Page:United States Statutes at Large Volume 106 Part 3.djvu/228

 106 STAT. 2022 PUBLIC LAW 102-408—OCT. 13, 1992 "(1) EXPENDITURE FOR FEDERAL CAPITAL CONTRIBUTIONS. — Subject to section 723(b)(5), any amounts from student loan funds under section 721 that are returned to the Secretary by health professions schools shall be expended to make Federal capital contributions to such funds. "(2) DATE CERTAIN FOR CONTRIBUTIONS. — Amounts described in paragraph (1) that are returned to the Secretary before the fourth quarter of a fiscal year shall be obligated before the end of such fiscal year, and may not be obligated before the fourth quarter. For purposes of the preceding sentence, amounts returned to the Secretary during the last quarter of a fiscal year are deemed to have been returned during the first three quarters of the succeeding fiscal year. "(3) PREFERENCE IN MAKING CONTRIBUTIONS.— In making Federal capital contributions to student loans funds under section 721 for a fiscal year from amounts described in paragraph (1), the Secretary shall give preference to health professions schools of the same disciplines as the health professions schools returning such amounts for the period during which the amounts expended for such contributions were received by the Secretary. Any such amounts that, prior to being so returned, were available only for the purpose of loans under this subpart to individuals from disadvantaged backgrounds shall be available only for such purpose. "PART B—STUDENTS FROM DISADVANTAGED BACKGROUNDS Grants. '<SEC. 736. SCHOLARSHIPS FOR STUDENTS OF EXCEPTIONAL FINAN- 42 USC 293. CIALNEED. "(a) IN GENERAL.— The Secretary shall make grants to public and nonprofit private schools of medicine, osteopathic medicine, and dentistry for scholarships to be awarded by the schools to full-time students thereof wno are of exceptional financial need, subject to section 795 (relating to residency training and practice in primary health care). "(b) REQUIREMENTS REGARDING SCHOLARSHIPS. — "(1) ACCEPTANCE FOR FULL-TIME ENROLLMENT. —Scholarships may be awarded by a school from a grant under subsection (a) only to individuals who have been accepted by it for enrollment as full-time students. "(2) AUTHORIZED EXPENDITURES. —A scholarship provided to a student for a school year under a grant under siibsection (a) shall consist of payment to, or (in accordance with paragraph (4)) on behalf of, the student of an amount (except as provided in section 798(c)) equivalent to the amount of— "(A) the tuition of the student in such school year; and ''(B) all other reasonable educational expenses, including fees, books, and laboratory expenses, incurred by the student in such year. "(3) AUTHORITY REGARDING PAYMENTS TO EDUCATIONAL INSTITUTION. —The Secretary may contract with an educational institution in which is enrolled a student who has received a scholarship with a grant under subsection (a) for the payment to the educational institution of the amounts of tuition and other reasonable educational expenses described in paragraph

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