§292y General Provisions

Summary

The Secretary must set deadlines for schools to apply for Federal capital contributions. If all schools ask for more money than Congress provided for a year, each school’s award is cut to the smaller of two amounts: what the school asked for, or a share based on the school’s estimated students compared to the total estimated students in all applying schools. Any money left after that is reallocated among schools that asked for more, but no school gets more than it asked for. The Secretary can decide how to split any extra funds in a year to best meet the program’s goals. Payments to a school’s loan fund are made in installments so the school does not build up unnecessary balances. If student loan money is returned to the Secretary by health professions schools, those amounts must be used again as Federal capital contributions to student loan funds, subject to section 292s(b)(5). Returned amounts must be obligated by the end of the next fiscal year. The Secretary should give preference to schools in the same disciplines that returned the money for the same time period the money was originally received. Money that was only allowed for loans to disadvantaged students stays restricted to that purpose. For schools of medicine or osteopathic medicine, up to $10,000,000 is authorized for each of fiscal years 1994 through 1996, but the Secretary may only make those contributions if the school meets the conditions in section 292s(b)(2), applied to graduates whose graduation dates are about 3 years before June 30 of the fiscal year before the one receiving the contribution.