HEALTH PROFESSIONALS EDUCATIONAL ASSISTANCE PROGRAM.

SEC. 216. HEALTH PROFESSIONALS EDUCATIONAL ASSISTANCE PROGRAM. (a) Repeal of Old Program.— Subchapter IV of chapter 73 is repealed. (b) Improved and Expanded Program.— Part V is amended by adding at the end the following new chapter: “CHAPTER 76— HEALTH PROFESSIONALS EDUCATIONAL ASSISTANCE PROGRAM “SUBCHAPTER GENERAL “Sec. “4301. Establishment of program; purpose. “4302. Eligibility. “4303. Application and acceptance. “4304. Terms of agreement. “SUBCHAPTER II— SCHOLARSHIP PROGRAM “4311. Authority for program. “4312. Eligibility; application; agreement. “4313. Scholarship. “4314. Part-time students. “4315. Status of participants. “4316. Obligated service. “4317. Breach of agreement: liability. “4318. Expiration of program. “SUBCHAPTER III— TUITION REIMBURSEMENT PROGRAM “4321. Authority for program. “4322. Eligibility; application; agreement. “4323. Obligated service, “4324. Breach of agreement: liability. “4325. Allocation and distribution of funding. “SUBCHAPTER IV— ADMINISTRATIVE MATTERS “4331. Periodic adjustments in amount of assistance. “4332. Annual report. “4333. Regulations. “4334. Breach of agreement; waiver of liability. “4335. Service in other agencies. “4336. Exemption of educational assistance payments from taxation. 102 STAT. 518 “SUBCHAPTER I— GENERAL “§ 4301. Establishment of program; purpose “(a) There is hereby established a program to be known as the Veterans’ Administration Health Professionals Educational Assistance Program (hereinafter in this chapter referred to as the ‘Educational Assistance Program’). The program consists of— “(1) the scholarship program provided for in subchapter II of this chapter, and “(2) the tuition reimbursement program provided for in subchapter III of this chapter. “(b) The purpose of the Educational Assistance Program is to assist in providing an adequate supply of trained health-care personnel for the Veterans’ Administration and the Nation. “§ 4302. Eligibility “(a) (1) To be eligible to participate in the Educational Assistance Program, an individual must be accepted for enrollment or be currently enrolled as a student at a qualifying educational institution in a course of education or training that is approved by the Administrator and that leads toward completion of a degree in a field of education or training for which a scholarship may be awarded under subchapter II of this chapter or for which tuition reimbursement may be provided under subchapter III of this chapter. “(2) A qualifying educational institution for purposes of this section is an educational institution that is in a State and that (as determined by the Administrator) is an accredited institution. “(b) An individual is not eligible to apply to participate in the Educational Assistance Program if the individual is obligated under any other Federal program to perform service after completion of the course of education or training of such individual referred to in subsection (a) of this section. “§ 4303. Application and acceptance “(a) To apply to participate in the Educational Assistance Program, an individual shall submit to the Administrator an application for such participation together with an agreement described in section 4304 of this title under which the participant agrees to serve a period of obligated service in the Department of Medicine and Surgery as provided in the agreement in return for payment of educational assistance as provided in the agreement. “(b) (1) An individual becomes a participant in the Educational Assistance Program upon the Administrator’s approval of the individual’s application and the Administrator’s acceptance of the agreement. “(2) Upon the Administrator’s approval of an individual’s participation in the program, the Administrator shall promptly notify the individual of that approval. Such notice shall be in writing. “(c) (1) In distributing application forms and agreement forms to individuals desiring to participate in the Educational Assistance Program, the Administrator shall include with such forms the following: “(A) A fair summary of the rights and liabilities of an individual whose application is approved (and whose agreement is accepted) by the Administrator, including a clear explanation of 102 STAT. 519the damages to which the United States is entitled if the individual breaches the agreement. “(B) A full description of the terms and conditions that apply to participation in the Educational Assistance Program and service in the Department of Medicine and Surgery. “(2) The Administrator shall make such application forms and other information available to individuals desiring to participate in the Educational Assistance Program on a date sufficiently early to allow such individuals adequate time to prepare and submit such forms. “(d) In selecting applicants for acceptance in the Educational Assistance Program, the Administrator shall give priority to the applications of individuals who have previously received educational assistance under the program and have not completed the course of education or training undertaken under such program. “§ 4304. Terms of agreement “An agreement between the Administrator and a participant in the Educational Assistance Program shall be in writing, shall be signed by the participant, and shall include the following provisions: “(1) The Administrator’s agreement— “(A) to provide the participant