[Code of Federal Regulations]

[Title 42, Volume 1]

[Revised as of October 1, 2006]

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

[CITE: 42CFR57.214]



[Page 274]

 

                         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 C_Health Professions Student Loans

 

Sec.  57.214  Repayment of loans made after November 17, 1971, for failure 

to complete a program of study.



    In the event that the Secretary undertakes to repay educational 

loans under section 722(k) of the Act, he or she will use the following 

criteria to make a determination as to each applicant's eligibility:

    (a) An applicant will be considered to have failed to complete the 

course of study leading to the first professional degree for which an 

eligible education loan was made upon certification by a health 

professions school that the individual ceased to be enrolled in the 

school subsequent to November 17, 1971;

    (b) An applicant will be considered to be in exceptionally needy 

circumstances if, upon comparison of the income and other financial 

resources of the applicant with his or her expenses and financial 

obligations, the Secretary determines that repayment of the loan would 

constitute a serious economic burden on the applicant. In making this 

determination, the Secretary will take into consideration the 

applicant's net financial assets, his or her potential earning capacity, 

and the relationship of the income available to the applicant to the 

low-income levels published annually by the Secretary under paragraph 

(c) of this section;

    (c) An applicant will be considered to be from a low-income family 

if the applicant comes from a family with an annual income below a level 

based on low-income thresholds according to family size published by the 

U.S. Bureau of the Census, adjusted annually for changes in the Consumer 

Price Index, and adjusted by the Secretary for use in this program, and 

the family has no substantial net financial assets. Income levels as 

adjusted will be published annually by the Secretary in the Federal 

Register.

    (d) An applicant will be considered to be from a disadvantaged 

family if the individual comes from a family in which the annual income 

minus unusual expenses which contribute to the economic burdens borne by 

the family does not exceed the low-income levels published by the 

Secretary under paragraph (c) of this section and the family has no 

substantial net financial assets;

    (e) An applicant will be considered as not having resumed his or her 

health professions studies within two years following the date the 

individual ceased to be a student upon a certification so stating from 

the applicant; and

    (f) An applicant will be considered as not reasonably expected to 

resume his or her health professions studies within two years following 

the date upon which he or she terminated these studies, based upon 

consideration of the reasons for the applicant's failure to complete 

these studies, taking into account such factors as academic, medical, or 

financial difficulties.



The Secretary will only repay education loans made subsequent to 

November 17, 1971.



[44 FR 29055, May 18, 1979, as amended at 61 FR 6123, Feb. 16, 1996; 61 

FR 9532, Mar. 8, 1996]



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