Section 5201

SEC. 5201. FEDERALLY SUPPORTED STUDENT LOAN FUNDS.

[a] Medical Schools and Primary Health Care- Section 723 of the Public Health Service Act [42 U.S.C. 292s] is amended--

[1] in subsection [a]--

[A] in paragraph [1], by striking subparagraph [B] and inserting the following:

'[B] to practice in such care for 10 years [including residency training in primary health care] or through the date on which the loan is repaid in full, whichever occurs first.'; and

[B] by striking paragraph [3] and inserting the following:

'[3] NONCOMPLIANCE BY STUDENT- Each agreement entered into with a student pursuant to paragraph [1] shall provide that, if the student fails to comply with such agreement, the loan involved will begin to accrue interest at a rate of 2 percent per year greater than the rate at which the student would pay if compliant in such year.'; and

[2] by adding at the end the following:

'[d] Sense of Congress- It is the sense of Congress that funds repaid under the loan program under this section should not be transferred to the Treasury of the United States or otherwise used for any other purpose other than to carry out this section.'.

[b] Student Loan Guidelines- The Secretary of Health and Human Services shall not require parental financial information for an independent student to determine financial need under section 723 of the Public Health Service Act [42 U.S.C. 292s] and the determination of need for such information shall be at the discretion of applicable school loan officer. The Secretary shall amend guidelines issued by the Health Resources and Services Administration in accordance with the preceding sentence.