[Code of Federal Regulations]

[Title 42, Volume 1]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 42CFR60.1]



[Page 319]

 

                         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 A_General Program Description

 

Sec.  60.1  What is the HEAL program?





    (a) The Health Education Assistance Loan (HEAL) program is a program 

of Federal insurance of educational loans to graduate students in the 

fields of medicine, osteopathic medicine, dentistry, veterinary 

medicine, optometry, podiatric medicine, pharmacy, public health, 

chiropractic, health administration and clinical psychology. The basic 

purpose of the program is to encourage lenders to make loans to students 

in these fields who desire to borrow money to pay for their educational 

costs. In addition, certain nonstudents (such as doctors serving as 

interns or residents) can borrow in order to pay the current interest 

charges accruing on earlier HEAL loans. By taking a HEAL loan, the 

borrower is obligated to repay the lender or holder the full amount of 

the money borrowed, plus all interest which accrues on the loan.

    (b) HEAL loans may be made by schools, banks, credit unions, State 

agencies, and other institutions eligible as lenders under Sec.  60.30. 

HEAL school eligibility is described in Sec.  60.50.

    (c) The Secretary insures each lender or holder for the losses of 

principal and interest it may incur in the event that a borrower dies; 

becomes totally and permanently disabled; files for bankruptcy under 

chapter 11 or 13 of the Bankruptcy Act; files for bankruptcy under 

chapter 7 of the Bankruptcy Act and files a compliant to determine the 

dischargeability of the HEAL loan; or defaults on his or her loan. In 

these instances, if the lender or holder has complied with all HEAL 

statutes and regulations, and with the lender's or holder's insurance 

contract, and the Secretary pays the amount of the loss to the lender or 

holder, the borrower's loan is then assigned to the Secretary. Only at 

that time, the United States Government becomes the borrower's direct 

creditor and will actively pursue the borrower for repayment of the 

debt, including reporting the borrower's default on the loan to consumer 

credit reporting agencies or to the Internal Revenue Service for 

purposes of locating such taxpayer or for income tax refund offset, and 

referral to the Department of Justice for litigation.

    (d) Any person who knowingly makes a false statement or 

misrepresentation in a HEAL loan transaction, bribes or attempts to 

bribe a Federal official, fraudulently obtains a HEAL loan, or commits 

any other illegal action in connection with a HEAL loan is subject to 

possible fine and imprisonment under Federal statute.

    (e) Calculating time periods. In counting the number of days allowed 

to comply with any provisions of these regulations, Saturdays, Sundays, 

and holidays are to be included. However, if a due date falls on a 

Saturday, Sunday, or Federal holiday, the due date is the next Federal 

work day.



[48 FR 38988, Aug. 26, 1983, as amended at 52 FR 745, Jan. 8, 1987; 56 

FR 42700, Aug. 29, 1991; 57 FR 28793, June 29, 1992]