text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Department of Veterans Affairs 
  Health Professionals Education Debt Reduction Act''.
  
  SEC. 2. PROGRAM OF ASSISTANCE IN THE PAYMENT OF EDUCATION DEBTS 
                INCURRED BY CERTAIN VETERANS HEALTH ADMINISTRATION 
                EMPLOYEES.
  
      (a) Program.--(1) Chapter 76 of title 38, United States Code, is 
  amended by adding at the end the following:
  
             ``SUBCHAPTER VI--EDUCATION DEBT REDUCTION PROGRAM
  
  ``Sec. 7661. Authority for program
      ``(a) The Secretary may carry out an education debt reduction 
  program under this subchapter. The program shall be known as the 
  Department of Veterans Affairs Education Debt Reduction Program 
  (hereafter in this subchapter referred to as the `Education Debt 
  Reduction Program'). The purpose of the program is to assist personnel 
  serving in health-care positions in the Veterans Health Administration 
  in reducing the amount of debt incurred by such personnel in completing 
  educational programs that qualify such personnel for such service.
      ``(b) Such assistance shall be in addition to the assistance 
  available to individuals under the Educational Assistance Program 
  established under this chapter.
  ``Sec. 7662. Eligibility; application
      ``(a) An individual eligible to participate in the Education Debt 
  Reduction Program is any individual (other than a physician or 
  dentist)--
              ``(1) who is serving in a position in the Veterans Health 
          Administration under an appointment under section 7402(b) of 
          this title; and
              ``(2) who owes--
                      ``(A) any amount of principal or interest under a 
                  loan the proceeds of which were used by or on behalf of 
                  the individual to pay costs relating to a course of 
                  education or training at a qualifying educational 
                  institution which course led to a degree that qualified 
                  the individual for a position referred to in paragraph 
                  (1); or
                      ``(B) any amount of principal or interest under a 
                  loan the proceeds of which are being used by or on 
                  behalf of the individual to pay costs relating to a 
                  course of education or training at a qualifying 
                  educational institution which course leads to a degree 
                  that qualifies the individual for such a position.
      ``(b) Any eligible individual seeking to participate in the 
  Education Debt Reduction Program shall submit an application to the 
  Secretary relating to such participation.
  ``Sec. 7663. Preference for assistance
      ``In selecting individuals for assistance under the Education Debt 
  Reduction Program, the Secretary shall give preference to the 
  following:
              ``(1) Individuals who have completed or are engaged in, as 
          the case may be, a two-year or four-year course of education or 
          training at an undergraduate institution leading to a degree 
          that qualified or qualifies, as the case may be, the 
          individuals for a position referred to in section 7662(a)(1) of 
          this title.
              ``(2) Individuals who serve in the Veterans Health 
          Administration--
                      ``(A) in areas in which the recruitment or 
                  retention of an adequate supply of qualified health-
                  care personnel is difficult (as determined by the 
                  Secretary); or
                      ``(B) in positions for which the recruitment or 
                  retention of such a supply of such personnel is 
                  difficult (as so determined).
  ``Sec. 7664. Amount of assistance
      ``(a) Subject to subsection (b), the Secretary may pay to an 
  individual selected to receive assistance under the Education Debt 
  Reduction Program an amount not to exceed $4,000 (adjusted in 
  accordance with section 7631 of this title) for each full year served 
  by the individual in a position in the Veterans Health Administration 
  under section 7402(b) of this title (other than a position referred to 
  in paragraph (1) or (2) of such section) after the date of such 
  individual's selection.
      ``(b)(1) An individual may receive assistance under the Education 
  Debt Reduction Program only to assist the individual in paying amounts 
  (including principal and interest) owed by the individual under a loan 
  referred to in section 7662(a)(2) of this title.
      ``(2) An individual may receive assistance under the Education Debt 
  Reduction Program for a year if--
              ``(A) the individual serves for the full year in a position 
          referred to in subsection (a); and
              ``(B) maintains an acceptable level of performance during 
          such service.
      ``(3) The total amount of assistance received by an individual 
  under the Education Debt Reduction Program may not exceed $12,000 
  (adjusted in accordance with section 7631 of this title).''.
      (2) The table of sections at the beginning of such chapter is 
  amended by adding at the end thereof the following:
  
             ``SUBCHAPTER VI--EDUCATION DEBT REDUCTION PROGRAM
  
  ``7661. Authority for program.
  ``7662. Eligibility; application.
  ``7663. Preference for assistance.
  ``7664. Amount of assistance.''.
      (b) Conforming Amendments.--Section 7631 of title 38, United States 
  Code, is amended--
              (1) in subsection (a), by striking out ``and the maximum 
          Selected Reserve member stipend amount'' and inserting in lieu 
          thereof ``the maximum Selected Reserve stipend amount, and the 
          education debt reduction amount and limitation''; and
              (2) in subsection (b)--
                      (A) by redesignating paragraph (4) as paragraph 
                  (5); and
                      (B) by inserting after paragraph (3) the following 
                  new paragraph (4):
              ``(4) The term `education debt reduction amount and 
          limitation' means the maximum amount of assistance, and the 
          limitation applicable to such assistance, for a person 
          receiving assistance under subchapter VI of this chapter, as 
          specified in section 7663 of this title and as previously 
          adjusted (if at all) in accordance with this subsection.''.
      (c) Regulations.--The Secretary of Veterans Affairs shall prescribe 
  regulations necessary to carry out the Education Debt Reduction Program 
  established under subchapter VI of chapter 76 of title 38, United 
  States Code (as added by subsection (a)). The Secretary shall prescribe 
  such regulations not later than 90 days after the date of the enactment 
  of this Act.
      (d) Report.--Not later than one year after the date of the 
  enactment of this Act, the Secretary shall submit to Congress a report 
  on the effectiveness of the Education Debt Reduction Program and the 
  Department of Veterans Affairs Health Professional Scholarship Program 
  established under subchapter II of chapter 76 of title 38, United 
  States Code, in assisting the Secretary in the recruitment and 
  retention of qualified health-care professionals for positions in the 
  Veterans Health Administration.
      (e) Authorization of Appropriations.--(1) There is authorized to be 
  appropriated for the Department of Veterans Affairs $10,000,000 for 
  each of fiscal years 1994 through 1998 to carry out the Education Debt 
  Reduction Program.
      (2) No funds may be used to provide assistance under the program 
  unless expressly provided for in an appropriation Act.
      (f) Exemption from Limitation.--Section 523(b) of the Veterans 
  Health Care Act of 1992 (Public Law 102-585; 38 U.S.C. 7601 note) shall 
  not apply to the Education Debt Reduction Program.
target: Department of Veterans Affairs Health Professionals Education Debt Reduction Act - Authorizes the Secretary of Veterans Affairs to carry out the Department of Veterans Affairs Education Debt Reduction Program to assist Department health-care personnel serving in the Veterans Health Administration in reducing the amount of debt incurred in completing educational programs that qualify such personnel for such service. Makes eligible for such Program any individual other than a physician or dentist serving in a Department health care position and having an outstanding health education loan from a qualified educational institution.  Provides certain assistance preferences.  Limits the assistance to $4,000 for each full year served in a Department health-care position, up to a $12,000 maximum. 
  Authorizes appropriations for the Program for FY 1994 through 1998.
feat_title: Department of Veterans Affairs Health Professionals Education Debt Reduction Act