§292b Limitations on individual insured loans and on loan insurance

Summary

The law limits how much federal loan insurance can cover for students in certain health programs. Each academic year (or its equivalent, as determined by the Secretary), a student in medicine, osteopathic medicine, dentistry, veterinary medicine, optometry, or podiatric medicine can have up to $20,000 insured. A student in pharmacy, public health, allied health, chiropractic, or certain graduate programs (like health administration and clinical psychology) can have up to $12,500 insured per year. The total insured unpaid principal a borrower can have is capped at $80,000 for the first group and $50,000 for the second. A line of credit cannot exceed the yearly limit because only actual payments in a year count toward that limit. The government’s insurance covers 100 percent of the unpaid principal plus interest on these loans. The United States guarantees payment of amounts required under sections 292f and 292m.