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nted himself and submitted school and the lender or holder as part tion under such section. of the borrower's official record. ", Aug. 26, 1983, as amended at 51

(3) A student applicant must have his 1g. 28, 1986; 52 FR 745, Jan. 8, 1987;

or her school complete a portion of the June 29, 1992)

application providing information re

lating to: 20 is an eligible nonstudent

(i) The applicant's eligibility for the ver?

loan. cive a HEAL loan, a person (11) The cost of his or her education; ja student must satisfy all of and ing requirements:

(iii) The total financial resources or she must have received a that are actually available to the apn prior to August 13, 1981, for plicant for his or her costs of education or she is required to make for the period covered by the proposed

of interest, but not principal, HEAL loan, as determined in accordhe period for which the new ance with $60.51(1), and other student Stended. This may be the grace aid that the applicant has received or

a period of internship, resi- will receive for the period covered by : . deferment.

the proposed HEAL loan. - or she must continue to meet (4) The student applicant must cer

enship, nationality, or resi- tify on the application that the inforvalifications required of stu- mation provided reflects the appliowers.

cant's total financial resources actuor she must agree that all ally available for his or her costs of eived under the proposed loan education for the period covered by the sed solely for payment of cur- proposed HEAL loan and the appliaccruing interest on HEAL

cant's total indebtedness, and that the ad the HEAL insurance pre- applicant has no other financial re

sources that are available to the applirequired under section 3 of the

cant or that the applicant will receive Selective Service Act to

for the period covered by the proposed himself for and submit to reg- HEAL loan.

under such section, he must (5) A student applicant must certify esented himself and submitted

on the application that if required tration under such section.

under section 3 of the Military Selec1988, Aug. 26, 1983, as amended at 51 tive Service Act to present himself for Aug. 28, 1986)

and submit to registration under such

section, he has presented himself and The loan application process. submitted to registration under such (1) A student seeking a HEAL section. pplies to a participating lender (b) The applicant pursuing a fullEAL loan by submitting an ap- time course of study at an institution con form supplied by the school. of higher education that is a "particithe applicant must fill out the pating school" in the Guaranteed Stuunt sections of the form com- dent Loan Program but is not pursuing and accurately.

a course of study listed in $60.5(b), ap he student applicant must be in- plies for a HEAL loan as a nonstudent I of the Federal debt collection under paragraph (c) of this section. 18 and procedures in accordance (c)(1)(1) A nonstudent seeking he Department's Claims Collec- HEAL loan applies to a participating legulation (45 CFR part 30) prior lender for a HEAL loan by submitting

student receiving the loan. The an application form supplied by the ant must sign a certification lender. nent attesting that the applicant (ii) The applicant must fill out the een notified of the actions the applicant sections of the form comal Government can take in the pletely and accurately.

that the applicant fails to meet (2) The nonstudent applicant must be $scheduled payments. This signed formed of the Federal debt collection ment m

be maintained by the Scies and procedures in accordance

a

[graphic]

with the Department's Claims Collec- change them without the barre tion Regulation (45 CFR part 30) prior consent. to the nonstudent receiving the loan. (2) The lender must provide the The applicant must sign a certification rower with a copy of the come statement attesting that the applicant promissory note when the line has been notified of the actions the made. The lender or holder most Federal Government can take in the

the original note to the borrowe event that the applicant fails to meet the loan is paid in full. the scheduled payments. This signed

(3) A lender must disburse HEA statement will be maintained by the

proceeds as described in $60.33(. lender or holder as part of the borrow

(4) The lender or holder must gr er's official record. (3) A nonstudent applicant must have

the borrower with a copy of the Na his or her employer or institution,

ment schedule before repayment

gins. whichever is relevant, certify on the application that the applicant is:

(5) If the loan is sold from one les (1) Enrolled as a full-time student in

or holder to another lender or beint an eligible school, as described in

or if the loan is serviced by a $ 60.12;

other than the lender or holder 2 (11) A participant in an accredited in

buyer must notify the borrower ternship or residency program, as de

30 days of the transaction. scribed in $60.11(a);

