(c) “Secretary” means the Secretary of Health and Human Services and any other officer or employee of the Department of Health and Human Services to whom the authority involved has been delegated;

(d) "Geographic area" means an area composed of any part or parts of any one or more states that forms an academically and professionally integrated region, taking into consideration such factors as location and extent of communication facilities and systems, presence and distribution of educational and medical and health facilities and programs, and other activities which, in the opinion of the Secretary, justify the establishment and operation of a regional medical library;

(e) "Annual operating expenses" means, with respect to a library which has been in operation for less than 3 years an amount equal to the average annual operating expense of the years, if any, of operation, as modified by, or when there has been no operation determined by reference to, such expense of libraries of institutions of similar size and function, as determined by the Secretary;

(f) "Modify and increase" means the use of Federal funds or materials to supplement rather than supplant nonFederal funds available for library resources and services.

§ 59a.33 Eligibility.

In order to be eligible for a grant, the applicant must:

(a) Meet the criteria specified in section 396 of the Act, and

(b) Be located in a State.

§ 59a.34 Application.

(a) Application for a grant under this subpart shall be made on an authorized form;

(b) In addition to any other pertinent information which the Secretary may require, the applicant shall submit a description of a program to provide health sciences informational services for the geographic area in which it is located in sufficient detail clearly to identify the need for such services, the adequacy of the applicant's existing or proposed facilities and resources to undertake to provide

them, the size and nature of the population to be served, the region to be served, cooperative arrangements in effect, or proposed, with other qualified institutions, organizations or agencies, and the justification for the amount of funds requested.

§ 59a.35 Award.

(a) General. The Secretary, with the counsel and advice of the Board in each case, shall award a grant to those applicants whose arrangements and proposed services will in the Secretary's judgment best promote the purpose of section 396 of the Act.

(b) Project period. (1) The notice of grant award specifies how long HHS intends to support the project without requiring the project to recompete for funds. This period, called the project period, will usually be for 1-5 years.

(2) Generally the grant will initially be for one year and subsequent continuation awards will also be for one year at a time. A grantee must submit a separate application to have the support continued for each subsequent year. Decisions regarding continuation awards and the funding level of such awards will be made after consideration of such factors as the grantee's progress and management practices, and the availability of funds. In all cases, continuation awards require a determination by HHS that continued funding is in the best interest of the government.

45 CFR Part 75-Informal grant appeals procedure (indirect cost rates and other cost allocations).

45 CFR Part 80-Nondiscrimination under programs receiving Federal assistance through the Department of Health and Human Services-Effectuation of Title VI of the Civil Rights Act of 1964.

45 CFR Part 81-Practice and procedure for hearings under Part 80.

45 CFR Part 84-Nondiscrimination on the basis of handicap in federally assisted programs.

45 CFR Part 86-Nondiscrimination on the basis of sex in education programs and activities receiving or benefiting from federal financial assistance.

[45 FR 12250, Feb. 25, 1980; 45 FR 20097, Mar. 27, 1980]

§ 59a.37 Terms, conditions, and assur

ances.

In addition to any other terms, conditions, and assurances required by law or imposed by the Secretary, each grant shall be subject to the following terms, conditions, and assurances to be furnished by the applicant. The Secretary may at any time approve exceptions where the Secretary finds that such exceptions are not inconsistent with the Act and the purposes of the program.

(a) Use of funds. Any funds granted pursuant to this part shall be expended solely for the purposes for which the funds were granted in accordance with the approved application and budget, the regulations of this subpart, the terms and conditions of the award, and the applicable cost principles prescribed in Subpart Q of 45 CFR Part 74.

(b) Service undertakings. (1) The grantee will agree to modify and increase its library resources so as to be able to provide supportive services to other health sciences informational activities.

(2) Qualified persons and organizations shall be entitled to free loan services, and to the extent grant funds are used to provide photo duplicated or facsimile copies of biomedical materials, the copies shall be made available without charge to such persons or organizations. The qualification of persons and organizations for the services provided hereunder shall be determined in accordance with the policies or principles of operation of the grant

ee, subject to such review and approval as the Secretary may require.

(c) Inventions or discoveries. Any grant award hereunder is subject to the regulations of the Department of Health and Human Services relating to inventions and patents (45 CFR Parts 6 and 8, as amended). Such regulations shall apply to any activity for which grant funds are in fact used whether within the scope of the program as approved or otherwise. Appropriate measures shall be taken by the grantee and by the Secretary to assure that no contracts, assignments, or other arrangements, inconsistent with the grant obligation are continued or entered into and that all personnel involved in the supported activity are aware of and comply with such obligation.

[45 FR 12250, Feb. 25, 1980; 45 FR 20097, Mar. 27, 1980]

60.58 Federal access to school records. 60.59

Records and federal access after a school is no longer a HEAL school. 60.60 Limitation, suspension, or termination of the eligibility of a HEAL school. AUTHORITY: Sec. 215, Public Health Service Act, 58 Stat. 690, as amended, 63 Stat. 35 (42 U.S.C. 216); secs. 727-739, Public Health Service Act, 90 Stat. 2243 (42 U.S.C. 2942941).

SOURCE: 48 FR 38988, Aug. 26, 1983, unless otherwise noted.

