PUBLIC LAW 100-177—DEC. 1, 1987
101 STAT. 997
(d) SECTION 336.—Section 336(a) (42 U.S.C. 254h-l(a)) is amended by striking out "scholarship program" and inserting in lieu thereof "Scholarship Program or Loan Repayment Program". (e) SECTION 338E.—Section 338E (as redesignated by section 201(2) 42 USC 254o. of this Act) is amended— (1) in subsection (a)— (A) by inserting "(1)" after the subsection designation; (B) by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D), respectively; and (C) by adding at the end thereof the following new paragraph: "(2) An individual who has entered into a written contract with Contracts. the Secretary under section 338B and who— "(A) in the case of an individual who is enrolled in the final year of a course of study, fails to maintain an acceptable level of academic standing in the educational institution in which such ^ individual is enrolled (such level determined by the educational '^ institution under regulations of the Secretary) or voluntarily terminates such enrollment or is dismissed from such educational institution before completion of such course of study; or "(B) in the case of an individual who is enrolled in a graduate training program, fails to complete such training program and does not receive a waiver from the Secretary under section 338B(b)(l)(B)(ii), in lieu of any service obligation arising under such contract shall be liable to the United States for the amount that has been paid on behalf of the individual under the contract."; (2) in subsection (b)(1)— (A) by inserting "(A)" after the paragraph designation; (B) by striking out "338E(d)" and inserting in lieu thereof "338F(d)"; ,«,,,r (C) by striking out "3380" each place it appears and ^ri,,, inserting in lieu thereof "338D"; (D) by striking out "338B" each place it appears and inserting in lieu thereof "338C"; (E) by inserting "under section 338A" after "service obligation"; (F) by striking the last sentence; and (G) by adding at the end the following new subparagraph: -"(B)(i) Any amount of damages that the United States is entitled to recover under this subsection or under subsection (c) shall, within the 1-year period beginning on the date of the breach of the written contract (or such longer period beginning on such date as specified by the Secretary), be paid to the United States. "(ii) If damages described in clause (i) are delinquent for 3 months, the Secretary shall, for the purpose of recovering such damages— "(I) utilize collection agencies contracted with by the Administrator of the General Services Administration; or "(II) enter into contracts for the recovery of such damages with collection agencies selected by the Secretary. "^ "(iii) Each contract for recovering damages pursuant to this Reports. subsection shall provide that the contractor will, not less than once each 6 months, submit to the Secretary a status report on the success of the contractor in collecting such damages. Section 3718 of title 31, United States Code, shall apply to any such contract to the extent not inconsistent with this subsection.
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