[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: 42CFR60.18]

[Page 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. 60.18  Consolidation of HEAL loans.

    HEAL loans may be consolidated as follows provided that the lender 
or holder must first inform the borrower of the effect of the 
consolidation on the interest rate and explain to the borrower that he 
or she is not required to agree to the consolidation:
    (a) If a lender or holder holds two or more HEAL loans made to the 
same borrower, the lender or holder and the borrower may agree to 
consolidate the loans into a single HEAL loan obligation evidenced by 
one promissory note.
    (b) A HEAL loan may be consolidated with any other loan only if:
    (1) The consolidation will not result in terms less favorable to the 
borrower than if no consolidation had occurred, and
    (2) The Federal Government does not, as a result of the 
consolidation, become liable for any payment of principal or interest 
for a Guaranteed Student Loan under the provisions of section 439(o) of 
the Higher Education Act of 1965.

(Approved by the Office of Management and Budget under control number 
0915-0108)

[48 FR 38988, Aug. 26, 1983, as amended at 57 FR 28795, June 29, 1992]