with educational assistance as authorized in subchapter II or III of this chapter and specified in the agreement; and “(B) to afford the participant the opportunity for employment in the Department of Medicine and Surgery (subject to the availability of appropriated funds for such purpose and other qualifications established in accordance with section 4105 of this title). “(2) The participant’s agreement— “(A) to accept such educational assistance; “(B) to maintain enrollment and attendance in the course of training until completed; “(C) while enrolled in such course, to maintain an acceptable level of academic standing (as determined by the educational institution offering such course of training under regulations prescribed by the Administrator); and “(D) after completion of the course of training, to serve as a full-time employee in the Department of Medicine and Surgery as specified in the agreement in accordance with subchapter II or III of this chapter. “(3) A provision that any financial obligation of the United States arising out of an agreement entered into under this chapter, and any obligation of the participant which is conditioned on such agreement, is contingent upon funds being appropriated for educational assistance under this chapter. “(4) A statement of the damages to which the United States is entitled under this chapter for the participant’s breach of the agreement. “(5) Such other terms as are required to be included in the agreement under subchapter II or III of this chapter or as the Administrator may require consistent with the provisions of this chapter. 102 STAT. 520 “SUBCHAPTER II— SCHOLARSHIP PROGRAM “§ 4311. Authority for program “As part of the Educational Assistance Program, the Administrator shall carry out a scholarship program under this subchapter. The program shall be known as the Veterans’ Administration Health Professional Scholarship Program (hereinafter in this chapter referred to as the “Scholarship Program”). “§ 4312. Eligibility; application; agreement “(a) (1) Except as provided in paragraph (2) of this subsection, an individual must be accepted for enrollment or be enrolled (as described in section 4302 of this title) as a full-time student to be eligible to participate in the Scholarship Program. “(2) An individual who is an eligible Veteran’ Administration employee may be accepted as a participant if accepted for enrollment or enrolled (as described in section 4302 of this title) for study on less than a full-time but not less than a half-time basis. (Such a participant is hereinafter in this subchapter referred to as a “part-time student”.) “(3) For the purposes of paragraph (2) of this subsection, an eligible Veterans’ Administration employee is a full-time Veteran’ Administration employee who is permanently assigned to a Veterans’ Administration health-care facility on the date on which the individual submits the application referred to in section 4303 of this title and on the date on which the individual becomes a participant in the Scholarship Program. “(b) (1) A scholarship may be awarded under this subchapter only in a qualifying field of education or training. “(2) A qualifying field of education or training for purposes of this subchapter is education or training leading to employment (under section 4104 of this title) as any of the following: “(A) A physician, dentist, podiatrist, optometrist, nurse, physician assistant, or expanded function dental au)(iliary. “(B) A psychologist described in section 4104(3) of this title or a certified or registered respiratory therapist, licensed physical therapist, or licensed practical or vocational nurse. “(3) The Administrator may designate additional fields of education or training as qualifying fields of education or training if the education or training leads to employment in a position which would qualify the individual for increased basic pay under section 4107(g)(1)(B) of this title. “(4) Before awarding the initial scholarship in a course of education or training other than medicine or nursing, the Administrator shall notify the Committees on Veterans’ Affairs of the Senate and House of Representatives of the Administrator’s intent to award a scholarship in such course of education or training. The notice shall include a statement of the reasons why the award of scholarships in that course of education or training is necessary to assist in providing the Veterans’ Administration with an adequate supply of personnel in the health profession concerned. Any such notice shall be given not less than 60 days before the first such scholarship is awarded. “(5) In selecting applicants for the Scholarship Program, the Administrator shall give priority to the applications of individuals who will be entering their final year in a course of training. 