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FEB 9 1995
To: Schools, Lenders, and Holders Participating in the Health Education Assistance Loan (HEAL) Program
Subject: HEAL-to-HEAL Loan
Consolidation -- Announcement
Lender Policy Memorandum L-95-7
School Policy Memorandum S-95-7
The Health Professions Education Extension Amendments of 1992, Public Law 102-408, Section 706(e) authorized HEAL-to-HEAL Loan Consolidation. The HEAL Program is marketing this initiative as HEAL Refinancing. Since our last announcement three additional lenders are offering HEAL Refinancing for a total of eight lenders now participating in the HEAL Refinancing Program. Moreover, some participating lenders have lowered their interest rates and/or compounding terms. Please refer to the enclosure to identify lenders with new and lower rates.
Three New Lenders Enter the HEAL Refinancing Program
The three new lenders in the HEAL Refinancing program are Missouri Higher Education Loan Authority (MoHELA), PNC Bank, N.A., and Star Bank, N.A. (a trustee for Brazos Student Finance Corporation).
The MoHELA refinancing interest rate over-the-life of the loan, is variable and indexed to the average of 91 -day U.S. Treasury Bills, for the preceding quarter plus 2.2%. This rate will be rounded up to the next higher one-eighth of 1 percent. Interest will be capitalized annually.
The PNC Bank, N.A. refinancing interest rate over-the-life of the loan, is variable and indexed to the average of 91 -day U.S. Treasury Bills, for the preceding quarter plus 2.1 %. This rate will be rounded up to the next higher one-eighth of 1 percent. Interest will be capitalized once at repayment.
The Star Bank, N.A. refinancing interest rate over-the-life of the loan, is variable and indexed to the average of 91-day U.S. Treasury Bills, for the preceding quarter plus 2.125 %. This rate will not be rounded to the next higher one-eighth of 1 percent. Interest will be capitalized annually.
Enclosed is a current list of the lenders participating in the HEAL Refinancing Program, their address and telephone number, and current interest rates. We encourage schools and lenders to provide this list to all eligible borrowers.
Please contact the HEAL Branch at (301) 443-1540 if you have any questions regarding the HEALRefinancing Program.
Stephen Boehlert
Chief, HEAL Branch
Division of Student Assistance
HEAL REFINANCING
| Household Bank, f.s.b. |
P.O. Box 95562 |
T-Bill + 2.125% over-the-life of the loan, |
| Hoffman Estates, IL 60195 |
Capitalized at repayment |
|
| 1-800-777-1136 |
||
| Iowa Student Loan Liquidity |
HEALhelp |
T-Bill + 2.175% over-the-life of the loan |
| Corporation |
P.O. Box 9285 |
Capitalized annually |
| Des Moines, IA 50309-9285 |
||
| 1-800-243-7552 |
||
| Mellon Bank, N.A. |
HEALthy Alliance - PHEAA |
T-Bill + 2.2% over-the-life of the loan for |
| P.O. Box 8176 |
loans over $25,000.00 |
|
| Harrisburg, PA 17105-8176 |
||
| 1-800-421-4817 |
T-Bill + 2.7% over-the-life of the loan for |
|
| loans up to $25,000.00 |
||
| Both rates capitalized annually |
||
| Missouri Higher Education |
Big Payoff - PHEAA |
T-Bill + 2.2% over-the-life of the loan |
| Loan Authority (MoHELA) |
P.O. Box 8176 |
Capitalized annually |
| Harrisburg, PA 17105-8176 |
||
| 1-800-666-4352 |
||
| Pennsylvania Higher. |
Remedi - PHEAA |
T-Bill + 2.0% for years 1 through 12; may |
| Education Assistance |
P.O. Box 8176 |
rise to T-Bill + 2.5% for years 13 through 25 |
| Agency (PHEAA) |
Harrisburg, PA 17105-8176 |
Capitalized annually |
| 1-800-343-1809 |
||
| Note: Available only to current or |
||
| previous PHEAA HEAL borrowers |
||
| PNC Bank, N.A. |
PNC - PHEAA |
T-Bill + 2.1% over-the-life of the loan |
| P.O. Box 8176 |
Capitalized at repayment |
|
| Harrisburg, PA 17105-8176 |
||
| 1-800-421-4817 |
||
| Star Bank, N.A. (trustee for |
Debt Minder - PHEAA |
T-Bill + 2.125% over-the-life of the loan |
| Brazos Student Finance |
P.O. Box 8176 |
Capitalized annually |
| Corporation) |
Harrisburg, PA 17105-8176 |
|
| 1-800-722-8189 |
||
| Student Loan Marketing |
HEAL Relief Account |
T-Bill + 3.0% over-the-life of the loan |
| Association (Sallie Mae) |
P.O. Box 1304 |
Capitalized annually |
| Merrifield, VA 22116-1304 |
||
| 1-800-643-0040 |
Note: Interest rate reducing programs are |
|
| being offered |
||
| 2/3/95 |
||
