for disciplinary reasons, or voluntarily terminates the course of study or program for which the scholarship was awarded before completing the course of study or program, the participant must, instead of performing any service obligation, pay to the United States an amount equal to all scholarship funds awarded under § 62.7. Payment of this amount must be made within 3 years of the date the participant becomes liable to make payment under this paragraph.

(c) If a participant fails to begin or complete the period of obligated service incurred under § 62.8, including failing to comply with the applicable terms and conditions of a deferment granted by the Secretary, the participant must pay to the United States an amount determined by the formula set forth in section 754(c) of the Act. Payment of this amount shall be made within 1 year of the date that the participant failed to begin or complete the period of obligated service, as determined by the Secretary.

§ 62.11 When can a scholarship program payment obligation be discharged in bankruptcy?

In accordance with section 754(d)(3) of the Act, any payment obligation incurred under § 62.10 may not be discharged in bankruptcy under Title XI of the United States Code until 5 years after the date on which the payment obligation is due.

§ 62.12 Under what circumstances can the service or payment obligation be canceled, waived or suspended?

(a) Any obligation of a participant for service or payment will be canceled upon the death of the participant.

(b)(1) A participation may seek a waiver or suspension of the service or payment obligations incurred under this part by written request to the Secretary setting forth the bases, circumstances, and causes which support the requested action. The Secretary may approve a request for a suspension for a period of 1 year. A renewal of this suspension may also be granted.

(2) The Secretary may waive or suspend any service or payment obligation incurred by a participant when

ever compliance by the participant (i) is impossible, or (ii) would involve extreme hardship to the participant and if enforcement of the service or payment obligation would be against equity and good conscience.

(c) Compliance by a participant with a service or payment obligation will be considered impossible if the Secretary determines, on the basis of information and documentation as may be required, that the participant suffers from a physical or mental disability resulting in the permanent inability of the participant to perform the service or other activities which would be necessary to comply with the obligation.

(d) In determining whether to waive or suspend any or all of the service or payment obligations of a participant as imposing an undue hardship and being against equity and good conscience, the Secretary, on the basis of information and documentation as may be required, will consider:

(1) The participant's present financial resources and obligations;

(2) The participant's estimated future financial resources and obligations; and

(3) The extent to which the participant has problems of a personal nature, such as physical or mental disability, terminal illness in the immediate family which so intrude on the participant's present and future ability to perform as to raise a presumption that the individual will be unable to perform the obligation incurred.

§ 62.13 What are the limitations on the receipt of concurrent benefits?

Under section 741(f) or 836(h) of the Act, the Secretary may agree to repay a portion of an individual's educational loans in return for the individual's agreement to practice his or her profession in an area in need of health manpower. However, a Scholarship Program participant may not enter into an agreement with the Secretary under section 741(f) or 836(h) of the Act, until either: (a) The participant has completed the service obligation under the Scholarship Program, (b) the Secretary has recovered from the participant an amount determined under § 62.10, or (c) any service or pay

ment obligation has been waived under § 62.12. In no case shall a scholarship received under these regulations be considered an educational loan for the purposes of section 741(f) or 836(h) of the Act.

§ 62.14 What are the special provisions relating to recipients of awards under the PH/NHSC scholarship training program who will also receive awards under the scholarship program?

(a) Except as provided in paragraph (b) of this section, if a participant has previously received an award under the PH/NHSC Scholarship Training Program and also receives an award under the Scholarship Program, the terms and conditions of these regulations will apply to the participant's entire obligation incurred under both the PH/NHSC Scholarship Training Program and the Scholarship Program.

(b) If a participant has received an award under the PH/NHSC Scholarship Training Program and also receives an award under the Scholarship Program, the following conditions apply:

(1) Period of obligated service-carry over. The period of obligated service owed by the participant is equal to the total number of school years for which scholarship support was awarded under both the PH/NHSC Scholarship Training Program and the Scholarship Program without regard to either Program's minimum support requirement under 42 CFR 62.7(a) (1976) as adopted on May 22, 1974 (see 39 FR 17962), and under § 62.8(c) of this part.

(2) Credit for internship and residency training. (i) If a participant received a scholarship under the PH/ NHSC Scholarship Training Program for any school year beginning before October 12, 1976, the participant will receive credit toward satisfying the periods of obligated service incurred under the PH/NHSC Scholarship Training Program and under § 62.8 of this part for any periods of internship or residency training served in a Service or National Health Service Corps facility.

(ii) If a participant received a scholarship for the first time during the

1977-78 school year under the PH/ NHSC Scholarship Training Program, the participant will only receive 1 year of credit toward satisfying the period of obligated service incurred under the PH/NHSC Scholarship Training Program for internship or residency training served in a Service or National Health Service Corps facility.

(3) Default penalties. The PH/NHSC Scholarship Training Program default penalty will apply to a participant who fails to begin or complete the active duty service obligation incurred under that Program, and the § 62.10 default penalties will apply to a participant who fails to begin or complete the service obligation incurred under § 62.8 of these regulations. In determining which default penalty to apply when an individual who has received a Scholarship award under both the PH/NHSC Scholarship Training Program and the Scholarship Program fails to begin or complete his service obligation, the service obligations will be considered to have been served in the order in which they were incurred.

