[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: 42CFR60.12]



[Page 325-326]

 

                         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. 60.12  Deferment.



    (a) After the repayment period has commenced, installments of 

principal and interest need not be paid during any period:

    (1) During which the borrower is pursuing a full-time course of 

study at a HEAL school or at an institution of higher education that is 

a ``participating school'' in the Guaranteed Student Loan Program;

    (2) Up to 4 years during which the borrower is a participant in an 

accredited internship or residency program, as described in Sec. 

60.11(a)(2). For a borrower who receives his or her first HEAL loan on 

or after October 22, 1985, this total of 4 years for an internship or 

residency program includes any period of postponement of the repayment 

period, as described in Sec. 60.11(a)(1);

    (3) Up to 3 years during which the borrower is a member of the Armed 

Forces of the United States;

    (4) Up to 3 years during which the borrower is in service as a 

volunteer under the Peace Corps Act;

    (5) Up to 3 years during which the borrower is a member of the 

National Health Service Corps; or

    (6) Up to 3 years during which the borrower is a full-time volunteer 

under title I of the Domestic Volunteer Service Act of 1973.

    (b) For any HEAL loan received on or after October 22, 1985, after 

the repayment period has commenced, installments of principal and 

interest need not be paid during any period for up to 2 years during 

which the borrower is a participant in:

    (1) A fellowship training program, which:

    (i) Is directly related to the discipline for which the borrower 

received the HEAL loan;

    (ii) Begins within 12 months after the borrower ceases to be a 

participant in an accredited internship or residency program, as 

described in Sec. 60.11(a)(2), or prior to the completion of the 

borrower's participation in such program;

    (iii) Is a full-time activity in reasearch or reserch training or 

health care policy;

    (iv) Is not a part of, an extension of, or associated with an 

internship or residency program, as described in Sec. 60.11(a)(2);

    (v) Pays no stipend or one which is not more than the annual stipend 

level established by the Public Health Service for the payment of 

uniform levels of financial support for trainees receiving graduate and 

professional training under Public Health Service grants, as in effect 

at the time the borrower requests the deferment; and

    (vi) Is a formally established fellowship program which was not 

created for a specific individual; or

    (2) A full-time educational activity at an institution defined by 

section 435(b) of the Higher Education Act of 1965 which:



[[Page 326]]



    (i) Is directly related to the discipline for which the borrower 

received the HEAL loan;

    (ii) Begins within 12 months after the borrower ceases to be a 

participant in an accredited internship or residency program, as 

described in Sec. 60.11(a)(2), or prior to the completion of the 

borrower's participation in such program;

    (iii) Is not a part of, an extension of, or associated with an 

internship or residency program, as described in Sec. 60.11(a)(2); and

    (iv) Is required for licensure, registration, or certification in 

the State in which the borrower intends to practice the discipline for 

which the borrower received the HEAL program loan.

    (c) (1) To receive a deferment, including a deferral of the onset of 

the repayment period (see Sec. 60.11(a)), a borrower must at least 30 

days prior to, but not more than 60 days prior to, the onset of the 

activity and annually thereafter, submit to the lender or holder 

evidence of his or her status in the deferment activity and evidence 

that verifies deferment eligibility of the activity (with the full 

expectation that the borrower will begin the activity). It is the 

responsibility of the borrower to provide the lender or holder with all 

required information or other information regarding the requested 

deferment. If written evidence that verifies eligibility of the activity 

and the borrower for the deferment, including a certification from an 

authorized official (e.g., the director of the fellowship activity, the 

dean of the school, etc.), is received by the lender or holder within 

the required time limit, the lender or holder must approve the 

deferment. The lender or holder may rely in good faith upon statements 

of the borrower and the authorized official, except where those 

statements or other information conflict with information available to 

the lender or holder. When those verification statements or other 

information conflict with information available to the lender or holder, 

to indicate that the applicant fails to meet the requirements for 

deferment, the lender or holder may not approve the deferment until 

those conflicts are resolved.

    (2) For those activities described in paragraphs (b)(1) or (b)(2) of 

this section, the borrower may request that the Secretary review a 

decision by the lender or holder denying the deferment by sending to the 

Secretary copies of the application for deferment and the lender's or 

holder's denial of the request. However, if information submitted to the 

lender or holder conflicts with other information available to the 

lender or holder, to indicate that the borrower fails to meet the 

requirements for deferment, the borrower may not request a review until 

such conflicts have been resolved. During the review process, the lender 

or holder must comply with any requests for information made by the 

Secretary. If the Secretary determines that the fellowship or 

educational activity is eligible for deferment and so notifies the 

lender or holder, the lender or holder must approve the deferment.



(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 51 FR 30644, Aug. 28, 1986; 

53 FR 6097, Feb. 29, 1988; 57 FR 28795, June 29, 1992]