PUBLIC LAW 102-408—OCT. 13, 1992 106 STAT. 2015 outstanding thereon, upon his determination, pursuant to regulations establishing criteria therefor, that the applicant— "(1) failed to complete such studies leading to his first professional degree; "(2) is in exceptionally needy circumstances; "(3) is from a low-income or disadvantaged family as those terms may be defined by such regulations; and "(4) has not resumed, or cannot reasonably be expected to resume, the study of medicine, osteopathy, dentistry, veterinary medicine, optometry, pharmacy, or podiatric medicine, within two years following the date upon which he terminated such studies. "(1) COLLECTION EFFORTS BY SECRETARY. — The Secretary is authorized to attempt to collect any loan which was made under this subpart, which is in default, and which was referred to the Secretary by a school with which the Secretary has an agreement under tnis subpart, on behalf of that school under such terms and conditions as the Secretary may prescribe (including reimbursement from the school's student loan fund for expenses the Secretary may reasonably incur in attempting collection), but only if the school has complied with such requirements as the Secretary may specify by regulation with respect to the collection of loans under this subpart. A loan so referred shall be treated as a debt subject to section 5514 of title 5, United States Code. Amounts collected shall be deposited in the school's student loan fund. Whenever the Secretary desires the institution of a civil action regarding any such loan, the Secretary shall refer the matter to the Attorney General for appropriate action. SEC. 723. MEDICAL SCHOOLS AND PRIMARY HEALTH CARE. 42 USC 292s. "(a) REQUIREMENTS FOR STUDENTS.— "(1) IN GENERAL.—Subject to the provisions of this subsection, in the case of student loan funds established under section 721 by schools of medicine or osteopathic medicine, each agreement entered into under such section with such a school shall provide (in addition to the provisions required in subsection (b) of such section) that the school will make a loan from such fund to a student only if the student agrees— "(A) to enter and complete a residency training program in primary health care not later than 4 years after the date on which the student graduates from such school; and "(B) to practice in such care through the date on which the loan is repaid in full. "(2) INAPPLICABILITY TO CERTAIN STUDENTS. — "(A) The requirement established in paragraph (1) regarding the student loan fund of a school does not apply to a student if— "(i) the first loan to the student from such fund is made before July 1, 1993; or
- (ii) the loan is made from—
"(I) a Federal capital contribution under section 721 that is made from amounts appropriated under section 724(f) (in this section referred to as an 'exempt Federal capital contribution'); or "(11) a school contribution made under section 721 pursuant to such a Federal capital contribu-
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