). substituted “1980” for “1978”.
Pub. L. 94–63, § 941(h)(1)1975—Subsec. (a). , (2), substituted “subpart” for “part” and struck out “of Health, Education, and Welfare” after “Secretary”.
Pub. L. 94–63section 297d of this titleSubsec. (b). , §§ 936(a), 941(h)(3), (i)(2), in cl. (2) substituted “from allotments under ” for “under this part”, in cl. (4) substituted “” for “”, and in cls. (2) and (3) substituted references to sections 836 and 841 of the Act for references to sections 823 and 829, which had previously been translated as sections 297b and 297h of this title, respectively, requiring no further translations in the text as a result of the renumbering of the Public Health Service Act.
Pub. L. 93–3851974—Subsec. (b)(4). substituted “1975” for “1974”.
Pub. L. 92–1581971—Subsec. (b)(4). substituted “full-time or half-time course of study” for “full-time course of study” and “1974” for “1971”.
Pub. L. 90–490, § 222(a)(1)section 297h of this title1968—Subsec. (b)(2). , (c)(2), inserted “, except as provided in ,” after “fund” where first appearing and added cl. (D) and redesignated former cl. (D) as (E), respectively.
Pub. L. 90–490, § 222(a)(1)section 297h of this titleSubsec. (b)(3). , inserted “, except as provided in ” after “fund” where first appearing and authorized the cancellation of an additional 50 per centum of a nursery student loan.
section 297i of this titlesection 298b–5 of this titlelsection 6103 of Title 26section 1333 of Title 15 Except as provided in subsection (b), this Act [enacting , transferring section 296c to , amending this section, sections 296k, 296, 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 , 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 ] and the amendments and repeals made by this Act shall take effect on .
Pub. L. 94–6342 U.S.C. 296“Except as may otherwise be specifically provided, the amendments made by this part [part B (§§ 905–937) of title IX of , enacting sections 296j to 296m of this title, amending sections 296, 296a, 296d, 296e, 297 to 297c, 297e, and 297j of this title, repealing 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 . The amendments made by this part to provisions of title VIII of the Public Health Service Act [ et seq.] (hereinafter in this part referred to as the ‘Act’) are made to such provisions as amended by part A of this title [amending sections 296, 296d, 296e, 296g, 296i, 297j, and 298c–7 of this title].”
section 298b–3 of this titlesection 298c–8 of this title42 U.S.C. 296“The amendments made by section 941 [enacting , amending sections 296a to 296d, 296f, 297a to 297e, 297g to 297k, 298, and 298b of this title, and repealing ] shall take effect . Except as otherwise specifically provided, the amendments made by section 941 to provisions of title VIII of the Act [ et seq.] are made to such provisions as in effect , and as amended by part B of this title [see note set out above].”