[Code of Federal Regulations]

[Title 42, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 42CFR57.1508]



[Page 294-295]

 

                         TITLE 42--PUBLIC HEALTH

 

    CHAPTER I--PUBLIC HEALTH SERVICE, DEPARTMENT OF HEALTH AND HUMAN 

                                SERVICES

 

PART 57_GRANTS FOR CONSTRUCTION OF TEACHING FACILITIES, EDUCATIONAL 

IMPROVEMENTS, SCHOLARSHIPS AND STUDENT LOANS--Table of Contents

 

     Subpart P_Loan Guarantees and Interest Subsidies to Assist in 

   Construction of Teaching Facilities for Health Profession Personnel

 

Sec. 57.1508  Amount of interest subsidy payments; limitations.



    The length of time for which interest subsidy payments will be made 

under the agreement, the amount of loan with respect to which such 

payments will be made, and the level of such payments shall be 

determined by the Secretary on the basis of the availability



[[Page 295]]



of funds and his determination of the applicant's need therefor taking 

into consideration his analysis of the present and reasonable projected 

future financial ability of the applicant to repay the principal and 

interest of the loan without jeopardizing the quality of its educational 

program: Provided however, That each such interest subsidy payment shall 

not exceed the amount necessary to reduce by 3 percent per annum the net 

effective interest rate otherwise payable on the loan or the portion 

thereof with respect to which such interest subsidy is paid.