42 U.S.C. § 297o — Eligible individual student loan repayment

submitted 82 years ago by Pub. L. 111-148 to r/title-42-THE-PUBLIC-HEALTH-AND-WELFARE · 664 words · no verdicts yet

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This law repays education loans for nurses who agree to teach nursing full-time. They must teach for at least four years within a six-year window after their degree. Payments are capped, and anyone who breaks the agreement must repay the money with interest.

(a) In general The Secretary, through the Health Resources and Services Administration, may agree with eligible individuals to repay their education loans, to grow the supply of qualified nursing faculty. (b) Agreements Each agreement requires the person to work as a full-time faculty member at an accredited nursing school for at least 4 years total, within a 6-year window that starts on whichever is later: (1) when the person earns a master's or doctorate nursing degree, or (2) when they sign the agreement. (c) Agreement provisions The Secretary sets the terms, except: (1) no later than 10 months after the 6-year period starts — but never before the person actually starts as full-time faculty — the Secretary must begin paying off the person's outstanding loan principal and interest for that degree. (2) For someone with a master's (or equivalent) nursing degree: payments can't exceed $10,000 per calendar year, and total payments can't exceed $40,000 during fiscal years 2010–2011 (adjusted upward after that for cost-of-attendance increases). (3) For someone with a doctorate (or equivalent) nursing degree: payments can't exceed $20,000 per year, and total payments can't exceed $80,000 during 2010–2011 (adjusted the same way afterward). (d) Breach of agreement (1) In general: If the person doesn't meet the (b) agreement's terms, they owe the government back everything the Secretary paid under the agreement, plus interest at the top legal rate. (2) Waiver or suspension: The Secretary must waive or pause this if following the agreement is impossible or an extreme hardship, or if enforcing it would be unfair. (3) Date certain for recovery: Any amount owed must be recovered within 3 years of the government becoming entitled to it (subject to the waiver rule). (4) Availability: Recovered money stays available for making more loan repayments under this section until it's spent. (e) Eligible individual defined "Eligible individual" means someone who: (1) is a U.S. citizen, national, or lawful permanent resident; (2) holds an unrestricted registered-nurse license; and (3) has already finished a master's or doctorate nursing program at an accredited school, or is currently enrolled full-time or part-time in one. (f) Priority Funding priority under this section and section 297n–1 goes to nursing student loans and loan-repayment agreements that support doctoral nursing students.

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

(a) In general

The Secretary, acting through the Administrator of the Health Resources and Services Administration, may enter into an agreement with eligible individuals for the repayment of education loans, in accordance with this section, to increase the number of qualified nursing faculty.

(b) Agreements

Each agreement entered into under this subsection shall require that the eligible individual shall serve as a full-time member of the faculty of an accredited school of nursing, for a total period, in the aggregate, of at least 4 years during the 6-year period beginning on the later of—

(1)

the date on which the individual receives a master’s or doctorate nursing degree from an accredited school of nursing; or

(2)

the date on which the individual enters into an agreement under this subsection.

Agreements entered into pursuant to subsection (b) shall be entered into on such terms and conditions as the Secretary may determine, except that—

(1)

not more than 10 months after the date on which the 6-year period described under subsection (b) begins, but in no case before the individual starts as a full-time member of the faculty of an accredited school of nursing 1 the Secretary shall begin making payments, for and on behalf of that individual, on the outstanding principal of, and interest on, any loan of that individual obtained to pay for such degree;

(2)

for an individual who has completed a master’s in nursing or equivalent degree in nursing—

(A)

payments may not exceed $10,000 per calendar year; and

(B)

total payments may not exceed $40,000 during the 2010 and 2011 fiscal years (after fiscal year 2011, such amounts shall be adjusted to provide for a cost-of-attendance increase for the yearly loan rate and the aggregate loan); and

(3)

for an individual who has completed a doctorate or equivalent degree in nursing—

(A)

payments may not exceed $20,000 per calendar year; and

(B)

total payments may not exceed $80,000 during the 2010 and 2011 fiscal years (adjusted for subsequent fiscal years as provided for in the same manner as in paragraph (2)(B)).

(d) Breach of agreement

(1) In general

In the case of any agreement made under subsection (b), the individual is liable to the Federal Government for the total amount paid by the Secretary under such agreement, and for interest on such amount at the maximum legal prevailing rate, if the individual fails to meet the agreement terms required under such subsection.

(2) Waiver or suspension of liability

In the case of an individual making an agreement for purposes of paragraph (1), the Secretary shall provide for the waiver or suspension of liability under such paragraph if compliance by the individual with the agreement involved is impossible or would involve extreme hardship to the individual or if enforcement of the agreement with respect to the individual would be unconscionable.

(3) Date certain for recovery

Subject to paragraph (2), any amount that the Federal Government is entitled to recover under paragraph (1) shall be paid to the United States not later than the expiration of the 3-year period beginning on the date the United States becomes so entitled.

(4) Availability

Amounts recovered under paragraph (1) shall be available to the Secretary for making loan repayments under this section and shall remain available for such purpose until expended.

(e) Eligible individual defined

For purposes of this section, the term “eligible individual” means an individual who—

(1)

is a United States citizen, national, or lawful permanent resident;

(2)

holds an unencumbered license as a registered nurse; and

(3)

has either already completed a master’s or doctorate nursing program at an accredited school of nursing or is currently enrolled on a full-time or part-time basis in such a program.

(f) Priority

For the purposes of this section and section 297n–1 of this title, funding priority will be awarded to School of Nursing Student Loans 2 that support doctoral nursing students or Individual Student Loan Repayment 3 that support doctoral nursing students.

Source credit: (July 1, 1944, ch. 373, title VIII, § 847, as added Pub. L. 111–148, title V, § 5311(b), Mar. 23, 2010, 124 Stat. 632; amended Pub. L. 116–136, div. A, title III, § 3404(a)(10), Mar. 27, 2020, 134 Stat. 394.)

history & why it existsrecord from the source credit

1944Enacted · Pub. L. 111-148 · 124 Stat. 632
2020Amended · Pub. L. 116-136 · 134 Stat. 394

A history note hasn’t been published yet. The record shows enactment by Pub. L. 111-148 on 1944-07-01.

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