[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: 42CFR60.51]

[Page 337-338]
 
                         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 E--The School
 
Sec. 60.51  The student loan application.

    When the student completes his or her portion of the student loan 
application and submits it to the school, the school must do the 
following:
    (a) Accurately and completely fill out its portion of the HEAL 
application;
    (b) Verify, to the best of its ability, the information provided by 
the student on the HEAL application, including, but not limited to, 
citizenship status and Social Security number. To comply with this 
requirement, the school may request that the student provide a certified 
copy of his or her birth certificate, his or her naturalization papers, 
and an original Social Security card or copy issued by the Federal 
Government, or other documentation that the school may require. The 
school must assure that the applicant's I-151 or I-551 is attached to 
the application, if the applicant is required to possess such 
identification by the United States;
    (c) Certify that the student is eligible to receive a HEAL loan, 
according to the requirements of Sec. 60.5;
    (d) Review the financial aid transcript from each institution 
previously attended by the applicant on at least a half-time basis to 
determine whether the applicant is in default on any loans or owes a 
refund on any grants. The school may not approve the HEAL application or 
disburse HEAL funds if the borrower is in default on any loans or owes a 
refund on any educational grants, unless satisfactory arrangements have 
been made between the borrower and the affected lender or school to 
resolve the default or the refund on the grant. If the financial aid 
transcript has been requested, but has not been received at the time the 
applicant submits his or her first HEAL application, the school may 
approve the application and disburse the first HEAL installment prior to 
receipt of the transcript. Each financial aid transcript must include at 
least the following data:
    (1) Student's name;
    (2) Amounts and sources of loans and grants previously received by 
the student for study at an institution of higher education;
    (3) Whether the student is in default on any of these loans, or owes 
a refund on any grants;
    (4) Certification from each institution attended by the student that 
the student has received no financial aid, if applicable; and
    (5) From each institution attended, the signature of an official 
authorized by the institution to sign such transcripts on behalf of the 
institution.

[[Page 338]]

    (e) State that it has no reason to believe that the borrower may not 
be willing to repay the HEAL loan;
    (f) Make reasonable determinations of the maximum loan amount 
approvable, based on the student's circumstances. The student applicant 
determines the amount he or she wishes to borrow, up to this maximum 
amount. Only then may the school certify an eligible application. In 
determining the maximum loan amount approvable, the school will 
calculate the difference between:
    (1) The total financial resources available to the applicant for his 
or her costs of education for the period covered by the proposed HEAL 
loan, and other student aid that the applicant has received or will 
receive during the period covered by the proposed HEAL loan. To 
determine the total financial resources available to the applicant for 
his or her costs of education for the period covered by the proposed 
HEAL loan (including familial, spousal, or personal income or other 
financial assistance that the applicant has received or will receive), 
the school must consider information provided through one of the 
national need analysis systems or any other procedure approved by the 
Secretary of Education, in addition to any other information which the 
school has regarding the student's financial situation. The school may 
make adjustments to the need analysis information only when necessary to 
accurately reflect the applicant's actual resources, and must maintain 
in the borrower's record documentation to support the basis for any 
adjustments to the need analysis information; and
    (2) The costs reasonably necessary for each student to pursue the 
same or similar curriculum or program within the same class year at the 
school for the period covered by the proposed HEAL loan, using a 
standard student budget. The school must maintain in its general office 
records the criteria used to develop each standard student budget. 
Adjustments to the standard student budget may be made only to the 
extent that they are necessary for the student to complete his or her 
education, and documentation must be maintained in the borrower's record 
to support the basis for any adjustments to the standard student budget.
    (g) Comply with the requirements of Sec. 60.61.

(Approved by the Office of Management and Budget under control numbers 
0915-0038 and 0915-0108)

[52 FR 751, Jan. 8, 1987, as amended at 57 FR 28799, June 29, 1992]