[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: 42CFR60.21]



[Page 329-330]

 

                         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. 60.21  Refunds.



    (a) Student authorization. By applying for a HEAL loan, a student 

authorizes a participating school to make payment of a refund that is 

allocable to a HEAL loan directly to the original lender (or to a 

subsequent holder of the loan note, if the school has knowledge of the 

holder's identity).

    (b) Treatment by lenders or holders. (1) A holder of a HEAL loan 

must treat a refund payment received from a HEAL school as a downward 

adjustment in the principal amount of the loan.

    (2) When a lender receives a school refund check for a loan it no 

longer holds, the lender must transfer that payment to the holder of the 

loan and either inform the borrower about the refund check and where it 

was sent or, if the borrower's address is unknown, notify the current 

holder that the borrower was not informed. The current



[[Page 330]]



holder must provide the borrower with a written notice of the refund 

payment.



(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]