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March 30, 2006
To: Lenders and Schools
Participating in the Health Education Assistance Loan (HEAL) Program
Subject: Maximum HEAL
Interest Rates for the Quarter Ending June 30, 2006
Lender Policy Memorandum L-2006-5
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 percent.
For variable rate
loans executed on or after January 27, 1981 through October 21, 1985,
the interest rate is 8 percent.
For variable rate
loans executed on or after October 22, 1985, the interest rate is
7 1/2percent .
The average bond equivalency
rate for 91-day U.S. Treasury Bills during the period January 1, 2006
through March 31, 2006 was 4.494 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 Ms. Devonaline Horne at (301) 443-5594.
Nancy Durham
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
June
30, 2006 |
8
% |
8
% |
7
1/2 % |
March
31, 2006 |
7
1/2 % |
7
1/2 % |
7
% |
December
31, 2005 |
7 % |
7 % |
6 1/2 % |
September
30, 2005 |
6 1/2 % |
6
1/2 % |
6 % |
*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- 12 percent annual interest cap repealed - quarterly interest rate on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.
|