[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: 42CFR57.312]



[Page 286-287]

 

                         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.  57.312  Repayment of loans for service in a shortage area.



    (a) Service in a shortage area. Subject to the availability of 

funds, a person who:

    (1) Has obtained a degree as specified in section 846(a)(1) of the 

Act;

    (2) Has obtained one or more nursing student loans or any other 

loans necessary for costs (including tuition, books, fees, equipment, 

living and other expenses which the Secretary determines were necessary) 

of attending a school of nursing; and

    (3) Enters into an agreement with the Secretary to serve as a full-

time registered nurse for a period of not less than 2 years in an Indian 

Health Service health center, a Native Hawaiian



[[Page 287]]



health center, a public hospital, a migrant health center, a community 

health center, a nursing facility, a rural health clinic, or in a health 

facility determined by the Secretary to have a critical shortage of 

nurses, will have a portion of these loans repaid by the Secretary in 

accordance with paragraph (c) of this section. Prior to entering an 

agreement for repayment of loans, other than nursing student loans, the 

Secretary will require that satisfactory evidence be provided of the 

existence and reasonableness of the education loans (i.e., a copy of the 

written loan agreement establishing the loan).

    (b) When entering into agreements under paragraph (a) of this 

section, the Secretary shall give priority to:

    (1) Applicants with the greatest financial need; and

    (2) Applicants that, with respect to health facilities described in 

paragraph (a)(3) of this section, agree to serve in such facilities 

located in geographic areas with a shortage of and need for nurses, as 

determined by the Secretary.

    (3) In addition to the priorities under paragraphs (b) (1) and (2) 

of this section, should specific needs warrant, the Secretary may 

establish additional preferences which will be announced from time to 

time in the Federal Register.

    (c) Repayment. Loan repayment will be made by the Secretary to 

persons who meet the conditions set forth in paragraph (a) of this 

section. Payment will be as follows:

    (1) Upon completion by the borrower of the first year of service as 

specified in the agreement, the Secretary will pay 30 percent of the 

principal of, and the interest on, each loan which was unpaid as of the 

date the borrower began his or her service;

    (2) Upon completion by the borrower of the second year of service, 

the Secretary will pay another 30 percent of the principal of, and the 

interest on, each loan which was unpaid as of the date the borrower 

began his or her service;

    (3) Upon completion by the borrower of a third year of service, the 

Secretary will pay another 25 percent of the principal of, and the 

interest on, each loan which was unpaid as of the date the borrower 

began his or her service; and

    (4) No more than 85 percent of the principal of any loan will be 

paid under this section.



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

0915-0047)



[50 FR 34434, Aug. 23, 1985, as amended at 56 FR 13772, Apr. 4, 1991; 61 

FR 6123, Feb. 16, 1996]