II

103D CONGRESS

1ST SESSION S. 1122

To amend title 38, United States Code, to authorize the Secretary of Veterans

Affairs to carry out a program for repayment by the Secretary of certain

education costs incurred by certain Veterans Health Administration employees, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JUNE 17 (legislative day, JUNE 15), 1993

Ms. MIKULSKI introduced the following bill; which was read twice and referred

to the Committee on Veterans’ Affairs

A BILL

To amend title 38, United States Code, to authorize the

Secretary of Veterans Affairs to carry out a program

for repayment by the Secretary of certain education costs

incurred by certain Veterans Health Administration employees, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Department of Veter5 ans Affairs Health Professionals Education Debt Reduc6 tion Act’’.
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1 SEC. 2. PROGRAM OF ASSISTANCE IN THE PAYMENT OF

2 EDUCATION DEBTS INCURRED BY CERTAIN

3 VETERANS HEALTH ADMINISTRATION EM4 PLOYEES.

5 (a) PROGRAM.—(1) Chapter 76 of title 38, United

6 States Code, is amended by adding at the end the follow7 ing:

8 ‘‘SUBCHAPTER VI—EDUCATION DEBT

9 REDUCTION PROGRAM

10 ‘‘§ 7661. Authority for program

11 ‘‘(a) The Secretary may carry out an education debt

12 reduction program under this subchapter. The program

13 shall be known as the Department of Veterans Affairs

14 Education Debt Reduction Program (hereafter in this sub15 chapter referred to as the ‘Education Debt Reduction Pro16 gram’). The purpose of the program is to assist personnel

17 serving in health-care positions in the Veterans Health

18 Administration in reducing the amount of debt incurred

19 by such personnel in completing educational programs

20 that qualify such personnel for such service.

21 ‘‘(b) Such assistance shall be in addition to the assist22 ance available to individuals under the Educational Assist23 ance Program established under this chapter.
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1 ‘‘§ 7662. Eligibility; application

2 ‘‘(a) An individual eligible to participate in the Edu3 cation Debt Reduction Program is any individual (other

4 than a physician or dentist)—

5 ‘‘(1) who is serving in a position in the Veter6 ans Health Administration under an appointment

7 under section 7402(b) of this title; and

8 ‘‘(2) who owes—

9 ‘‘(A) any amount of principal or interest

10 under a loan the proceeds of which were used

11 by or on behalf of the individual to pay costs

12 relating to a course of education or training at

13 a qualifying educational institution which

14 course led to a degree that qualified the individ15 ual for a position referred to in paragraph (1);

16 or

17 ‘‘(B) any amount of principal or interest

18 under a loan the proceeds of which are being

19 used by or on behalf of the individual to pay

20 costs relating to a course of education or train21 ing at a qualifying educational institution which

22 course leads to a degree that qualifies the indi23 vidual for such a position.

24 ‘‘(b) Any eligible individual seeking to participate in

25 the Education Debt Reduction Program shall submit an

26 application to the Secretary relating to such participation.
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1 ‘‘§ 7663. Preference for assistance

2 ‘‘In selecting individuals for assistance under the

3 Education Debt Reduction Program, the Secretary shall

4 give preference to the following:

5 ‘‘(1) Individuals who have completed or are en6 gaged in, as the case may be, a two-year or four7 year course of education or training at an under8 graduate institution leading to a degree that quali9 fied or qualifies, as the case may be, the individuals

10 for a position referred to in section 7662(a)(1) of

11 this title.

12 ‘‘(2) Individuals who serve in the Veterans

13 Health Administration—

14 ‘‘(A) in areas in which the recruitment or

15 retention of an adequate supply of qualified

16 health-care personnel is difficult (as determined

17 by the Secretary); or

18 ‘‘(B) in positions for which the recruitment

19 or retention of such a supply of such personnel

20 is difficult (as so determined).

