Department of Veterans Affairs Health Professionals Education Debt Reduction Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Department of Veterans Affairs 
Health Professionals Education Debt Reduction Act''.

SEC. 2. PROGRAM OF ASSISTANCE IN THE PAYMENT OF EDUCATION DEBTS 
              INCURRED BY CERTAIN VETERANS HEALTH ADMINISTRATION 
              EMPLOYEES.

    (a) Program.--(1) Chapter 76 of title 38, United States Code, is 
amended by adding at the end the following:

           ``SUBCHAPTER VI--EDUCATION DEBT REDUCTION PROGRAM

``Sec. 7661. Authority for program
    ``(a) 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 
(hereafter in this subchapter referred to as the `Education Debt 
Reduction Program'). The purpose of the program is to assist personnel 
serving in health-care positions in the Veterans Health Administration 
in reducing the amount of debt incurred by such personnel in completing 
educational programs that qualify such personnel for such service.
    ``(b) Such assistance shall be in addition to the assistance 
available to individuals under the Educational Assistance Program 
established under this chapter.
``Sec. 7662. Eligibility; application
    ``(a) An individual eligible to participate in the Education Debt 
Reduction Program is any individual (other than a physician or 
dentist)--
            ``(1) who is serving in a position in the Veterans Health 
        Administration under an appointment under section 7402(b) of 
        this title; and
            ``(2) who owes--
                    ``(A) any amount of principal or interest under a 
                loan the proceeds of which were used by or on behalf of 
                the individual to pay costs relating to a course of 
                education or training at a qualifying educational 
                institution which course led to a degree that qualified 
                the individual for a position referred to in paragraph 
                (1); or
                    ``(B) any amount of principal or interest under a 
                loan the proceeds of which are being used by or on 
                behalf of the individual to pay costs relating to a 
                course of education or training at a qualifying 
                educational institution which course leads to a degree 
                that qualifies the individual for such a position.
    ``(b) Any eligible individual seeking to participate in the 
Education Debt Reduction Program shall submit an application to the 
Secretary relating to such participation.
``Sec. 7663. Preference for assistance
    ``In selecting individuals for assistance under the Education Debt 
Reduction Program, the Secretary shall give preference to the 
following:
            ``(1) Individuals who have completed or are engaged in, as 
        the case may be, a two-year or four-year course of education or 
        training at an undergraduate institution leading to a degree 
        that qualified or qualifies, as the case may be, the 
        individuals for a position referred to in section 7662(a)(1) of 
        this title.
            ``(2) Individuals who serve in the Veterans Health 
        Administration--
                    ``(A) in areas in which the recruitment or 
                retention of an adequate supply of qualified health-
                care personnel is difficult (as determined by the 
                Secretary); or
                    ``(B) in positions for which the recruitment or 
                retention of such a supply of such personnel is 
                difficult (as so determined).
``Sec. 7664. Amount of assistance
    ``(a) Subject to subsection (b), the Secretary may pay to an 
individual selected to receive assistance under the Education Debt 
Reduction Program an amount not to exceed $4,000 (adjusted in 
accordance with section 7631 of this title) for each full year served 
by the individual in a position in the Veterans Health Administration 
under section 7402(b) of this title (other than a position referred to 
in paragraph (1) or (2) of such section) after the date of such 
individual's selection.
    ``(b)(1) An individual may receive assistance under the Education 
Debt Reduction Program only to assist the individual in paying amounts 
(including principal and interest) owed by the individual under a loan 
referred to in section 7662(a)(2) of this title.
    ``(2) An individual may receive assistance under the Education Debt 
Reduction Program for a year if--
            ``(A) the individual serves for the full year in a position 
        referred to in subsection (a); and
            ``(B) maintains an acceptable level of performance during 
        such service.
    ``(3) The total amount of assistance received by an individual 
under the Education Debt Reduction Program may not exceed $12,000 
(adjusted in accordance with section 7631 of this title).''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end thereof the following:

           ``SUBCHAPTER VI--EDUCATION DEBT REDUCTION PROGRAM

``7661. Authority for program.
``7662. Eligibility; application.
``7663. Preference for assistance.
``7664. Amount of assistance.''.
    (b) Conforming Amendments.--Section 7631 of title 38, United States 
Code, is amended--
            (1) in subsection (a), by striking out ``and the maximum 
        Selected Reserve member stipend amount'' and inserting in lieu 
        thereof ``the maximum Selected Reserve stipend amount, and the 
        education debt reduction amount and limitation''; and
            (2) in subsection (b)--
                    (A) by redesignating paragraph (4) as paragraph 
                (5); and
                    (B) by inserting after paragraph (3) the following 
                new paragraph (4):
            ``(4) The term `education debt reduction amount and 
        limitation' means the maximum amount of assistance, and the 
        limitation applicable to such assistance, for a person 
        receiving assistance under subchapter VI of this chapter, as 
        specified in section 7663 of this title and as previously 
        adjusted (if at all) in accordance with this subsection.''.
    (c) Regulations.--The Secretary of Veterans Affairs shall prescribe 
regulations necessary to carry out the Education Debt Reduction Program 
established under subchapter VI of chapter 76 of title 38, United 
States Code (as added by subsection (a)). The Secretary shall prescribe 
such regulations not later than 90 days after the date of the enactment 
of this Act.
    (d) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary shall submit to Congress a report 
on the effectiveness of the Education Debt Reduction Program and the 
Department of Veterans Affairs Health Professional Scholarship Program 
established under subchapter II of chapter 76 of title 38, United 
States Code, in assisting the Secretary in the recruitment and 
retention of qualified health-care professionals for positions in the 
Veterans Health Administration.
    (e) Authorization of Appropriations.--(1) There is authorized to be 
appropriated for the Department of Veterans Affairs $10,000,000 for 
each of fiscal years 1994 through 1998 to carry out the Education Debt 
Reduction Program.
    (2) No funds may be used to provide assistance under the program 
unless expressly provided for in an appropriation Act.
    (f) Exemption from Limitation.--Section 523(b) of the Veterans 
Health Care Act of 1992 (Public Law 102-585; 38 U.S.C. 7601 note) shall 
not apply to the Education Debt Reduction Program.

Summary: Department of Veterans Affairs Health Professionals Education Debt Reduction Act - Authorizes the Secretary of Veterans Affairs to carry out the Department of Veterans Affairs Education Debt Reduction Program to assist Department health-care personnel serving in the Veterans Health Administration in reducing the amount of debt incurred in completing educational programs that qualify such personnel for such service. Makes eligible for such Program any individual other than a physician or dentist serving in a Department health care position and having an outstanding health education loan from a qualified educational institution. Provides certain assistance preferences. Limits the assistance to $4,000 for each full year served in a Department health-care position, up to a $12,000 maximum. Authorizes appropriations for the Program for FY 1994 through 1998.