116 STAT. 818 PUBLIC LAW 107-205—AUG. 1, 2002? (a) may not exceed $30,000, plus any amount determined by the Secretary on an annual basis to reflect inflation; "(3) an amount up to 85 percent of any such loan (plus interest thereon) shall be canceled by the school as follows: "(A) upon completion by the individual of each of the first, second, and third year of full-time employment, required by the loan agreement entered into under this subsection, as a faculty member in a school of nursing, the school shall cancel 20 percent of the principle of, and the interest on, the amount of such loan unpaid on the first day of such employment; and "(B) upon completion by the individual of the fourth year of full-time employment, required by the loan agreement entered into under this subsection, as a faculty member in a school of nursing, the school shall cancel 25 percent of the principle of, and the interest on, the amount of such loan unpaid on the first day of such employ- ment; "(4) such a loan may be used to pay the cost of tuition, fees, books, laboratory expenses, and other reasonable education expenses; "(5) such a loan shall be repayable in equal or graduated periodic installments (with the right of the borrower to accelerate repayment) over the 10-year period that begins 9 months after the individual ceases to pursue a course of study at a school of nursing; and "(6) such a loan shall— "(A) beginning on the date that is 3 months after the individual ceases to pursue a course of study at a school of nursing, bear interest on the unpaid balance of the loan at the rate of 3 percent per annum; or "(B) subject to subsection (e), if the school of nursing determines that the individual will not complete such course of study or serve as a faculty member as required under the loan agreement under this subsection, bear interest on the unpaid balance of the loan at the prevailing market rate. "(d) PAYMENT OF PROPORTIONATE SHARE. —Where all or any part of a loan, or interest, is canceled under this section, the Secretary shall pay to the school an amount equal to the school's proportionate share of the canceled portion, as determined by the Secretary. "(e) REVIEW BY SECRETARY.—At the request of the individual involved, the Secretary may review any determination by a school of nursing under subsection (c)(6)(B). "(f) AUTHORIZATION OF APPROPRIATIONS.— There are authorized to be appropriated to carry out this section such sums as may be necessary for each of fiscal years 2003 through 2007.". Deadlines. SEC. 204. REPORTS BY GENERAL ACCOUNTING OFFICE. 42 USC 296 note. -,.„ _. XT.,. ^, ^ « ,, (a) NATIONAL VARIATIONS.— Not later than 4 years after the date of the enactment of this Act, the Comptroller General of the United States shall conduct a survey to determine national variations in the nursing shortage at hospitals, nursing homes, and other health care providers, and submit a report, including recommendations, to the Congress on Federal remedies to ease nursing shortages. The Comptroller General shall submit to the
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