Page:United States Statutes at Large Volume 99 Part 1.djvu/420

 99 STAT. 398

42 USC 297b.

42 USC 297d.

42 USC 297c.

PUBLIC LAW 99-92—AUG. 16, 1985 "(i) enrolled in a full-time or half-time course of study at such school; or "(ii) in their first grace period.". (b) Section 836(b)(l) is amended— (1) by striking out "and" before "(B)"; and (2) by inserting before the period a comma and "and (C) if a student who will enroll in the school after June 30, 1986, is of exceptional financial need (as defined by regulations of the Secretary)". (c) Section 836(f) is amended— (1) by inserting "and in accordance with this section" after "Secretary" in the first sentence; (2) by striking out "may" in such sentence and inserting in lieu thereof "shall"; and (3) by striking out the second sentence and inserting in lieu thereof the following: "No such charge may be made if the payment of such installment or the filing of such evidence is made within 60 days after the date on which such installment or filing is due. The amount of any such charge may not exceed an amount equal to 6 percent of the amount of such installment.". (d) Section 836 is amended by adding at the end thereof the following new subsection: "(k) The Secretary is authorized to attempt to collect any loan which was made under this subpart, which is in default, and which was referred to the Secretary by a school of nursing with which the Secretary has an agreement under this subpart, on behalf of that school under such terms and conditions as the Secretary may prescribe (including reimbursement from the school's student loan fund for expenses the Secretary may reasonably incur in attempting collection), but only if the school has complied with such requirements as the Secretary may specify by regulation with respect to the collection of loans under this subpart. A loan so referred shall be treated as a debt subject to section 5514 of title 5, United States Code. Amounts collected shall be deposited in the school's student loan fund. Whenever the Secretary desires the institution of a civil action regarding any such loan, the Secretary shall refer the matter to the Attorney General for appropriate action.". (e) Section 838 is amended by striking out subsections (a) and (b) and inserting in lieu thereof the following: "(a)(1) The Secretary shall from time to time set dates by which schools of nursing must file applications for Federal capital contributions. "(2)(A) If the total of the amounts requested for any fiscal year in such applications exceeds the total amount appropriated under section 837 for that fiscal year, the allotment from such total amount to the loan fund of each school of nursing shall be reduced to whichever of the following is the smaller: "(i) The amount requested in its application. "(ii) An amount which bears the same ratio to the total amount appropriated as the number of students estimated by the Secretary to be enrolled on a full-time basis in such school during such fiscal year bears to the estimated total number of students enrolled in all such schools on a full-time basis during such year. "(B) Amounts remaining after allotment under subparagraph (A) shall be reallotted in accordance with clause (ii) of such subpara-

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