12 13 "(c) For the purposes of this section "(1) the term 'federally-sponsored student' means any student enrolled in a public or nonprofit private di ploma school of nursing on a full-time basis who has received for that year a loan of $100 or more from a loan fund established pursuant to section 822; and "(2) the full-time enrollment in any school and the number of federally-sponsored students in any school shall be determined as of February 15 of each fiscal year. "PART B-ASSISTANCE TO NURSING STUDENTS "TRAINEESHIPS FOR ADVANCED TRAINING OF PROFESSIONAL NURSES "SEC. 821. (a) There are authorized to be appropriated 14 $8,000,000 for the fiscal year ending June 30, 1965, 15 $9,000,000 for the fiscal year ending June 30, 1966, $10,000,000 for the fiscal year ending June 30, 1967, 17 $11,000,000 for the fiscal year ending June 30, 1968, and 18 $12,000,000 for the fiscal year ending June 30, 1969, to 19 20 cover the cost of traineeships for the training of professional nurses to teach in the various fields of nurse training (includ21 ing practical nurse training), to serve in administrative or 22 supervisory capacities, or to serve in other professional nurs 23 ing specialties determined by the Surgeon General to require 24 advanced training. 25 "(b) Traineeships under this section shall be awarded 36-435 O-64-3 13 1 by the Surgeon General through grants to public or nonprof: 2 private institutions providing the training. 3 "(c) Payments to institutions under this section may 4 be made in advance or by way of reimbursement, and at such 5 intervals and on such conditions, as the Surgeon General | 6 finds necessary. Such payments may be used only for 7 traineeships and shall be limited to such amounts as the Sur 8 geon General finds necessary to cover the costs of tuition 9 and fees, and a stipend and allowances (including travel and 10 subsistence expenses) for the trainees. 11 12 "LOAN AGREEMENTS "SEC. 822. (a) The Secretary of Health, Educa13 tion, and Welfare is authorized to enter into an agreement for 14 the establishment and operation of a student loan fund in ac15 cordance with this part with any public or nonprofit private 16 school of nursing which is located in a State. 17 "(b) Each agreement entered into under this section 18 shall "(1) provide for establishment of a student loan fund by the school; "(2) provide for deposit in the fund of (A) the Federal capital contributions paid under this part to the school by the Secretary, (B) an additional amount from other sources equal to not less than one-ninth of such Federal capital contributions, (C) collections of princi L 19 14 pal and interest on loans made from the fund, and (D) any other earnings of the fund; "(3) provide that the fund shall be used only for loans to students of the school in accordance with the agreement and for costs of collection of such loans and interest thereon; "(4) provide that loans may be made from such fund only to students pursuing a full-time course of study at the school leading to a baccalaureate or associate de gree in nursing or an equivalent degree or a diploma in nursing, or to a graduate degree in nursing, and that while the agreement remains in effect no such student who has attended such school before July 1, 1969, shall receive a loan from a loan fund established under section 204 of the National Defense Education Act of 1958; and "(5) contain such other provisions as are necessary to protect the financial interests of the United States. "LOAN PROVISIONS "SEC. 823. (a) The total of the loans for any aca20 demic year (or its equivalent, as determined under regula21 tions of the Secretary) made by schools of nursing from loan 22 funds established pursuant to agreements under this part may 23 not exceed $1,000 in the case of any student. In the grant24 ing of such loans, a school shall give preference to persons 25 who enter as first-year students after enactment of this title. 15 1 "(b) Loans from any such student loan fund by any 2 school shall be made on such terms and conditions as the 3 school may determine; subject, however, to such conditions, 4 limitations, and requirements as the Secretary of Health, 5 Education, and Welfare may prescribe (by regulation or in 6 the agreement with the school) with a view to preventing 7 impairment of the capital of such fund to the maximum ex8 tent practicable in the light of the objective of enabling the 9 student to complete his course of study; and except that"(1) such a loan may be made only to a student who (A) is in need of the amount of the loan to pursue a full-time course of study at the school leading to a baccalaureate or associate degree in nursing or an equiv 10 11 12 13 alent degree, or a diploma in nursing, or a graduate degree in nursing, and (B) is capable, in the opinion of the school, of maintaining good standing in such course of study; "(2) such a loan shall be repayable in equal or graduated periodic installments (with the right of the borrower to accelerate repayment) over the ten-year period which begins one year after the student ceases to pursue a full-time course of study at a school of nursing, except that (A) interest shall not accrue on any such loan, and periodic installments need not be paid, during any period during which the borrower is pursuing a full 16 time course of study at a collegiate school of nursing leading to a baccalaureate degree in nursing or an equivalent degree, or to a graduate degree in nursing, and (B) any such period shall not be included in determining such ten-year period; "(3) not to exceed 50 per centum of any such loan (plus interest) shall be canceled for full-time employment as a professional nurse (including teaching in any of the fields of nurse training and service as an administrator, supervisor, or consultant in any of the fields of nursing) in any public or nonprofit private institution or agency, at the rate of 10 per centum of the amount of such loan plus interest thereon, which was unpaid on the first day of such service, for each complete year of such service; "(4) the liability to repay the unpaid balance of such loan and accrued interest thereon shall be canceled upon the death of the borrower, or if the Secretary determines that he has become permanently and totally disabled; "(5) such a loan shall bear interest on the unpaid balance of the loan, computed only for periods during which the loan is repayable, at the rate of 3 per centum per annum or the going Federal rate at the time the loan is made, whichever is the greater; and for purposes |