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1 ‘‘(5) be a practitioner in the field of respiratory
2 therapy, medical technology, or radiologic tech-
3 nology.
4 ‘‘(d) DEFINITION.—In this subpart, the term ‘pri-
5 mary health services’ has the meaning given to such term
6 in section 331(a)(3)(D).
7 ‘‘SEC. 340I. LOAN REPAYMENTS.

8 ‘‘(a) LOAN REPAYMENTS.—The Secretary, acting

9 through the Administrator of the Health Resources and
10 Services Administration, shall enter into contracts with in-
11 dividuals under which—
12 ‘‘(1) the individual agrees—
13 ‘‘(A) to serve as a full-time primary health
14 services provider or as a full-time or part-time
15 provider of other health services for a period of
16 time equal to 2 years or such longer period as
17 the individual may agree to;
18 ‘‘(B) to serve in a health professional
19 needs area in a health discipline, specialty, or a
20 subspecialty for which the area, population, or
21 facility is designated as a health professional
22 needs area under section 340H; and
23 ‘‘(C) in the case of an individual described
24 in subsection 340H(c)(3) who is in the final
25 year of study and who has accepted employ-

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1 ment as primary health services provider or
2 provider of other health services in accordance
3 with subparagraphs (A) and (B), to complete
4 the education or training and maintain an ac-
5 ceptable level of academic standing (as deter-
6 mined by the educational institution offering
7 the course of study or training); and
8 ‘‘(2) the Secretary agrees to pay, for each year
9 of such service, an amount on the principal and in-
10 terest of the undergraduate or graduate educational
11 loans (or both) of the individual that is not more
12 than 50 percent of the average award made under
13 the National Health Service Corps Loan Repayment
14 Program under subpart III in that year.
15 ‘‘(b) PRACTICE SETTING.—A contract entered into
16 under this section shall allow the individual receiving the
17 loan repayment to satisfy the service requirement de-
18 scribed in subsection (a)(1) through employment in a solo
19 or group practice, a clinic, an accredited public or private
20 nonprofit hospital, or any other health care entity, as
21 deemed appropriate by the Secretary.
22 ‘‘(c) APPLICATION OF CERTAIN PROVISIONS.—The
23 provisions of subpart III of part D shall, except as incon-
24 sistent with this section, apply to the loan repayment pro-
25 gram under this subpart in the same manner and to the

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1 same extent as such provisions apply to the National
2 Health Service Corps Loan Repayment Program estab-
3 lished under section 338B.
4 ‘‘(d) INSUFFICIENT NUMBER OF APPLICANTS.—If
5 there are an insufficient number of applicants for loan re-
6 payments under this section to obligate all appropriated
7 funds, the Secretary shall transfer the unobligated funds
8 to the National Health Service Corps for the purpose of—
9 ‘‘(1) recruitment of sufficient applicants for the
10 National Health Service Corps for the following
11 year; or
12 ‘‘(2) making additional loan repayments under
13 section 338B if there is an excess number of quali-
14 fied applicants for loan repayments under such sec-
15 tion.
16 ‘‘SEC. 340J. REPORT.

17 ‘‘The Secretary shall submit to the Congress an an-

18 nual report on the program carried out under this subpart.
19 ‘‘SEC. 340K. ALLOCATION.

20 ‘‘Of the amount of funds obligated under this subpart

21 each fiscal year for loan repayments—
22 ‘‘(1) 90 percent shall be for physicians and
23 other health professionals providing primary health
24 services; and

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1 ‘‘(2) 10 percent shall be for health professionals
2 not described in paragraph (1).’’.
3 SEC. 2212. PRIMARY CARE STUDENT LOAN FUNDS.

4 (a) LOAN PROVISIONS.—Section 722 (42 U.S.C.

5 292r) is amended by striking subsection (e) and inserting
6 the following:
7 ‘‘(e) RATE OF INTEREST.—Such loans shall bear in-
8 terest, on the unpaid balance of the loan, computed only
9 for periods for which the loan is repayable, at the rate
10 of 2 percentage points less than the applicable rate of in-
11 terest described in section 427A(l)(1) of the Higher Edu-
12 cation Act of 1965 per year.’’.
13 (b) MEDICAL SCHOOLS AND PRIMARY HEALTH
14 CARE.—Subsection (a) of section 723 (42 U.S.C. 292s)
15 is amended—
16 (1) in paragraph (1), by striking subparagraph
17 (B) and inserting the following:
18 ‘‘(B) to practice in such care for 10 years
19 (including residency training in primary health
20 care) or through the date on which the loan is
21 repaid in full, whichever occurs first.’’; and
22 (2) by striking paragraph (3) and inserting the
23 following:
24 ‘‘(3) NONCOMPLIANCE BY STUDENT.—If an in-
25 dividual fails to comply with an agreement entered

