Page:United States Statutes at Large Volume 99 Part 1.djvu/419

 PUBLIC LAW 99-92—AUG. 16, 1985

99 STAT. 397

(c) Section 831(c) (as redesignated by subsection (b) of this section) is amended to read as follows: "(c) For the purpose of making grants under this section, there are authorized to be appropriated $800,000 for the fiscal year ending September 30, 1986, $800,000 for the fiscal year ending September 30, 1987, and $800,000 for the fiscal year ending September 30, 1988. Not more than 2 percent of the amount appropriated under this section for any fiscal year shall be obligated for grants under the second sentence of subsection (b).". (d) The section heading for such section is amended by striking out

Ante, p. 396.

"TRAINEESHIPS FOR TRAINING OF". STUDENT LOANS

SEC. 8. (a) Section 835 is amended by adding at the end thereof the Schools and following new subsection: ^O^T^I^^' "(c)(1) Any standard established by the Secretary by regulation for ^^ ^ ° ^ ^^^^ the collection by schools of nursing of loans made pursuant to loan agreements under this subpart shall provide that the failure of any such school to collect such loans shall be measured in accordance with this subsection. "(2) The measurement of a school's failure to collect loans made under this subpart shall be the ratio (stated as a percentage) that the defaulted principal amount outstanding of such school bears to the matured loans of such school. "(3) For purposes of this subsection— "(A) the term 'default' means the failure of a borrower of a loan made under this subpart to— "(i) make an installment payment when due; or "(ii) comply with any other term of the promissory note for such loan, except that a loan made under this subpart shall not be considered to be in default if the loan is discharged in bankruptcy or if the school reasonably concludes from written contacts with the borrower that the borrower intends to repay the loan; "(B) the term 'defaulted principal amount outstanding' means the total amount borrowed from the loan fund of a school that has reached the repayment stage (minus any principal amount repaid or cancelled) on loans— s^ "(i) repayable monthly and in default for at least 120 days; and "(ii) repayable less frequently than monthly and in default for at least 180 days; "(C) the term 'grace period' means the period of one year beginning on— "(i) the date on which the borrower ceases to pursue a full-time or half-time course of study at a school of nursing; or "(ii) the date on which ends any period described in clause (A) or (B) of section 836(b)(2) which is applicable to 42 USC 297b. such borrower, whichever is later; and "(D) the term 'matured loans' means the total principal amount of all loans made by a school of nursing under this subpart minus the total principal amount of loans made by such school to students who are—

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