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10 USC CHAPTER 109 - EDUCATIONAL LOAN REPAYMENT PROGRAMS 01/06/03

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TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART III - TRAINING AND EDUCATION

CHAPTER 109 - EDUCATIONAL LOAN REPAYMENT PROGRAMS

.

-HEAD-

CHAPTER 109 - EDUCATIONAL LOAN REPAYMENT PROGRAMS

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Sec.

2171. Education loan repayment program: enlisted members on active

duty in specified military specialties.

(2172. Renumbered.)

2173. Education loan repayment program: commissioned officers in

specified health professions.

2174. Interest payment program: members on active duty.

AMENDMENTS

2002 - Pub. L. 107-314, div. A, title VI, Sec. 651(a)(2), Dec.

2, 2002, 116 Stat. 2579, added item 2174.

1997 - Pub. L. 105-85, div. A, title VI, Sec. 651(b), Nov. 18,

1997, 111 Stat. 1803, added item 2173.

1994 - Pub. L. 103-337, div. A, title XVI, Sec. 1671(b)(13),

Oct. 5, 1994, 108 Stat. 3014, added item 2171 and struck out former

items 2171 ''General educational loan repayment program'' and 2172

''Education loans for certain health professionals who serve in the

Selected Reserve''.

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CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in title 38 section 3033.

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10 USC Sec. 2171 01/06/03

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TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART III - TRAINING AND EDUCATION

CHAPTER 109 - EDUCATIONAL LOAN REPAYMENT PROGRAMS

-HEAD-

Sec. 2171. Education loan repayment program: enlisted members on

active duty in specified military specialties

-STATUTE-

(a)(1) Subject to the provisions of this section, the Secretary

of Defense may repay -

(A) any loan made, insured, or guaranteed under part B of title

IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq.);

(B) any loan made under part D of such title (the William D.

Ford Federal Direct Loan Program, 20 U.S.C. 1087a et seq.); or

(C) any loan made under part E of such title (20 U.S.C. 1087aa

et seq.).

Repayment of any such loan shall be made on the basis of each

complete year of service performed by the borrower.

(2) The Secretary may repay loans described in paragraph (1) in

the case of any person for service performed on active duty as an

enlisted member in a military specialty specified by the Secretary.

(b) The portion or amount of a loan that may be repaid under

subsection (a) is 33 1/3 percent or $1,500, whichever is greater,

for each year of service.

(c) If a portion of a loan is repaid under this section for any

year, interest on the remainder of such loan shall accrue and be

paid in the same manner as is otherwise required.

(d) Nothing in this section shall be construed to authorize

refunding any repayment of a loan.

(e) A person who transfers from service making the person

eligible for repayment of loans under this section (as described in

subsection (a)(2)) to service making the person eligible for

repayment of loans under section 16301 of this title (as described

in subsection (a)(2) of that section) during a year shall be

eligible to have repaid a portion of such loan determined by giving

appropriate fractional credit for each portion of the year so

served, in accordance with regulations of the Secretary concerned.

(f) The Secretary of Defense shall, by regulation, prescribe a

schedule for the allocation of funds made available to carry out

the provisions of this section and section 16301 of this title

during any year for which funds are not sufficient to pay the sum

of the amounts eligible for repayment under subsection (a) and

section 16301(a) of this title.

-SOURCE-

(Added Pub. L. 99-145, title VI, Sec. 671(a)(1), Nov. 8, 1985, 99

Stat. 661; amended Pub. L. 103-337, div. A, title XVI, Sec.

1663(e), Oct. 5, 1994, 108 Stat. 3009; Pub. L. 104-106, div. A,

title X, Sec. 1079(a), Feb. 10, 1996, 110 Stat. 451.)

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REFERENCES IN TEXT

The Higher Education Act of 1965, referred to in subsec. (a)(1),

is Pub. L. 89-329, Nov. 8, 1965, 79 Stat. 1219, as amended. Parts

B, D, and E of title IV of the Higher Education Act of 1965 are

classified to parts B (Sec. 1071 et seq.), C (Sec. 1087a et seq.),

and D (Sec. 1087aa et seq.) of subchapter IV of chapter 28 of Title

20, Education, respectively. For complete classification of this

Act to the Code, see Short Title note set out under section 1001 of

Title 20 and Tables.

