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Subpart T [Reserved)

57.1513 Repayment. 57.1514 Loan guarantee and interest subsidy

agreements. 57.1515 Loan closing. 57.1516 Right of recovery-subordination. 57.1517 Waiver of right of recovery. 57.1518 Modification of loans.

Subpart U—Armed Forces Health Professions Scholarship Program

57.2001 Applicability. 57.2002 Definitions. 57.2003 Determinations of increased enroll

ment solely for the program.

Subpart V-Grants for Centers of

Excellence

Subpart Q Grants for Predoctoral, Grad

uate, and Faculty Development Edu

cation Programs in Family Medicine 57.1601 To what programs do these regula

tions apply? 57.1602 Definitions. 57.1603 Who is eligible to apply for a grant? 57.1604 What requirements must a project

meet? 57.1605 How will applications be evaluated? 57.1606 How long does grant support last? 57.1607 For what purposes may grant funds

be spent? 57.1608 What additional Department regula

tions apply to grantees? 57.1609 What other audit and inspection re

quirements apply to grantees? 57.1610 Additional conditions.

57.2101 To what projects do these regula

tions apply? 57.2102 Definitions. 57.2103 Who is eligible to apply for a grant? 57.2104 Project requirements. 57.2105 How will applications be evaluated? 57.2106 How long does grant support last? 57.2107 For what purposes may grant funds

be spent? 57.2108 What additional Department regula

tions apply to grantees? 57.2109 What other audit and inspection re

quirements apply to grantees? 57.2110 Additional conditions.

Subpart W—Physician Shortage Area

Scholarship Grants

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57.2201 Applicability. 57.2202 Definitions. 57.2203 Eligibility. 57.2204 Application. 57.2205 Priority for selection of scholarship

recipients. 57.2206 Grant award. 57.2207 Amount of scholarship grant. 57.2208 Payment of scholarship grant. 57.2209 Conditions of scholarship grant. 57.2210 Failure to comply. 57.2211 Waiver or suspension.

Subpart X (Reserved)

Subpart 5-Educational Assistance to Indi

viduals From Disadvantaged Backgrounds

Subpart Y-Grants for Nurse Practitioner

and Nurse Midwifery Programs 57.2401 Applicability. 57.2402 Definitions. 57.2403 Eligibility. 57.2404 Application. 57.2405 Project requirements. 57.2406 Evaluation and grant awards. 57.2407 Grant payments. 57.2408 Expenditure of grant funds. 57.2409 What additional Department regula

tions apply to grantees? 57.2410 Additional conditions. APPENDIX TO SUBPART Y-GUIDELINES FOR

NURSE PRACTITIONER AND NURSE MID-
WIFERY PROGRAMS

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Subpart DD—Financial Assistance for Disadvantaged Health Professions Students 57.2901 To what program do these regula

tions apply? 57.2902 Definitions, 57.2903 How to apply for a grant. 57.2904 Eligibility and selection of aid re

cipients. 57.2905 Amount of student award. 57.2906 How is the amount of the grant

award determined? 57.2907 For what purposes may grant funds

be spent? 57.2908 What additional Department regula

tions apply to grants? 57.2909 What other records, audit, and in

spection requirements apply to schools? 57.2910 Additional conditions.

Subparts HH-LL (Reserved) Subpart MM-Area Health Education

Center Program

Subpart EE-Grants for Residency Training

in Preventive Medicine

57.3801 To what programs do these regula

tions apply? 57.3802 Definitions. 57.3803 Who is eligible to apply for a cooper

ative agreement? 57.3804 Project requirements. 57.3805 When do the requirements of $57.3804

apply? 57.3806 How will applications be evaluated? 57.3807 How is the amount of the award de

termined? 57.3808 How long does support under a coop

erative agreement last? 57.3809 For what purposes may cooperative

agreement funds be spent? 57.3810 How will the Department participate

in a cooperative agreement? 57.3811 What additional Department regula

tions apply to awardees?

57.3001 To what programs do these regula

tions apply? 57.3002 Definitions. 57.3003 Who is eligible to apply for a grant? 57.3004 Project requirements. 57.3005 How will applications be evaluated? 57.3006 How long does grant support last?

57.3812 What other audit and inspection re

quirements apply? 57.3813 Additional conditions.

721-735, as amended by Pub. L. 102-408, 106 Stat. 2011-2022 (42 U.S.C. 2929-292y).

SOURCE: 44 FR 29055, May 18, 1979, unless otherwise noted.

