PUBLIC LAW 100-177—DEC. 1, 1987
101 STAT. 995
is assigned by the Secretary as a member of the Corps or released under section 338D; "(2) a provision permitting the Secretary to extend for such longer additional periods, as the individual may agree to, the period of obligated service agreed to by the individual under paragraph (l)(B)(iv); "(3) a provision that any financial obligation of the United States arising out of a contract entered into under this subpart and any obligation of the individual that is conditioned thereon, is contingent on funds being appropriated for loan repayments under this subpart and to carry out the purposes of sections 331 through 335 and sections 337 and 338; "(4) a statement of the damages to which the United States is entitled, under section 338E for the individual's breach of the contract; and "(5) such other statements of the rights and liabilities of the Secretary and of the individual, not inconsistent with this subpart. "(g) PAYMENTS.—
"(I) IN GENERAL.—A loan repayment provided for an individual under a written contract under the Loan Repayment Program shall consist of payment, in accordance with paragraph (2), on behalf of the individual of the principal, interest, and related expenses on government and commercial loans received by the individual for— "(A) tuition expenses; "(B) all other reasonable educational expenses, including fees, books, and laboratory expenses, incurred by the individual; or "(C) reasonable living expenses as determined by the Secretary. "(2) PAYMENTS FOR YEARS SERVED.—
"(A) IN GENERAL.—Except as provided in subparagraph (B) and paragraph (3), for each year of obligated service that an individual contracts to serve under subsection (f) the Secretary may pay up to $20,000 on behalf of the individual for loans described in paragraph (1). "(B) INDIAN SERVICE.—For each year of obligated service that an individual contracts under subsection (f) to serve in the Indian Health Service, or to serve in a health program or facility operated by a tribe or tribal organization under the Indian Self-Determination Act (25 U.S.C. 450f et seq.), the Secretary may pay up to $25,000 on behalf of the individual for loans described in paragraph (1). "(C) REPAYMENT SCHEDULE.—Any arrangement made by the Secretary for the making of loan repayments in accordance with this subsection shall provide that any repayments for a year of obligated service shall be made no later than the end of the fiscal year in which the individual completes such year of service. "(3), TAX LIABILITY.—In addition to payments made under p a r a ^ a p h (2), in any case in which payments on behalf of an individual under the Loan Repayment Program result in an increase in Federal, State, or local income tax liability for such individual, the Secretary may, on the request of such individual, make payments to such individual in a reasonable amount, as
91-194 O - 90 - 33: QL.3 Part 1
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