### Question
How is the term defaulted principal amount outstanding defined?


### Answer
The term **defaulted principal amount outstanding** is defined in *42 U.S.C. § 297a* as the following:

> the total amount borrowed from the loan fund of a school that has reached the repayment stage (minus any principal amount repaid or cancelled) on loans—


(i) repayable monthly and in default for at least 120 days

#### Citation:
  - *42 U.S.C. § 297a*
  - Heading: **CHAPTER 6A-PUBLIC HEALTH SERVICE > SUBCHAPTER VI-NURSE EDUCATION > Part B-Assistance to Nursing Students > subpart ii-student loans**

