under this section may be modified by the Secretary to the extent he determines it to be consistent with the financial interest of the United States.

(3) Any loan guarantee made by the Secretary pursuant to this section shall be incontestable in the hands of an applicant on whose behalf such guarantee is made, and as to any person who makes or contracts to make a loan to such applicant in reliance thereon, except for fraud or misrepresentation on the part of such applicant or such other person.

(e) Establishment of loan guaranty and interest subsidy fund; authorization of appropriations; insufficient sums in fund.

There is established in the Treasury a loan guarantee and interest subsidy fund (hereinafter in this subsection referred to as the "fund") which shall be available to the Secretary without fiscal year limitation, in such amounts as may be specified from time to time in appropriation Acts, (1) to enable him to discharge his responsibilities under guarantees issued by him under this section, and (2) for interest subsidy payments authorized by this section. There are authorized to be appropriated from time to time such amounts as may be necessary to provide the sums required for the fund; except that the amount appropriated for interest subsidy payments may not exceed $1,000,000 in the fiscal year ending June 30, 1972, $2,000,000 in the fiscal year ending June 30, 1973, and $4,000,000 in the fiscal year ending June 30, 1974. There shall also be deposited in the fund amounts received by the Secretary or other property or assets derived by him from his operations under this section, including any money derived from the sale of assets. If at any time the sums in the fund are insufficient to enable the Secretary to discharge his responsibilities under guarantees issued by him under this section or to make interest subsidy payments authorized by this section, he is authorized to issue to the Secretary of the Treasury notes or other obligations in such forms and denominations, bearing such maturities, and subject to such terms and conditions, as may be prescribed by the Secretary with the approval of the Secretary of the Treasury, but only in such amounts as may be specified from time to time in appropriation Acts. Such notes or other obligations shall bear interest at a rate determined by the Secretary of the Treasury, taking into consideration the current average market yield on outstanding marketable obligations of the United States of comparable maturities during the month preceding the issuance of the notes or other obligations. The Secretary of the Treasury shall purchase any notes and other obligations issued hereunder and for that purpose he may use as a public debt transaction the proceeds from the sale of any securities issued under the Second Liberty Bond Act, and the purposes for which the securities may be issued under that Act are extended to include any purchase of such notes and obligations. The Secretary of the Treasury may at any time sell any of the notes or other obligations acquired by him under this subsection. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes or other obligations shall be treated as public debt transactions of the United States. Sums borrowed under this subsection shall be deposited in the fund and redemp

tion of such notes and obligations shall be made by the Secretary from the fund.

(f) Limitation on cumulative total of principal of loans as governed by amounts specified in appropriation acts.

(1) The cumulative total of the principal of the loans outstanding at any time with respect to which guarantees have been issued under this section may not exceed such limitations as may be specified in appropriation Acts.

(2) In any fiscal year no loan guarantee may be made under subsection (a) of this section and no agreement to make interest subsidy payments may be entered into under subsection (b) of this section if the making of such guarantee or the entering into of such agreement would cause the cumulative total of

(A) the principal of the loans guaranteed under subsection (a) of this section in such fiscal year, and

(B) the principal of the loans for which no guarantee has been made under subsection (a) of this section and with respect to which an agreement to make interest subsidy payments is entered into under subsection (b) of this section in such fiscal year,

to exceed the amount of grant funds obligated under this part in such fiscal year for construction grants; except that this paragraph shall not apply if the amount of grant funds so obligated in such fiscal year equals the sums appropriated for such fiscal year under section 296 of this title.

(g) Administrative assistance from the Department of Housing and Urban Development.

The Secretary, with the consent of the Secretary of Housing and Urban Development, may obtain from the Department of Housing and Urban Development such assistance with respect to the administration of this section as will promote efficiency and economy thereof. (July 1, 1944, ch. 373, title VIII, § 809, as added Nov. 18, 1971, Pub. L. 92–158, § 2(c), 85 Stat. 465.)

REFERENCES IN TEXT

The Second Liberty Bond Act, referred to in subsec. (e), is act Sept. 24, 1917, ch. 56, 40 Stat. 288, as amended, which is classified to section 745, former section 747, sections 752, 752a, 753, 754, 754a, 754b, 757, 757b, and 757c, former section 757c-1, sections 757c-2, 757c-3, 757c-4, 757d, 757e, 758, 760, 764, former section 765, and sections 766, 769, 771, 773, 774, and 801 of Title 31, Money and Finance.

