[Code of Federal Regulations]
[Title 42, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 42CFR60.1]

[Page 312-313]
 
                         TITLE 42--PUBLIC HEALTH
 
    CHAPTER I--PUBLIC HEALTH SERVICE, DEPARTMENT OF HEALTH AND HUMAN 
                                SERVICES
 
PART 60--HEALTH EDUCATION ASSISTANCE LOAN PROGRAM--Table of Contents
 
                 Subpart A--General Program Description
 
Sec. 60.1  What is the HEAL program?


    (a) The Health Education Assistance Loan (HEAL) program is a program 
of Federal insurance of educational loans to graduate students in the 
fields of medicine, osteopathic medicine, dentistry, veterinary 
medicine, optometry, podiatric medicine, pharmacy, public health, 
chiropractic, health administration and clinical psychology. The basic 
purpose of the program is to encourage lenders to make loans to students 
in these fields who desire to borrow money to pay for their educational 
costs. In addition, certain nonstudents (such as doctors serving as 
interns or residents) can borrow in order to pay the current interest 
charges accruing on earlier HEAL loans. By taking a HEAL loan, the 
borrower is obligated

[[Page 313]]

to repay the lender or holder the full amount of the money borrowed, 
plus all interest which accrues on the loan.
    (b) HEAL loans may be made by schools, banks, credit unions, State 
agencies, and other institutions eligible as lenders under Sec. 60.30. 
HEAL school eligibility is described in Sec. 60.50.
    (c) The Secretary insures each lender or holder for the losses of 
principal and interest it may incur in the event that a borrower dies; 
becomes totally and permanently disabled; files for bankruptcy under 
chapter 11 or 13 of the Bankruptcy Act; files for bankruptcy under 
chapter 7 of the Bankruptcy Act and files a compliant to determine the 
dischargeability of the HEAL loan; or defaults on his or her loan. In 
these instances, if the lender or holder has complied with all HEAL 
statutes and regulations, and with the lender's or holder's insurance 
contract, and the Secretary pays the amount of the loss to the lender or 
holder, the borrower's loan is then assigned to the Secretary. Only at 
that time, the United States Government becomes the borrower's direct 
creditor and will actively pursue the borrower for repayment of the 
debt, including reporting the borrower's default on the loan to consumer 
credit reporting agencies or to the Internal Revenue Service for 
purposes of locating such taxpayer or for income tax refund offset, and 
referral to the Department of Justice for litigation.
    (d) Any person who knowingly makes a false statement or 
misrepresentation in a HEAL loan transaction, bribes or attempts to 
bribe a Federal official, fraudulently obtains a HEAL loan, or commits 
any other illegal action in connection with a HEAL loan is subject to 
possible fine and imprisonment under Federal statute.
    (e) Calculating time periods. In counting the number of days allowed 
to comply with any provisions of these regulations, Saturdays, Sundays, 
and holidays are to be included. However, if a due date falls on a 
Saturday, Sunday, or Federal holiday, the due date is the next Federal 
work day.

[48 FR 38988, Aug. 26, 1983, as amended at 52 FR 745, Jan. 8, 1987; 56 
FR 42700, Aug. 29, 1991; 57 FR 28793, June 29, 1992]