To: Lenders and Schools
Participating in the Health Education Assistance Loan (HEAL) Program
Subject: Maximum HEAL
Interest Rates for the Quarter Ending December 31, 1996 Lender Policy Memorandum L-96-16
School Policy Memorandum S-96-15
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 7/8 percent.
For variable rate loans
executed on or after January 27, 1981 through October 21, 1985, the interest
rate is 8 7/8 percent.
For fixed rate loans executed
during the period October 1, 1996 through December 31, 1996 and for variable
rate loans executed on or after October 22, 1985, the interest rate is 8 3/8
percent.
The average bond equivalency
rate for 91-day U.S. Treasury Bills during the period July 1, 1996 through September
30, 1996 was 5.26 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 or Ms. Anna E. Gatling at (301) 443-1023.
Stephen J. Boehlert
Chief, HEAL Branch
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**
December
31, 1996
8
7/8%
8
7/8%
8
3/8%
September
30, 1996
8
3/4%
8
3/4%
8
1/4%
June
30, 1996
8
5/8%
8
5/8%
8
1/8%
March
31, 1996
9%
9%
8
1/2%
* Legislation Amended -
12% annual interest cap repealed -- quarterly interest rate on loans made on
or after 1/27/81, became a floating rate based on 91-day T-Bill rate plus 3
1/2%.
* Legislation Amended -
Variable interest rate calculation amended -- quarterly interest rate on loans
made on or after 10/22/85 is based on loans made on a floating rate of l the
average 91-day T-Bill rate plus 3%.