((a)) ** .—** An individual is eligible to participate in the Specialty Education Loan Repayment Program if the individual—
((1)) will be eligible for appointment under to work in an occupation described in ;
((2)) owes any amount of principal or interest under a loan, the proceeds of which were used by or on behalf of that individual to pay costs relating to a course of education or training which led to a degree that qualified the individual for the position referred to in paragraph (1); and
((3)) is—
((A)) recently graduated from an accredited medical or osteopathic school and matched to an accredited residency program in a medical specialty described in ; or
((B)) a physician in training in a medical specialty described in with more than 2 years remaining in such training.
((b)) ** .—** In selecting individuals for participation in the Specialty Education Loan Repayment Program under this subchapter, the Secretary may give preference to the following:
((1)) Individuals who are, or will be, participating in residency programs in health care facilities—
((A)) located in rural areas;
((B)) operated by Indian tribes, tribal organizations, or the Indian Health Service; or
((C)) affiliated with underserved health care facilities of the Department.
((2)) Veterans.
((c)) ** .—** For purposes of subsection (a)(2), costs relating to a course of education or training include—
((1)) tuition expenses;
((2)) all other reasonable educational expenses, including expenses for fees, books, equipment, and laboratory expenses; and
((3)) reasonable living expenses.