That Act, referred to in subsec. (e), means the Second Liberty Bond Act.

§ 2961. Start-up grants for new nurse training programs.

(a) Proposed student enrollment; available resources.

The Secretary may make grants to any public or nonprofit private entity to assist in meeting the costs of planning, developing, or initiating new programs of nurse training. In considering applications for grants under this section, the Secretary shall take into account

(1) the number of students proposed to be enrolled in such program, and

(2) the other resources available to such program.

20-347 0-74-vol. 233

under this part and who on such date was engaged in a service for which cancellation of all or part of such loans (including accrued interest) was authorized under this section (as so in effect), this section (as so in effect) shall continue to apply to such person for purposes of providing such loan cancellation until he terminates such service.

Nothing in this subsection shall be construed to prevent any person from entering into an agreement for loan cancellation under this subsection. (As amended Nov. 18, 1971, Pub. L. 92–158, § 6(a), (b) (1), (e), 85 Stat. 475, 476, 478.)

REFERENCES IN TEXT

The amendment made by section 6(b) of the Nurse Training Act of 1971 to this section, referred to in subsec. (h) (4) (1), which amended subsec. (b) (3) of this section and added subsec. (h) of this section, is contained in section 6(b)(1) of Pub. L. 92–158, Nov. 18, 1971, 85 Stat. 476.

The date of enactment of the Nurse Training Act of 1971, referred to in subsec. (h) (4) (1) (A), is Nov. 18, 1971.

AMENDMENTS

1971-Subsec. (a). Pub. L. 92-158, § 6(a), substituted "$2,500" for "$1,500" and "$10,000" for "$60,000".

Subsec. (b)(1). Pub. L. 92-158, § 6(e), substituted "full-time or half-time course of study" for "full-time course of study".

Subsec. (b) (2). Pub. L. 92–158, § 6(e), in material preceding clause (A), substituted "full-time or half-time course of study" for "full-time course of study".

Subsec. (b) (3). Pub. L. 92–158, § 6(b) (1) (A), substituted provisions cancelling up to 85% of loan, for provisions cancelling up to 50% of loan, where borrower holds full-time employment as a professional nurse, added to areas of possible employment under this par. by inserting reference to any public or nonprofit organization including neighborhood health centers, substituted, with regard to the rate of cancellation of loan, the rate of 15% of the amount unpaid on the first day of service, continuing at such rate with each of the first, second and third complete years of such service and 20% of such amount with each complete fourth and fifth year of service for the rate of 10% of the amount unpaid on the first day of service and to continue with each complete year of service, and struck out reference to 15% rate of cancellation per complete year of service plus, for the purpose of such higher rate, the cancellation of an additional 50% of such loan where such service is in a public or nonprofit hospital in any area which is determined, in accordance with the regulations of the Secretary, to be in an area having a substantial shortage of such nurses at such hospitals.

Subsec. (h). Pub. L. 92-158, § 6(b) (1) (B), added subsec. (h).

EFFECTIVE DATE OF 1971 AMENDMENT Section 6(a)(1) of Pub. L. 92-158 provided in part that the amendment to subsec. (a) of this section by section 6(a)(1) of Pub. L. 92-158 shall be effective with respect to academic years (or their equivalent as determined under regulations of the Secretary of Health, Education, and Welfare under this section) beginning after June 30, 1971.

§ 297c. Authorization of appropriations for loans.

There are authorized to be appropriated to the Secretary of Health, Education, and Welfare for Federal capital contributions to student loan funds pursuant to section 297a (b) (2) (A) of this title $3,100,000 for the fiscal year ending June 30, 1965, $8,900,000 for the fiscal year ending June 30, 1966, $16,800,000 for the fiscal year ending June 30, 1967, $25,300,000 for the fiscal year ending June 30, 1968, $30,900,000 for the fiscal year ending June 30, 1969, $20,000,000 for the fiscal year ending June 30, 1970, $21,000,000 for the fiscal year ending June 30, 1971,

