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ings; but such term shall not include the construction or cost of construction of so much of any facility as is used or is to be used for sectarian instruction or as a place for religious worship;

(2) The term "nonprofit school" means a school owned and operated by one or more corporations or associations no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual;

(3) The term "affiliated hospital" means a hospital, as defined in section 631, which is not owned by, but is affiliated (to the extent and in the manner determined in accordance with regulations) with, a school of medicine or school of osteopathy which meets the eligibility conditions set forth in section 721 (b) (1);

(4) The terms "school of medicine", "school of dentistry", "school of osteopathy", "school of pharmacy", "school of optometry", "school of podiatry", and "school of public health" mean a school which provides training leading, respectively, to a degree of doctor of medicine, a degree of doctor of dentistry or an equivalent degree, a degree of doctor of osteopathy, a degree of bachelor of science in pharmacy or doctor of pharmacy, a degree of doctor of optometry or an equivalent degree, a degree of doctor of podiatry or doctor of surgical chiropody, and a graduate degree in public health; and

(5) The term "school of nursing" means a department, school, division, or other administrative unit, in a college or university, which provides, primarily or exclusively, a program of education in professional nursing and allied subjects leading to the degree of bachelor of arts, bachelor of science, bachelor of nursing, or other baccalaureate degree of equivalent rank; or to a graduate degree in nursing.

NATIONAL ADVISORY COUNCIL ON EDUCATION FOR HEALTH

PROFESSIONS

SEC. 725.150 (a) There is hereby established in the Public Health Service a National Advisory Council on Education for Health Professions, consisting of the Surgeon General of the Public Health Service, who shall be Chairman, and the Commissioner of Education, both of whom shall be ex officio members, and sixteen members appointed by the Secretary without regard to the civil service laws. Four of the appointed members shall be selected from the general public and twelve shall be selected from among leading authorities in the fields of

150 Sec. 725 (a) amended by sec. 3 of P.L. 88-581.

42 U.S.C. 293e

42 U.S.C. 293f

higher education, at least eight of whom are particularly concerned with training in medicine, dentistry, osteopathy, pharmacy, optometry, podiatry, or the public health professions. In selecting persons for appointment to the Council, consideration shall be given to such factors, among others, as (1) experience in the planning, constructing, financing, or administration of schools of medicine, dentistry, osteopathy, pharmacy, optometry, podiatry, or schools of public health, and (2) familiarity with the need for teaching facilities in all areas of the Nation.

(b) The Council shall advise the Surgeon General in the preparation of general regulations and with respect to policy matters arising in the administration of this part, and in the review of applications thereunder.

(c) The Surgeon General is authorized to use the services of any member or members of the Council in connection with matters related to the administration of this part, for such periods, in addition to conference periods, as he may determine. The Surgeon General shall, in addition, make appropriate provision for consultation between and coordination of the work of the Council and the National Advisory Council on Health Research Facilities with respect to matters bearing on the purposes and administration of this part.

(d) Appointed members of the Council, while attending conferences or meetings of the Council or while otherwise serving at the request of the Surgeon General, shall be entitled to receive compensation at a rate to be fixed by the Secretary but not exceeding $50 per diem, including travel time, and while away from their homes or regular places of business they may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by section 5 of the Administrative Expenses Act of 1946 (5 U.S.C. 73b-2) for persons in the Government service employed intermittently.

NONINTERFERENCE WITH ADMINISTRATION OF INSTITUTIONS

SEC. 726. Nothing contained in this part shall be construed as authorizing any department, agency, officer, or employee of the United States to exercise any direction, supervision, or control over, or impose any requirement or condition with respect to, the personnel, curriculum, methods of instruction, or administration of any insti

tution.

42 U.S.C. 293g

REGULATIONS

SEC. 727. (a) The Surgeon General, after consultation with the Council and with the approval of the Secretary, shall prescribe general regulations for this part covering the eligibility of institutions, the order of priority in ap

proving applications, the terms and conditions for approving applications, determinations of the amounts of grants, and minimum standards of construction and equipment for various types of institutions.

(b) The Surgeon General is authorized to make, with the approval of the Secretary, such other regulations as he finds necessary to carry out the provisions of this part.

TECHNICAL ASSISTANCE

SEC. 728.151 In carrying out the purposes of this part, and to further the development of State, or joint or coordinated regional or other interstate, planning of programs for relieving shortages of training capacity in the fields of medicine, dentistry, osteopathy, pharmacy, optometry, podiatry, and public health, through constructing teaching facilities, providing adequate financial support for schools, or otherwise, the Surgeon General is authorized to provide technical assistance and consultative services to State or interstate planning agencies established for any of such purposes.

PART C-STUDENT LOANS

LOAN AGREEMENTS

*SEC. 740. (a) 152 The Secretary of Health, Education, and Welfare is authorized to enter into an agreement for the establishment and operation of a student loan fund in accordance with this part with any public or other nonprofit school of medicine, osteopathy, dentistry, or optometry which is located in a State and is accredited as provided in section 721 (b) (1) (B).

(b) Each agreement entered into under this section

shall

(1) provide for establishment of a student loan fund by the school;

(2) provide for deposit in the fund of (A) the amounts allocated under this part to the school by

* Effective July 1, 1966, secs. 740 and 741 are amended by P.L. 89-290 as follows:

(f) (1) Subsection (a) of section 740 of such Act is amended by inserting "pharmacy, podiatry," immediately after "dentistry,".