(6) The borrower does not hare (111) A member of the Armed Forces

begin repayment until 9 full of the United States;

after leaving school or an aOCIET! (iv) A Peace Corps volunteer;

internship or residency programs (v) A member of the National Health

scribed in $60.11. Service Corps; or

(7) The borrower is entitled (vi) A full-time VISTA volunteer

deferment from repayment of the F under Title I of the Domestic Volun

cipal and interest installments de teer Service Act of 1973.

periods described in $60.12. (4) The nonstudent applicant seeking

(8) The borrower may prepes a HEAL loan during the grace period whole or any portion of the loan 8:5, applies to the lender directly.

time without penalty. (5) A nonstudent applicant must cer

(9) The lender or holder must tify on the application that if required the borrower to repay a HEAL LORIS under section 3 of the Military Selec- cording to a graduated repayme, tive Service Act to present himself for schedule. and submit to registration under such (10) The borrower's total loan oblig section, he has presented himself and tion is cancelled in the event of des submitted to registration under such or total and permanent disability. section.

(11) To assist the borrower in BFL. (6) The nonstudent applicant must ing default, the lender or holder certify on the application that the in- grant the borrower forbearance. + formation provided reflects the appli- bearance, including circumstances cant's total financial resources and in- which the lender or holder must gTL debtedness.

forbearance, is more fully described (Approved by the Office of Management and

$60.37. Budget under control numbers 0915-0038 and (12) Any borrower who received ! 0915-0108)

fixed interest rate HEAL loan in esce (48 FR 38988, Aug. 26, 1983, as amended at 51

of 12 percent per year may enter i FR 30644, Aug. 28, 1986; 52 FR 746, Jan. 8, 1987; an agreement with the lender wbic 57 FR 28794, June 29, 1992)

made this loan for the reissuance of the

loan in accordance with section 739A 860.8 What are the borrower's major the Public Health Service Act. rights and responsibilities?

(b) The borrower's responsibilities. () (a) The borrower's rights. (1) Once the The borrower must pay any insurador terms of the HEAL loan have been es- premium that the lender may require tablished, the lender or holder may not as more fully described in $60.14.

be borrower must pay all interrges on the loan as required by der or holder. he borrower must immediately the lender or holder in writing event of: lange of address; hange of name; - Failure to enroll in a HEAL

for the period for which the loan nded; Cransfer to another school; Vithdrawal from a HEAL school nge in status to less than full.ttendance at a HEAL school; Graduation;

Failure to enter into or intern in an internship or residency im; or :) Change of status that authoreferment. The borrower must repay the loan --ccordance with the repayment ule.

A borrower may not have a HEAL discharged in bankruptcy during irst 5 years of the repayment pe

This prohibition against the disge of a HEAL loan applies to bankby under any chapter of the Bankcy Act, including Chapter 13. A pwer may have a HEAL loan dis

ged in bankruptcy after the first 5 Eis of the repayment period only si a finding by the Bankruptcy pt that the non-discharge of such =1; would be unconscionable and upon

condition that the Secretary shall have waived his or her rights to re

e any Federal reimbursements or eral payments for health services ler any Federal law in amounts up the balance of the loan. 3) If the borrower fails to make paynts on the loan on time, the total ount to be repaid by the borrower uy be increased by additional interi, late charges, attorney's fees, court sts, and other collection charges. In dition, the Secretary may offset aounts attributable to an unpaid loan om reimbursements or payment for alth services provided under any aderal law to a defaulted borrower acticing his or her profession. Approved by the Office of Management and udget under control number 0915-0108) 18 FR 38988, Aug. 26, 1983, as amended at 52 'R 746, Jan. 8, 1987; 57 FR 28794, June 29, 1992)

Subpart C-The Loan 860.10 How much can be borrowed?

(a) Student borrower. An eligible student may borrow an amount to be used solely for expenses, as described in $60.5(8), incurred or to be incurred over a period of up to an academic year and disbursed in accordance with $60.33(1). The maximum amount he or she may receive for that period shall be determined by the school in accordance with $60.51(1) within the following limitations:

(1) A student enrolled in a school of medicine, osteopathic medicine, dentistry, veterinary medicine, optometry or podiatric medicine may borrow up to $80,000 under this part. The amount received may not exceed $20,000 in any academic year.

(2) A student enrolled in a school of public health, pharmacy, chiropractic, or a graduate program in health administration, clinical psychology, or allied health may borrow up to $50,000 under this part. The amount received may not exceed $12,500 per academic year.

