§ 297n.
(a)
In general
In the case of any individual—
(1)
who has received a baccalaureate or associate degree in nursing (or an equivalent degree), a diploma in nursing, or a graduate degree in nursing;
(2)
who obtained (A) one or more loans from a loan fund established under subpart II,
1
See References in Text note below.
or (B) any other educational loan for nurse training costs; and
(3)
who enters into an agreement with the Secretary to serve as nurse for a period of not less than two years at a health care facility with a critical shortage of nurses, or in a
2
So in original. Probably should be “an”.
accredited school of nursing, as defined by
section 296(2) of this title, as nurse faculty;
the Secretary shall make payments in accordance with subsection (b), for and on behalf of that individual, on the principal of and interest on any loan of that individual described in paragraph (2) of this subsection which is outstanding on the date the individual begins the service specified in the agreement described in paragraph (3) of this subsection.
(b)
Manner of payments
The payments described in subsection (a) shall be made by the Secretary as follows:
(1)
Upon completion by the individual for whom the payments are to be made of the first year of the service specified in the agreement entered into with the Secretary under subsection (a), the Secretary shall pay 30 percent of the principal of, and the interest on each loan of such individual described in subsection (a)(2) which is outstanding on the date the individual began such practice.
(2)
Upon completion by that individual of the second year of such service, the Secretary shall pay another 30 percent of the principal of, and the interest on each such loan.
(3)
Upon completion by that individual of a third year of such service, the Secretary shall pay another 25 percent of the principal of, and the interest on each such loan.
(g)
Breach of agreement
(1)
In general
In the case of any program under this section under which an individual makes an agreement to provide health services for a period of time in accordance with such program in consideration of receiving an award of Federal funds regarding education as a nurse (including an award for the repayment of loans), the following applies if the agreement provides that this subsection is applicable:
(A)
In the case of a program under this section that makes an award of Federal funds for attending an accredited program of nursing (in this section referred to as a “nursing program”), the individual is liable to the Federal Government for the amount of such award (including amounts provided for expenses related to such attendance), and for interest on such amount at the maximum legal prevailing rate, if the individual—
(i)
fails to maintain an acceptable level of academic standing in the nursing program (as indicated by the program in accordance with requirements established by the Secretary);
(ii)
is dismissed from the nursing program for disciplinary reasons; or
(iii)
voluntarily terminates the nursing program.
(B)
The individual is liable to the Federal Government for the amount of such award (including amounts provided for expenses related to such attendance), and for interest on such amount at the maximum legal prevailing rate, if the individual fails to provide health services in accordance with the program under this section for the period of time applicable under the program.
(2)
Waiver or suspension of liability
(3)
Date certain for recovery
(h)
Reports
Not later than 18 months after August 1, 2002, and annually thereafter, the Secretary shall prepare and submit to the Congress a report describing the programs carried out under this section, including statements regarding—
(1)
the number of enrollees, scholarships, loan repayments, and grant recipients;
(2)
the number of graduates;
(3)
the amount of scholarship payments and loan repayments made;
(4)
which educational institution the recipients attended;
(5)
the number and placement location of the scholarship and loan repayment recipients at health care facilities with a critical shortage of nurses;
(6)
the default rate and actions required;
(7)
the amount of outstanding default funds of both the scholarship and loan repayment programs;
(8)
to the extent that it can be determined, the reason for the default;
(9)
the demographics of the individuals participating in the scholarship and loan repayment programs;
(10)
justification for the allocation of funds between the scholarship and loan repayment programs; and
(11)
an evaluation of the overall costs and benefits of the programs.
([July 1, 1944, ch. 373], title VIII, § 846, as added [Pub. L. 102–408, title II, § 211(a)(3)], Oct. 13, 1992, [106 Stat. 2078]; amended [Pub. L. 105–392, title I, § 133(d)], Nov. 13, 1998, [112 Stat. 3576]; [Pub. L. 107–205, title I, § 103], Aug. 1, 2002, [116 Stat. 813]; [Pub. L. 111–148, title V, § 5310(a)], Mar. 23, 2010, [124 Stat. 631]; [Pub. L. 116–136, div. A, title III, § 3404(a)(8)], Mar. 27, 2020, [134 Stat. 394].)