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Setup Instructions |
June 27, 1996
To: Lenders Participating in the Health Education Assistance Loan (HEAL) Program
Subject: New HEAL lender
contracts and initial insurance authority allocations for the period of July
1, 1996 - September 30, 1996
Lender Policy Memorandum L-96-13
On July 1 a new lender contract cycle will begin and extend for 12 months through June 30, 1997. As we pointed out in our March 6, 1996 policy memorandum, two new lenders will join the group of lenders that are currently participating.
Each lender will receive an initial insurance authority allocation July 1, 1996. The total amount of all allocations is the amount of fiscal year (FY) 1996 insurance authority that has not been disbursed (approximately $40 million) minus a limited amount of reserve held by the Department. To maintain the integrity of the allocation methodology and assure an equitable distribution, allocations are being made by discipline. A lender will receive an initial allocation based on the dollar amount of disbursements it had scheduled for the period July 1 through September 30, 1996 plus the amount of applications in process reported to the Department and the proportion of a discipline's disbursements it made during the prior 9-month contract period. For example if a lender has $1 million of dental disbursements scheduled and applications in process for the period of July 1 - September 30, 1996 and accounted for 43 percent of all disbursements made to dental students during the prior 9-month period, that lender would receive a $1 million allocation for dentistry plus 43 percent of the available discipline allocation for dentistry for the period of July 1 - September 30, 1996. New lenders will receive an allocation by discipline to get started. It Is Important to remember that initial allocations serve only as a starting point. Lenders that are receiving applications and scheduling disbursements may request additional insurance authority from the Department as needed. Allocations will be provided if insurance authority is available either by shifting allocations among lenders or by using the Department's reserve of unallocated insurance authority. Below is a listing of lenders and the disciplines that they will serve.
Stephen J. Boehlert
Associate Division Director, HEAL
Division of Student Assistance
Allocations for FY 1997, which begins October 1, 1996 will be based on congressional appropriation action which is currently underway. Absent HEAL reauthorization, our best estimate at this time is that $140 million will be available for continuing borrowers in FY 1997. We will keep the lending community apprised of insurance authority availability especially through September 30,1996. We will notify you if and when FY 1996 insurance authority is fully disbursed. Again, only continuing HEAL borrowers are eligible – disbursements cannot be made to first-time HEAL borrowers.
Thank you for your support while the HEAL program awaits congressional action on
reauthorization. During this uncertain time, it is our goal to provide you with prompt and effective service. Please contact Ms. Terri Ehrenfeld of the HEAL Branch at (301) 443-1540 if you have any questions.
HEALTH EDUCATION ASSISTANCE
LOAN (HEAL) PROGRAM
FY 1996/1997 PARTICIPATING LENDERS
Lender |
Priority Lending Discipline |
Geographic Region | Interest Rates and Compounding |
|---|---|---|---|
| Bank One, Indianapolis,
N. A. c/o SLMA Loan Servicing Center HEAL Originations 1002 Arthur Drive Lynn Haven, FL 32444 Phone: Bank One 1-800-288-6150 |
Allopathy Osteopathy Dentistry Podiatry Chiropractic Veterinary Public Health Clinical Psych Health Admin Optometry Pharmacy |
All | In School = T-Bill