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AMENDMENTS

1996 - Subsec. (a)(1). Pub. L. 104-106 struck out ''or'' at end

of subpar. (A), added subpar. (B), and redesignated former subpar.

(B) as (C).

1994 - Pub. L. 103-337, Sec. 1663(e)(6), substituted ''Education

loan repayment program: enlisted members on active duty in

specified military specialties'' for ''General educational loan

repayment program'' as section catchline.

Subsec. (a)(1)(B). Pub. L. 103-337, Sec. 1663(e)(1), struck out

''or'' after ''(B)''.

Subsec. (a)(2). Pub. L. 103-337, Sec. 1663(e)(2), substituted

''case of any person for -

''(A) service performed -

''(i) as an enlisted member of the Selected Reserve of the

Ready Reserve of an armed force; and

''(ii) in a reserve component and military specialty

specified by the Secretary of Defense; or

''(B) service performed''

and struck out at end ''In the case of service described in clause

(A) of the first sentence of this paragraph, the Secretary may

repay a loan described in paragraph (1) only if the person to whom

the loan was made performed such service after the loan was made.''

Subsec. (b). Pub. L. 103-337, Sec. 1663(e)(3), amended subsec.

(b) generally. Prior to amendment, subsec. (b) read as follows:

''The portion or amount of a loan that may be repaid under

subsection (a) is -

''(1) 15 percent or $500, whichever is greater, for each year

of service, in the case of service described in subsection

(a)(2)(A); or

''(2) 33 1/3 percent or $1,500, whichever is greater, for each

year of service, in the case of service described in subsection

(a)(2)(B).''

Subsec. (e). Pub. L. 103-337, Sec. 1663(e)(4), substituted ''A

person who transfers from service making the person eligible for

repayment of loans under this section (as described in subsection

(a)(2)) to service making the person eligible for repayment of

loans under section 16301 of this title (as described in subsection

(a)(2) of that section)'' for ''Any individual who transfers from

service described in clause (A) or (B) of subsection (a)(2) to

service described in the other clause of such subsection''.

Subsec. (f). Pub. L. 103-337, Sec. 1663(e)(5), inserted ''and

section 16301 of this title'' after ''this section'' and ''and

section 16301(a) of this title'' after ''subsection (a)''.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-337 effective Dec. 1, 1994, except as

otherwise provided, see section 1691 of Pub. L. 103-337, set out as

an Effective Date note under section 10001 of this title.

EFFECTIVE DATE

Section 671(b)(1) of Pub. L. 99-145 provided that: ''The

authority provided under section 2171 of title 10, United States

Code, as added by subsection (a), shall apply only -

''(A) in the case of persons who enlist or reenlist in the

Selected Reserve of the Ready Reserve of an Armed Force or enlist

or reenlist for service on active duty after September 30, 1980;

''(B) with respect to service performed after that date; and

''(C) with respect to loans made after October 1, 1975.''

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SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 16301 of this title.

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10 USC Sec. 2172 01/06/03

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TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART III - TRAINING AND EDUCATION

CHAPTER 109 - EDUCATIONAL LOAN REPAYMENT PROGRAMS

-HEAD-

(Sec. 2172. Renumbered Sec. 16302)

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10 USC Sec. 2173 01/06/03

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TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART III - TRAINING AND EDUCATION

CHAPTER 109 - EDUCATIONAL LOAN REPAYMENT PROGRAMS

-HEAD-

Sec. 2173. Education loan repayment program: commissioned officers

in specified health professions

-STATUTE-

(a) Authority To Repay Education Loans. - For the purpose of

maintaining adequate numbers of commissioned officers of the armed

forces on active duty who are qualified in the various health

professions, the Secretary of a military department may repay, in

the case of a person described in subsection (b), a loan that -

(1) was used by the person to finance education regarding a

health profession; and

(2) was obtained from a governmental entity, private financial

institution, school, or other authorized entity.

