years of waining may have bet at the pharmacy school or

ferent school whose credits at 1. et or transfer by the pharmac

2 The Doctor of Pharmacy of considered to be an equivalent 2 ji s taken in a school that dw? quire the Bachelor or Mal Science in pharmacy as a pr for the Doctor of Pharmacy de

In the case of a medical 25 osteopathic student enrolled year program that the stude emer trectly from secondary l the student must be enrol last 4 years of the program.

Be or she most agree funds received under the prope w be used solely for tab assomshie educational expe cluding fees, books, supplies mam and laboratory expenses hue og expenses, reasonab PORTATION, COSTs (only to the exc they are directly related to the er's education and the HBAL ance prem

1. Be or she must require the pursue the course of study a school. This determination of th Hmmm amount of the loan w by the school, applying the c &2008 §60.52(F).

required under section! Military Selective Service A present himself and subat : sers.com unde

nted himself and submitted tion under such section.

, Aug. 26, 1983, as amended at 51 1g. 28, 1986; 52 FR 745, Jan. 8, 1987; June 29, 1992]

O is an eligible nonstudent wer?

rive a HEAL loan, a person :: a student must satisfy all of ing requirements:

or she must have received a n prior to August 13, 1981, for or she is required to make of interest, but not principal, he period for which the new tended. This may be the grace a period of internship, resi: deferment.

- or she must continue to meet enship, nationality, or resialifications required of stuowers.

or she must agree that all ceived under the proposed loan sed solely for payment of curaccruing interest on HEAL ad the HEAL insurance pre

required under section 3 of the

Selective Service Act to himself for and submit to reg: under such section, he must resented himself and submitted tration under such section.

3988, Aug. 26, 1983, as amended at 51 Aug. 28, 1986]

The loan application process.

1) A student seeking a HEAL plies to a participating lender EAL loan by submitting an apon form supplied by the school. The applicant must fill out the int sections of the form comand accurately.

he student applicant must be in1 of the Federal debt collection s and procedures in accordance he Department's Claims CollecRegulation (45 CFR part 30) prior

student receiving the loan. The ant must sign a certification nent attesting that the applicant een notified of the actions the al Government can take in the that the applicant fails to meet scheduled payments. This signed ment m be maintained by the

school and the lender or holder as part of the borrower's official record.

(3) A student applicant must have his or her school complete a portion of the application providing information relating to:

(1) The applicant's eligibility for the loan.

(ii) The cost of his or her education; and

(iii) The total financial resources that are actually available to the applicant for his or her costs of education for the period covered by the proposed HEAL loan, as determined in accordance with $60.51(f), and other student aid that the applicant has received or will receive for the period covered by the proposed HEAL loan.

(4) The student applicant must certify on the application that the information provided reflects the applicant's total financial resources actually available for his or her costs of education for the period covered by the proposed HEAL loan and the applicant's total indebtedness, and that the applicant has no other financial resources that are available to the applicant or that the applicant will receive for the period covered by the proposed HEAL loan.

(5) A student applicant must certify on the application that if required under section 3 of the Military Selective Service Act to present himself for and submit to registration under such section, he has presented himself and submitted to registration under such section.

(b) The applicant pursuing a fulltime course of study at an institution of higher education that is a "participating school" in the Guaranteed Student Loan Program but is not pursuing a course of study listed in §60.5(b), applies for a HEAL loan as a nonstudent under paragraph (c) of this section.

(c)(1)(1) A nonstudent seeking a HEAL loan applies to a participating lender for a HEAL loan by submitting an application form supplied by the lender.

(ii) The applicant must fill out the applicant sections of the form completely and accurately.

(2) The nonstudent applicant must be formed of the Federal debt collection cies and procedures in accordance

with the Department's Claims Collection Regulation (45 CFR part 30) prior to the nonstudent receiving the loan. The applicant must sign a certification statement attesting that the applicant has been notified of the actions the Federal Government can take in the event that the applicant fails to meet the scheduled payments. This signed statement will be maintained by the lender or holder as part of the borrower's official record.

(3) A nonstudent applicant must have his or her employer or institution, whichever is relevant, certify on the application that the applicant is:

(1) Enrolled as a full-time student in an eligible school, as described in § 60.12;

(ii) A participant in an accredited internship or residency program, as described in § 60.11(a);

(iii) A member of the Armed Forces of the United States;

(iv) A Peace Corps volunteer;

(v) A member of the National Health Service Corps; or

(vi) A full-time VISTA volunteer under Title I of the Domestic Volunteer Service Act of 1973.

(4) The nonstudent applicant seeking a HEAL loan during the grace period applies to the lender directly.

(5) A nonstudent applicant must certify on the application that if required under section 3 of the Military Selective Service Act to present himself for and submit to registration under such section, he has presented himself and submitted to registration under such section.

(6) The nonstudent applicant must certify on the application that the information provided reflects the applicant's total financial resources and indebtedness.

(Approved by the Office of Management and Budget under control numbers 0915-0038 and 0915-0108)

[48 FR 38988, Aug. 26, 1983, as amended at 51 FR 30644, Aug. 28, 1986; 52 FR 746, Jan. 8, 1987; 57 FR 28794, June 29, 1992]

$60.8 What are the borrower's major rights and responsibilities?

(a) The borrower's rights. (1) Once the terms of the HEAL loan have been established, the lender or holder may not

change them without the bamer consent.

(2) The lender must provide the i rower with a copy of the comp promissory note when the lo made. The lender or holder must r the original note to the borrower the loan is paid in full.

