[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: 42CFR60.18]



[Page 328-329]

 

                         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



[[Page 329]]



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]