Subpart NN [Reserved)

Subpart 00-Grants for Geriatric

Education Centers

$57.201 Applicability.

The regulations of this subpart apply to the federal capital contributions made by the Secretary to public or other nonprofit health professions schools for the establishment of health professions student loan funds and to loans made to students by schools from these funds.

57.4001 To what projects do these regula

tions apply? 57.4002 Definitions. 57.4003 Who is eligible to apply for a grant? 57.4004 Program requirements. 57.4005 How will applications be evaluated? 57.4006 How long does grant support last? 57.4007 For what purposes may grant funds

be spent? 57.4008 What additional Department regula

tions apply to grantees? 57.4009 What other audit and inspection re

quirements apply to grantees? 57.4010 Additional conditions.

Subpart pp-Grants for Faculty Training

Projects in Geriatric Medicine and

Dentistry 57.4101 To what projects do these regula

tions apply? 57.4102 Definitions. 57.4103 Who is eligible to apply for a grant? 57.4104 For what projects may grant funds

be requested? 57.4105 Project requirements. 57.4106 How will applications be evaluated? 57.4107 How long does grant support last? 57.4108 What financial support is available

to fellows? 57.4109 Who is eligible for financial assist

ance as a fellow? 57.4110 What are the requirements for fel

lowships and the appointment of fellows? 57.4111 Termination of fellowships. 57.4112 For what purposes may grant funds

be spent? 57.4113 What additional Department regula

tions apply to grantees? 57.4114 What other audit and inspection re

quirements apply to grantees? 57.4115 Additional conditions.

$57.202 Definitions.

As used in this subpart:

Act means the Public Health Service Act, as amended.

Date upon which a student ceases to be a full-time student means the first day of the month which is nearest to the date upon which an individual ceases to be a full-time student as defined in this section.

Default means the failure of a borrower of a loan made under this subpart to make an installment payment when due, or 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, the borrower's repayment schedule has been renegotiated and the borrower is complying with the renegotiated schedule, or the loan is in forbearance. Federal capital loan means

a loan made by the Secretary to a school under section 744(a) of the Act, as in effect prior to October 1, 1977, the proceeds of which are to be returned to the Secretary

Full-time student means a student who is enrolled in a health professions school and pursuing a course of study which is a full-time academic workload, as determined by the school, leading to a degree specified in section 722(b) of the Act.

Grace period means the period of 1 year beginning on the date upon which a student ceases to be a full-time student at a school of medicine, osteopathic medicine, dentistry, pharmacy, podiatric medicine, optometry, or veterinary medicine.

Subparts A-B (Reserved]

Subpart C-Health Professions

Student Loans

AUTHORITY: Sec. 215 of the Public Health Service Act, 58 Stat. 690, as amended, 63 Stat. 35 (42 U.S.C. 216); secs. 740–747 of the Public Health Service Act, 77 Stat. 170-173, as amended by 90 Stat. 2266-2268, 91 Stat. 390 391, 95 Stat. 920, 99 Stat. 532-536, and 102 Stat. 3125 (42 U.S.C. 294m-q); renumbered as secs.

8 57.203 Application by school.

(a) Each school seeking a Federal capital contribution must submit an application at the time and in the form and manner that the Secretary may require. The application must be signed by an individual authorized to act for the applicant and to assume on behalf of the applicant the obligations imposed by the statute, the regulations of this subpart, and the terms and conditions of the award.

(b) Each application will be reviewed to determine eligibility and the reasonableness of the amount of Federal support requested. The Secretary may require the applicant to submit additional data for this purpose.

(c) An application will not be approved unless an agreement between the Secretary and the applicant school for Federal capital contribution under section 721 of the Act is reached. (44 FR 29055, May 18, 1979, as amended at 49 FR 38112, Sept. 27, 1984; 56 FR 19293, Apr. 26, 1991; 57 FR 45734, Oct. 5, 1992; 61 FR 6123, Feb. 16, 1996)

a

Health professions school or school, for purposes of this subpart, means a public or private nonprofit school of medicine, school of dentistry, school of osteopathic medicine, school of pharmacy, school of podiatric medicine, school of optometry, or school of veterinary medicine as defined in section 799(1)(A) of the Act.

Health professions student loan means the amount of money advanced to a student by a school from a health professions student loan fund under a properly executed promissory note.

Institutional capital contribution means the money provided by a school, in an amount not less than one-ninth of the federal capital contribution, and deposited in a health professions student loan fund.

