106 STAT. 2010 PUBLIC LAW 102-408—OCT. 13, 1992 "(1) The term 'eligible institution' means, with respect to a fiscied year, a school of medicine, osteopathic medicine, dentistry, veterinary medicine, optometry, podiatric medicine, pharmacy, public health, allied health, or chiropractic, or a graduate program in health administration or clinical psycholo^. "(2) The term 'eligible lender* means an eligible institution that became a lender under this subpart prior to September 15, 1992, an agency or instnunentality of a State, a nnancial or credit institution (including an insurance company) which is subject to examination and supervision by an agency of the United States or of any State, a pension fund approved by the Secretary for this purpose, or a nonprofit private entity designated by the State, regulated by the State, and approved by the Secretary. "(3) The term line of credit' means an arrangement or agreement between the lender and the borrower whereby a loan is paid out by the lender to the borrower in annual installments, or whereby the lender agrees to make, in addition to the initial loan, additional loans in subsequent years. "(4) The term 'school of allied health means a program in a school of allied health (as defined in section 799) which leads to a masters' degree or a doctoral degree. "(SXA) The term 'default rate*, in the case of an eligible entity, means the percentage constituted by the ratio of— "(i) the principal amount of loans insured under this ^ subpart— "(1) that are made with respect to the entity and that enter repayment status after April 7, 1987; and "(11) for which amounts have been paid under section 707(a) to insurance beneficiaries, exclusive of any loan for which amounts have been so paid as a result of the death or total and permanent disability of the borrower; exclusive of any loan for which the borrower begins payments to the Secretary on the loan pursuant to section 707(b) and mcdntains payments for 12 consecutive months in accordance with the agreement involved (with the loan subsequently being included or excluded, as the case may be, as amounts paid under section 707(a) according to whether further defaidts occur and whether with respect to the default involved compliance with such requirement regarding 12 consecutive months occurs); and exclusive of any loan on which payments may not be recovered by reason of the obligation under the loan being discharged in bankruptcy under title 11, United States Code; to "(ii) the total principal amount of loans insured under this subpart that are made with respect to the entity and that enter repayment status after April 7, 1987. "(B) For purposes of subparagraph (A), a loan insured under this subpart shall be considered to have entered repay- ment status if the applicable period described in subparagraph (B) of section 705(a)(2) regarding the loan has expired (without regard to whether any period described in subparagraph (C) of such section is applicable regarding the loan). "(C) For purposes of subparagraph (A), the term 'eligible entity' means an eligible institution, an eligible lender, or a holder, as the case may be.
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