63.5

63.6

Terms and conditions of award. Termination of traineeships. 63.7 Appropriate Institute.

AUTHORITY: Sec. 215, 58 Stat. 690, secs. 301, 402, 403, 58 Stat. 691, 707, sec. 303, 60 Stat. 423, secs. 412, 422, 62 Stat. 464, 598, sec. 433, 64 Stat. 444; 42 U.S.C. 216, 241, 282, 283, 242a, 287a, 288a, 289c.

SOURCE: 21 FR 9868, Dec. 12, 1956, unless otherwise noted.

§ 63.1 Nature and purpose of traineeships. (a) A National Institutes of Health traineeship is an award of funds to an individual for his subsistence during a period in which he is acquiring advanced training in the diagnosis, prevention or treatment of diseases of public health significance. The purpose of such traineeships is to make available in the United States for the

community effort against such diseases an increased number of persons having special competence in such diagnosis, prevention or treatment.

(b) A National Library of Medicine Traineeship is an award of funds to an individual for his subsistence and other expenses during a period in which he is acquiring advanced training in the field of medical library science, in related fields pertaining to sciences related to health, or in the field of communication of health sciences

information.

[21 FR 9868, Dec. 12, 1956, as amended at 31 FR 9505, July 13, 1966]

§ 63.2 Minimum qualifications.

Minimum qualifications for any traineeship shall be established by the Director of the appropriate Institute with the approval of the Surgeon General, and shall be uniformly applicable to all applicants in each traineeship program of such Institute. Such minimum qualifications may include requirements as to age, physical or mental condition, academic degrees, professional or other training or experience and such other factors as may be necessary to the fulfillment of the purpose of the traineeship. To the extent the Surgeon General finds it not inconsistent with such fulfillment, however, he may in individual cases waive compliance with any minimum qualification so established if he determines that the applicant has substantially equivalent qualifications or has such special training, experience or opportunity for service as make an award particularly appropriate.

§ 63.3 Award of traineeships.

Subject to the regulations of this part, the Surgeon General or his delegate may award traineeships to those qualified applicants who are best able in his judgment to carry out the purpose of the traineeships. Such awards may be made in the name of the appropriate Institute.

§ 63.4 Benefits.

Each individual awarded a traineeship shall be entitled to the following benefits:

(a) A stipend fixed in amount by the Surgeon General and payable with re

spect to a period of one year or such other period, including extensions or renewals, as may be specified by the Surgeon General or his delegate in making awards.

(b) An additional allowance, if requested by the trainee and approved in advance by the Surgeon General or his delegate, for travel, per diem and transportation not exceeding such amounts as may be prescribed by the Surgeon General.

§ 63.5 Terms and conditions of award.

All traineeship awards shall be subject to the following terms and conditions:

(a) Training must be carried out at an institution found by the Director of the appropriate Institute to provide a well-rounded course of instruction in the particular field in which the traineeship is awarded. A change in the training institution may be made only with the approval of such Director.

(b) No traineeship may be utilized to compensate, nor awarded as consideration, for personal services or employment of the trainee for the United States or for any other person.

an

(c) No payment shall be made to any citizen or noncitizen national of the United States receiving award under the regulations in this part unless such citizen or noncitizen national has taken, subscribed to, and filed with the Public Health Service a written oath or affirmation in the following terms: "I do solemnly swear (or affirm) that I bear true faith and allegiance to the United States of America and will support and defend the Constitution and laws of the United States against all its enemies, foreign and domestic."

(d) Additional conditions consistent with the regulations in this part may be established by the Surgeon General or his delegate to the extent he finds them necessary to fulfill the purpose of the traineeship.

(e) A noncitizen national of the United States is a person, who, though not a citizen of the United States, Owes permanent allegiance to the United States.

(f) Payments made under awards pursuant to § 63.1(b) may be made to

the trainee or the sponsoring institution. Except as may be otherwise prescribed by the Surgeon General, payments shall be made in advance or by way of reimbursement and in monthly installments.

[21 FR 9868, Dec. 12, 1956, as amended at 30 FR 6072, Apr. 29, 1965; 31 FR 9505, July 13, 1966]

§ 63.6 Termination of traineeships.

The Surgeon General or his delegate may terminate a traineeship at any time upon request of the trainee, and shall terminate any traineeship prior to the date it would otherwise expire upon a determination, made or approved by the Surgeon General, either that the trainee's performance is unsatisfactory or that he is unfit or unable to carry out the purpose of the traineeship.

§ 63.7 Appropriate Institute.