and $35,000,000 for the fiscal year ending June 30, 1974, and such sums for the fiscal year ending June 30, 1975, and each of the two succeeding fiscal years as may be necessary to enable students who have received a loan for any academic year ending before July 1, 1974, to continue or complete their education. Sums appropriated pursuant to this section for the fiscal year ending June 30, 1967, or any subsequent fiscal year shall be available to the Secretary (1) for payments into the fund established by section 297f(d) of this title, and (2) in accordance with agreements under this part, for Federal capital contributions to schools with which such agreements have been made, to be used, together with deposits in such funds pursuant to section 297a (b) (2) (B) of this title, for establishment and maintenance of student loan funds, and (3) for transfers pursuant to section 297h of this title. (As amended July 9, 1971, Pub. L. 92-52, § 3(a), 85 Stat. 144; Nov. 18, 1971, Pub. L. 92-158, § 6(c), 85 Stat. 477.)

AMENDMENTS

1971-Pub. L. 92-158 substituted authorized appropriations of $21,000,000, $25,000,000, $30,000,000 and $35,000,000 for the fiscal years ending June 30, 1971, 1972, 1973, and 1974, respectively, plus such sums for the fiscal year ending June 30, 1975, and each of the two succeeding fiscal years as may be necessary to enable students receiving a loan for any academic year ending before July 1, 1974 to continue or complete their education, for an authorized appropriation of $21,000,000 each for the fiscal years ending June 30, 1971 and 1972, plus such sums for the fiscal year ending June 30, 1973, and each of the two succeeding fiscal years as may be necessary to enable students receiving a loan for any academic year ending before July 1, 1972, to continue or complete their education.

Pub. L. 92-52 substituted "each for the fiscal year ending June 30, 1971, and the next fiscal year" for "for the fiscal year ending June 30, 1971", "1973" for "1972" and "July 1, 1972" for "July 1, 1971".

§ 297e. Distribution of assets from loan funds.

(a) After June 30, 1977, and not later than September 30, 1977, there shall be a capital distribution of the balance of the loan fund established under an agreement pursuant to section 297a of this title by each school as follows:

(1) The Secretary of Health, Education, and Welfare shall first be paid an amount which bears the same ratio to such balance in such fund at the close of June 30, 1977, as the total amount of the Federal capital contributions to such fund by the Secretary pursuant to section 297a (b) (2) (A) of this title bears to the total amount in such fund derived from such Federal capital contributions and from funds deposited therein pursuant to section 297a (b) (2) (A) of this title.

(2) The remainder of such balance shall be paid to the school.

(b) After September 30, 1977, each school with which the Secretary has made an agreement under this part shall pay to the Secretary, not less often than quarterly, the same proportionate share of amounts received by the school after June 30, 1977, in payment of principal or interest on loans made from the loan fund established pursuant to such agreement (other than so much of such fund as relates to payments from the revolving fund established by section 297f (d) of this title) as was determined for the Secretary under subsection (a) of this

section. (As amended July 9, 1971, Pub. L. 92-52, § 3(b), 85 Stat. 145; Nov. 18, 1971, Pub. L. 92-158, § 6(d) (1), 85 Stat. 478.)

AMENDMENTS

1971-Pub. L. 92-158 substituted "1977" for "1975" wherever appearing.

Pub. L. 92-52 substituted "1975" for "1974" in five places.

§ 297f. Loans to schools of nursing to capitalize student loan funds.

(a) Fiscal years available; terms, conditions, and limitations; institutional contributions; interest.

(1) During the fiscal years ending June 30, 1967, and June 30, 1968, and each of the next six fiscal years, the Secretary may make loans, from the revolving fund established by subsection (d) of this section, to any public or nonprofit private school of nursing which is located in a State, to provide all or part of the capital needed by any such school for making loans to students under this section (other than capital needed to make the institutional contributions required of schools by section 297a (b) (2) (B) of this title). Loans to students from such borrowed sums shall be subject to the terms, conditions, and limitations set forth in section 297b of this title. The requirement in section 297a (b) (2) (B) of this title with respect to institutional contributions by schools to student loan funds shall not apply to loans made to schools under this section.

*

(As amended July 9, 1971, Pub. L. 92–52, § 3(c), 85 Stat. 145; Nov. 18, 1971, Pub. L. 92-158, § 6(d) (2), 85 Stat. 478.)

AMENDMENTS

1971-Subsec. (a) (1). Pub. L. 92-158 substituted "next six fiscal years" for "next four fiscal years".

Subsec. (a)(1). Pub. L. 92-52 substituted "next four fiscal years" for "next three fiscal years".

