Page:United States Statutes at Large Volume 106 Part 3.djvu/202

 106 STAT. 1996 PUBLIC LAW 102-408—OCT. 13, 1992 enrolled in a school of medicine, osteopathic medicine, dentistry, veterinary medicine, optometry, or podiatric medicine, and $12,500 in the case of a student enrolled in a school of pharmacy, public health, allied health, or chiropractic, or a graduate program in health administration or clinical psychology. The aggregate insured unpaid principal amount for all such insured loans made to any borrower shall not at any time exceed $80,000 in the case of a borrower who is or was a student enrolled in a school of medicine, osteopathic medicine, dentistry, veterinary medicine, optometry, or podiatric medicine, and $50,000 in the case of a borrower who is or was a student enrolled in a school of pharmacy, public health, allied health, or chiropractic, or a graduate program in health administration or clinical psychology. The annual insurable limit per student shall not be exceeded mr a line of credit under which actual payments by the lender to the borrower will not be made in any year in excess of the annual limit. "(b) EXTENT OF INSURANCE LIABILITY. — The insurance liability on any loan insured by the Secretary under this subpart shall be 100 percent of the unpaid balance of the principal amount of the loan plus interest. The full faith and credit of the United States is pledged to the payment of all amounts which may be required to be paid under the provisions of section 707 or 714. 42 USC 292c. «SEC. 704. SOURCES OF FUNDS. "Loans made by eligible lenders in accordance with this subpart shall be insurable by the Secretary whether made from funds mlly owned by the lender or from funds held by the lender in a trust or similar capacity and available for such loans. 42 USC 292d. 'SEC. 705. ELIGIBILITY OF BORROWERS AND TERMS OF INSURED LOANS. "(a) IN GENERAL. —^A loan by an eligible lender shall be insurable by the Secretary under the provisions of this subpart only if— "(1) made to— "(A) a student who— "(i)(1) has been accepted for enrollment at an eligible institution, or (II) in the case of a student attending an eligible institution, is in good standing at that institution, as determined by the institution; "(ii) is or will be a full-time student at the eligible institution; "(iii) has agreed that all funds received under such loan shall be used solely for tuition, other reasonable educational expenses, including fees, books, and laboratory expenses, and reasonable living expenses, incurred by such students; "(iv) if required under section 3 of the Military Selective Service Act to present himself for and submit to registration under such section, has presented himself and submitted to registration under such section; and "(v) in the case of a pharmacy student, has satisfactorily completed three years of training; or "(B) an individual who— "(i) has previously had a loan insured under this subpart when the individual was a full-time student at an eligible institution;

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