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try, podiatry, pharmacy, veterinary medicine, public health, or other health training of, individuals whose background and interests make it reasonable to assume that they will engage in the practice of their health profession in rural or other areas having a severe shortage of personnel in such health profession; or

(2) (A) identify individuals with a potential for education or training in the health professions (including veterans of the Armed Forces of the United States with training or experience in the health field) who due to socioeconomic factors are financially or otherwise disadvantaged and encouraging and assisting them (i) to enroll in a school of medicine, dentistry, osteopathy, pharmacy, optometry, podiatry, veterinary medicine, public health, or other health training; or (ii) if they are not qualified to enroll in such a school, to undertake such postsecondary education or training as may be required to qualify them to enroll in such a school;

(B) publicize existing sources of financial aid available to persons enrolled in any such school or who are undertaking training necessary to qualify them to enroll in any such school; or

(C) establish such programs as the Secretary determines will enhance and facilitate the enrollment, pursuit, and completion of study by individuals referred to in clause (A) in schools referred to in clause (A) (i).

Of the sums appropriated under subsection (e) for any fiscal year, not more than 15 per centum of such sums, but in no event less than $5,000,000, shall be used to make grants under this subsection in such fiscal year. Of the sums available for grants under this subsection for any fiscal year, not more than one-half of such sums may be used for such fiscal year for projects described in clause (1) and not more than one-half of such sums may be used for such fiscal year for projects described in clause (2).

(c) (1) No grant may be made under this section unless an application there for has been submitted to, and approved by, the Secretary. Such application shall be in such form, submitted in such manner, and contain such information as the Secretary shall by regulation prescribe.

(2) The amount of any grant under this section shall be determined by the Secretary. Payments under grants under this section may be made in advance or by way of reimbursement, and at such intervals and on such conditions, as the Secretary finds necessary.

(d) Each grant or contract under subsection (a) of this section must be coordinated with the regional medical program for the area in which the grant or contract will be carried out.

(e) For the purpose of making payments pursuant to grants and contracts under this section, there are authorized to be appropriated $45,000,000 for the fiscal year ending June 30, 1972, $90,000,000 for the fiscal year ending June 30, 1973, and $135,000,000 for the fiscal year ending June 30, 1974. Funds appropriated under this subsection for the fiscal year ending June 30, 1972, shall remain available for obligation through September 30,

1972.

APPLICATIONS FOR CAPITATION, START-UP, SPECIAL PROJECT,
AND FINANCIAL DISTRESS GRANTS

SEC. 775. (a) The Secretary may from time to time set 42 U.S.C. 2951–5 dates (not earlier than in the fiscal year preceding the year for which a grant is sought) by which applications for grants under section 770, 771, 772, or 773 for any fiscal year must be filed.

(b) To be eligible for a grant under section 770, 771, 772, or 773, the applicant must (1) be a public or other nonprofit school of medicine, osteopathy, dentistry, veterinary medicine, optometry, pharmacy, or podiatry, and (2) be accredited by a recognized body or bodies approved for such purpose by the Commissioner of Education, except that the requirement of this clause shall be deemed to be satisfied if (A) in the case of a school which by reason of no, or an insufficient, period of operation is not, at the time of application for a grant under this part, eligible for such accreditation, the Commissioner finds, after consultation with the appropriate accreditation body or bodies, that there is reasonable assurance that the school will meet the accreditation standards of such body or bodies prior to the beginning of the academic year following the normal graduation date of students who are in their first year of instruction at such school during the fiscal year in which the Secretary makes a final determination as to approval of the application, or (B) in the case of any other school, the Commissioner finds after such consultation and after consultation with the Secretary that there is reasonable ground to expect that, with the aid of a grant (or grants) under those sections, having regard for the purposes of the grant for which application is made, such school will meet such accreditation standards within a reasonable time.

(c) The Secretary shall not approve or disapprove any application for a grant under this part except after consultation with the National Advisory Council on Health Professions Education (established by section 725).

(d) A grant under section 770, 771, 772, or 773 may be made only if the application therefor

(1) is approved by the Secretary upon his determination that the applicant (and its application)

42 U.S.C. 295g

meet the applicable eligibility conditions prescribed by section 770, 771, or 773 or subsection (b) of this section;

(2) contains such additional information as the Secretary may require to make the determinations required of him under the section authorizing the grant for which the application is made and such assurances as he may find necessary to carry out the purposes of such section; and

(3) provides for such fiscal control and accounting procedures and reports, and access to the records of the applicant, as the Secretary may require to assure proper disbursement of and accounting for Federal funds paid to the applicant under such grant.

PART F-SCHOLARSHIP GRANTS

SUBPART I-GRANTS FOR SCHOLARSHIPS TO STUDENTS
STUDYING IN THE UNITED STATES

SCHOLARSHIP GRANTS FOR STUDY IN THE UNITED STATES

SEC. 780. (a) The Secretary shall make grants as provided in this subpart to each public or other nonprofit school of medicine, osteopathy, dentistry, optometry, podiatry, pharmacy, or veterinary medicine which is accredited as provided in section 721 (b) (1) (B) or section 773(b)(2), for scholarships to be awarded annually by such school to students thereof.

