42 U.S.C. § 292y — General provisions

(a) Date certain for applications: The Secretary sets deadlines, from time to time, for when schools must apply for Federal capital contributions. (b) Contingent reduction in allotments: If schools request more money in total for a fiscal year than Congress appropriated under this section for that year, each school's allotment gets cut. Here is how, step by step: - Compare two numbers for each school: the amount it actually requested in its application, and an amount based on its share of students (that school's estimated enrollment for the year, divided by the estimated total enrollment across all such schools, multiplied by the amount appropriated). - Give the school whichever of those two numbers is smaller. - Any money left over after this first round is reallotted the same way — by student-share — among schools that had asked for more than they were given, but with adjustments so that no school ends up receiving more than it originally requested. (c) Allotment of excess funds: If, in a year, more money is available for payment to schools under this subpart than Congress appropriated that year, the Secretary allots the excess among schools however will best serve the purposes of this subpart. (d) Payment of installments to schools: The Secretary pays out each school's allotment in installments, timed so the school does not end up with unnecessary, unused money piling up. (e) Disposition of funds returned to Secretary: (1) Expenditure for Federal capital contributions: Subject to section 292s(b)(5), any money that health professions schools return to the Secretary from their student loan funds must be used to make new Federal capital contributions to those funds. (2) Date certain for contributions: Returned money described in (1) must be committed (obligated) before the end of the fiscal year after the one in which it was returned. (3) Preference in making contributions: When handing that returned money back out for a fiscal year, the Secretary favors schools in the same field (like medicine or dentistry) as the schools that returned it during that period. And if the returned money had been restricted to loans for disadvantaged individuals before it was returned, it stays restricted to that same purpose. (f) Funding for certain medical schools: (1) Authorization of appropriations: Congress authorized $10,000,000 for each of fiscal years 1994 through 1996, to make Federal capital contributions to loan funds at schools of medicine or osteopathic medicine. (2) Minimum requirements: (A) The Secretary can make this contribution only if the school of medicine or osteopathic medicine meets the graduate-outcome condition described in section 292s(b)(2)(A), or the condition described in section 292s(b)(2)(C). (B) For this purpose, that condition is measured using the school's graduates whose graduation date was about 3 years before June 30 of the fiscal year before the one in which the contribution is made.