§ 292s. Medical schools and primary health care
(a)
Requirements for students
(1)
In general
Subject to the provisions of this subsection, in the case of student loan funds established under section
292q of this title by schools of medicine or osteopathic medicine, each agreement entered into under such section with such a school shall provide (in addition to the provisions required in subsection (b) of such section) that the school will make a loan from such fund to a student only if the student agrees—
(2)
Inapplicability to certain students
(A)
The requirement established in paragraph (1) regarding the student loan fund of a school does not apply to a student if—
(ii)
the loan is made from—
(I)
a Federal capital contribution under section
292q of this title that is made from amounts appropriated under section
292t
(f) [1] of this title (in this section referred to as an “exempt Federal capital contribution”); or
(II)
a school contribution made under section
292q of this title pursuant to such a Federal capital contribution (in this section referred to as an “exempt school contribution”).
(B)
A Federal capital contribution under section
292q of this title may not be construed as being an exempt Federal capital contribution if the contribution was made from amounts appropriated before October 1, 1990. A school contribution under section
292q of this title may not be construed as being an exempt school contribution if the contribution was made pursuant to a Federal capital contribution under such section that was made from amounts appropriated before such date.
(3)
Noncompliance by student
Each agreement entered into with a student pursuant to paragraph (1) shall provide that, if the student fails to comply with such agreement, the loan involved will begin to accrue interest at a rate of 18 percent per year beginning on the date of such noncompliance.
(4)
Waivers
(A)
With respect to the obligation of an individual under an agreement made under paragraph (1) as a student, the Secretary shall provide for the partial or total waiver or suspension of the obligation whenever compliance by the individual is impossible, or would involve extreme hardship to the individual, and if enforcement of the obligation with respect to the individual would be unconscionable.
(B)
For purposes of subparagraph (A), the obligation of an individual shall be waived if—
(b)
Requirements for schools
(1)
In general
Subject to the provisions of this subsection, in the case of student loan funds established under section
292q of this title by schools of medicine or osteopathic medicine, each agreement entered into under such section with such a school shall provide (in addition to the provisions required in subsection (b) of such section) that, for the 1-year period ending on June 30, 1997; [2] and for the 1-year period ending on June 30 of each subsequent fiscal year, the school will meet not less than 1 of the conditions described in paragraph (2) with respect to graduates of the school whose date of graduation from the school occurred approximately 4 years before the end of the 1-year period involved.
(2)
Description of conditions
With respect to graduates described in paragraph (1) (in this paragraph referred to as “designated graduates”), the conditions referred to in such paragraph for a school for a 1-year period are as follows:
(A)
Not less than 50 percent of designated graduates of the school meet the criterion of either being in a residency training program in primary health care, or being engaged in a practice in such care (having completed such a program).
(B)
Not less than 25 percent of the designated graduates of the school meet such criterion, and such percentage is not less than 5 percentage points above the percentage of such graduates meeting such criterion for the preceding 1-year period.
(C)
In the case of schools of medicine or osteopathic medicine with student loans funds under section
292q of this title, the school involved is at or above the 75th percentile of such schools whose designated graduates meet such criterion.
(3)
Determinations by Secretary
Not later than 90 days after the close of each 1-year period described in paragraph (1), the Secretary shall make a determination of whether the school involved has for such period complied with such paragraph and shall in writing inform the school of the determination. Such determination shall be made only after consideration of the report submitted to the Secretary by the school under paragraph (6).
(4)
Noncompliance by school
(A)
(i)
Subject to subparagraph (C), each agreement under section
292q of this title with a school of medicine or osteopathic medicine shall provide that, if the school fails to comply with paragraph (1) for a 1-year period under such paragraph, the school—
(ii)
Any amount that a school is required to pay under clause (i) may be paid from the student loan fund of the school under section
292q of this title.
(B)
For purposes of subparagraph (A), the amount applicable for a school, subject to subparagraph (C), is—
(i)
for the 1-year period ending June 30, 1997, an amount equal to 10 percent of the income received during such period by the student loan fund of the school under section
292q of this title;
(C)
In determining the amount of income that a student loan fund has received for purposes of subparagraph (B), the Secretary shall exclude any income derived from exempt contributions. Payments made to the Secretary under subparagraph (A) may not be made with such contributions or with income derived from such contributions.
(5)
Expenditure of payments
(A)
Amounts paid to the Secretary under paragraph (4) shall be expended to make Federal capital contributions to student loan funds under section
292q of this title of schools that are in compliance with paragraph (1).
(B)
A Federal capital contribution under section
292q of this title may not be construed as being an exempt Federal capital contribution if the contribution is made from payments under subparagraph (A). A school contribution under such section may not be construed as being an exempt school contribution if the contribution is made pursuant to a Federal capital contribution from such payments.
(6)
Reports by schools
Each agreement under section
292q of this title with a school of medicine or osteopathic medicine shall provide that the school will submit to the Secretary a report for each 1-year period under paragraph (1) that provides such information as the Secretary determines to be necessary for carrying out this subsection. Each such report shall include statistics concerning the current training or practice status of all graduates of such school whose date of graduation from the school occurred approximately 4 years before the end of the 1-year period involved.
(c)
Definitions
For purposes of this section:
(1)
The term “exempt contributions” means exempt Federal capital contributions and exempt school contributions.
(2)
The term “exempt Federal capital contribution” means a Federal capital contribution described in subclause (I) of subsection (a)(2)(A)(ii) of this section.
(3)
The term “exempt school contribution” means a school contribution described in subclause (II) of subsection (a)(2)(A)(ii) of this section.
(4)
The term “income”, with respect to a student fund under section
292q of this title, means payments of principal and interest on any loan made from the fund, and any other earnings of the fund.
[1] See References in Text note below.
[2] So in original. The semicolon probably should be a comma.