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formation available to individuals desiring to partici

pate in the Loan Repayment Program on a date suf

ficiently early to ensure that such individuals have

adequate time to carefully review and evaluate such

forms and information.

"(d) PRIORITY.—

"(1) ANNUAL DETERMINATIONS.-The Sec

retary, acting through the Service and in accordance with subsection (k), shall annually

"(A) identify the positions in each Indian health program for which there is a need or a vacancy; and

ity.

"(B) rank those positions in order of prior

"(2) PRIORITY IN APPROVAL.-Notwithstanding the priority determined under paragraph (1), the Secretary, in determining which applications under the Loan Repayment Program to approve (and which contracts to accept), shall

“(A) give first priority to applications made by individual Indians; and

"(B) after making determinations on all applications submitted by individual Indians as required under subparagraph (A), give priority

to

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"(i) individuals recruited through the

efforts an Indian tribe, tribal organization,

or urban Indian organization; and

"(ii) other individuals based on the

priority rankings under paragraph (1).

"(e) CONTRACTS.

"(1) IN GENERAL.-An individual becomes a

participant in the Loan Repayment Program only

9 upon the Secretary and the individual entering into a written contract described in subsection (f).

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"(2) NOTICE.-Not later than 21 days after considering an individual for participation in the

Loan Repayment Program under paragraph (1), the Secretary shall provide written notice to the individual of—

"(A) the Secretary's approving of the individual's participation in the Loan Repayment Program, including extensions resulting in an

aggregate period of obligated service in excess

of 4 years; or

"(B) the Secretary's disapproving an indi

vidual's participation in such Program.

"(f) WRITTEN CONTRACT.-The written contract re

24 ferred to in this section between the Secretary and an indi

25 vidual shall contain

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"(1) an agreement under which—

"(A) subject to paragraph (3), the Sec

retary agrees—

"(i) to pay loans on behalf of the individual in accordance with the provisions of

this section; and

"(ii) to accept (subject to the availability of appropriated funds for carrying out this section) the individual into the

Service or place the individual with a tribe, tribal organization, or urban Indian orga

nization as provided in subparagraph (B)(iii); and

"(B) subject to paragraph (3), the individ

ual agrees

"(i) to accept loan payments on behalf of the individual;

"(ii) in the case of an individual described in subsection (b)(1)—

"(I) to maintain enrollment in a course of study or training described in subsection (b)(1)(A) until the individual completes the course of study

or training; and

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"(II) while enrolled in such course of study or training, to main

tain an acceptable level of academic standing (as determined under regula

tions of the Secretary by the educational institution offering such

course of study or training);

"(iii) to serve for a time period (referred to in this section as the 'period of obligated service') equal to 2 years or such

longer period as the individual may agree to serve in the full-time clinical practice of

such individual's profession in an Indian

health program to which the individual

may be assigned by the Secretary;

"(2) a provision permitting the Secretary to ex

tend for such longer additional periods, as the indi

vidual may agree to, the period of obligated service

agreed to by the individual under paragraph (1)(B)(iii);

"(3) a provision that any financial obligation of the United States arising out of a contract entered into under this section and any obligation of the individual which is conditioned thereon is contingent

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upon funds being appropriated for loan repayments

under this section;

"(4) a statement of the damages to which the United States is entitled under subsection (1) for the individual's breach of the contract; and

"(5) such other statements of the rights and liabilities of the Secretary and of the individual, not inconsistent with this section.

"(g) LOAN REPAYMENTS.

"(1) IN GENERAL.-A loan repayment provided

for an individual under a written contract under the Loan Repayment Program shall consist of payment, in accordance with paragraph (2), on behalf of the individual of the principal, interest, and related expenses on government and commercial loans received by the individual regarding the undergraduate or graduate education of the individual (or both), which

loans were made for

"(A) tuition expenses;

"(B) all other reasonable educational ex

penses, including fees, books, and laboratory ex

penses, incurred by the individual; and

"(C) reasonable living expenses as deter

mined by the Secretary.

"(2) AMOUNT OF PAYMENT.—

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