Page:United States Statutes at Large Volume 95.djvu/945

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 919

"(0 Nothing in this section shall be construed to preclude the lender and the borrower, by mutual agreement, from consolidating all of the borrower's debts into a single instrument, except that the portion of such debt that is insured under this subpart shall not be consolidated on terms less favorable to the borrower than if no consolidation had occurred and no loan under this subpart may be consolidated with any other loan if, as a result of such consolidation, the Federal Government becomes liable for any payment of principal or interest under the provisions of section 439(o) of the Higher Education Act of 1965.". 94 Stat. 1430. DEFAULTS

^^ USC 1087-2.

SEC. 2730. Section 733(g) (42 U.S.C. 294f(g)) is amended to read as follows: "(g) A debt which is a loan insured under the authority of this subpart may be released by a discharge in bankruptcy under title 11, United States Code, only if such discharge is granted— "(1) after the expiration of the 5-year period beginning on the first date, as specified in subparagraphs (B) and (C) of section 731(a)(2), when repayment of such loan is required; Ante, p. 918. "(2) upon a finding by the Bankruptcy Court that the nondischarge of such debt would be unconscionable; and "(3) upon the condition that the Secretary shall not have waived the Secretary's rights to apply subsection (f) to the borrower and the discharged debt.". DEFINITIONS; STUDENT ASSISTANCE

SEC. 2731. (a) Section 737(1) (42 U.S.C. 294j(l)) is amended to read as follows: "(1) The term 'eligible institution' means, with respect to a fiscal year, a school of medicine, osteopathy, dentistry, veterinary medicine, optometry, podiatry, pharmacy, public health or chiropractic, or a graduate program in health administration or clinical psychology.". (b) Section 737 is further amended by striking out paragraph (2), by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively, and by inserting after paragraph (1) (as amended by subsection (a) of this section) the following new paragraphs: "(2) The term 'school of chiropractic' means a school which provides training leading to a degree of doctor of chiropractic or an equivalent degree and which is accredited in the manner described in s e c t i o n 701(5).

Ante, p. 913.

"(3) The term 'graduate program in clinical psychology' means a graduate program in a public or nonprofit private institution in a State which provides training leading to a doctoral degree in clinical psychology or an equivalent degree and which is accredited in the manner described in section 701(5).". ELIGIBLE STUDENTS

SEC. 2732. Subpart I of part C of title VII is amended by inserting after section 737 the following new section: "DETERMINATION OF ELIGIBLE STUDENTS

"SEC. 737A. For purposes of determining eligible students under 42 USC 294j-i. this part, in the case of a public school in a State that offers an accelerated, integrated program of study combining undergraduate

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