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1 into pursuant to paragraph (1), such agreement
2 shall provide that the total interest to be paid on the
3 loan, over the course of the loan period, shall equal
4 the total amount of interest that would have been in-
5 curred by the individual if, from the outset of the
6 loan, the loan was repayable at the rate of interest
7 described in section 427A(l)(1) of the Higher Edu-
8 cation Act of 1965 per year instead of the rate of
9 interest described in section 722(e).’’.
10 (c) STUDENT LOAN GUIDELINES.—
11 (1) IN GENERAL.—Section 735 (42 U.S.C.
12 292y) is amended—
13 (A) by redesignating subsection (f) as sub-
14 section (g); and
15 (B) by inserting after subsection (e) the
16 following:
17 ‘‘(f) DETERMINATION OF FINANCIAL NEED.—The
18 Secretary—
19 ‘‘(1) may require, or authorize a school or other
20 entity to require, the submission of financial infor-
21 mation to determine the financial resources available
22 to any individual seeking assistance under this sub-
23 part; and
24 ‘‘(2) shall take into account the extent to which
25 such individual is financially independent in deter-

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1 mining whether to require or authorize the submis-
2 sion of such information regarding such individual’s
3 family members.’’.
4 (2) REVISED GUIDELINES.—The Secretary of
5 Health and Human Services shall—
6 (A) strike the second sentence of section
7 57.206(b) of title 42, Code of Federal Regula-
8 tions; and
9 (B) make such other revisions to guidelines
10 and regulations in effect as of the date of the
11 enactment of this Act as may be necessary for
12 consistency with the amendments made by
13 paragraph (1).
14 SEC. 2213. TRAINING IN FAMILY MEDICINE, GENERAL IN-

15 TERNAL MEDICINE, GENERAL PEDIATRICS,

16 GERIATRICS, AND PHYSICIAN

17 ASSISTANTSHIP.

18 Section 747 (42 U.S.C. 293k) is amended—

19 (1) by amending the section heading to read as
20 follows: ‘‘PRIMARY CARE TRAINING AND EN-

21 HANCEMENT’’;

22 (2) by redesignating subsection (e) as sub-

23 section (f); and
24 (3) by striking subsections (a) through (d) and
25 inserting the following:

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1 ‘‘(a) PROGRAM.—The Secretary shall establish a pri-
2 mary care training and capacity building program con-
3 sisting of awarding grants and contracts under sub-
4 sections (b) and (c).
5 ‘‘(b) SUPPORT AND DEVELOPMENT OF PRIMARY
6 CARE TRAINING PROGRAMS.—
7 ‘‘(1) IN GENERAL.—The Secretary shall make
8 grants to, or enter into contracts with, eligible enti-
9 ties—
10 ‘‘(A) to plan, develop, operate, or partici-
11 pate in an accredited professional training pro-
12 gram, including an accredited residency or in-
13 ternship program, in the field of family medi-
14 cine, general internal medicine, general pediat-
15 rics, or geriatrics for medical students, interns,
16 residents, or practicing physicians;
17 ‘‘(B) to provide financial assistance in the
18 form of traineeships and fellowships to medical
19 students, interns, residents, or practicing physi-
20 cians, who are participants in any such pro-
21 gram, and who plan to specialize or work in
22 family medicine, general internal medicine, gen-
23 eral pediatrics, or geriatrics;
24 ‘‘(C) to plan, develop, operate, or partici-
25 pate in an accredited program for the training

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1 of physicians who plan to teach in family medi-
2 cine, general internal medicine, general pediat-
3 rics, or geriatrics training programs including
4 in community-based settings;
5 ‘‘(D) to provide financial assistance in the
6 form of traineeships and fellowships to prac-
7 ticing physicians who are participants in any
8 such programs and who plan to teach in a fam-
9 ily medicine, general internal medicine, general
10 pediatrics, or geriatrics training program; and
11 ‘‘(E) to plan, develop, operate, or partici-
12 pate in an accredited program for physician as-
13 sistant education, and for the training of indi-
14 viduals who plan to teach in programs to pro-
15 vide such training.
16 ‘‘(2) ELIGIBILITY.—To be eligible for a grant
17 or contract under paragraph (1), an entity shall
18 be—
19 ‘‘(A) an accredited school of medicine or
20 osteopathic medicine, public or nonprofit private
21 hospital, or physician assistant training pro-
22 gram;
23 ‘‘(B) a public or private nonprofit entity;
24 or

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