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To: Lenders and Schools Participating
in the Health Education Assistance Loan (HEAL) Program
Subject: Maximum HEAL Interest
Rates for the Quarter Ending June 30, 1999
Lender Policy Memorandum L-1999-7
School Policy Memorandum S-1999-6
Section 60.13(a)(4)
of the HEAL Regulations requires the Secretary of Health and Human
Services to announce the maximum quarterly interest rate in effect for
HEAL loans.
For loans made before
January 27, 1981, the variable interest rate is 8 1/8 percent.
For variable rate
loans executed on or after January 27, 1981 through October 21, 1985,
the interest rate is 8 1/8 percent.
For fixed rate loans
executed during the period April 1, 1999 through June 30, 1999 and for
variable rate loans executed on or after October 22, 1985, the interest
rate is 7 5/8 percent.
The average bond equivalency
rate for 91-day U.S. Treasury Bills during the period January 1, 1999
through March 31, 1999 was 4.54 percent.
We have enclosed HEAL
quarterly interest rates for the last four quarters. Interest rates since
the inception of the program are available upon request.
If you have any questions
regarding the interest or Treasury Bill rates, please do not hesitate
to contact Ms. Sarah Moore at (301) 443-0603.
Stephen J. Boehlert
Associate Division Director, HEAL
Division of Student Assistance
HEAL Variable
Interest Rates
HEALTH EDUCATION ASSISTANCE LOAN (HEAL) PROGRAM
Division of Student Assistance
Rates
for
Quarter Ending |
Loans
Made
Prior to
01/27/1981 |
Loans
Made
On or After
01/27/1981* |
Loans
Made
On or After
10/22/1985** |
June
30 , 1999 |
8
1/8% |
8
1/8% |
7
5/8% |
March
31, 1999 |
8
% |
8
% |
7
1/2% |
December
31 , 1998 |
8
1/2% |
8
1/2% |
8
% |
September
30, 1998 |
8
3/4% |
8
3/4% |
8
1/4% |
*Legislation Amended
- 12 percentĀ annual interest cap repealed - quarterly interest rate on
loans made on or after 01/27/1981, became a floating rate based on 91-day
T-Bill rate plus 3 1/2 percent.
**Legislation Amended
- Variable interest rate calculation amended - quarterly interest rate
on loans made on or after 10/22/1985 is based on loans made on a floating
rate of the average 91-day T-Bill rate plus 3 percent.
|