102 STAT. 521 “(c) (1) An agreement between the Administrator and a participant in the Scholarship Program shall (in addition to the requirements set forth in section 4304 of this title) include the following: “(A) The Administrator’s agreement to provide the participant with a scholarship under this subchapter for a specified number (from one to four) of school years during which the participant is pursuing a course of education or training described in section 4302 of this title. “(B) The participant’s agreement to serve as a full-time employee in the Department of Medicine and Surgery for a period of time (hereinafter in this subchapter referred to as the ‘period of obligated service’) of one calendar year for each school year or part thereof for which the participant was provided a scholarship under the Scholarship Program. “(2) in a case in which an extension is granted under section 4314(3) of this title, the number of years for which a scholarship may be provided under this subchapter shall be the number of school years provided for as a result of the extension. “(3) In the case of a participant who is a part-time student— “(A) the period of obligated service shall be reduced in accordance with the proportion that the number of credit hours carried by such participant in any such school year bears to the number of credit hours required to be carried by a full-time student in the course of training being pursued by the participant, but in no event to less than one year; and “(B) the agreement shall include the participant’s agreement to maintain employment, while enrolled in such course of education or training, as a Veteran’ Administration employee permanently assigned to a Veteran’ Administration health-care facility. “(4) If a participant’s period of obligated service is deferred under section 4316(b)(3)(A)(i) of this title, the agreement terms under paragraph (1) of this subsection shall provide for the participant to serve any additional period of obligated service that is prescribed by the Administrator under section 4316(b)(4)(B) of this title. “§ 4313. Scholarship “(a) A scholarship provided to a participant in the Scholarship Program for a school year under the Scholarship Program shall consist of payment of the tuition of the participant for that school year, payment of other reasonable educational expenses (including fees, books, and laboratory expenses) for that school year, and a stipend determined under subsection (b) of this section. “(b) A stipend under this section for a school year shall be payment to the participant of not in excess of $485 per month (adjusted in accordance with section 4331 of this title) for each of the 12 consecutive months beginning with the first month of the school year, except that a stipend may not be paid to a participant who is a full-time employee of the Veterans’ Administration. The stipend of a participant who is a part-time student shall be adjusted as provided in sections 4314(1) and 4314(2) of this title. “(c) The Administrator may arrange with an educational institution in which a participant in the Scholarship Program is enrolled for the payment to the educational institution of the amounts of tuition and other reasonable educational expenses described in subsection (a) of this section. Such payments may be made without regard to subsections (a) and (b) of section 3324 of title 31. 102 STAT. 522 “§ 4314. Part-time students “In the case of a participant who is a part-time student— “(1) the maximum amount of the stipend payable to the participant shall be reduced in accordance with the proportion that the number of credit hours carried by such participant bears to the number of credit hours required to be carried by a full-time student in the course of education or training being pursued by the participant; “(2) a stipend may not be paid for any month during which the participant is not actually attending the course of training in which the participant is enrolled; and “(3) the Administrator may extend the period for which a scholarship may be awarded to the participant to a maximum of six school years if the Administrator determines that the extension would be in the best interest of the United States. “§ 4315. Status of participants “Participants in the Scholarship Program shall not by reason of their participation in such program (1) be considered to be employees of the Federal Government, or (2) be counted against any personnel ceiling affecting the Department of Medicine and Surgery. “§ 4316. Obligated service “(a) Each participant in the Scholarship Program shall provide service as a full-time employee of the Veteran’ Administration for the period of obligated service provided in the agreement of the participant entered into under section 4303 of this title. Such service shall be provided in the full-time clinical practice of such participant’s profession or in another health-care position in an assignment or location determined by the Administrator. “(b) (1) Not later than 60 days before the participant’s service commencement date, the Administrator shall notify the participant of that service commencement date. That date is the date for the beginning of the participant’s period of obligated service. “(2} As soon as possible after the participant’s service commencement date, the Administrator shall— “(A) in the case of a participant who is not a full-time employee in the Department of Medicine and Surgery, appoint such participant as such an employee; and “(B) in the case of a participant who is an employee in the Department of Medicine and Surgery but is not serving in a position for which such participant’s course of education or training prepared such participant, assign such participant to such a position. “(3) (A) (i) In the case of a participant receiving a degree from a school of medicine, osteopathy, dentistry, optometry, or podiatry, the participant’s service commencement date is the date upon which the participant becomes licensed to practice