[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: 42CFR60.31]

[Page 324]
 
                         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 D--The Lender and Holder
 
Sec. 60.31  The application to be a HEAL lender or holder.

    (a) In order to be a HEAL lender or holder, an eligible organization 
must submit an application to the Secretary annually.
    (b) In determining whether to enter into an insurance contract with 
an applicant and what the terms of that contract should be, the 
Secretary may consider the following criteria:
    (1) Whether the applicant is capable of complying with the 
requirements in the HEAL regulations applicable to lenders and holders;
    (2) The amount and rate of loans which are currently delinquent or 
in default, if the applicant has had prior experience with similar 
Federal or State student loan programs; and
    (3) The financial resources of the applicant.
    (c) The applicant must develop and follow written procedures for 
making, servicing and collecting HEAL loans. These procedures must be 
reviewed during the biennial audit required by Sec. 60.42(d). If the 
applicant uses procedures more stringent than those required by 
Secs. 60.34 and 60.35 for its other loans of comparable dollar value, on 
which it has no Federal, State, or other third party guarantee, it must 
include those more stringent procedures in its written procedures for 
servicing and collecting its HEAL loans.
    (d) The applicant must submit sufficient materials with his or her 
application to enable the Secretary to fairly evaluate the application 
in accordance with these criteria.

(Approved by the Office of Management and Budget under control numbers 
0915-0034 and 0915-0108)

[48 FR 38988, Aug. 26, 1983, as amended at 52 FR 747, Jan. 8, 1987; 57 
FR 28796, June 29, 1992]