National of the United States means: (1) A citizen of the United States, or (2) a person who, though not a citizen of the United States, owes permanent allegiance to the United States, as defined in the Immigration and Nationality Act,

8 U.S.C. section 1101(a)(22).

School year means the traditional approximately 9-month September to June annual session. For the purpose of computing school year equivalents for students who, during a 12-month period, attend for a longer period than the traditional school year, the school year will be considered to be 9 months in length.

Secretary means the Secretary of Health and Human Services and any other officer or employee of the Department of Health and Human Services to whom the authority involved has been delegated.

State means, in addition to the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, the Virgin Islands, Guam, American Samoa, the Republic of Palau, the Republic of the Marshall Islands, and the Federated States of Micronesia.

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$57.204 Payment of Federal capital

contributions and reallocation of

funds remitted to the Secretary. (a) Annual payment. The Secretary will make payments to each school with which he or she has entered into an agreement under the Act at a time determined by him or her. If the total of the amounts requested for any fiscal year by all schools for Federal capital contributions exceeds the amount of Federal funds determined by the Secretary at the time of payment to be available for this purpose, the payment to each school will be reduced to whichever is smaller:

(1) The amount requested in the application, or

(2) An amount which bears the same ratio to the total amount of Federal funds determined by the Secretary at the time of payment to be available for that fiscal year for the Health Professions Student Loan Program as the number of full-time students estimated by the Secretary to be enrolled in that school bears to the estimated total number of full-time students in all participating schools during that year. Amounts remaining after these payments are made will be distributed in

(44 FR 29055, May 18, 1979, as amended at 52 FR 20987, June 3, 1987; 53 FR 46549, Nov. 17, 1988; 56 FR 19293, Apr. 26, 1991; 56 FR 25446, June 4, 1991; 61 FR 6123, Feb. 16, 1996)

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accordance with this paragraph among schools whose applications requested more than the amount paid to them, but with whatever adjustments that may be necessary to prevent the total paid to any school from exceeding the total requested by it.

(b) Method of payment. The payment of Federal capital contributions to a school will be paid in a manner that avoids unnecessary accumulations of money in any health professions student loan fund.

(c) Reallocation of funds remitted to the Secretary. All funds from a student loan fund established under this subpart which are remitted to the Secretary in any fiscal year shall be available for allotment under this subpart, in the same fiscal year and the succeeding fiscal year, to schools which, during the period beginning on July 1, 1972, and ending on September 30, 1985, established student loan funds with Federal capital contributions under this subpart. The Secretary will from time to time set dates by which the schools must file applications to receive a portion of these funds. If the total of the amounts requested for any fiscal year by eligible schools exceeds the amount of funds determined by the Secretary at the time of payment to be available for this purpose, the payment to each school will be reduced to whichever is smaller:

(1) The amount requested in the application, or

(2) An amount which bears the same ratio to the total amount of returned funds determined by the Secretary at the time of payment to be available for that fiscal year for the Health Professions Student Loan program as the number of full-time students estimated by the Secretary to be enrolled in that school bears to the estimated total number of full-time students in all eligible schools during that year. Amounts remaining after these payments are made will be distributed in accordance with this paragraph among schools whose applications requested more than the amount paid to them, with whatever adjustments may be necessary to prevent the total paid to

(a) Funds established with Federal capital contributions. Any fund established by a school with Federal capital contributions will be accounted for separately from other funds, providing a clear audit trail for all transactions. At all times the fund must contain monies representing the institutional capital contribution. The school must at all times maintain all monies relating to the fund in one or more interestbearing accounts or investment instruments which meet OMB requirements established for Federal monies held by third parties. The school must place all earnings into the fund but may first deduct from total earnings any reasonable and customary charges incurred through the use of an interest-bearing account. An institution shall exercise the level of care required of a fiduciary with regard to these deposits and investments, and shall be responsible for reimbursing the fund for any losses that occur due to the use of investments that are not federally insured.

(1) The Federal capital contribution fund is to be used by the school only for:

(i) Health professions student loans to full-time students;

(ii) Capital distribution as provided in section 728 of the Act or as agreed to by the school and the Secretary; and

(iii) Costs of litigation, costs associated with membership in credit bureaus, and to the extent specifically approved by the Secretary, other collection costs that exceed the usual expenses incurred in the collection of health professions student loans.

(2) A school must review the balance in the fund on at least a semi-annual basis to determine whether the fund balance compared with projected levels of expenditures and collections exceeds its needs. A school in closing status must review the balance in the fund on a quarterly basis. Monies identified as in excess of the school's needs must be

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