medicine, osteopathy, dentistry, optometry, or podiatry, as the case may be, in a State. However, the Administrator may, at the request of such participant, defer such date until the end of the period of time required for the participant to complete an internship or residency or other advanced clinical training. If the participant requests such a deferral, the Administrator shall notify the participant that such deferral 102 STAT. 523could lead to an additional period of obligated service in accordance with paragraph (4) of this subsection. “(ii) No such period of internship or residency or other advanced clinical training shall be counted toward satisfying a period of obligated service under this subchapter. “(B) In the case of a participant receiving a degree from a school of nursing, the participant’s service commencement date is the later of (i) the participant’s course completion date, or (ii) the date upon which the participant becomes licensed as a registered nurse in a State. “(C) In the case of a participant not covered by subparagraph (A) or (B) of this paragraph, the participant’s service commencement date is the later of (i) the participant’s course completion date, or (ii) the date the participant meets any applicable licensure or certification requirements. “(4) A participant whose period of obligated service is deferred under paragraph (3)(A) of this subsection shall be required to undertake internship or residency or other advanced clinical training in an accredited program in an educational institution which is an affiliated institution (as defined in section 4108(c)(1) of this title) and with respect to which the affiliation agreement provides that all or part of the internship or residency or other advanced clinical training will be undertaken in a Veterans’ Administration health-care facility. Such a participant may, at the discretion of the Administrator and upon the recommendation of the Chief Medical Director, incur an additional period of obligated service— “(A) at the rate of one-half of a calendar year for each year of internship or residency or other advanced clinical training (or a proportionate ratio thereof), if the internship, residency, or advanced clinical training is in a medical specialty necessary to meet the health-care requirements of the Veteran’ Administration (as determined under regulations prescribed by the Administrator); or “(B) at the rate of three-quarters of a calendar year for each year of internship or residency or other advanced clinical training (or a proportionate ratio thereof), if the internship, residency, or advanced clinical training is not in a medical specialty necessary to meet the health-care requirements of the Veteran’ Administration (as determined under regulations prescribed by the Administrator). “(5) The Administrator shall by regulation prescribe the service commencement date for participants who were part-time students. Such regulations shall prescribe terms as similar as practicable to the terms set forth in paragraph (3) of this subsection. “(c) (1) Except as provided in paragraph (2) of this subsection, a participant in the Scholarship Program shall be considered to have begun serving such participant’s period of obligated service— “(A) on the date, after such participant’s course completion date, on which such participant (in accordance with subsection (b) of this section) is appointed under this chapter as a full-time employee in the Department of Medicine and Surgery; or “(B) if the participant is a full-time employee in the Department of Medicine and Surgery on such course completion date, on the date thereafter on which such participant is assigned to a position for which such participant’s course of training prepared such participant. 102 STAT. 524 “(2) A participant in the Scholarship Program who on such participant’s course completion date is a full-time employee in the Department of Medicine and Surgery serving in a capacity for which such participant’s course of training prepared such participant shall be considered to have begun serving such participant’s period of obligated service on such course completion date. “(3) For the purposes of this section, the term ‘course completion date’ means the date on which a participant in the Scholarship Program completes such participant’s course of education or training under the program. “§ 4317. Breach of agreement; liability “(a) A participant in the Scholarship Program (other than a participant described in subsection (b) of this section) who fails to accept payment, or instructs the educational institution in which the participant is enrolled not to accept payment, in whole or in part, of a scholarship under the agreement entered into under section 4303 of this title shall be liable to the United States for liquidated damages in the amount of $1,500. Such liability is in addition to any period of obligated service or other obligation or liability under the agreement. “(b) A participant in the Scholarship Program shall be liable to the United States for the amount which has been paid to or on behalf of the participant under the agreement if any of the following occurs: “(1) The participant fails to maintain an acceptable level of academic standing in the educational institution in which the participant is enrolled (as determined by the educational institution under regulations prescribed by the Administrator). “(2) The