‘‘(d) ELIGIBLE ENTITY.—For purposes of this sec-
tion, the term ‘eligible entity’ includes a school of allied 
health, a health care facility, or a partnership of such a 
program and facility. 
‘‘SEC. 780E. ALLIED HEALTH PROFESSIONS FACULTY LOAN 
PROGRAM. 
‘‘(a) 
ESTABLISHMENT.—The 
Secretary, 
acting 
through the Administrator of the Health Resources and 
Services Administration, may enter into an agreement 
with any institution of higher education for the establish-
ment and operation of a student loan fund in accordance 
with this section, to increase the number of qualified allied 
health professions faculty. 
‘‘(b) AGREEMENTS.—Each agreement entered into 
under this section shall— 
‘‘(1) provide for the establishment of a student 
loan fund by the institution of higher education in-
volved; 
‘‘(2) provide for deposit in the fund of— 
‘‘(A) the Federal capital contributions to 
the fund; 
‘‘(B) an amount equal to not less than 
one-ninth of such Federal capital contributions, 
contributed by such institution;
‘‘(C) collections of principal and interest 
on loans made from the fund; and 
‘‘(D) any other earnings of the fund; 
‘‘(3) provide that the fund will be used only for 
loans to students of the institution in accordance 
with subsection (c) and for costs of collection of such 
loans and interest thereon; 
‘‘(4) provide that loans may be made from such 
fund only to students pursuing a full-time course of 
study or, at the discretion of the Secretary, a part- 
time course of study in an allied health profession; 
and 
‘‘(5) contain such other provisions as are nec-
essary to protect the financial interests of the 
United States. 
‘‘(c) LOAN PROVISIONS.—Loans from any student 
loan fund established by an institution of higher education 
pursuant to an agreement under this section shall be made 
to an individual on such terms and conditions as the insti-
tution may determine, except that— 
‘‘(1) such terms and conditions are subject to 
any conditions, limitations, and requirements pre-
scribed by the Secretary; 
‘‘(2) in the case of any individual, the total of 
the loans for any academic year made by institutions
of higher education from loan funds established pur-
suant to agreements under this section may not ex-
ceed $30,000, plus any amount determined by the 
Secretary on an annual basis to reflect inflation; 
‘‘(3) an amount up to 85 percent of any such 
loan (plus interest thereon) shall be canceled by the 
institution as follows: 
‘‘(A) upon completion by the individual of 
each of the first, second, and third year of full- 
time employment, required by the loan agree-
ment entered into under this section, as a fac-
ulty member in a school of allied health, the in-
stitution shall cancel 20 percent of the principle 
of, and the interest on, the amount of such loan 
unpaid on the first day of such employment; 
and 
‘‘(B) upon completion by the individual of 
the fourth year of full-time employment, re-
quired by the loan agreement entered into 
under this section, as a faculty member in a 
school of allied health, the institution shall can-
cel 25 percent of the principle of, and the inter-
est on, the amount of such loan unpaid on the 
first day of such employment;
‘‘(4) such a loan may be used to pay the cost 
of tuition, fees, books, laboratory expenses, and 
other reasonable education expenses; 
‘‘(5) such a loan shall be repayable in equal or 
graduated periodic installments (with the right of 
the borrower to accelerate repayment) over the 10- 
year period that begins 9 months after the individual 
ceases to pursue a course of study at a school of al-
lied health; and 
‘‘(6) such a loan shall— 
‘‘(A) beginning on the date that is 3 
months after the individual ceases to pursue a 
course of study at a school of allied health, bear 
interest on the unpaid balance of the loan at 
the rate of 3 percent per annum; or 
‘‘(B) subject to subsection (e), if the insti-
tution determines that the individual will not 
complete such course of study or serve as a fac-
ulty member as required under the loan agree-
ment under this section, bear interest on the 
unpaid balance of the loan at the prevailing 
market rate. 
‘‘(d) PAYMENT OF PROPORTIONATE SHARE.—Where 
all or any part of a loan, or interest, is canceled under 
this section, the Secretary shall pay to the institution of
higher education an amount equal to the school’s propor-
tionate share of the canceled portion, as determined by 
the Secretary. 
‘‘(e) REVIEW BY SECRETARY.—At the request of the 
individual involved, the Secretary may review any deter-
mination by an institution of higher education under sub-
section (c)(6)(B). 
‘‘(f) PUBLICATION.—The Secretary shall publish in 
the Federal Register the name of each institution of high-
er education participating in the allied health professions 
faculty loan program under this section. 
‘‘SEC. 780F. GENERAL PROVISIONS. 
‘‘(a) DEFINITION.—For purposes of this part: 
‘‘(1) The term ‘health care facility’ has the 
meaning given to that term under section 801 and 
includes any health care facility of the Veterans 
Health Administration. 
‘‘(2) The term ‘institution of higher education’ 
has the meaning given to that term in section 101 
of the Higher Education Act of 1965. 
‘‘(b) AUTHORIZATION
OF
APPROPRIATIONS.—To 
carry out this part, there is authorized to be appropriated 
$28,000,000 for each of fiscal years 2005 through 2009.’’.