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Title 42, The Public Health and WelfareRelease 119-110

§292x Distribution of Assets From Loan Funds

Title 42 › CHAPTER 6A — PUBLIC HEALTH SERVICE › SUBCHAPTER V — HEALTH PROFESSIONS EDUCATION › Part A — Student Loans › subpart ii — federally-supported student loan funds › § 292x

Last updated Sep 22, 2026|Official source

Summary

When a school ends a loan fund or the Secretary ends the agreement for good cause, the money left in the fund is split. First, the Secretary is paid the same share of the remaining balance as the portion of the fund that came from federal capital contributions. The rest goes to the school. After that, the school must pay the Secretary, at least quarterly, the same proportion of any loan repayments (principal or interest) that was paid to the Secretary from the final split.

Full Legal Text

Title 42, §292x

The Public Health and Welfare, Source: USLM XML via OLRC

(a)Distribution after termination of fund
If a school terminates a loan fund established under an agreement pursuant to section 292q(b) of this title, or if the Secretary for good cause terminates the agreement with the school, there shall be a capital distribution as follows:
(1)The Secretary shall first be paid an amount which bears the same ratio to such balance in such fund on the date of termination of the fund as the total amount of the Federal capital contributions to such fund by the Secretary pursuant to section 292q(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 292q(b)(2)(B) of this title.
(2)The remainder of such balance shall be paid to the school.
(b)Payment of proportionate share to Secretary
If a capital distribution is made under subsection (a), the school involved shall, after the capital distribution, pay to the Secretary, not less often than quarterly, the same proportionate share of amounts received by the school in payment of principal or interest on loans made from the loan fund established pursuant to section 292q(b) of this title as was determined by the Secretary under subsection (a).

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 728 of act
July 1, 1944, was classified to section 294a of this title prior to the general revision of this subchapter by Pub. L. 102–408. Another prior section 728 of act
July 1, 1944, was classified to section 293h of this title prior to renumbering by Pub. L. 94–484.

Reference

Citations & Metadata

Citation

42 U.S.C. § 292x

Title 42, The Public Health and Welfare

Last Updated

Sep 22, 2026

Release point: 119-110