participant is dismissed from such educational institution for disciplinary reasons. “(3) The participant voluntarily terminates the course of training in such educational institution before the completion of such course of training. “(4) The participant fails to become licensed to practice medicine, osteopathy, dentistry, podiatry, or optometry in a State, fails to become licensed as a registered nurse in a State, or fails to meet any applicable licensure requirement in the case of any other health-care personnel who provide either direct patient-care services or services incident to direct patient-care services, during a period of time determined under regulations prescribed by the Administrator. “(5) In the case of a participant who is a part-time student, the participant fails to maintain employment, while enrolled in the course of training being pursued by such participant, as a Veterans’ Administration employee permanently assigned to a Veterans’ Administration health-care facility. Liability under this subsection is in lieu of any service obligation arising under the participant’s agreement. “(c) (1) If a participant in the Scholarship Program breaches the agreement by failing (for any reason) to complete such participant’s period of obligated service, the United States shall be entitled to recover from the participant an amount determined in accordance with the following formula: 102 STAT. 525 A=3φ (t—st) In such formula: “(A) ‘A’ is the amount the United States is entitled to recover. “(B) ‘φ’ is the sum of (i) the amounts paid under this subchapter to or on behalf of the participant, and (ii) the interest on such amounts which would be payable if at the time the amounts were paid they were loans bearing interest at the maximum legal prevailing rate, as determined by the Treasurer of the United States. “(C) ‘t’ is the total number of months in the participant’s period of obligated service, including any additional period of obligated service in accordance with section 4316(b)(4) of this title. “(D) ’s’ is the number of months of such period served by the participant in accordance with section 4313 of this title. “(2) Any amount of damages which the United States is entitled to recover under this section shall be paid to the United States within the one-year period beginning on the date of the breach of the agreement. “§ 4318. Expiration of program “The Administrator may not furnish scholarships to new participants in the Scholarship Program after September 30, 1992. “SUBCHAPTER III— TUITION REIMBURSEMENT PROGRAM “§ 4321. Authority for program “As part of the Educational Assistance Program, the Administrator shall carry out a tuition reimbursement program under this subchapter. The program shall be known as the Veteran’ Administration Nurse Education Tuition Reimbursement Program (herein-after in this chapter referred to as the “Tuition Reimbursement Program”). “§ 4322. Eligibility; application; agreement “(a) To be eligible to participate in the Tuition Reimbursement Program, an individual must be a full-time employee in the Veterans’ Administration permanently assigned to a Veteran’ Administration health-care facility and must be enrolled in a course of training offered by an institution approved by the Administrator leading toward completion of (1) an associate or higher degree in nursing, or (2) a masters degree or doctoral degree in nursing. “(b) In selecting applicants for acceptance in the Tuition Reimbursement Program, the Administrator (in addition to according priorities as set forth in section 4303(d) of this title) shall give special consideration and emphasis to individuals pursuing a course of study which will expedite an increase in the number of registered nurses employed by the Veteran’ Administration. The Administrator shall then give priority, in the following order, to— “(1) individuals who have been employed as full-time employees in the Nursing Service in the Department of Medicine and Surgery; and “(2) individuals who have previously received tuition reimbursement under the Tuition Reimbursement Program. 102 STAT. 526 “(c) An agreement between the Administrator and a participant in the Tuition Reimbursement Program shall (in addition to the requirements set forth in section 4304 of this title) contain the following: “(1) The Administrator’s agreement to provide the participant with tuition reimbursement following successful completion (as determined, pursuant to regulations prescribed by the Administrator, by the educational institution involved) of (A) a course or courses required for the course of study described in subsection (a) of this section, or (B) a course or courses taken as necessary prerequisites for degree program enrollment if a letter regarding the potential enrollment of the participant from an appropriate official of the institution involved includes a statement specifying such prerequisites. “(2) The participant’s agreement— “(A) to maintain employment, while enrolled in the course of training being pursued by such participant, as a full-time Veterans’ Administration employee in the Department of Medicine and Surgery permanently assigned to a Veterans’ Administration health-care facility; and “(B) to continue to serve as a full-time employee in such Department for one year (hereinafter in this subchapter referred to as the ‘period of obligated service’) after completion of the course