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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 Regulation
At 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
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