Understanding the Federal Capital Loan [Public Health]: A Comprehensive Guide

Definition & Meaning

A federal capital loan is a financial loan provided by the Secretary of Health and Human Services to educational institutions, specifically schools that train health professionals. This type of loan is governed by section 744(a) of the Public Health Service Act, as it was prior to October 1, 1977. The funds from these loans must be returned to the Secretary after being used for educational purposes.

Table of content

Real-world examples

Here are a couple of examples of abatement:

For instance, a medical school may receive a federal capital loan to improve its facilities for training future healthcare providers. This loan would help fund construction or educational improvements, with the understanding that the funds will be repaid to the government. (Hypothetical example.)

Comparison with related terms

Term Definition Difference
Federal Student Loan A loan provided by the federal government to students for educational expenses. Federal capital loans are specifically for schools, while federal student loans are for individual students.
Health Professions Student Loans Loans specifically for students in health professions programs. Health professions student loans are targeted at individual students, whereas federal capital loans are for institutions.

What to do if this term applies to you

If you are involved with a school that may benefit from a federal capital loan, consider consulting legal resources or templates available through US Legal Forms. These can guide you through the application and management processes. If the situation is complex, seeking professional legal advice may be necessary.

Quick facts

  • Loan type: Federal capital loan
  • Governing body: Secretary of Health and Human Services
  • Purpose: Funding for educational institutions
  • Repayment: Required to return proceeds to the Secretary
  • Historical context: Relevant before October 1, 1977

Key takeaways

Frequently asked questions

A federal capital loan is a loan provided by the Secretary of Health and Human Services to educational institutions for health professions training.