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June 28, 2007
TO: Holders and
Servicers Participating in the Health Education Assistance Loan (HEAL)
Program
FROM: Associate
Administrator
SUBJECT: Maximum
HEAL Interest Rates for the Quarter Ending September 30, 2007
Lender Policy Memorandum L-2007-6
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 1/2 percent.
For
variable rate loans executed on or after January 27, 1981 through
October 21, 1985, the interest rate is 81/2 percent.
For
variable rate loans executed on or after October 22, 1985, the interest
rate is 8 percent.
The average bond
equivalency rate for a 91-day U.S. Treasury Bills during the period
April 1, 2007 through June 30, 2007 was 4.895 percent.
We have attached
the 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 Home at (301) 443-5594.
Steven A. Pelovitz
HEAL Variable
Interest Rates
HEALTH EDUCATION ASSISTANCE LOAN (HEAL) PROGRAM
Division of Health Careers Diversity and Development
Rates
for Quarter Endinq |
Loans
Made Prior to 01/27/1981 |
Loans
Made On or After 01/27/1981* |
Loans
Made On or After 10/22/1985** |
September
30, 2007 |
8
1/2 % |
8
1/2 % |
8
% |
June
30, 2007 |
8
5/8 % |
8
5/8 % |
8
1/8 % |
March
31, 2007 |
8
5/8 % |
8
5/8 % |
8
1/8 % |
December
31, 2006 |
8
5/8 % |
8
5/8 % |
8
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- 12 percent annual interest cap repealed - quarterly interest rate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.