[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: 42CFR60.15]



[Page 328]

 

                         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.  60.15  Other charges to the borrower.



    (a) Late charges. If the borrower fails to pay all of a required 

installment payment or fails to provide written evidence that verifies 

eligibility for the deferment of the payment within 30 days after the 

payment's due date, the lender or holder will require that the borrower 

pay a late charge. A late charge must be equal to 5 percent of the 

unpaid portion of the payment due.

    (b) Collection charges. The lender or holder may also require that 

the borrower pay the holder of the note for reasonable costs incurred by 

the holder or its agent in collecting any installment not paid when due. 

These costs may include attorney's fees, court costs, telegrams, and 

long-distance phone calls. The holder may not charge the borrower for 

the normal costs associated with preparing letters and making personal 

and local telephone contacts with the borrower. A service agency's fee 

for normal servicing of a loan may not be passed on to the borrower, 

either directly or indirectly. No charges, other than those authorized 

by this section, may be passed on to the borrower, either directly or 

indirectly, without prior approval of the Secretary.

    (c) Other loan making costs. A lender may not pass on to the 

borrower any cost of making a HEAL loan other than the costs of the 

insurance premium.



[48 FR 38988, Aug. 26, 1983, as amended at 52 FR 747, Jan. 8, 1987; 57 

FR 28795, June 29, 1992]