ENHANCEMENT OF EDUCATION DEBT REDUCTION PROGRAM.

SEC. 102. ENHANCEMENT OF EDUCATION DEBT REDUCTION PROGRAM. (a) Permanent Authority.—(1) Section 7684 is repealed. (2) The table of sections at the beginning of chapter 76 is amended by striking the item relating to section 7684. (b) Eligible Individuals.—Subsection (a)(1) of section 7682 is amended— (1) by striking “under an appointment under section 7402(b) of this title in a position” and inserting “in a position (as determined by the Secretary) providing direct-patient care services or services incident to direct-patient care services”; and (2) by striking “(as determined by the Secretary)” and inserting “(as so determined)”. (c) Maximum Debt Reduction Amount.—Section 7683(d)(1) is amended— (1) by striking “for a year”; and (2) by striking “exceed—” and all that follows through the end of the paragraph and inserting “exceed $44,000 over a total of five years of participation in the Program, of which not more than $10,000 of such payments may be made in each of the fourth and fifth years of participation in the Program.”. 115 STAT. 2449 (d) Annual Adjustment of Maximum Debt Reduction Payments Amount.—(1) Section 7631, as amended by section 101(f) of this Act, is further amended— (A) in subsection (a)(1), by inserting before the period at the end of the first sentence the following: “and the maximum education debt reduction payments amount”; and (B) in subsection (b), by inserting after paragraph (4) the following new paragraph (5): “(5) The term ‘maximum education debt reduction payments amount’ means the maximum amount of education debt reduction payments payable to a participant in the Department of Veterans Affairs Education Debt Reduction Program under subchapter VII of this chapter, as specified in section 7683(d)(1) of this title and as previously adjusted (if at all) in accordance with this section.”. (2) Notwithstanding section 7631(a)(1) of title 38, United States Code, as amended by paragraph (1), the Secretary of Veterans Affairs shall not increase the maximum education debt reduction payments amount under that section in calendar year 2002. (e) Temporary Expansion of Individuals Eligible for Participation in Program.—(1) Notwithstanding section 7682(c) of title 38, United States Code, the Secretary of Veterans Affairs may treat a covered individual as being a recently appointed employee in the Veterans Health Administration under section 7682(a) of that title for purposes of eligibility in the Education Debt Reduction Program if the Secretary determines that the participation of the individual in the Program under this subsection would further the purposes of the Program. (2) For purposes of this subsection, a covered individual is any individual otherwise described by section 7682(a) of title 38, United States Code, as in effect on the day before the date of the enactment of this Act, who— (A) was appointed as an employee in a position described in paragraph (1) of that section, as so in effect, between January 1,1999, and December 31, 2001; and (B) is an employee in such position, or in another position described in paragraph (1) of that section, as so in effect, at the time of application for treatment as a covered individual under this subsection. (3) The Secretary shall make determinations regarding the exercise of the authority in this subsection on a case-by-case basis. (4) The Secretary may not exercise the authority in this subsection after June 30, 2002. The expiration of the authority in this subsection shall not affect the treatment of an individual under this subsection before that date as a covered individual for purposes of eligibility in the Education Debt Reduction Program. (5) In this subsection, the term “Education Debt Reduction Program” means the Department of Veterans Affairs Education Debt Reduction Program under subchapter VII of chapter 76 of title 38, United States Code.