[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: 42CFR60.31]



[Page 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 D_The Lender and Holder

 

Sec. 60.31  The application to be a HEAL lender or holder.



    (a) In order to be a HEAL lender or holder, an eligible organization 

must submit an application to the Secretary annually.

    (b) In determining whether to enter into an insurance contract with 

an applicant and what the terms of that contract should be, the 

Secretary may consider the following criteria:

    (1) Whether the applicant is capable of complying with the 

requirements in the HEAL regulations applicable to lenders and holders;

    (2) The amount and rate of loans which are currently delinquent or 

in default, if the applicant has had prior experience with similar 

Federal or State student loan programs; and

    (3) The financial resources of the applicant.

    (c) The applicant must develop and follow written procedures for 

making, servicing and collecting HEAL loans. These procedures must be 

reviewed during the biennial audit required by Sec. 60.42(d). If the 

applicant uses procedures more stringent than those required by 

Sec. Sec. 60.34 and 60.35 for its other loans of comparable dollar 

value, on which it has no Federal, State, or other third party 

guarantee, it must include those more stringent procedures in its 

written procedures for servicing and collecting its HEAL loans.

    (d) The applicant must submit sufficient materials with his or her 

application to enable the Secretary to fairly evaluate the application 

in accordance with these criteria.



(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 52 FR 747, Jan. 8, 1987; 57 

FR 28796, June 29, 1992]