(3) For purposes of this paragraph, an academic year means the traditional approximately 9-month September-toJune annual session. For the purpose of computing academic year equivalents for students who, during a 12-month period, attend for a longer period than the traditional academic year, the academic year will be considered to be 9 months in length.

(4) The student's estimated cost of attendance shall not exceed the estimated cost of attendance of all students in like circumstances pursuing a similar curriculum at that school.

(b) Non-student borrower. An eligible nonstudent may borrow amounts under this authority with the following restrictions:

(1) In no case may an eligible nonstudent borrower receive a loan that is greater than the sum of the HEAL insurance premium plus the interest that is expected to accrue a' must be paid on the borrower's HF loans during the period for which new loan is intended.

(2) An eligible nonstudent in t? of medicine, ostepathic medi tistry, veterinary medicine, o

or podiatric medicine may borrow up training program or educational acts De to $80,000 under this part including ity. Postponement of the commer HI loans obtained while the borrower was ment of the repayment period for a student. The loan amount may not ther activity is limited to 2 years. exceed $20,000 in any 12-month period. (111) Non-student borrower. I

(3) An eligible nonstudent in the field nonstudent borrower obtains adotae of pharmacy, public health, chiroprac- HEAL loan during the grace period o tic, health administration, or clinical period of internship, residency, r psychology may borrow up to $50,000 deferment (as defined in $60.12), to under this part including loans ob- borrower must begin to repay this low tained while the borrower was a stu- when repayment on the borrower! dent. The loan amount received under other HEAL loans begins or resumes. this part may not exceed $12,500 in any (2) An accredited internship or te 12-month period.

dency program must be approved by (48 FR 38988, Aug. 26, 1983, as amended at 51 one of the following accrediting 18€ FR 30644, Aug. 28, 1986; 52 FR 746, Jan. 8, 1987;

cies: 57 FR 28794, June 29, 1992)

(1) Accreditation Council for Grad

uate Medical Education. 860.11 Terms of repayment.

(il) Council on Optometric Bts (a) Commencement of repayment. (1) cation. The borrower's repayment period must (ill) Commission on Accreditation begin the first day of the 10th month Dental and Dental Audliary Program after the month he or she ceases to be (iv) American Osteopathic Associa a full-time student at a HEAL school. tion. The 9-month period before the repay- (v) Council on Podiatry Education ment period begins is popularly called (vi) American Council on Phatt the “grace period.”

ceutical Education. (1) Postponement for internship or resi- (vii) Council on Education for Pati dency program. However, if the bor- Health. rower becomes an intern or resident in (vill) American College of Veterinary an accredited program within 9 full Surgeons. months after leaving school, then the (1x) Council on Chiropractic Et borrower's repayment period must cation. begin the first day of the 10th month (b) Length of repayment period. In ret after the month he or she ceases to be eral, a lender or holder must allow i an intern or resident. For a borrower borrower at least 10 years, but are who receives his or her first HEAL loan more than 25 years, to repay a loan cal on or after October 22, 1985, this post- culated from the beginning of the it ponement of the beginning of the re- payment period. A borrower must fully payment period for participation in an repay a loan within 33 years from the internship or residency program is lim- date that the loan is made. ited to 4 years.

(1) For a HEAL borrower who (ii) Postponement for fellowship train- ceived any HEAL loan prior to October ing of educational activity. For any 22, 1985, periods of deferment (as dt HEAL loan received on or after October scribed in $60.12) are not included whet 22, 1985, if the borrower becomes an in- calculating the 10 to 25 or 33 year limitern or resident in an accredited pro- tations. gram within 9 full months after leaving (2) For a borrower who receives his or school, and subsequently enters into a her first HEAL loan on or after October fellowship training program or an edu- 22, 1985, periods of deferment (as de cational activity, as described in scribed in 860.12) are included when cal 860.12(b)(1) and (2), within 9 months culating the 33 year limitation, but ar? after the completion of the accredited not included when calculating the 10 to internship or residency program or 25 year limitation. prior to the completion of such pro- (c) Prepayment. The borrower mal gram, the borrower's repayment period prepay the whole or any part of the begins on the first day of the 10th loan at any time without penalty. month after the month he or she ceases (d) Minimum annual payment. During to be a participant in the fellowship each year of repayment, a borrower's

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