(3) A lender must disburse HEAL proceeds as described in §60.33(N).

(4) The lender or holder must proti the borrower with a copy of the rep ment schedule before repayment gins.

(5) If the loan is sold from one les or holder to another lender or hold or if the loan is serviced by a p other than the lender or holder. buyer must notify the borrower vi 30 days of the transaction.

(6) The borrower does not ha begin repayment until 9 full m after leaving school or an accredi internship or residency program scribed in §60.11.

(7) The borrower is entitled deferment from repayment of the F cipal and interest installments d periods described in §60.12.

(8) The borrower may prepay whole or any portion of the loan at time without penalty.

(9) The lender or holder must all the borrower to repay a HEAL loan cording to a graduated repaym schedule.

(2) est

(10) The borrower's total loan oblig tion is cancelled in the event of des or total and permanent disability.

(11) To assist the borrower in av ing default, the lender or holder m grant the borrower forbearance. F bearance, including circumstances which the lender or holder must gra forbearance, is more fully described $60.37.

the 1

(3) noti in th

(12) Any borrower who received fixed interest rate HEAL loan in exces! of 12 percent per year may enter int an agreement with the lender which made this loan for the reissuance of the loan in accordance with section 739A d the Public Health Service Act.

(b) The borrower's responsibilities. (1) The borrower must pay any insurance premium that the lender may require as more fully described in §60.14.

(1

or

e 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:

Change of address;

□ hange of name;

Failure to enroll in a HEAL for the period for which the loan nded;

Transfer to another school;

Withdrawal from a HEAL school nge in status to less than fullttendance at a HEAL school; Graduation;

Failure to enter into or interon in an internship or residency Im; or

(2) Change of status that authoreferment.

1

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 peThis prohibition against the disge of a HEAL loan applies to bankcy under any chapter of the Bankcy Act, including Chapter 13. A ower may have a HEAL loan disged in bankruptcy after the first 5 s of the repayment period only 1 a finding by the Bankruptcy rt that the non-discharge of such would be unconscionable and upon condition that the Secretary shall have waived his or her rights to ree any Federal reimbursements or eral payments for health services der any Federal law in amounts up the balance of the loan.

5) If the borrower fails to make paynts on the loan on time, the total ount to be repaid by the borrower y be increased by additional interlate charges, attorney's fees, court sts, and other collection charges. In dition, the Secretary may offset mounts attributable to an unpaid loan om reimbursements or payment for alth services provided under any ederal 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

§60.10 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(g), incurred or to be incurred over a period of up to an academic year and disbursed in accordance with §60.33(f). The maximum amount he or she may receive for that period shall be determined by the school in accordance with §60.51(f) 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:

case (1) In no 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 HE loans during the period for which new loan is intended.

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

or podiatric medicine may borrow up to $80,000 under this part including loans obtained while the borrower was a student. The loan amount may not exceed $20,000 in any 12-month period.

(3) An eligible nonstudent in the field of pharmacy, public health, chiropractic, health administration, or clinical psychology may borrow up to $50,000 under this part including loans obtained while the borrower was a student. The loan amount received under this part may not exceed $12,500 in any 12-month period.

[48 FR 38988, Aug. 26, 1983, as amended at 51 FR 30644, Aug. 28, 1986; 52 FR 746, Jan. 8, 1987; 57 FR 28794, June 29, 1992]

$60.11 Terms of repayment.

(a) Commencement of repayment. (1) The borrower's repayment period must begin the first day of the 10th month after the month he or she ceases to be a full-time student at a HEAL school. The 9-month period before the repayment period begins is popularly called the "grace period."

(i) Postponement for internship or residency program. However, if the borrower becomes an intern or resident in an accredited program within 9 full months after leaving school, then the borrower's repayment period must begin the first day of the 10th month after the month he or she ceases to be an intern or resident. For a borrower who receives his or her first HEAL loan on or after October 22, 1985, this postponement of the beginning of the repayment period for participation in an internship or residency program is limited to 4 years.

(ii) Postponement for fellowship training or educational activity. For any HEAL loan received on or after October 22, 1985, if the borrower becomes an intern or resident in an accredited program within 9 full months after leaving school, and subsequently enters into a fellowship training program or an educational activity, as described in §60.12(b)(1) and (2), within 9 months after the completion of the accredited internship or residency program or prior to the completion of such program, the borrower's repayment period begins on the first day of the 10th month after the month he or she ceases to be a participant in the fellowship

(iii) Commission on Accreditation Dental and Dental Auxiliary Program (iv) American Osteopathic Assoc tion.

(v) Council on Podiatry Education (vi) American Council on Phar ceutical Education.

(vii) Council on Education for Put Health.

(viii) American College of Veterin Surgeons.

(ix) Council on Chiropractic E cation.

(b) Length of repayment period. In get eral, a lender or holder must allowi borrower at least 10 years, but more than 25 years, to repay a loan cal culated from the beginning of the re payment period. A borrower must fully repay a loan within 33 years from the

date that the loan is made.

(1) For a HEAL borrower who ceived any HEAL loan prior to October 22, 1985, periods of deferment (as de scribed in §60.12) are not included whe calculating the 10 to 25 or 33 year lim tations.

(2) For a borrower who receives his her first HEAL loan on or after October 22, 1985, periods of deferment (as de scribed in §60.12) are included when cal culating the 33 year limitation, but are not included when calculating the 10 to 25 year limitation.

(c) Prepayment. The borrower may prepay the whole or any part of the loan at any time without penalty.

(d) Minimum annual payment. During each year of repayment, a borrower's