21 ‘‘§ 7664. Amount of assistance

22 ‘‘(a) Subject to subsection (b), the Secretary may pay

23 to an individual selected to receive assistance under the

24 Education Debt Reduction Program an amount not to ex25 ceed $4,000 (adjusted in accordance with section 7631 of

26 this title) for each full year served by the individual in
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1 a position in the Veterans Health Administration under

2 section 7402(b) of this title (other than a position referred

3 to in paragraph (1) or (2) of such section) after the date

4 of such individual’s selection.

5 ‘‘(b)(1) An individual may receive assistance under

6 the Education Debt Reduction Program only to assist the

7 individual in paying amounts (including principal and in8 terest) owed by the individual under a loan referred to

9 in section 7662(a)(2) of this title.

10 ‘‘(2) An individual may receive assistance under the

11 Education Debt Reduction Program for a year if—

12 ‘‘(A) the individual serves for the full year in a

13 position referred to in subsection (a); and

14 ‘‘(B) maintains an acceptable level of perform15 ance during such service.

16 ‘‘(3) The total amount of assistance received by an

17 individual under the Education Debt Reduction Program

18 may not exceed $12,000 (adjusted in accordance with sec19 tion 7631 of this title).’’.

20 (2) The table of sections at the beginning of such

21 chapter is amended by adding at the end thereof the fol22 lowing:

‘‘SUBCHAPTER VI—EDUCATION DEBT REDUCTION PROGRAM

‘‘7661. Authority for program.

‘‘7662. Eligibility; application.

‘‘7663. Preference for assistance.

‘‘7664. Amount of assistance.’’.
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1 (b) CONFORMING AMENDMENTS.—Section 7631 of

2 title 38, United States Code, is amended—

3 (1) in subsection (a), by striking out ‘‘and the

4 maximum Selected Reserve member stipend

5 amount’’ and inserting in lieu thereof ‘‘the maxi6 mum Selected Reserve stipend amount, and the edu7 cation debt reduction amount and limitation’’; and

8 (2) in subsection (b)—

9 (A) by redesignating paragraph (4) as

10 paragraph (5); and

11 (B) by inserting after paragraph (3) the

12 following new paragraph (4):

13 ‘‘(4) The term ‘education debt reduction

14 amount and limitation’ means the maximum amount

15 of assistance, and the limitation applicable to such

16 assistance, for a person receiving assistance under

17 subchapter VI of this chapter, as specified in section

18 7663 of this title and as previously adjusted (if at

19 all) in accordance with this subsection.’’.

20 (c) REGULATIONS.—The Secretary of Veterans Af21 fairs shall prescribe regulations necessary to carry out the

22 Education Debt Reduction Program established under

23 subchapter VI of chapter 76 of title 38, United States

24 Code (as added by subsection (a)). The Secretary shall
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1 prescribe such regulations not later than 90 days after the

2 date of the enactment of this Act.

3 (d) REPORT.—Not later than one year after the date

4 of the enactment of this Act, the Secretary shall submit

5 to Congress a report on the effectiveness of the Education

6 Debt Reduction Program and the Department of Veterans

7 Affairs Health Professional Scholarship Program estab8 lished under subchapter II of chapter 76 of title 38, Unit9 ed States Code, in assisting the Secretary in the recruit10 ment and retention of qualified health-care professionals

11 for positions in the Veterans Health Administration.

12 (e) AUTHORIZATION OF APPROPRIATIONS.—(1)

13 There is authorized to be appropriated for the Department

14 of Veterans Affairs $10,000,000 for each of fiscal years

15 1994 through 1998 to carry out the Education Debt Re16 duction Program.

17 (2) No funds may be used to provide assistance under

18 the program unless expressly provided for in an appropria19 tion Act.

20 (f) EXEMPTION FROM LIMITATION.—Section 523(b)

21 of the Veterans Health Care Act of 1992 (Public Law

22 102–585; 38 U.S.C. 7601 note) shall not apply to the

23 Education Debt Reduction Program.

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