(2) Subsection (b)(4) of section 740 of such Act is amended by inserting immediately after "doctor of osteopathy," the following: "bachelor of science in pharmacy or doctor of pharmacy, doctor of podiatry or doctor of surgical chiropody,".

42 U.S.C. 293h

42 U.S.C. 294

77 Stat. 170 42 U.S.C. 294

(3) Subsection (b) of section 741 of such Act is amended by insert- 42 U.S.C. 294a ing immediately after "doctor of osteopathy," the following: "bachelor of science in pharmacy or doctor of pharmacy, doctor of podiatry or doctor of surgical chiropody.".

(4) Subsection (c) of such section 741 is amended by inserting "pharmacy, podiatry," immediately after "dentistry,".

(5) The amendments made by paragraphs (1), (2), (3), and (4) of this subsection shall only be effective with respect to periods beginning on or after July 1, 1966.

151 Sec. 3(a) of P.L. 88-581, September 4, 1964, amended sec. 728, effective July 1, 1965, by deleting "nursing":

152 Subsecs. 740 (a), (b)(4), and 741(a) amended by secs. 2(b), 4(a), and 4(b) (1), respectively, of P.L. 89-290.

42 U.S.C. 294a

the Secretary, (B) an additional amount from other sources equal to not less than one-ninth of amounts deposited pursuant to clause (A), (C) collections of principal and interest on loans made from the fund, and (D) any other earnings of the fund;

(3) provide that the fund shall be used only for loans to students of the school in accordance with the agreement and for costs of collection of such loans and interest thereon;

(4) provide that loans may be made from such funds only to students pursuing a full-time course of study at the school leading to a degree of doctor of medicine, doctor of dentistry or an equivalent degree, doctor of osteopathy, or doctor of optometry or an equivalent degree, and that while the agreement remains in effect no such student who has attended such school before July 1, 1969, shall receive a loan from a loan fund established under section 204 of the National Defense Education Act of 1958; and 152

(5) contain such other provisions as are necessary to protect the financial interests of the United States.

LOAN PROVISIONS

*SEC. 741. (a) 152 Loans from a loan fund established under this part may not exceed $2,500 for any student for any academic year or its equivalent. In the granting of such loans, a school shall give preference to persons who enter as first-year students after June 30, 1963.

(b) Any such loans shall be made on such terms and conditions as the school may determine, but may be made only to a student in need of the amount thereof to pursue a full-time course of study at the school leading to a degree of doctor of medicine, doctor of dentistry or an equivalent degree, doctor of osteopathy, or doctor of optometry or an equivalent degree.

153

(c) 154 Such loans 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 three years after the student ceases to pursue a full-time course of study at a school of medicine, osteopathy, dentistry, or optometry, excluding from such ten-year period all periods (up to three years) of (1) active duty performed by the borrower as a member of a uniformed service, or (2) service as a volunteer under the Peace Corps Act.

(d) The liability to repay the unpaid balance of such a loan and accrued interest thereon shall be canceled upon

153 Subsec. 741 (b) amended by sec. (c) of P.L. 88-654.
154 Subsec. 741 (c) amended by sec. (d) of P.L. 88-654.

155

the death of the borrower, or if the Secretary determines that he has become permanently and totally disabled. (e) Such loans shall bear interest, on the unpaid balance of the loan, computed only for periods during which the loan is repayable, at the rate of 3 per centum per annum, or the going Federal rate at the time the loan is made, whichever rate is the greater. For purposes of this subsection, the term "going Federal rate" means the rate of interest which the Secretary of the Treasury specifies during June of each year for purpose of loans made during the fiscal year beginning on the next July 1, determined by estimating the average yield to maturity, on the basis of daily closing market quotations of prices during the preceding May on all outstanding marketable obligations of the United States having a maturity date of fifteen or more years from the first day of such month of May, and by rounding off such estimated average annual yield to the next higher multiple of one-eighth of 1 percentum. Notwithstanding the foregoing provisions of this subsection, the rate of interest determined in accordance with such provisions for the first loan obtained by a student from a loan fund established under this part shall also apply to any subsequent loan to such student from such fund during his course of study.

(f) 155 Where any person who obtained one or more loans from a loan fund established under this part

(1) engages in the practice of medicine, dentistry, optometry, or osteopathy in an area in a State determined by the appropriate State health authority, in accordance with regulations provided by the Secretary, to have a shortage of and need for physicians, optometrists or dentists; and

(2) the appropriate State health authority certifies to the Secretary of Health, Education, and Welfare in such form and at such times as the Secretary may prescribe that such practice helps to meet the shortage of and need for physicians, optometrists or dentists in the area where the practice occurs; then 10 per centum of the total of such loans, plus accrued interest on such amount, which are unpaid as of the date that such practice begins, shall be canceled thereafter for each year of such practice, up to a total of 50 per centum of such total, plus accrued interest thereon.

(g) 156 Loans shall be made under this part without security or endorsement, except that if the borrower is a minor and the note or other evidence of obligation executed by him would not, under the applicable law, create a binding obligation, either security or endorsement may be required.

155 Subsec. 741 (e) amended, and subsec. 741 (f) added by subsecs. 4(g) (1) and 4 (b) (2), respectively, of P.L. 89–290.

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