42 U.S.C. § 292o — Definitions

submitted 82 years ago by Pub. L. 102-408 to r/title-42-THE-PUBLIC-HEALTH-AND-WELFARE · 606 words · no verdicts yet

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This section defines the key terms for the health-profession student loan program, including "eligible institution," "eligible lender," "line of credit," and "default rate." The default rate — the share of a school's, lender's, or holder's insured loans that end up paid out as a loss — determines the risk-based premiums and eligibility rules elsewhere in this subpart.

For this subpart: (1) "Eligible institution" means, for a given fiscal year, a school of medicine, osteopathic medicine, dentistry, veterinary medicine, optometry, podiatric medicine, pharmacy, public health, allied health, or chiropractic — or a graduate program in health administration or behavioral or mental health practice, including clinical psychology. (2) "Eligible lender" means: a school that became a lender under this subpart before September 15, 1992; a state agency or instrumentality; a financial or credit institution (including an insurance company) supervised by a federal or state agency; a pension fund the Secretary approves for this purpose; or a nonprofit private entity that's designated and regulated by the state and approved by the Secretary. (3) "Line of credit" means an arrangement where the lender pays out the loan to the borrower in yearly installments, or where the lender agrees to make additional loans in later years on top of the first one. (4) "School of allied health" means an allied-health-school program (as defined in section 295p) that leads to a master's or doctoral degree. (5) (A) "Default rate," for a given entity, is a percentage — the ratio of: (i) the total principal of this subpart's insured loans connected to that entity that entered repayment after April 7, 1987, and for which the Secretary already paid insurance beneficiaries under section 292f(a) — not counting: loans paid out because the borrower died or became permanently disabled; loans where the borrower started repaying the Secretary under section 292f(b) and kept it up for 12 straight months (though that loan can later switch back in or out of this default count if it defaults again, or meets that 12-month rule again); and loans that can't be collected because they were discharged in bankruptcy; to (ii) the total principal of all this subpart's insured loans connected to that entity that entered repayment after April 7, 1987. (B) A loan counts as having "entered repayment status" once the waiting period described in section 292d(a)(2)(B) has ended for it (regardless of whether a deferment period under section 292d(a)(2)(C) also applies). (C) "Eligible entity" here means an eligible institution, an eligible lender, or a holder, as applicable. (D) A loan is connected to an entity if: (i) for a school, the loan went to that school's students; (ii) for a lender, that lender made the loan; and (iii) for a holder, that holder bought the loan. (6) "Secretary" means the Secretary of Education.

the actual law source: uscode.house.gov ↗public domain

For purposes of this subpart:

(1)

The term “eligible institution” means, with respect to a fiscal year, a school of medicine, osteopathic medicine, dentistry, veterinary medicine, optometry, podiatric medicine, pharmacy, public health, allied health, or chiropractic, or a graduate program in health administration or behavioral and mental health practice, including clinical psychology.

(2)

The term “eligible lender” means an eligible institution that became a lender under this subpart prior to September 15, 1992, an agency or instrumentality of a State, a financial or credit institution (including an insurance company) which is subject to examination and supervision by an agency of the United States or of any State, a pension fund approved by the Secretary for this purpose, or a nonprofit private entity designated by the State, regulated by the State, and approved by the Secretary.

(3)

The term “line of credit” means an arrangement or agreement between the lender and the borrower whereby a loan is paid out by the lender to the borrower in annual installments, or whereby the lender agrees to make, in addition to the initial loan, additional loans in subsequent years.

(4)

The term “school of allied health” means a program in a school of allied health (as defined in section 295p of this title) which leads to a masters’ degree or a doctoral degree.

(5)

(A)

The term “default rate”, in the case of an eligible entity, means the percentage constituted by the ratio of—

(i)

the principal amount of loans insured under this subpart—

(I)

that are made with respect to the entity and that enter repayment status after April 7, 1987; and

(II)

for which amounts have been paid under section 292f(a) of this title to insurance beneficiaries, exclusive of any loan for which amounts have been so paid as a result of the death or total and permanent disability of the borrower; exclusive of any loan for which the borrower begins payments to the Secretary on the loan pursuant to section 292f(b) of this title and maintains payments for 12 consecutive months in accordance with the agreement involved (with the loan subsequently being included or excluded, as the case may be, as amounts paid under section 292f(a) of this title according to whether further defaults occur and whether with respect to the default involved compliance with such requirement regarding 12 consecutive months occurs); and exclusive of any loan on which payments may not be recovered by reason of the obligation under the loan being discharged in bankruptcy under title 11; to

(ii)

the total principal amount of loans insured under this subpart that are made with respect to the entity and that enter repayment status after April 7, 1987.

(B)

For purposes of subparagraph (A), a loan insured under this subpart shall be considered to have entered repayment status if the applicable period described in subparagraph (B) of section 292d(a)(2) of this title regarding the loan has expired (without regard to whether any period described in subparagraph (C) of such section is applicable regarding the loan).

(C)

For purposes of subparagraph (A), the term “eligible entity” means an eligible institution, an eligible lender, or a holder, as the case may be.

(D)

For purposes of subparagraph (A), a loan is made with respect to an eligible entity if—

(i)

in the case of an eligible institution, the loan was made to students of the institution;

(ii)

in the case of an eligible lender, the loan was made by the lender; and

(iii)

in the case of a holder, the loan was purchased by the holder.

(6)

The term “Secretary” means the Secretary of Education.

Source credit: (July 1, 1944, ch. 373, title VII, § 719, as added Pub. L. 102–408, title I, § 102, Oct. 13, 1992, 106 Stat. 2009; amended Pub. L. 105–392, title I, § 141(c)(2), Nov. 13, 1998, 112 Stat. 3579; Pub. L. 113–76, div. H, title V, § 525(e), Jan. 17, 2014, 128 Stat. 413.)

history & why it existsrecord from the source credit

1944Enacted · Pub. L. 102-408 · 106 Stat. 2009
1998Amended · Pub. L. 105-392 · 112 Stat. 3579
2014Amended · Pub. L. 113-76 · 128 Stat. 413

A history note hasn’t been published yet. The record shows enactment by Pub. L. 102-408 on 1944-07-01.

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