tion 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 acurately reflect the applicant's actual Resources, and must maintain in the orrower's record documentation to upport the basis for any adjustments the need analysis information; and (2) The costs reasonably necessary reach student to pursue the same or milar curriculum or program within e same class year at the school for period covered by the proposed AL loan, using a standard student get. The school must maintain in general office records the criteria ad to develop each standard student udget. Adjustments to the standard fedent budget may be made only to

extent that they are necessary for ti student to complete his or her educon, and documentation must be sign intained in the borrower's record to instport the basis for any adjustments no rhe standard student budget. er Comply with the requirements of AL61

the student is unable to meet other educational expenses due before the time of enrollment, the school may obtain the student's endorsement and disburse to the student that portion of funds required to meet these other educational expenses.

(b) If a school determines that a student does not plan to enroll, the school must return a loan disbursement check or draft to the lender within 30 days of this determination.

[48 FR 38988, Aug. 26, 1983, as amended at 52 FR 751, Jan. 8, 1987]

$60.53 Notification to lender or holder of change in enrollment status. Each school must notify the holder of a HEAL loan of any change in the student's enrollment status within 30 days following the change in status. Each notice must contain the student's full name under which the loan was received, the student's current name (if different), the student's Social Security number, the date of the change in the enrollment status, or failure to enroll as scheduled for any academic period as a full-time student, the student's latest known permanent and temporary addresses, and other information which the school may decide is necessary to identify or locate the student. If the school does not know the identity of the current holder of the HEAL loan, it must notify the HEAL Program Office of a change in the student's enrollment status. This notification is not required for vacation periods and leaves of absence or other temporary interruptions which do not exceed one academic term.

(Approved by the Office of Management and Budget under control number 0915-0108) [52 FR 751, Jan. 8, 1987, as amended at 57 FR 28799, June 29, 1992]

$60.54 Payment of refunds by schools.

A participating school must pay that portion of a refund that is allocable to a HEAL loan directly to the original lender (or to a subsequent holder of the loan note, if the school has knowledge of the holder's identity). At the same time, the school must provide

(a) In addition to complying with the requirements of section 739(b) of the Act, each school must maintain an accurate, complete, and easily retrievable record with respect to each student who has a HEAL loan. The record must contain all of the following information:

(1) Student's name, address, academic standing and period of attendance;

(2) Name of the HEAL lender, amount of the loan, and the period for which the HEAL loan was intended;

(3) If a noncitizen, documentation of the student's alien registration status.

(4) Amount and source of other financial assistance received by the student during the period for which the HEAL loan was made;

(5) Date the school receives the HEAL check or draft and the date it either gives it to the student or returns it to the lender (if the school is not the lender);

(6) Date the school disburses the loan to a student (if the school is the lender);

(7) Date the school signs the loan check or draft (if the school is a copayee);

(8) Amount of tuition, fees and other charges paid by the student to the

by the loan and the dates of payment; (9) Photocopy of each HEAL check or draft received by the student;

(10) Documentation of each entrance interview, including the date of the en trance interview and the signature of the borrower indicating that the en trance interview was conducted;

(11) Documentation of the exit inter view, including the date of the exi interview and the signature of the bot rower indicating that the exit inter view was conducted, or documentatio of the date that the school mailed ex interview materials to the borrower the borrower failed to report for th exit interview;

(12) A photocopy made by the scho of the borrower's I-151 or 1–551, if th borrower is required to possess suc identification by the United States, other documentation, if obtained § the school, to verify citizenship stati and Social Security number (e.g., a c tified copy of the borrower's birth o tificate or a photocopy made by the school of the borrower's original Soci Security card or copy issued by t Federal government);

(13) Documentation of the calcul tions made which compare the fina cial resources of the applicant with cost of his or her education at school;

(14) Copy(s) of the borrower's fina cial aid transcript(s);

(15) The standard budget used for student, and documentation to suppo the basis for any deviations made the standard budget;

(16) Copies of all correspondence tween the school and the borrower between the school and the lender its assignee regarding the loan;

(17) Copy of each form used by school in connection with the loan; an (18) Expected postgraduate destina tion of borrower.

