BHPR

January 29, 2002

To: Holders and Servicers Participating in the Health Education Assistance Loan (HEAL) Program.

Subject: Revised HEAL Borrower Loan Status (BLS) Error Messages and File Specifications; Amendment to Lender Policy Memorandum L-2001-1
Lender Policy Memorandum L-2002-2

Lender Policy Memorandum L-2001-01 dated November 28, 2000 contained the Revised BLS Borrower Loan Status process. This process began January 1, 2001. This revised process allows the HEAL Program to complete a variety of mandated reports and effectively manage our over $3.2 billion loan portfolio.

Lenders and servicers have complied with the process requirements and we are greatly appreciative. The purpose of this memorandum is to provide you with a revised listing of error messages and file specifications (copies attached). These error messages and file specifications have already been in use, however we are providing them to you for your records.

If you have any questions regarding these revisions, please contact

11. "I" (Deferred/In-School) or "G" (Grace Period) Loan Status submitted and repayment date submitted.

12. "I" (Deferred/In-School) Loan Status submitted and HEAL Loan Status is PB, PO, or EP.

13. "I" (Deferred/In School) Loan Status submitted and Effective Date of Loan Status is prior to the Grad/Sep date submitted. (Since last graduating class will be 6/30/2002, this error message will take effect July 2002.)

14. "G" (Grace) Loan Status submitted and HEAL Loan Status is PB, PO, or EP.

15. "G" (Grace) Loan Status submitted and the Effective Date of Loan Status is prior to the Grad/Sep. Date submitted.

16. Repayment date submitted is less than 270 days after Grad/Sep Date submitted.

17. Repayment date submitted with a status of G (Grace) or I (Deferred/In-School).

18. "R" (Repayment) Loan Status submitted, and HEAL Loan Status is PB, PO, or EP.

19. "R" (Repayment) Loan Status submitted, and Effective Date of Loan Status is prior to the Grad/Sep. Date submitted.

20. "Q" (In repayment, but deferred) Loan Status submitted, and Effective Date of Loan Status is prior to the Grad/Sep. Date submitted.

21. "Q" (In repayment, but deferred) Loan Status submitted, and Effective Date of Loan Status is prior to the Repayment date submitted.

22. "Q" (In repayment, but deferred) submitted, and HEAL Loan Status is EP, PB, or PO.

23. "Q" or "I" submitted, and deferment type was blank.

24. "F" (Forbearance) submitted, and HEAL Loan Status is EP, PB, or PO.

25. "F" (Forbearance) Loan Status submitted, and Effective Date of Loan Status is prior to the Grad/Sep. Date submitted.

26. "F" (Forbearance) Loan Status submitted, and Effective Date of Loan Status is prior to the Repayment Date submitted.

27. "PB" Loan Status submitted, and HEAL Loan Status is EP or PO.

28. "EP@ (Dept. of Education Consolidation) Loan Status submitted, and HEAL Loan Status is PB or PO.

29. "PO" Loan Status submitted, and HEAL Loan Status is PB or EP.

30. "PB, PO, or EP" Loan status submitted with outstanding balance greater than $0.

31. Loan is part of a HEAL consolidation.

32. Loan is part of a paid claim or has the status of BD, DP, U, UP, V, W, X, Y, or Z..

33. Repayment Plan is not a G=Graduated, I=Income Sensitive or L=Level.

34. Current Outstanding Loan Balance must be greater than or equal to -$1,000 and less than $500,000.

35. Current Outstanding Principal Balance must be greater than or equal to -$1,000 and less than $400,000.

36. Current Monthly Payment Amount must be greater than or equal to $0 and less than $5,000.

37. Current Interest Rate must be greater than or equal to 3.0% and less than or equal to 20.000%.

38. File Type must be "SO" or "SE".

39. Grad/sep. date submitted is earlier than the end date (academic year to on the application) of the academic year for the loan.

40.

41.

42.

43. NOTE: Error #39 used to be # 40 and the previous #39 was a duplicate of #32. This only existed for about 6 months.