for which the participant received tuition reimbursement. “(d) Tuition reimbursement provided to a participant in the Tuition Reimbursement Program may not exceed $2,000 per year adjusted in accordance with section 4331 of this title). “(e) The Administrator may arrange with an educational institution pursuant to which such an institution would provide a course or courses at a Veterans’ Administration health-care facility to participants in the Tuition Reimbursement Program. Under such an arrangement, the Administrator may agree to pay to the institution an amount not in excess of an amount determined by multiplying the number of participants in such a course by the amount of tuition reimbursement each participant would receive for enrolling and successfully completing such course. “§ 4323. Obligated service “(a) Each participant in the Tuition Reimbursement Program shall provide service in the full-time clinical practice of such participant’s profession as a full-time employee of the Veterans’ Administration for the period of obligated service provided in the agreement of such participant entered into under section 4303 of this title. “(b) A participant who on such participant’s course completion date is a full-time employee in the Department of Medicine and Surgery shall be considered to have begun serving such participant’s period of obligated service on the course completion date. “(c) Except in the case of a participant whose tuition was paid pursuant to section 4322(f) of this title, if a participant in the Tuition Reimbursement Program fails to successfully complete a course, no reimbursement will be provided and no period of obligated service will be incurred. “(d) In the case of a participant whose tuition was paid pursuant to section 4322(f) of this title and who fails to complete the course involved, the period of obligation shall be of the same duration as it would have been if the participant had successfully completed the 102 STAT. 527course and the course completion date shall be considered to be the date on which the participant’s failure becomes an established fact. “(e) For the purposes of this section, the term ‘course completion date’ means the date on which a participant in the Tuition Reimbursement Program completes such participant’s course of training under the program. “§ 4324. Breach of agreement: liability “(a) A participant in the Tuition Reimbursement Program who fails to maintain employment as a Veterans’ Administration employee permanently assigned to a Veteran’ Administration health-care facility— “(1) may not be provided reimbursement for tuition for the course or courses in which the participant is enrolled; and “(2) in lieu of any service obligation arising from completion of a course or courses in a previous semester or quarter, shall be liable to the United States for the amount which has been paid to or on behalf of the participant under the agreement. “(b) (1) If a participant in the Tuition Reimbursement Program breaches the agreement by failing (for any reason) to complete such participant’s period of obligated service, the United States shall be entitled to recover from the participant an amount determined in accordance with the following formula: A=3φ (t—st) In such formula: “(A) ‘A’ is the amount the United States is entitled to recover. “(B) ‘4’ is the sum of (i) the amounts paid under this subchapter to or on behalf of the participant, and (ii) the interest on such amounts which would be payable if at the time the amounts were paid they were Ioans bearing interest at the maximum legal prevailing rate, as determined by the Treasurer of the United States. “(C) ‘t’ is the total number of months in the participant’s period of obligated service. “(D) ‘s’ is the number of months of such period served by the participant in accordance with section 4323 of this title. “(2) Any amount of damages which the United States is entitled to recover under this section shall be paid to the United States within the one-year period beginning on the date of the breach of the agreement. “§ 4325. Allocation and distribution of funding “In determining the amount of funding to allocate to Veterans’ Administration health-care facilities for any fiscal year in connection with the Tuition Reimbursement Program, the Administrator shall take into account (1) the personnel ceiling for that fiscal year for nursing personnel, and (2) the recruitment and retention needs of such facilities, as determined by the Administrator. 102 STAT. 528 “SUBCHAPTER IV— ADMINISTRATIVE MATTERS “§ 4331. Periodic adjustments in amount of assistance “(a) (1) Whenever there is a general Federal pay increase, the Administrator shall increase the maximum monthly stipend amount and the maximum tuition reimbursement amount. Any such increase shall take effect with respect to any school year that ends in the fiscal year in which the pay increase takes effect. “(2) The amount of any increase under paragraph (1) of this subsection is the previous maximum amount under that paragraph multiplied by the overall percentage of the adjustment in the rates of pay under the General Schedule made under the general Federal pay increase. Such amount shall be rounded to the next lower multiple of $1. “(b) For purposes of this section: “(1) The term ‘maximum monthly stipend amount’ means the maximum monthly stipend that may be paid to a participant in the Scholarship