[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: 42CFR60.51]



[Page 343-344]

 

                         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 E_The School

 

Sec. 60.51  The student loan application.



    When the student completes his or her portion of the student loan 

application and submits it to the school, the school must do the 

following:

    (a) Accurately and completely fill out its portion of the HEAL 

application;

    (b) Verify, to the best of its ability, the information provided by 

the student on the HEAL application, including, but not limited to, 

citizenship status and Social Security number. To comply with this 

requirement, the school may request that the student provide a certified 

copy of his or her birth certificate, his or her naturalization papers, 

and an original Social Security card or copy issued by the Federal 

Government, or other documentation that the school may require. The 

school must assure that the applicant's



[[Page 344]]



I-151 or I-551 is attached to the application, if the applicant is 

required to possess such identification by the United States;

    (c) Certify that the student is eligible to receive a HEAL loan, 

according to the requirements of Sec. 60.5;

    (d) Review the financial aid transcript from each institution 

previously attended by the applicant on at least a half-time basis to 

determine whether the applicant is in default on any loans or owes a 

refund on any grants. The school may not approve the HEAL application or 

disburse HEAL funds if the borrower is in default on any loans or owes a 

refund on any educational grants, unless satisfactory arrangements have 

been made between the borrower and the affected lender or school to 

resolve the default or the refund on the grant. If the financial aid 

transcript has been requested, but has not been received at the time the 

applicant submits his or her first HEAL application, the school may 

approve the application and disburse the first HEAL installment prior to 

receipt of the transcript. Each financial aid transcript must include at 

least the following data:

    (1) Student's name;

    (2) Amounts and sources of loans and grants previously received by 

the student for study at an institution of higher education;

    (3) Whether the student is in default on any of these loans, or owes 

a refund on any grants;

    (4) Certification from each institution attended by the student that 

the student has received no financial aid, if applicable; and

    (5) From each institution attended, the signature of an official 

authorized by the institution to sign such transcripts on behalf of the 

institution.

    (e) State that it has no reason to believe that the borrower may not 

be willing to repay the HEAL loan;

    (f) Make reasonable determinations of the maximum loan amount 

approvable, based on the student's circumstances. The student applicant 

determines the amount he or she wishes to borrow, up to this maximum 

amount. Only then may the school certify an eligible application. In 

determining the maximum loan amount approvable, the school will 

calculate the difference between:

    (1) The total financial resources available to the applicant for his 

or her costs of education for the period covered by the proposed HEAL 

loan, and other student aid that the applicant has received or will 

receive during the period covered by the proposed HEAL loan. To 

determine the total financial resources available to the applicant for 

his or her costs of education for the period covered by the proposed 

HEAL loan (including familial, spousal, or personal income or other 

financial assistance that the applicant has received or will receive), 

the school must consider information provided through one of the 

national need analysis systems or any other procedure approved by the 

Secretary of Education, in addition to any other information which the 

school has regarding the student's financial situation. The school may 

make adjustments to the need analysis information only when necessary to 

accurately reflect the applicant's actual resources, and must maintain 

in the borrower's record documentation to support the basis for any 

adjustments to the need analysis information; and

    (2) The costs reasonably necessary for each student to pursue the 

same or similar curriculum or program within the same class year at the 

school for the period covered by the proposed HEAL loan, using a 

standard student budget. The school must maintain in its general office 

records the criteria used to develop each standard student budget. 

Adjustments to the standard student budget may be made only to the 

extent that they are necessary for the student to complete his or her 

education, and documentation must be maintained in the borrower's record 

to support the basis for any adjustments to the standard student budget.

    (g) Comply with the requirements of Sec. 60.61.



(Approved by the Office of Management and Budget under control numbers 

0915-0038 and 0915-0108)



[52 FR 751, Jan. 8, 1987, as amended at 57 FR 28799, June 29, 1992]