USC Subchapter VII

in effect

38 U.S.C. § 7681 Authority for program

(a) In General.—(1) As part of the Educational Assistance Program, the Secretary may carry out an education debt reduction program under this subchapter. The program shall be known as the Department of Veterans Affairs Education Debt Reduction Program (hereinafter in this subchapter referred to as the “Education Debt Reduction Program”). (2) The purpose of the Education Debt Reduction Program is to assist in the recruitment and retention of qualified health care professionals for positions in the Veterans Health Administration for which recruitment or retention of an adequate supply of qualified personnel is difficult. (b) Relationship to Educational Assistance Program.—Education debt reduction payments under the Education Debt Reduction Program may be in addition to other assistance available to individuals under the Educational Assistance Program.

38 U.S.C. § 7682 Eligibility

(a) Eligibility.—An individual is eligible to participate in the Education Debt Reduction Program if the individual—(1) is an employee in the Veterans Health Administration serving in a position (as determined by the Secretary) providing direct-patient care services or services incident to direct-patient care services for which recruitment or retention of qualified health-care personnel (as so determined) is difficult; and (2) owes any amount of principal or interest under a loan, the proceeds of which were used by or on behalf of that individual to pay costs relating to a course of education or training which led to a degree that qualified the individual for the position referred to in paragraph (1). (b) Covered Costs.—For purposes of subsection (a)(2), costs relating to a course of education or training include—(1) tuition expenses; (2) all other reasonable educational expenses, including expenses for fees, books, and laboratory expenses; and (3) reasonable living expenses.

38 U.S.C. § 7683 Education debt reduction

(a) In General.—Education debt reduction payments under the Education Debt Reduction Program shall consist of—(1) payments to individuals selected to participate in the program of principal and interest on loans described in section 7682(a)(2) of this title; or (2) payments for the principal and interest on such loans of such individuals to the holders of such loans. (b) Frequency of Payment.—(1) The Secretary may make education debt reduction payments to or for any given participant in the Education Debt Reduction Program on a monthly or annual basis, as determined by the Secretary. (2) The Secretary shall make such payments at the end of the period determined by the Secretary under paragraph (1). (c) Performance Requirement.—The Secretary may make education debt reduction payments to or for a participant in the Education Debt Reduction Program for a period only if the Secretary determines that the individual maintained an acceptable level of performance in the position or positions served by the participant during the period. (d) Maximum Annual Amount.—(1) The amount of education debt reduction payments made to or for a participant under the Education Debt Reduction Program may not exceed $200,000 over a total of five years of participation in the Program, of which not more than $40,000 of such payments may be made in each year of participation in the Program. (2)(A) The Secretary may waive the limitations under paragraph (1) in the case of a participant described in subparagraph (B). In the case of such a waiver, the total amount of education debt repayments payable to or for that participant is the total amount of the principal and the interest on the participant’s loans referred to in subsection (a). (B) A participant described in this subparagraph is a participant in the Program who the Secretary determines serves in a position for which there is a shortage of qualified employees by reason of either the location or the requirements of the position.