+ 1.95% Compounding - None In Deferment = T-Bill + 1.95% Compounding - None In Grace = T-Bill + 1.95% Compounding - At End In Repayment T-Bill + 1.95% |
| Chase Manhattan Bank,
N.A. c/o Education Finance Ctr., Inc. 5100 Lemon Street, Suite 200 Tampa, FL 33609 Phone: 1-800-228-7605 |
Allopathy |
All |
In School = T-Bill + 1.85% Compounding - None In Deferment = T-Bill + 1.85% Compounding - None In Grace = T-Bill + 1.85% Compounding - At End In Repayment = T-Bill + 1.85% |
| Dartmouth Educational Loan Corporation North Main Street, McNutt Hall Hanover, NH 03755 Phone: (603) 646-3291 |
Allopathy | Dartmouth Med. College only |
In School = T-Bill + 0.25% Compounding - At End In Deferment -T-Bill + 0.25% Compounding - At End In Grace = T-Bill + 0.25% Compounding - At End In Repayment - T-Bill + 1.25% |
| Household Bank, f.s.b. c/o PHEAA Loan Servicing Center P.O. Box 8176 Harrisburg, PA 17105-8176 Phone: 1-800-233-0542 |
Osteopathy Dentistry Podiatry Chiropractic Veterinary Optometry Pharmacy |
All |
In School = T-Bill + 1.59% Compounding - Biennial, In Deferment = T-Bill + 1.59% Compounding - Biennial In Grace = T-Bill + 1.59% Compounding - At End In Repayment = T-Bill + 1.59% |
| Kirksville College
of Ost. Med. SOO West Jefferson Street Kirksville, MO 63501 Phone: 1-800-626-5166 x202S 1-800-428-3376 x2028 |
Osteopathy | All students attending osteopathic schools |
In School = T-Bill + 1.90% Compounding - None In Deferment = T-Bill + 1.90% Compounding - None In Grace = T-Bill + 1.90% Compounding - At End In Repayment = T-Bill + 1.90% |
| Mellon Bank c/o PHEAA Loan Servicing Center P.O. Box 8176 Harrisburg, PA 17105-8176 Phone: 1-800-369-6941 |
Allopathy Osteopathy Dentistry Podiatry Chiropractic Veterinary Public Health Clinical Psych Health Admin Optometry Pharmacy |
All |
In School = T-Bill + 2.50% Compounding - None In Deferment = T-Bill + 1.70% Compounding - None In Grace = T-Bill + 1.70% Compounding - At End In Repayment = T-Bill + 1.70% |
| Ohio College of Podiatric
Med MEDFUNDS 10515 Carnegie Avenue Cleveland, OH 44106 Phone: 1-800-665-1016 |
Allopathy Osteopathy Dentistry Podiatry Chiropractic Veterinary Public-Health Clinical Psych Health-Admin Optometry Pharmacy |
All |
In School = T-Bill + 1.75% Compounding - None In Deferment = T-Bill + 1.75% Compounding - None In Grace = T-Bill + 1.75% Compounding - At End In Repayment =T-Bill + 1.85% |
| Pennsylvania Higher
Education Assistance Agency P.O. Box 81-76 - Harrisburg, PA 17105-8176 Phone: 1-800-360-6941 |
Allopathy Osteopathy Dentistry Podiatry Veterinary Public Health Clinical Psych Health-Admin Optometry Pharmacy |
PA residents attending any school in country and all students attending PA schools |
In School = T-Bill 1.95% Compounding - None In Deferment = T-Bill + 1.95% Compounding - None In Grace = T-Bill + 1.95% Compounding At End In Repayment =T- Bill + 1.95% |
| PNC Bank, N.A. c/o PHEAA Loan Servicing Center P.O. Box 8176 Harrisburg, PA 17105-8176 Phone: 1-800-360-6941 (PHEAA) |
Allopathy Osteopathy Dentistry Veterinary Optometry Pharmacy |
All |
In School = T-Bill + 1.59% Compounding - Biennial In Deferment = T-Bill + 1.59% Compounding - Biennia In Grace = T-Bill + 1.59% Compounding-At End In Repayment = T-Bill + 1.59% |
|
Star Bank, N.A.(trustee
for Brazos Student Finance Corp.) |
Allopathy Osteopathy Dentistry Veterinary Optometry Pharmacy |
All |
In School = T-Bill + 1.59% Compounding - Biennial In Deferment = T-Bill + 1.59% Compounding - Biennial In Grace = T-Bill + 1.59% Compounding - At End In Repayment = T-Bill + 1.59% |
| Vermont Student Assistance
Corporation Champlain Mill P.O. Box 2000 Winooski, VT 05404-2601 Phone: 1-800-974-5505 |
Allopathy | Univ. of Vermont only |
In School = T-Bill + 1.50% - Compounding - None In Deferment = T-Bill + 1.50% Compounding - None In Grace = T-Bill + 1.50% Compounding - At End |
