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HEAL Regulations
June 22, 1978
Bulletin # 1
TO ALL COORDINATORS
OF STUDENT
FINANCIAL AID AT HEALTH PROFESSIONS SCHOOLS
HEALTH EDUCATION ASSISTANCE LOAN
(HEAL)
PROGRAM UPDATE
HEAL Regulations
The Interim Final Regulation for the new Health Education Assistance Loan (HEAL) Program is in process and we expect publication in the Federal Register in approximately 30 days. A fact sheet which describes the Program and which may be reproduced and distributed to interested students and lenders is enclosed.
Expiration of GSLP Interim RegulationAt the time the HEAL regulations are published,. a companion regulation will provide for the repeal of the amendment to the Guaranteed Student Loan Program (GSLP) which permitted graduate students in the health professions to borrow up to S10,000 per year under GSLP. It is anticipated that the repeal will be effective 45 days after publication in the Federal Register. Of course, graduate students in the health professions will continue to be able to borrow up to $5,000 per academic year under GSLP, providing they do not exceed the aggregate maximum of $15,000 (including loans made at the undergraduate level).
Statutory Prohibition ‑ Students Borrowing Under HEAL and GSLP The HEAL legislation specifies that a student may not have a HEAL loan and a guaranteed student loan (either State, Non‑profit Agency or Federal for the same academic year. A student who has remaining borrowing capacity within the GSLP maximum of $15,000 may borrow under the GSLP. However, it may not be to the student's advantage unless sufficient funds can be obtained to meet the need. Once a Guaranteed Student Loan is obtained for the academic year, (or any part), the student may not receive funds under the HEAL Program, for the same academic year. Students in this category should be advised of the restriction and counseled on how they can best meet their borrowing needs.
School Code Number – Health Professions Schools
In connection with the interim regulation, health professions schools were assigned a special school code number to use. You should continue to use this number for all GSLP loan applications submitted, even after the repeal of the interim GSLP regulation. This same code number will be used as the school code number for the new HEAL Program.
Student Application
The student applications for the HEAL Program will be available in mid‑summer and distributed to all eligible health professions schools and participating lenders.
School Eligibility
The final approved list of eligible schools is being developed in coordination with the Public Health Service. Eligibility notices and agreements will be sent to those schools who are determined eligible. From time to time this list will be provided to participating lenders.
Lender Participation
Applications and agreement forms are being finalized and will be distributed to commercial lenders and eligible schools who are interested in participating as lenders. We would appreciate hearing from you regarding lenders in your area who might be interested in participating. Once lenders have signed participation contracts we will provide a listing those participating to you. We will also make the list available to students upon request.
David C. Bayer
Acting Chief
Health Loan Branch, DPPD
Enclosure
