Printer-friendly
Adobe .pdf
To: Lenders and Schools
Participating in the Health Education Assistance Loan (HEAL) Program
Subject: Maximum HEAL Interest Rates for the Quarter Ending
June 30, 2004
Lender Policy Memorandum L-2004-7
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, 198 1, the variable interest rate is 4 1/2
percent.
For variable
rate loans executed on or after January 27, 1981 through October 21,
1985, the interest rate is 4 1/2 percent.
For fixed
rate loans executed during the period April 1, 2004 through June 30,
2004, and for variable rate loans executed on or after October 22, 1985,
the interest rate is 4 percent.
The average
bond equivalency rate for 9 1 -day U.S. Treasury Bills during the period
January 1, 2004 through March 31, 2004 was .935 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 HEAL interest
or Treasury Bill rates, please do not hesitate to contact Mr. Richard
Rind at (301) 443-3872.
Nancy Durham
Acting Chief, HEAL Branch
Division of Health Careers Diversity and Development
HEAL Variable Interest Rates
HEALTH EDUCATION ASSISTANCE LOAN (HEAL) PROGRAM
Division of Health Careers Diversity and Development
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, 2004 |
4 1/2 % |
4 1/2 % |
4 % |
March
31, 2004 |
4 1/2 % |
4 1/2 % |
4 % |
December
31, 2003 |
4 1/2 % |
4 1/2 % |
4 % |
September
30, 2003 |
4 5/8 % |
4 5/8 % |
4 1/8 % |
*Legislation Amended
- 12 percent annual interest cap repealed - quarterly interest rate on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.
|