Program specified in section 4313(b) of this title and as previously adjusted (if at all) in accordance with this subsection. “(2) The term ‘maximum tuition reimbursement amount’ means the maximum amount of tuition reimbursement provided to a participant in the Tuition Reimbursement Program specified in section 4322(e) of this title and as previously adjusted (if at all) in accordance with this subsection. “(3) The term ‘general Federal pay increase’ means an adjustment (if an increase) in the rates of pay under the General Schedule under subchapter III of chapter 51 of title 5. “§ 4332. Annual report Not later than March 1 of each year, the Administrator shall submit to Congress a report on the Educational Assistance Program. Each such report shall include the following information: “(1) The number of students receiving educational assistance under the Educational Assistance Program, showing the numbers of students receiving assistance under the Scholarship Program and the Tuition Reimbursement Program separately, and the number of students enrolled in each type of health profession training under each program. “(2) The education institutions providing such training to students in each program. “(3) The number of applications filed under each program, by health profession category, during the school year beginning in such year and the total number of such applications so filed for all years in which the Educational Assistance Program (or predecessor program) has been in e)(istence. “(4) The average amounts of educational assistance provided per participant in the Scholarship Program and per participant in the Tuition Reimbursement Program. “(6) The amount of tuition and other expenses paid, by health profession category, in the aggregate and at each educational institution for the school year beginning in such year and for prior school years. “(6) The number of scholarships accepted, by health profession category, during the school year beginning in such year 102 STAT. 529and the number, by health profession category, which were offered and not accepted. “(7) The number of participants who complete a course or course of training in each program each year and for all years that such program (or predecessor program) has been in e)(istence. “§ 4333. Regulations “The Administrator shall prescribe regulations to carry out the Educational Assistance Program. “§ 4334. Breach of agreement; waiver of liability “(a) An obligation under the Educational Assistance Program (or an agreement under the program) of a participant in the Educational Assistance Program for performance of services or payment of damages is canceled upon the death of the participant. “(b) The Administrator shall prescribe regulations providing for the waiver or suspension of any obligation of a participant for service or payment under the Educational Assistance Program (or an agreement under the program) whenever noncompliance by the participant is due to circumstances beyond the control of the participant or whenever the Administrator determines that the waiver or suspension of compliance is in the best interest of the United States. “(c) An obligation of a participant under the Educational Assistance Program (or an agreement thereunder) for payment of damages may not be released by a discharge in bankruptcy under title 11 before the expiration of the five-year period beginning on the first date the payment of such damages is due. “§ 4335. Service in other agencies “(a) The Administrator, with the consent of the participant or individual involved and the consent of the head of the department or agency involved, may permit— “(1) a period of obligated service required under this chapter to be performed in the Department of Medicine and Surgery to be performed in another Federal department or agency or in the Armed Forces in lieu of performance of such service in the Department of Medicine and Surgery; and “(2) a period of obligated service required to be performed in another Federal department or agency or in the Armed Forces under another Federal health personnel educational assistance program to be performed in the Department of Medicine and Surgery. “(b) This section shall be carried out in cooperation with the heads of other appropriate departments and agencies. “§ 4336. Exemption of educational assistance payments from taxation “Notwithstanding any other law, any payment to, or on behalf of a participant in the Educational Assistance Program, for tuition, education expenses, or a stipend under this chapter shall be exempt from taxation.”. (c) Savings Provision.— The provisions of subchapter IV of chapter 73 of title 38, United States Code, as in effect on the day before the date of the enactment of this Act, shall remain in effect with respect to scholarships awarded under that subchapter. 102 STAT. 530 (d) Transition.— Section 4331 of title 38, United States Code, as added by subsection (b), shall not apply with respect to a school year ending during fiscal year 1988. (e) Clerical Amendments.— (1) The table of sections at the beginning of chapter 73 is amended by striking out the items relating to subchapter IV and sections 4141 through 4146. (2) The tables of chapters before part I and at the beginning of part V are each amended by inserting after the item relating to chapter 75 the following new item: “76. Health Professionals Educational Assistance Program4301”.