§ 2971. Loan forgiveness.

(a) Upon application by a person who received, and is under an obligation to repay, any loan made to such person as a nursing student, the Secretary may undertake to repay (without liability to the applicant) all or any part of such loan, and any interest or portion thereof outstanding thereon, upon his determination, pursuant to regulations establishing criteria therefor, that the applicant—

(1) failed to complete the nursing studies with respect to which such loan was made;

(2) is in exceptionally needy circumstances; (3) is from a low-income or disadvantaged family as those terms may be defined by such regulations; and

(4) has not resumed, or cannot reasonably be expected to resume, such nursing studies within two years following the date upon which the applicant terminated the studies with respect to which such loan was made.

(July 1, 1944, ch. 373, title VIII, § 830, as added Nov. 18, 1971, Pub. L. 92-158, § 6(b) (2), 85 Stat. 477.)

PART C.-GENERAL

§ 298. National Advisory Council on Nurse Training. (a) (1) There is hereby established a National Advisory Council on Nurse Training, consisting of

1 So in original. There is no subsec. (b).

the Secretary (or his delegate), who shall be Chairman, and the Commissioner of Education, both of whom shall be ex officio members, and nineteen members appointed by the Secretary without regard to the civil service laws. Three of the appointed members shall be selected from full-time students enrolled in schools of nursing, four of the appointed members shall be selected from the general public and twelve shall be selected from among leading authorities in the various fields of nursing, higher, and secondary education, and from representatives of hospitals and other institutions and organizations which provide nursing services. The student members of the Council shall be appointed for terms of one year and shall be eligible for reappointment to the Council.

(2) The Council shall advise the Secretary (or his delegate) in the preparation of general regulations and with respect to policy matters arising in the administration of this subchapter, and in the review of applications for construction projects under part A of this subchapter and of applications under section 296d of this title.

(b) Omitted.

(As amended Nov. 18, 1971, Pub. L. 92-158, §§ 9, 13, 85 Stat. 479, 480.)

AMENDMENTS

1971-Subsec. (a)(1). Pub. L. 92-158, §§ 9, 13, substituted "nineteen members" for "sixteen members", and "Three of the appointed members shall be selected from full-time students enrolled in schools of nursing, four" for "Four", added "The student-members of the Council shall be appointed for terms of one year and shall be eligible for reappointment to the Council." and substituted "Secretary (or his delegate)" for "Surgeon General".

Subsec. (a) (2). Pub. L. 92-158, § 13, substituted "Secretary (or his delegate)" for "Surgeon General". § 298b. Definitions.

For the purposes of this subchapter

(i) The terms "construction" and "cost of construction" include (1) the construction of new buildings, and the acquisition, expansion, remodeling, replacement, and alteration of existing buildings, including architects' fees, but not including the cost of acquisition of land (except in the case of acquisition of an existing building), off-site improvements, living quarters, or patient-care facilities, and (2) equipping new buildings and existing buildings, whether or not acquired, expanded, remodeled, or altered. For the purposes of this paragraph, the term "buildings" includes interim facilities.

(j) The term "interim facilities" means teaching facilities designed to provide teaching space on a short-term (less than ten years) basis while facilities of a more permanent nature are being planned and constructed. (As amended Nov. 18, 1971, Pub. L. 92-158, § 2(d) (1), (2), 85 Stat. 467, 468.)

AMENDMENTS

1971-Subsec. (1). Pub. L. 92-158, § 2(d) (1), defined the term "buildings" as including interim facilities. Subsec. (j). Pub. L. 92-158, § 2(d) (2), added subsec. (J).

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 298c-7 of this title: title 20 section 1132e-1.

The amount of any grant under this section shall be determined by the Secretary, but in no event may any grant exceed $100,000 for any fiscal year. Payments under such grants may be made in advance or by way of reimbursement, and at such intervals and on such conditions, as the Secretary finds necessary.

(d) Authorization of appropriations.

There are authorized to be appropriated to carry out this section not to exceed $4,000,000 for the fiscal year ending June 30, 1972, $8,000,000 for the fiscal year ending June 30, 1973, and $12,000,000 for the fiscal year ending June 30, 1974. Sums appropriated under this subsection shall remain available until expended. (July 1, 1944, ch. 373, title VIII, § 810, as added Nov. 18, 1971, Pub. L. 92-158, § 4(b), 85 Stat. 474.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 296f of this title.