As used in this part "appropriate Institute" shall mean the National Cancer Institute for traineeships in the field of cancer, the National Institute of Mental Health for traineeships in the field of mental disorders, the National Heart Institute for traineeships in the field of cardiovascular diseases, the National Institute of Dental Research for traineeships in the field of dental diseases and conditions, the National Institute for Allergy and Infectious Diseases for traineeships in the field of allergy and infectious diseases, the National Institute of Arthritis and Metabolic Diseases for traineeship in the field of arthritis, rheumatism and metabolic disease, the National Institute of Neurological Diseases and Blindness for traineeships in the field of epilepsy, cerebral palsy, multiple sclerosis, other neurological and sensory disorders, and any other institute hereafter established by the Surgeon General under section 431 of the Public Health Service Act, as amended, for traineeships in the field of those diseases constituting the responsibility of such institute. "Appropriate Institute" shall also mean, with respect to awards pursuant to § 63.1(b), the National Library of Medicine.

[21 FR 9868, Dec. 12, 1956, as amended at 31 FR 9505, July 13, 1966]

PART 64-NATIONAL INSTITUTES OF HEALTH AND NATIONAL LIBRARY OF MEDICINE TRAINING GRANTS

Sec.

64.1 Nature and purpose of training grants. 64.2 Application requirements. 64.3 Award of training grants.

64.4 Conditions to awards; general.

64.5 Additional conditions; institutional ex

penses.

64.6 Additional conditions; stipends. 64.7 Payments; repayment of unexpended balances; unauthorized expenditures. 64.8 Appropriate Institute.

AUTHORITY: Sec. 215, 58 Stat. 690, as amended; 42 U.S.C. 216; sec. 433, 64 Stat. 444; 42 U.S.C. 289c.

SOURCE: 21 FR 9869, Dec. 12, 1956, unless otherwise noted.

§ 64.1 Nature and purpose of training grants.

of

(a) A National Institutes of Health training grant is an award of funds to a qualified educational or training institution, the objective of such grants being to make available for the community effort against diseases public health significance an increased number of facilities providing adequate training and instruction, and an increased number of persons having special competence, in matters relating to the diagnosis, prevention and treatment of such diseases. Such a grant may have one or both of the following purposes:

(1) To defray the expenses of the institution in providing training and instruction in matters relating to the diagnosis, prevention or treatment of diseases within the responsibility of the appropriate Institute.

(2) To enable the institution to pay stipends and allowances to individuals with respect to a period in which they receive under the direction of such institution training and instruction in matters relating to such diagnosis, prevention or treatment.

(b) A National Library of Medicine training grant is an award of funds to a qualified educational or training institution, the objective of such a grant being to make available an increased

number of facilities providing adequate training and instruction, and an increased number of persons having special competence in medical library service and science and in the field of communication of information pertaining to sciences relating to health. Such a grant may have one or both of the following purposes:

(1) To defray the expenses of the institution in providing training and instruction in medical library service and science and in communication of health sciences.

(2) To enable the institution to pay stipends and allowances to individuals during the periods in which they receive, under the direction of such institution, training and instruction in such science and communication.

[21 FR 9869, Dec. 12, 1956, as amended at 31 FR 9505, July 13, 1966]

§ 64.2 Application requirements.

Training grants shall be awarded only to those public or other nonprofit institutions which file applications in such form and manner as may be prescribed by the Surgeon General. Such applications shall set forth, in addition to any other pertinent information that may be required, the name and qualifications of the program director who will be responsible for the training and instruction and the following information depending upon the purposes for which the grant is requested:

(a) Institutional expenses. Applications which include a request for funds to meet institutional expenses shall set forth the nature and duration of the training and instruction program with respect to which the application is filed, the total amount requested and the purposes for which the funds will be used, stating separately the amounts requested for personal services and the amounts requested for equipment, supplies or other non-personal expenses.

(b) Stipends. Applications which include a request for funds to enable the institution to make payments to individuals receiving training shall state the nature and duration of the training and instruction to be provided, and the applicant shall also furnish information concerning the minimum qualifications required of the individ

uals to be trained or instructed, the rate of stipend and allowances to be paid, and the total amount requested for these purposes.

§ 64.3 Award of training grants.

Subject to the regulations in this part, the Surgeon General may award training grants to such eligible public or other nonprofit institutions as are best able in his judgment to carry out the purpose of such grants. Such grants may be made in the name of the appropriate Institute, but no such grant may be made unless it has been recommended by the national advisory council for such Institute.

§ 64.4 Conditions to awards; general.

All training grants awarded under the authority of this part shall be subject to the following conditions:

(a) No essential or significant reduction in the quality or duration of the training and instruction shall be made by the grantee institution unless approved by the Director of the appropriate Institute upon recommendation by the national advisory council for such Institute.

(b) No substitution may be made for the program director named in the application as responsible for the training and instruction unless the substitute director is found by the Director of the appropriate Institute to have substantially equivalent qualifications with respect to providing the training and instruction for which the grant was awarded.

(c) The fiscal and other records of the institution that relate to the training and instruction for which the grant was awarded shall be available for audit or other reasonable inspection by representatives of the Public Health Service.

(d) Additional conditions consistent with the regulations in this part may be imposed by the Director of the appropriate Institute prior to the award of any training grant if he determines that such conditions are necessary to carry out the purposes of such grant.