Page:United States Statutes at Large Volume 99 Part 1.djvu/558

 99 STAT. 536

PUBLIC LAW 99-129—OCT. 22, 1985 "PROCEDURES FOR APPEAL OF TERMINATIONS

42 USC 294q-2.

42 USC 294p. 42 USC 294m. Loans.

Ante, p. 397.

"SEC. 746. In any case in which the Secretary intends to terminate an agreement with a school under this subpart, the Secretary shall provide the school with a written notice specifying such intention and stating that the school may request a formal hearing with respect to such termination. If the school requests such a hearing within 30 days after the receipt of such notice, the Secretary shall provide such school with a hearing conducted by an administrative law judge.". (i) Section 743 is amended by striking out "1987" each place it appears and inserting in lieu thereof "1991". (jKX) Section 740 is amended by adding at the end thereof the following new subsection: "(c)(1) Any standard established by the Secretary by regulation for the collection by schools of medicine, osteopathy, dentistry, pharmacy, podiatry, optometry, or veterinary medicine 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— "(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 the date on which the borrower ceases to pursue a full-time course of study at a school of medicine, osteopathy, dentistry, pharmacy, podiatry, optometry, or veterinary medicine; and "(D) the term 'matured loans' means the total principal amount of all loans made by a school under this subpart minus the total principal amount of loans made by such school to students who are— "(i) enrolled in a full-time course of study at such school; or "(ii) in their grace period.". (2) Section 835(c)(3) is amended— (A) by striking out subparagraph (C) and inserting in lieu thereof the following:

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