LOAN PROVISIONS.

SEC. 713. LOAN PROVISIONS. (a) Rule of Construction With Respect to Certain Uncollectable Loans.—Section 835(c)(1) (42 U.S.C. 297a(c)(D) is amended by adding at the end the following new sentence: “With respect to the student loan fund established pursuant to such agreements, this subsection may not be construed to require such schools to reimburse such loan fund for loans that became uncollectable prior to 1983.”. (b) Increases With Respect to Annual and Aggregate Loan Totals.—Section 836(a) (42 U.S.C. 297b(a)) is amended— (1) in the first sentence, by inserting before the period the following: “, except that for the final two academic years of the program involved, such total may not exceed $4,000”; and (2) in the second sentence, by striking “$10,000” and inserting “$13,000”. (c) Preference Category of Exceptional Financial Need.—Section 836(a) (42 U.S.C. 297b(a)) is amended in the third sentence by striking “practical nurses and” and inserting “practical nurses, to persons with exceptional financial need, and”. (d) Reduction of Eligibility Standard of Need.—Section 836(b)(1)(c) (42 U.S.C. 297b)(b)(1)(O) is amended to read as follows: “(C) with respect to any student enrolling in the school after June 30, 1986, is of financial need (as defined in regulations issued by the Secretary).”. (e) Deferral Period for Half-Time Professional Training.—Section 83(b)(2)(b) (42 U.S.C. 297b(b)(2)(B)) is amended— (1) by striking “(up to five years)” and inserting “(up to ten years)”; and (2) by inserting after “full-time” the following: “or half-time”. (f) Reduction in Interest Rate.—Section 836(b)(5) (42 U.S.C. 297b(b)(5)) is amended by striking “6 per centum” and inserting “5 percent”. 102 STAT. 3161 (g) Striking of Low-Income Provisions With Respect to Loan Repayment.—Section 836(j) (42 U.S.C. 297b(j)) is amended by adding “and” at the end of paragraph (2), by striking paragraph (3), and by redesignating paragraph (4) as paragraph (3). (h) Use of Certain Unexpended Funds for Allotments.— (1) Section 838(a)(3) (42 U.S.C. 297d(a)(3)) is amended— (A) by inserting “(A)” after the paragraph designation; and (B) by adding at the end the following new subparagraph: “(B) With respect to funds available pursuant to subparagraph (A), any such funds returned to the Secretary and not allotted by the8 Secretary, during the period of availability specified in such subparagraph, shall be available to carry out section 843 and, for such purpose, shall remain available until expended”. (2) Except as provided in Public Law 100–436, the amendment made by paragraph (1) shall take effect as if such amendment had been effective on September 30, 1988, and as if section 843 of the Public Health Service Act, as added by section 715 of this title, had been effective on such date. (i) Extension of Date Certain for Capital Distribution.—Section 839 (42 U.S.C. 297e) is amended— (1) in subsection (a)— (A) in the matter preceding paragraph (1), by striking “1991” and inserting “1994”; and (B) in paragraph (1), by striking “1991” and inserting “1994”; and (2) in subsection (b), by striking “1991” each place it appears and inserting “1994”.