PART B.-ASSISTANCE TO NURSING STUDENTS

§ 297. Traineeships for advanced training of professionals.

(a) Authorization of appropriations.

There are authorized to be appropriated $8,000,000 for the fiscal year ending June 30, 1965, $9,000,000 for the fiscal year ending June 30, 1966, $10,000,000 for the fiscal year ending June 30, 1967, $11,000,000 for the fiscal year ending June 30, 1968, $12,000,000 for the fiscal year ending June 30, 1969, $15,000,000 for the fiscal year ending June 30, 1970, $19,000,000 for the fiscal year ending June 30, 1971, $20,000,000 for the fiscal year ending June 30, 1972, $22,000,000 for the fiscal year ending June 30, 1973, and $24,000,000 for the fiscal year ending June 30, 1974, to cover the cost of traineeships for the training of professional nurses to teach in the various fields of nurse training (including practical nurse training), to serve in administrative or supervisory capacities, or to serve in other professional nursing specialties determined by the Secretary to require advanced training.

(b) Award through grants to public or nonprofit private institutions.

Traineeships under this section shall be awarded by the Secretary through grants to public or nonprofit private institutions providing the training. (c) Payments; limitations.

Payments to institutions under this section may be made in advance or by way of reimbursement, and at such intervals and on such conditions, as the Secretary finds necessary. Such payments may be used only for traineeships and shall be limited to such amounts as the Secretary finds necessary to cover the costs of tuition and fees, and a stipend and allow

ances (including travel and subsistence expenses) for the trainees. (As amended July 9, 1971, Pub. L. 92-52, 5, 85 Stat. 145; Nov. 18, 1971, Pub. L. 92-158, §§ 5, 13, 85 Stat. 475, 480.)

CODIFICATION

Provision added by Pub. L. 92-52 for an appropriation of $19,000,000 for "the next fiscal year" after the fiscal year ending June 30, 1971, has been omitted in view of provision added by Pub. L. 92-158 for an appropriation of $20,000,000 for the fiscal year ending June 30, 1972.

AMENDMENTS

1971-Subsec. (a). Pub. L. 92-158, §§ 5, 13, authorized appropriations of $20,000,000, $22,000,000, and $24,000,000 for the fiscal years ending June 3, 1972, 1973, and 1974, respectively and substituted "Secretary" for "Surgeon General".

Pub. L. 92-52 substituted "each for the fiscal year ending June 30, 1971, and the next fiscal year" for "for the fiscal year ending June 30, 1971".

Subsec. (b). Pub. L. 92-158, § 13, substituted "Secretary" for "Surgeon General".

Subsec. (c). Pub. L. 92-158, § 13, substituted "Secretary" for "Surgeon General" in two places.

§ 297a. Loan agreements; student loan fund; provisions of agreements.

(b) Each agreement entered into under this section shall

(4) provide that loans may be made from such fund only to students pursuing a full-time or halftime course of study at the school leading to a baccalaureate or associate degree in nursing or an equivalent degree or a diploma in nursing, or to a graduate degree in nursing, and that while the agreement remains in effect no such student who has attended such school before July 1, 1974, shall receive a loan from a loan fund established under section 424 of Title 20, and

(As amended Nov. 18, 1971, Pub. L. 92–158, § 6(d) (3), (e), 85 Stat. 478.)

AMENDMENTS

1971-Subsec. (b) (4). Pub. L. 92-158 substituted "fulltime or half-time course of study" for "full-time course of study" and "1974" for "1971".

§ 297b. Loan provisions.

(a) Maximum amount per individual per year; preference to first year students.

The total of the loans for any academic year (or its equivalent, as determined under regulations of the Secretary) made by schools of nursing from loan funds established pursuant to agreements under this part may not exceed $2,500 in the case of any student. The aggregate of the loans for all years from such funds may not exceed $10,000 for any student. In the granting of such loans, a school shall give preference to licensed practical nurses and to persons who enter as first-year students after enactment of this subchapter.

the school) with a view to preventing impairment of the capital of such fund to the maximum extent practicable in the light of the objective of enabling the student to complete his course of study; and except that