(b) The school must maintain record for not less than 5 years follow ing the date the student graduate withdraws or fails to enroll as a ful time student. The school may store records in microform or computer fo mat.

(c) The school must comply with Department's biennial audit require ments of section 705 of the Act.

(d) The school must develop and follow written procedures for the receipt, verification of amount, and disbursement of HEAL checks or drafts. These procedures must be maintained in the school's policies and procedures manuals or other general office records.

Approved by the Office of Management and 3udget under control number 0915-0108)

48 FR 38968, Aug. 26, 1983, as amended at 52 R 751, Jan. 8, 1987; 57 FR 28799, June 29, 1992]

80.57 Reports.

A school must submit reports to the ecretary at the times and in the maner the Secretary may reasonably preribe. The school must retain a copy feach report for not less than 5 years lowing the report's completion, un88 otherwise directed by the Sectary. A school must also make availle to a HEAL lender or holder, upon e lender's or holder's request, the ame, address, postgraduate destinaon and other reasonable identifying formation for each of the school's udents who has a HEAL loan.

pproved by the Office of Management and dget under control number 0915-0108) FR 28799, June 29, 1992]

For the purposes of audit and examition, a HEAL school must provide Secretary of Health and Human rvices, the Comptroller General of United States, and any of their auorized representatives access to the cords that the school is required to ep and to any documents and records tinent to the administration of the AL Program.

1.59 Records and Federal access after a school is no longer a HEAL school.

n the event a school ceases to paripate in the HEAL program, the ool (or its successor, in the case of school which undergoes a change in nership) must retain all required AL records and provide the Secary of Health and Human Services, › Comptroller General of the United ates, and any of their authorized repsentatives access to them.

$60.60 Limitation, suspension, or termination of the eligibility of a HEAL school.

(a) The Secretary may limit, suspend, or terminate the eligibility under the HEAL program of an otherwise eligible school that violates or fails to comply with any provision of title VII, part A, subpart I of the Act as amended (42 U.S.C. 292-292p), these regulations, or agreements with the Secretary concerning the HEAL program. Prior to terminating a school's participation in the program, the Secretary will provide the school an opportunity for a hearing in accordance with the procedures under paragraph (b) of this section.

(b) The Secretary will provide any school subject to termination with a written notice, sent by certified mail, specifying his or her intention to terminate the school's participation in the program and stating that the school may request, within 30 days of the receipt of this notice, a formal hearing. If the school requests a hearing, it must, within 90 days of the receipt of the notice, submit material, factual issues in dispute to demonstrate that there is cause for a hearing. These issues must be both substantive and relevant. The hearing will be held in the Washington, DC metropolitan area. The Secretary will deny a hearing if:

(1) The request for a hearing is untimely (i.e., fails to meet the 30-day requirement);

(2) The school does not provide a statement of material, factual issues in dispute within the 90-day required period; or

(3) The statement of factual issues in dispute is frivolous or inconsequential. In the event that the Secretary denies a hearing, the Secretary will send a written denial, by certified mail, to the school setting forth the reasons for denial. If a hearing is denied, or if as a result of the hearing, termination is still determined to be necessary, the school will be terminated from participation in the program A school will be permitted to rot them w

(c) This section does not apply to a determination that a HEAL school fails to meet the statutory definition of an "eligible school."

(d) This section does not apply to administrative action by the Department of Health and Human Services based on any alleged violation of The Family Educational Rights and Privacy Act of 1974 (section 438 of the General Education Provisions Act, as amended), as governed by 34 CFR part 99.

(Approved by the Office of Management and Budget under control number 0915-0144)

[48 FR 38988, Aug. 26, 1983, as amended at 52 752, Jan. 8, 1987; 58 FR 67350, Dec. 21, 1993]

§ 60.61 Responsibilities of a HEAL school.

(a) A HEAL school is required to carry out the following activities for each HEAL applicant or borrower:

en

(1) Conduct and document an trance interview with each student (individually or in groups) no later than prior to the loan recipient's first HEAL disbursement in each academic year that the loan recipient obtains a HEAL loan. The school must inform the loan recipient during the entrance interview of his or her rights and responsibilities under a HEAL loan, including the consequences for noncompliance with those responsibilities, and must gather personal information which would assist in locating the loan recipient should he or she depart from the school without receiving an exit interview. A school may meet this requirement through correspondence where the school determines that a face-to-face meeting is impracticable.

