[Code of Federal Regulations] [Title 42, Volume 1] [Revised as of October 1, 2005] From the U.S. Government Printing Office via GPO Access [CITE: 42CFR60.1] [Page 318-319] 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? Subpart A_General Program Description Sec. 60.1 What is the HEAL program? Subpart B_The Borrower 60.5 Who is an eligible student borrower? 60.6 Who is an eligible nonstudent borrower? 60.7 The loan application process. 60.8 What are the borrower's major rights and responsibilities? Subpart C_The Loan 60.10 How much can be borrowed? 60.11 Terms of repayment. 60.12 Deferment. 60.13 Interest. 60.14 The insurance premium. 60.15 Other charges to the borrower. 60.16 Power of attorney. 60.17 Security and endorsement. 60.18 Consolidation of HEAL loans. 60.19 Forms. 60.20 The Secretary's collection efforts after payment of a default claim. 60.21 Refunds. Subpart D_The Lender and Holder 60.30 Which organizations are eligible to apply to be HEAL lenders and holders? 60.31 The application to be a HEAL lender or holder. 60.32 The HEAL lender or holder insurance contract. 60.33 Making a HEAL loan. 60.34 HEAL loan account servicing. 60.35 HEAL loan collection. 60.36 Consequence of using an agent. 60.37 Forbearance. 60.38 Assignment of a HEAL loan. 60.39 Death and disability claims. 60.40 Procedures for filing claims. 60.41 Determination of amount of loss on claims. 60.42 Records, reports, inspection, and audit requirements for HEAL lenders and holders. 60.43 Limitation, suspension, or termination of the eligibility of a HEAL lender or holder. Subpart E_The School 60.50 Which schools are eligible to be HEAL schools? 60.51 The student loan application. 60.52 The student's loan check. 60.53 Notification to lender or holder of change in enrollment status. 60.54 Payment of refunds by schools. 60.55 Administrative and fiscal procedures. 60.56 Records. 60.57 Reports. 60.58 Federal access to school records. 60.59 Records and Federal access after a school is no longer a HEAL school. 60.60 Limitation, suspension, or termination of the eligibility of a HEAL school. 60.61 Responsibilities of a HEAL school. [[Page 319]] Authority: Sec. 215, of the Public Health Service Act, 58 Stat. 690, as amended, 63 Stat. 35 (42 U.S.C. 216); secs. 727-739A of the Public Health Service Act, 90 Stat. 2243, as amended, 93 Stat. 582, 99 Stat. 529-532, 102 Stat. 3122-3125 (42 U.S.C. 294-294l-1); renumbered as secs. 701-720, as amended by 106 Stat. 1994-2011 (42 U.S.C. 292-292p). Source: 48 FR 38988, Aug. 26, 1983, unless otherwise noted. (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 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]