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January 26, 1989
To: Officials of Schools
Participating in the Health Education Assistance Loan (HEAL) Program
Subject: HEAL School Policy
Memorandum #12 - HEAL Borrower Status
HEAL Lender Policy Memorandum #89-1
It has come to our
attention that some schools are engaging in a practice which may be intended
to give their graduates a benefit that is not permissible under the statute
governing the HEAL program. Specifically, these schools are certifying
as full-time students borrowers who have already graduated
and are in internship or residency programs.
Certifying that an intern
or resident is a full-time student is contrary to the intent of the Congress
and the Administration. Since October 22, 1985, the statute has provided that
the total maximum length of time a new HEAL borrower can remain out of repayment
status (either through postponement of repayment or deferment) because of an
internship or residency is 4 years.
A school which does not
comply with these provisions, risks the loss of its eligibility to continue
participating in the HEAL program. You must complete a new Borrower Status Form
for each HEAL borrower currently 'in an internship or residency program whom
your school has certified as a full-time student during this period. A copy
of the form is enclosed. (You may duplicate this form.) The form must be completed
for each borrower and returned to the appropriate lender by March 1, 1989.
Michael Heningburg
Director
Division of Student Assistance
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