Page:United States Statutes at Large Volume 91.djvu/1540

 91 STAT. 1506

42 USC 294d.

42 USC 294. 42 USC 294a. Supra.

Ante, p. 1505. 42 USC 294a. 42 USC 294b.

42 USC 294d. 42 USC 294e.

42 USC 294f. 42 USC 294k. 42 USC 294/. 42 USC 294j.

Ante, p. 1503. Effective date. 42 USC 294d note. National Health Service eorps Scholarship program, application approval. 42 USC 294t.

PUBLIC LAW 95-215—DEC. 19, 1977

the first installment of principal falls due or the date repayment of principal is required to resume (whichever is applicable) and may further provide that, on such date, the amount of the interest which has so accrued may be added to the p r i n c i p a l "; and (2) by striking out "student" in subparagraph (E). (c) Subsection (b) of such section (relating to maximum interest rates) is amended by striking out "10 percent per a n n u m " and inserting in lieu thereof "12 percent per annum". (d) Such section is further amended by adding after subsection (c) the following new subsection: " (d) No provision of any law of the United States (other than subsections (a)(2)(D) and (b) of this section) or of any State that limits the rate or amount of interest payable on loans shall apply to a loan insured under this subpart.". (e) Subpart I of part C of title VII of the Public Health Service Act is amended as follows: (1) I n section 7 2 7 (a), i n s e r t " (and certain former students o f) " after "students in". (2) I n the first sentence of section 7 2 8 (a), strike out "students" and insert in lieu thereof "borrowers". (3) I n the second sentence of section 728(a), insert "or to obtain a loan under section 731(a)(1)(B) to pay interest on such prior loans" after "to continue or complete their educational program". (4) I n section 728(c), strike out "student". (5) I n the second sentence of section 729(a) — (A) strike out "student" the first time it appears and insert in lieu thereof "borrower"; and (B) insert "borrower who is or was a" before "student" the second and t h i r d time it appears. (6) I n section 731(a)(2)(B), strike out "student" and insert in lieu thereof "borrower". (7) I n the heading to section 731, strike out "STUDENT". (8) I n subsections (a) and (b)(2) of section 732, strike out "student" and insert in lieu thereof "borrower" each time it appears. (9) I n subsections (b)(1) and (e) of section 732, strike out "student". (10) I n section 733, strike out "student" each time it appears. (11) I n the heading to section 733, strike out "STUDENT" and insert in lieu thereof "BORROWER". (12) I n section 738, strike out "student". (13) I n section 7 3 9 (a)(1), strike out "student" and insert in lieu thereof "borrower". (f) Section 737(1) of the Public Health Service Act is amended (1) by striking out "and public health" and inserting in lieu thereof "or public health", and (2) by inserting " (A) " after " that " and by inserting before the period the following: ", or (B) was not eligible to receive such a g r a n t for such fiscal year solely because it did not meet the applicable requirements of section 771(b)(3) ". (g) The amendments made by this section shall take effect on October 1, 1977. SEC. 5. Effective October 1, 1977, section 751(d)(2) of the Public Health Service Act is amended to read as follows: " (2) second, to applications made (and contracts submitted) — " (A) for the school year beginning in calendar year 1978, by individuals who are entering their first, second, or t h i r d

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