[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: 42CFR60.15]

[Page 321-322]
 
                         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 C--The Loan
 
Sec. 60.15  Other charges to the borrower.

    (a) Late charges. If the borrower fails to pay all of a required 
installment payment or fails to provide written evidence that verifies 
eligibility for the deferment of the payment within 30 days after the 
payment's due date, the lender or holder will require that the borrower 
pay a late charge. A late charge must be equal to 5 percent of the 
unpaid portion of the payment due.
    (b) Collection charges. The lender or holder may also require that 
the borrower pay the holder of the note for reasonable costs incurred by 
the holder or its agent in collecting any installment not paid when due. 
These costs may include attorney's fees, court costs, telegrams, and 
long-distance phone calls. The holder may not charge

[[Page 322]]

the borrower for the normal costs associated with preparing letters and 
making personal and local telephone contacts with the borrower. A 
service agency's fee for normal servicing of a loan may not be passed on 
to the borrower, either directly or indirectly. No charges, other than 
those authorized by this section, may be passed on to the borrower, 
either directly or indirectly, without prior approval of the Secretary.
    (c) Other loan making costs. A lender may not pass on to the 
borrower any cost of making a HEAL loan other than the costs of the 
insurance premium.

[48 FR 38988, Aug. 26, 1983, as amended at 52 FR 747, Jan. 8, 1987; 57 
FR 28795, June 29, 1992]