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To: Lenders and Schools Participating
in the Health Education Assistance Loan (HEAL) Program
Subject: Maximum HEAL Interest
Rates for the Quarter Ending March 31, 1999.
Lender Policy Memorandum L-1999-3
School Policy Memorandum S-1999-2
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 before January 27, 1981 through October 21, 1985, the interest rate
is 8 percent.
For fixed rate loans executed during
the period January 1, 1999 through March 31, 1999, and for variable rate loans
executed on or after October 22, 1985, the interest rate is 7 1/2
percent.
The average bond equivalency rate
for 91-day U. S. Treasury Bills during the period October 1, 1998 through December
31, 1998 was 4.40 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 interest or Treasury Bill rates, please do not hesitate to contact Ms. Sarah
Moore at (301) 443-0603.
Stephen J. Boehlert
Associate Director, HEAL
HEAL Variable Interest Rates
HEALTH EDUCATION ASSISTANCE LOAN (HEAL) PROGRAM
Division of Student Assistance
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** |
March
31, 1999 |
8
% |
8
% |
7
1/2% |
December
31 , 1998 |
8
1/2% |
8
1/2% |
8
% |
September
30, 1998 |
8
1/8% |
8
1/8% |
7
5/8% |
June
30, 1998 |
8
3/4% |
8
3/4% |
8
1/4% |
* 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annual interest cap repealed - quarterly interest rate on loans made on or after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.
|