Subpart A-General Program Description

§ 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, osteopathy, dentistry, veteri

nary medicine, optometry, podiatry, 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 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 § 60.30. HEAL school eligibility is described in § 60.50.

(c) The Secretary insures each lender for the losses it may incur in the event that a borrower dies, becomes disabled, files bankruptcy, or defaults on his or her loan. If a borrower defaults on a loan and the Secretary pays the amount of loss to the lender, the borrower's loan is then assigned to the Secretary. At that time, the U.S. Government becomes the borrower's direct creditor and will actively pursue the borrower for repayment of the debt.

Subpart B-The Borrower

$ 60.5 Who is an eligible student borrower?

To receive a HEAL loan, a student must satisfy the following requirements:

(a) He or she must be:

(1) A resident of the United States and either a citizen, national, or an alien lawfully admitted for permanent residence;

(2) A resident of the Commonwealth of the Northern Mariana Islands and either a citizen or a lawful permanent resident;

(3) A resident of the Trust Territory of the Pacific Islands and either a citizen or a lawful permanent resident;

(b) He or she must be enrolled or accepted for enrollment at a HEAL

school in a course of study that leads to one of the following degrees:

Doctor of Medicine

Doctor of Osteopathic Medicine

Doctor of Dentistry or equivalent degree Doctor of Veterinary Medicine or equivalent degree

Doctor of Optometry or equivalent degree Doctor of Podiatric Medicine or equivalent degree

Bachelor or Master of Science in Pharmacy or equivalent degree

Graduate or equivalent degree in Public Health

Doctor of Chiropractic or equivalent degree Doctoral degree in Clinical Psychology Masters or doctoral degree in Health Administration

(c) He or she must be carrying or plan to carry, during the period for which the loan is intended, the normal work load of a full-time student, as determined by the school. The student's work load may include any combination of courses, work experience, research or special studies that the school considers sufficient to classify the student as full time.

(d) If currently enrolled in school, he or she must be in good standing, as determined by the school.

(e)(1) In the case of a pharmacy student, he or she must have satisfactorily completed 3 years of training toward the pharmacy degree. These 3 years of training may have been taken at the pharmacy school or at a different school whose credits are accepted on transfer by the pharmacy school.

(2) The Doctor of Pharmacy degree is considered to be an equivalent degree if it is taken in a school that does not require the Bachelor or Master of Science in pharmacy as a prerequisite for the Doctor of Pharmacy degree.

(f) In the case of a medical, dental or osteopathic student enrolled in a 6year program that the student may enter directly from secondary school, the student must be enrolled in the last 4 years of the program.

(g) He or she must agree that all funds received under the proposed loan will be used solely for tuition and other reasonable educational expenses, including room and board, fees, books, supplies and equipment, laboratory expenses, transportation and commuting costs, personal ex

penses, the HEAL insurance premium, and interest on HEAL loans.

§ 60.6 Who is an eligible nonstudent borrower?

To receive a HEAL loan, a person who is not a student must satisfy all of the following requirements:

(a) He or she must have received a HEAL loan prior to August 13, 1981, for which he or she is required to make payments of interest, but not principal, during the period for which the new loan is intended. This may be the grace period or a period of internship, residency or deferment.

(b) He or she must continue to meet the citizenship, nationality, or residency qualifications required of student borrowers.

(c) He or she must agree that all funds received under the proposed loan will be used solely for payment of currently accruing interest on HEAL loans and the HEAL insurance premi

um.

§ 60.7 The loan application process.

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

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

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

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

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

(iii) Other student aid, exclusive of family contribution, of which the school is aware that the applicant will receive for the academic period covered by the proposed HEAL loan.

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

(i) 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.

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

(Approved by the Office of Management and Budget under control number 09150038)

§ 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 may not change them without the borrower's consent.

(2) The lender must provide the borrower with a copy of the completed promissory note when the loan is made. The lender must return the original note to the borrower when the loan is paid in full.

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

(4) The lender must provide the borrower with a copy of the repayment schedule before repayment begins.

(5) If the loan is sold from one lender to another lender, or if the loan is serviced by a party other than the lender, the holder must notify the borrower if the borrower is required to send installment payments or direct

other matters connected with the loan to a new address.

(6) The borrower does not have to begin repayment until 9 full months after leaving school or an accredited internship or residency program as described in § 60.11.

(7) The borrower is entitled to deferment from repayment of the principal and interest installments during periods described in § 60.12.

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

(9) The lender must allow the borrower to repay a HEAL loan according to a graduated repayment schedule.

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

(11) In order to assist the borrower in avoiding default, the lender may grant the borrower forbearance. However, whether or not to grant forbearance is within the lender's discretion. Forbearance is more fully described in § 60.37.

(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.

(2) The borrower must pay all interest charges on the loan as required by the lender.

(3) The borrower must immediately notify the lender in the event of:

(i) Change of address;

(ii) Change of name;

(iii) Failure to enroll in a HEAL school for the period for which the loan is intended;

(iv) Transfer to another school;

(v) Withdrawal from a HEAL school or change in status to less than fulltime attendance at a HEAL school;

(vi) Graduation;

(vii) Failure to enter into or interruption in an internship or residency program; or

(viii) Change of status that authorizes deferment.

(4) The borrower must repay the loan in accordance with the repayment schedule.

(5) A borrower may not have a HEAL loan discharged in bankruptcy during the first 5 years of the repay