(b) The amount of the grant under subsection (a) to each such school for the fiscal year ending June 30, 1972, shall be equal to $3,000 multiplied by one-tenth of the number of full-time students of such school. The amount of such grant for the fiscal year ending June 30, 1973, and the next fiscal year shall be equal to the greater of (1) $3,000 multiplied by the number of full-time students of such school who are from low-income backgrounds as determined under regulations of the Secretary, or (2) $3,000 multiplied by one-tenth of the number of full-time students of such school. For the fiscal year ending June 30, 1975, and for each of the two succeeding fiscal years, the grant under subsection (a) shall be such amount as may be necessary to enable such school to continue making payments under scholarship awards to students who initially received such awards out of grants made to the school for fiscal years ending before July 1, 1974.

(c) (1) Scholarships may be awarded by schools from grants under subsection (a)—

(A) only to individuals who have been accepted by them for enrollment as full-time first-year students and to individuals enrolled and in good standing as full-time students, in the case of awards from

such grants for the fiscal year ending June 30, 1972,
and each of the next two fiscal years; and

(B) only to individuals enrolled and in good stand-
ing as full-time students who initially received schol-
arship awards out of such grants for a fiscal year
ending prior to July 1, 1974, in the case of awards
from such grants for the fiscal year ending June 30,
1975, or the two succeeding fiscal years.

(2) Scholarships from grants under subsection (a) for any school year shall be awarded only to students of exceptional financial need who need such financial assistance to pursue a course of study at the school for such year. Any such scholarship awarded for a school year shall cover such portion of the student's tuition, fees, books, equipment, and living expenses at the school making the award, but not to exceed $3,500 for any year, as such school may determine the student needs for such year on the basis of his requirements and financial

resources.

(d) Grants under subsection (a) shall be made in accordance with regulations prescribed by the Secretary after consultation with the National Advisory Council on Health Professions Education (established by section 725).

(e) Grants under subsection (a) may be paid in advance or by way of reimbursement, and at such intervals as the Secretary may find necessary; and with appropriate adjustments on account of overpayments or underpayments previously made.

TRANSFER TO STUDENT LOAN FUNDS

295g-1

SEC. 781. Not to exceed 20 per centum of the amount 42U.S.C. paid to a school from the appropriations for any fiscal year for scholarships under this subpart, or such larger percentage thereof as the Secretary may approve, may be transferred to the sums available to the school under subpart I of part C for (and to be regarded as) Federal capital contributions, to be used for the same purpose as such sums.

SUBPART II-SCHOLARSHIPS BY THE SECRETARY TO CITI-
ZENS OF THE UNITED STATES WHO ARE FULL-TIME
STUDENTS IN SCHOOLS OF MEDICINE LOCATED OUTSIDE
THE UNITED STATES

SCHOLARSHIP GRANTS FOR STUDY ABROAD

295g-11

SEC. 785. (a) From the appropriations under subsec- 42 U.S.C. tion (e), the Secretary is authorized to make, in accordance with his subpart, scholarship grants to citizens of the United States who are full-time students in schools. of medicine which are located outside the United States.

(b) Scholarship grants under this subpart shall be awarded for any school year only to students of exceptional financial need who need such financial assistance to pursue a course of study at a school of medicine for such year and who have entered into an agreement with the Secretary to practice medicine in the United States for a period of five years. Such practice shall begin within such reasonable period of time, after completion of such student's professional training, as the Secretary shall by regulation prescribe. Any such scholarship for a school year shall cover such portion of the student's tution, fees, books, equipment, and living expenses at the school of medicine in which he is enrolled, but not to exceed $3,500 for any year, as the Secretary may determine the student needs for such year on the basis of the requirements and financial resources of the student.

(c) Grants under this subpart shall be made in accordance with regulations prescribed by the Secretary after consultation with the National Advisory Council on Health Professions Education.

(d) (1) No scholarship grant under this subpart shall be made to any student unless

(A) prior to the date such student files application for such grant

(i) he has made application for admission as a student in a school of medicine which is located in the United States;

(ii) he has, in connection with the making of such application for admission to such school, undergone a written examination to determine his qualifications for admission as a student in such school;

(B) such student furnishes to the Secretary a certification from such school that

(i) such student is qualified for admission as a student in such school, and

(ii) such student was denied admission as a student in such school solely because, for the school year for which such student applied for admission to such school, the number of qualified applicants for admission to such school exceeded the maximum number of students (as determined by such school) which such school was prepared to accept for admission for such year; and

(C) such student has not been accepted, before the date of approval of his application for a scholarship grant under this subpart, by a medical school located in the United States.

(2) No scholarship grant under this subpart shall be made to any student who has completed three years as a student in a school of medicine, unless—

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