[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: 42CFR57.308]



[Page 283]

 

                         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 D_Nursing Student Loans

 

Sec.  57.308  Nursing student loan promissory note.



    (a) Promissory note form. Each nursing student loan must be 

evidenced by a properly executed promissory note in a form approved by 

the Secretary. The school must safeguard the promissory note against 

fire, theft, and tampering.

    (1) Each promissory note must state that the loan will bear interest 

on the unpaid balance computed only for periods during which repayment 

of the loan is required, at the rate of 5 percent per year.

    (2) Each promissory note must contain an acceleration clause 

provided by the Secretary, which will permit the acceleration of 

delinquent loans at the school's option.

    (3) A copy of each executed note must be supplied by the school to 

the student borrower.

    (b) Security. A school must require security or endorsement if the 

borrower is a minor and if, under the applicable State law, the note 

signed by him or her would not create a binding obligation. The school 

may not require security or endorsement in any other circumstances.



(Approved by the Office of Management and Budget under control number 

0915-0047)



[50 FR 34434, Aug. 23, 1985, as amended at 56 FR 13771, Apr. 4, 1991; 57 

FR 45735, Oct. 5, 1992]