(b) Eligible Persons. - To be eligible to obtain a loan repayment

under this section, a person must -

(1) satisfy one of the requirements specified in subsection

(c);

(2) be fully qualified for, or hold, an appointment as a

commissioned officer in one of the health professions; and

(3) sign a written agreement to serve on active duty, or, if on

active duty, to remain on active duty for a period in addition to

any other incurred active duty obligation.

(c) Academic and Professional Requirements. - One of the

following academic requirements must be satisfied for purposes of

determining the eligibility of a person for a loan repayment under

this section:

(1) The person is fully qualified in a health care profession

that the Secretary of the military department concerned has

determined to be necessary to meet identified skill shortages.

(2) The person is enrolled as a full-time student in the final

year of a course of study at an accredited educational

institution leading to a degree in a health profession other than

medicine or osteopathic medicine.

(3) The person is enrolled in the final year of an approved

graduate program leading to specialty qualification in medicine,

dentistry, osteopathic medicine, or other health profession.

(d) Certain Persons Ineligible. - Students of the Uniformed

Services University of the Health Sciences established under

section 2112 of this title are not eligible for the repayment of an

education loan under this section.

(e) Loan Repayments. - (1) Subject to the limits established by

paragraph (2), a loan repayment under this section may consist of

payment of the principal, interest, and related expenses of a loan

obtained by a person described in subsection (b) for -

(A) all educational expenses, comparable to all educational

expenses recognized under section 2127(a) of this title for

participants in the Armed Forces Health Professions Scholarship

and Financial Assistance program; and

(B) reasonable living expenses, not to exceed expenses

comparable to the stipend paid under section 2121(d) of this

title for participants in the Armed Forces Health Professions

Scholarship and Financial Assistance program.

(2) For each year of obligated service that a person agrees to

serve in an agreement described in subsection (b)(3), the Secretary

of the military department concerned may pay not more than $22,000

on behalf of the person. This maximum amount shall be increased

annually by the Secretary of Defense effective October 1 of each

year by the percentage equal to the percent increase in the average

annual cost of educational expenses and stipend costs of a single

scholarship under the Armed Forces Health Professions Scholarship

and Financial Assistance program.

(f) Active Duty Service Obligation. - (1) A person entering into

an agreement described in subsection (b)(3) incurs an active duty

service obligation. The length of this obligation shall be

determined under regulations prescribed by the Secretary of

Defense, but those regulations may not provide for a period of

obligation of less than one year for each maximum annual amount, or

portion thereof, paid on behalf of the person for qualified loans.

(2) For persons on active duty before entering into the

agreement, the active duty service obligation shall be served

consecutively to any other obligation incurred under the agreement.

(g) Effect of Failure To Complete Obligation. - A commissioned

officer who is relieved of the officer's active duty obligation

under this section before the completion of that obligation may be

given, with or without the consent of the officer, any alternative

obligation comparable to any of the alternative obligations

authorized by section 2123(e) of this title for participants in the

Armed Forces Health Professions Scholarship and Financial

Assistance program.

(h) Regulations. - The Secretary of Defense shall prescribe

regulations to carry out this section, including standards for

qualified loans and authorized payees and other terms and

conditions for the making of loan repayments.

-SOURCE-

(Added Pub. L. 105-85, div. A, title VI, Sec. 651(a), Nov. 18,

1997, 111 Stat. 1802; amended Pub. L. 107-314, div. A, title V,

Sec. 573, Dec. 2, 2002, 116 Stat. 2558.)

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AMENDMENTS

2002 - Subsec. (d). Pub. L. 107-314, Sec. 573(a), substituted

''Students'' for ''Participants of the Armed Forces Health

Professions Scholarship and Financial Assistance program under

subchapter I of chapter 105 of this title and students''.

Subsec. (e)(2). Pub. L. 107-314, Sec. 573(b), struck out at end

''The total amount that may be repaid on behalf of any person may

not exceed an amount determined on the basis of a four-year active

duty service obligation.''

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10 USC Sec. 2174 01/06/03

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TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART III - TRAINING AND EDUCATION

CHAPTER 109 - EDUCATIONAL LOAN REPAYMENT PROGRAMS

-HEAD-

Sec. 2174. Interest payment program: members on active duty

-STATUTE-

(a) Authority. - (1) The Secretary concerned may pay in

accordance with this section the interest and any special

allowances that accrue on one or more student loans of an eligible

member of the armed forces.