(2) Conduct and document an exit interview with each HEAL loan recipient (individually or in groups) within the final academic term of the loan recipient's enrollment prior to his or her anticipated graduation date or other departure date from the school. The school must inform the loan recipient in the exit interview of his or her rights and responsibilities under each HEAL loan, including the consequences for noncompliance with those responsibilities. The school must also collect personal information from the loan recipient which would assist the school or the lender or holder in skiptracing activities and to direct the loan recipi

ent to contact the lender or holder concerning specific repayment terms and options. A copy of the documentation of the exit interview, including the personal information collected for skiptracing activities, and any other information required by the Secretary regarding the exit interview must be sent to the lender or holder of each HEAL loan within 30 days of the exit interview. If the loan recipient departs from the school prior to the anticipated date or does not receive an exit interview, the exit interview information must be mailed to the loan recipient by the school within 30 days of the school's knowledge of the departure or the anticipated departure date, whichever is earlier. The school must request® that the loan recipient forward any re quired information (e.g., skiptracing information, request for deferment, etc.) to the lender or holder. The school must notify the lender or holder of the loan recipient's departure at the same time it mails the exit interview mate rial to the loan recipient.

(3) Verify the accuracy and complete ness of information provided by each student on the HEAL loan application, particularly in regard to the HEAL elfgibility requirements, by comparing the information with previous loan ap plications or other records or information provided by the student to the school. Notify the potential lender of any discrepancies which were not resolved between the school and the student.

(4) Develop and implement proce dures relating to check receipt and release which keep these functions sepa rate from the application preparation and approval process and assure that the amount of the HEAL loan check(s) does(do) not exceed the approved total amount of the loan and the statutory maximums. Checks must not be cashed without the borrower's personal endorsement. Documentation of these procedures and their usage shall be maintained by the school.

(5) Maintain accurate and complete records on each HEAL borrower and related school activities required by the HEAL program. All HEAL records shall be properly safeguarded and protected from environmental threats and unauthorized intrusion for use and theft.

(6) Maintain documentation of the criteria used to develop the school's standard student budgets in the school's general records, readily available for audit purposes, and maintain in each HEAL borrower's record a copy of the standard budget which was actually used in the determination of the maximum loan amount approvable for the student, as described in § 60.51.

(7) Notify the lender or its assignee of any changes in the student's name, address, status, or other information pertinent to the HEAL loan not more than 30 days after receiving information indicating such a change.

(b) Any school which has information which indicates potential or actual commission of fraud or other offenses against the United States involving these loan funds must promptly provide this information to the appropriate Regional Office of Inspector General for Investigations.

(c) The school will be considered responsible and the Secretary may seek reimbursement from any school for the amount of a loan in default on which the Secretary has paid an insurance claim, if the Secretary finds that the =chool did not comply with the applicale HEAL statute and regulations, or ts written agreement with the Secetary. The Secretary may excuse cerain defects if the school satisfies the ecretary that the defect did not con

tribute to the default or prejudice the Secretary's attempt to collect the loan from the borrower.

(d) A school is authorized to withhold services from a HEAL borrower who is in default on a HEAL loan received while enrolled in that school, except in instances where the borrower has filed for bankruptcy. Such services may include, but are not limited to academic transcripts and alumni services. Defaulted HEAL borrowers who have filed for bankruptcy shall provide court documentation that verifies the filing for bankruptcy upon the request of the school. Schools will also supply this information to the Secretary upon request. All academic and financial aid transcripts that are released on a defaulted HEAL borrower must indicate on the transcript that the borrower is in default on a HEAL loan. It is the responsibility of the borrower to provide the school with documentation from the lender, holder, or Department when a default has been satisfactorily resolved, in order to obtain access to services that are being withheld, or to have the reference to default removed from the academic and financial aid transcripts.

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

[52 FR 752, Jan. 8, 1987, as amended at 57 FR 28799, June 29, 1992; 58 FR 67350, Dec. 21, 1993]