(1) such a loan may be made only to a student who (A) is in need of the amount of the loan to pursue a full-time or half-time course of study at the school leading to a baccalaureate or associate degree in nursing or an equivalent degree, or a diploma in nursing, or a graduate degree in nursing, and (B) is capable, in the opinion of the school, of maintaining good standing in such course of study;

(2) such a loan shall be repayable in equal or graduated periodic installments (with the right of the borrower to accelerate repayment) over the ten-year period which begins nine months after the student ceases to pursue a full-time or halftime course of study at a school of nursing, excluding from such 10-year period all (A) periods (up to three years) of (i) active duty performed by the borrower as a member of a uniformed service, or (ii) service as a volunteer under the Peace Corps Act, and (B) periods (up to five years) during which the borrower is pursuing a full-time course of study at a collegiate school of nursing leading to baccalaureate degree in nursing or an equivalent degree, or to graduate degree in nursing, or is otherwise pursuing advanced professional training in nursing;

(3) an amount up to 85 per centum of any such loan (plus interest thereon) shall be canceled for full-time employment as a professional nurse (including teaching in any of the fields of nurse training and service as an administrator, supervisor, or consultant in any of the fields of nursing) in any public or nonprofit private agency, institution, or organization (including neighborhood health centers), at the rate of 15 per centum of the amount of such loan (plus interest) unpaid on the first day of such service for each of the first, second, and third complete year of such service, and 20 per centum of such amount (plus interest) for each complete fourth and fifth year of such service;

(h) Shortage area; service agreement; reimburse

ment.

(1) In the case of any individual—

(A) who has received a baccalaureate or associate degree in nursing (or an equivalent degree), a diploma in nursing, or a graduate degree in nursing;

(B) who obtained (A) one or more loans from a loan fund established under this part, or (B) any other educational loan for nurse training costs; and

(C) who enters into an agreement with the Secretary to serve as a nurse for a period of at least two years in an area in a State determined by the Secretary, after consultation with the appropriate State health authority (as determined by the Secretary by regulations), to have a shortage of and need for nurses;

the Secretary shall make payments in accordance with paragraph (2), for and on behalf of that in

dividual, on the principal of and interest on any loan of that individual described in subparagraph (B) of this paragraph which is outstanding on the date the individual begins the service specified in the agreement described in subparagraph (C) of this paragraph.

(2) The payments described in paragraph (1) shall be made by the Secretary as follows:

(A) Upon completion by the indiivdual for whom the payments are to be made of the first year of the service specified in the agreement entered into with the Secretary under paragraph (1), the Secretary shall pay 30 per centum of the principal of, and the interest on each loan of such individual described in paragraph (1) (B) which is outstanding on the date he began such practice. (B) Upon completion by that individual of the second year of such service, the Secretary shall pay another 30 per centum of the principal of, and the interest on each such loan.

(C) Upon completion by that individual of a third year of such service, the Secretary shall pay another 25 per centum of the principal of, and the interest on each such loan.

(3) Notwithstanding the requirement of completion of practice specified in paragraph (2), the Secretary shall, on or before the due date thereof, pay any loan or loan installment which may fall due within the period of service for which the borrower may receive payments under this subsection, upon the declaration of such borrower, at such times and in such manner as the Secretary may prescribe (and supported by such other evidence as the Secretary may reasonably require), that the borrower is then engaged as described by paragraph (1) or paragraph (2) (C), and that the borrower will continue to be so engaged for the period required (in the absence of this paragraph) to entitle the borrower to have made the payments provided by this subsection for such period; except that not more than 85 per centum of the principal of any such loan shall be paid pursuant to this paragraph.

(4) A borrower who fails to fulfill an agreement with the Secretary entered into under paragraph (1) or assurances provided pursuant to paragraph (2) (C) shall be liable to reimburse the Secretary for any payments made pursuant to paragraph (2) (A) or paragraph (3) in consideration of such agreement.

(i) Notwithstanding the amendment made by section 6 (b) of the Nurse Training Act of 1971 to this section

(A) any person who obtained one or more loans from a loan fund established under this part, who before the date of the enactment of the Nurse Training Act of 1971 became eligible for cancellation of all or part of such loans (including accrued interest) under this section (as in effect on the day before such date), and who on such date was not engaged in a service for which loan cancellation was authorized under this section (as so in effect), may at any time elect to receive such cancellation in accordance with this subsection (as so in effect); and

(B) in the case of any person who obtained one or more loans from a loan fund established