(2) The Secretary of a military department may exercise the

authority under paragraph (1) only if approved by the Secretary of

Defense and subject to such requirements, conditions, and

restrictions as the Secretary of Defense may prescribe.

(b) Eligible Members. - A member of the armed forces is eligible

for the benefit under subsection (a) while the member -

(1) is serving on active duty in fulfillment of the member's

first enlistment in the armed forces or, in the case of an

officer, is serving on active duty and has not completed more

than three years of service on active duty;

(2) is the debtor on one or more unpaid loans described in

subsection (c); and

(3) is not in default on any such loan.

(c) Student Loans. - The authority to make payments under

subsection (a) may be exercised with respect to the following

loans:

(1) A loan made, insured, or guaranteed under part B of title

IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq.).

(2) A loan made under part D of such title (20 U.S.C. 1087a et

seq.).

(3) A loan made under part E of such title (20 U.S.C. 1087aa et

seq.).

(d) Maximum Benefit. - The months for which interest and any

special allowance may be paid on behalf of a member of the armed

forces under this section are any 36 consecutive months during

which the member is eligible under subsection (b).

(e) Funds for Payments. - Appropriations available for the pay

and allowances of military personnel shall be available for

payments under this section.

(f) Coordination. - (1) The Secretary of Defense and, with

respect to the Coast Guard when it is not operating as a service in

the Navy, the Secretary of the Department in which the Coast Guard

is operating shall consult with the Secretary of Education

regarding the administration of the authority under this section.

(2) The Secretary concerned shall transfer to the Secretary of

Education the funds necessary -

(A) to pay interest and special allowances on student loans

under this section (in accordance with sections 428(o), 455(l),

and 464(j) of the Higher Education Act of 1965 (20 U.S.C.

1078(o), 1087e(l), and 1087dd(j)); and

(B) to reimburse the Secretary of Education for any reasonable

administrative costs incurred by the Secretary in coordinating

the program under this section with the administration of the

student loan programs under parts B, D, and E of title IV of the

Higher Education Act of 1965.

(g) Special Allowance Defined. - In this section, the term

''special allowance'' means a special allowance that is payable

under section 438 of the Higher Education Act of 1965 (20 U.S.C.

1087-1).

-SOURCE-

(Added Pub. L. 107-314, div. A, title VI, Sec. 651(a)(1), Dec. 2,

2002, 116 Stat. 2578.)

-REFTEXT-

REFERENCES IN TEXT

The Higher Education Act of 1965, referred to in subsecs. (c) and

(f)(2)(B), is Pub. L. 89-329, Nov. 8, 1965, 79 Stat. 1219, as

amended. Parts B, D, and E of title IV of the Act are classified

to parts B (Sec. 1071 et seq.), C (Sec. 1087a et seq.), and D (Sec.

1087aa et seq.), respectively, of subchapter IV of chapter 28 of

Title 20, Education. For complete classification of this Act to the

Code, see Short Title note set out under section 1001 of Title 20

and Tables.

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EFFECTIVE DATE

Pub. L. 107-314, div. A, title VI, Sec. 651(e), Dec. 2, 2002,

116 Stat. 2581, provided that: ''The amendments made by this

section (enacting this section and amending sections 1078, 1087e,

and 1087dd of Title 20, Education) shall apply with respect to

interest, and any special allowance under section 438 of the Higher

Education Act of 1965 (20 U.S.C. 1087-1), that accrue for months

beginning on or after October 1, 2003, on student loans described

in subsection (c) of section 2174 of title 10, United States Code

(as added by subsection (a)), that were made before, on, or after

such date to members of the Armed Forces who are on active duty (as

defined in section 101(d) of title 10, United States Code) on or

after that date.''

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TRANSFER OF FUNCTIONS

For transfer of authorities, functions, personnel, and assets of

the Coast Guard, including the authorities and functions of the

Secretary of Transportation relating thereto, to the Department of

Homeland Security, and for treatment of related references, see

sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic

Security, and the Department of Homeland Security Reorganization

Plan of November 25, 2002, as modified, set out as a note under

section 542 of Title 6.

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SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 20 sections 1078, 1087e,

1087dd.

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