Health Education Assistance Loans


To authorize Health Education Assistance Loans (HEAL) for educational expenses available from eligible lenders such as banks, credit unions, savings and loan associations, pension funds, insurance companies and eligible educational institutions. Loans are made to students enrolled in eligible health professions educational programs at participating institutions. Loans are insured by the Federal government.

General information about this opportunity
Last Known Status
Deleted 07/21/2005 (Program no longer exists.)
Program Number
Federal Agency/Office
Type(s) of Assistance Offered
Guaranteed/Insured Loans.
Program Accomplishments
No new HEAL loans have been issued since fiscal year 1998. Refinancing continues to show success as a default prevention tool. In fiscal year 2002, $174,800,000 in principal and interest HEAL loans were refinanced and it is estimated that $165,000,000 will be refinanced in fiscal year 2003 and $150,000,000 in fiscal year 2004.
Public Health Service Act, Title VII, Section 701-720, 42 U.S.C. 292; as amended; Health Education Professions Education Partnership Act of 1998, Public Law 105-392.
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
No new Federal HEAL loans will be issued, effective October 1, 1998.
Beneficiary Eligibility
Any U.S. citizen, National, or person lawfully admitted to the United States for permanent residence, who is enrolled on a full-time basis at an eligible health professions school.
Any U.S. citizen, National, or person lawfully admitted to the United States for permanent residence, who is enrolled on a full-time basis at an eligible health professions school.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Information regarding loan and application procedures may be obtained from eligible health professions schools and the Department of Health and Human Services. This program is excluded from coverage under E.O. 12372.
Application Procedure
The educational institution must certify on the application that the student meets all eligibility requirements, is enrolled on a full-time basis in an appropriate degree program and is in good academic standing. The application (HRSA-700) is submitted with the certification to the lender. This program is subject to the provisions of OMB Circular No. A-110.
Award Procedure
If the lender agrees, and all regulations are followed in making the loans (including determining the credit worthiness of the applicant), an insurance commitment is received from the Federal government. The lender disburses proceeds of loans jointly to the school and the applicant.
Approval/Disapproval Decision Time
Individual lenders must reapply each year to participate in the program.
How are proposals selected?
Not applicable.
How may assistance be used?
Funds are to help defray costs of education at an eligible health professions institution. Repayment begins 9 full months after a borrower ceases to carry a full-time academic workload or ceases to be a participant in an accredited internship or residency program. Deferment of principal and interest payments may be granted during certain periods.
What are the requirements after being awarded this opportunity?
Operational reports are required from lenders quarterly.
In accordance with the provisions of OMB Circular No. A-133 (Revised, June 24, 1997), "Audits of States, Local Governments, and Nonprofit Organizations," nonfederal entities that expend financial assistance of $300,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $300,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. School audits are to be carried out in accordance with the provisions set forth in OMB Circular No. A-133. Lenders must conduct a financial audit of loan award in accordance with Government Audit Standards and the HEAL Audit Guide. In addition, grants and cooperative agreements are subject to inspection and audits by DHHS and other Federal government officials. Biennial audits are required.
Lenders must maintain records to support and identify loan transactions. Schools must maintain administrative and fiscal records.
Other Assistance Considerations
Formula and Matching Requirements
This program has no statutory formula or matching requirements.
Length and Time Phasing of Assistance
Eligible students may apply for a loan for any year of advanced study at an eligible health professions school (pharmacy students must have completed 3 years of training). Repayment is to be made over 10 to 25 years, but must not exceed 33 years from the date the loan was made. For a borrower who received any HEAL loan prior to October 22, 1985, deferments are not included when calculating the 10 to 25 or 33-year limitations. For a borrower who receives his or her first HEAL loan on or after October 22, 1985, deferment periods are included when calculating the 33 year limitation, but are not included when calculating the 10 to 25 year limitation.
Who do I contact about this opportunity?
Regional or Local Office
Headquarters Office
Program Contact: Nancy Durham, Acting Chief, HEAL Branch, Division of Health Careers Diversity and Development, Bureau of Health Professions, Health Resources and Service Administration, Department of Health and Human Services, Room 8-37, 5600 Fishers Lane, Rockville, MD 20857. Contact: Telephone: (301) 443-1540. Use the same number for FTS.
Website Address
Financial Information
Account Identification
(Loans) FY 02 $0; FY 03 est $0 and FY 04 est $0. (Note: No new HEAL loans have been made since October 1998.)
Range and Average of Financial Assistance
Allopathic medicine, osteopathic medicine, dentistry, veterinary medicine, optometry and podiatric medicine aggregate loans are not to exceed $80,000; maximum annual loan limit is $20,000. Pharmacy, public health, chiropractic, clinical psychology, and graduate health administration, aggregate loans are not to exceed $50,000; maximum annual loan limit is $12,500.
Regulations, Guidelines and Literature
Regulations published August 26, 1983, August 28, 1986, January 8, 1987, February 29, 1988, August 29, 1991, December 21, 1993, and October 1, 1995.
Examples of Funded Projects
In fiscal year 2002, $174,800,000 of Health Education Assistance Loans were refinanced and continued to be federally guaranteed.