cfr_sections
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| section_id ▼ | title_number | title_name | chapter | subchapter | part_number | part_name | subpart | subpart_name | section_number | section_heading | agency | authority | source_citation | amendment_citations | full_text |
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| 20:20:4.0.1.1.10.1.5.1 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | A | Subpart A—Standing Youth Committees | § 681.100 What is a standing youth committee? | DOL | The Workforce Innovation and Opportunity Act (WIOA) eliminates the requirement for Local Workforce Development Boards (WDBs) to establish a youth council. However, the Department encourages Local WDBs to establish a standing committee to provide information and to assist with planning, operational, oversight, and other issues relating to the provision of services to youth. If the Local WDB does not designate a standing youth committee, it retains responsibility for all aspects of youth formula programs. | |||||
| 20:20:4.0.1.1.10.1.5.2 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | A | Subpart A—Standing Youth Committees | § 681.110 Who is included on a standing youth committee? | DOL | (a) If a Local WDB decides to form a standing youth committee, the committee must include a member of the Local WDB, who chairs the committee, members of community-based organizations with a demonstrated record of success in serving eligible youth, and other individuals with appropriate expertise and experience who are not members of the Local WDB. (b) The committee must reflect the needs of the local area. The committee members appointed for their experience and expertise may bring their expertise to help the committee address the employment, training, education, human and supportive service needs of eligible youth including out-of-school youth (OSY). Members may represent agencies such as secondary and postsecondary education, training, health, disability, mental health, housing, public assistance, and justice, or be representatives of philanthropic or economic and community development organizations, and employers. The committee may also include parents, participants, and youth. (c) A Local WDB may designate an existing entity such as an effective youth council as the standing youth committee if it fulfills the requirements above in paragraph (a) of this section. | |||||
| 20:20:4.0.1.1.10.1.5.3 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | A | Subpart A—Standing Youth Committees | § 681.120 What does a standing youth committee do? | DOL | Under the direction of the Local WDB, a standing youth committee may: (a) Recommend policy direction to the Local WDB for the design, development, and implementation of programs that benefit all youth; (b) Recommend the design of a comprehensive community workforce development system to ensure a full range of services and opportunities for all youth, including disconnected youth; (c) Recommend ways to leverage resources and coordinate services among schools, public programs, and community-based organizations serving youth; (d) Recommend ways to coordinate youth services and recommend eligible youth service providers; (e) Provide on-going leadership and support for continuous quality improvement for local youth programs; (f) Assist with planning, operational, and other issues relating to the provision of services to youth; and (g) If so delegated by the Local WDB after consultation with the chief elected official (CEO), oversee eligible youth providers, as well as other youth program oversight responsibilities. | |||||
| 20:20:4.0.1.1.10.2.5.1 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | B | Subpart B—Eligibility for Youth Services | § 681.200 Who is eligible for youth services? | DOL | Both in-school youth (ISY) and OSY are eligible for youth services. | |||||
| 20:20:4.0.1.1.10.2.5.10 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | B | Subpart B—Eligibility for Youth Services | § 681.290 How does the Department define the “basic skills deficient” criterion in this part? | DOL | (a) As used in § 681.210(c)(3), a youth is “basic skills deficient” if he or she: (1) Have English reading, writing, or computing skills at or below the 8th grade level on a generally accepted standardized test; or (2) Are unable to compute or solve problems, or read, write, or speak English at a level necessary to function on the job, in the individual's family, or in society. (b) The State or Local WDB must establish its policy on paragraph (a)(2) of this section in its respective State or local plan. (c) In assessing basic skills, local programs must use assessment instruments that are valid and appropriate for the target population, and must provide reasonable accommodation in the assessment process, if necessary, for individuals with disabilities. | |||||
| 20:20:4.0.1.1.10.2.5.11 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | B | Subpart B—Eligibility for Youth Services | § 681.300 How does the Department define the “requires additional assistance to enter or complete an educational program, or to secure and hold employment” criterion in this part for OSY? | DOL | Either the State or the local level may establish definitions and eligibility documentation requirements for the “requires additional assistance to enter or complete an educational program, or to secure and hold employment” criterion of § 681.210(c)(9). In cases where the State WDB establishes State policy on this criterion, the State WDB must include the definition in the State Plan. In cases where the State WDB does not establish a policy, the Local WDB must establish a policy in its local plan if using this criterion. | |||||
| 20:20:4.0.1.1.10.2.5.12 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | B | Subpart B—Eligibility for Youth Services | § 681.310 How does the Department define the “requires additional assistance to complete an educational program, or to secure and hold employment” criterion in this part for ISY? | DOL | (a) Either the State or the local level may establish definitions and eligibility documentation requirements for the “requires additional assistance to complete an educational program, or to secure and hold employment” criterion of § 681.220(d)(8). In cases where the State WDB establishes State policy on this criterion, the State WDB must include the definition in the State Plan. In cases where the State WDB does not establish a policy, the Local WDB must establish a policy in its local plan if using this criterion. (b) In each local area, not more than five percent of the ISY newly enrolled in a given program year may be eligible based on the “requires additional assistance to complete an educational program or to secure or hold employment” criterion. | |||||
| 20:20:4.0.1.1.10.2.5.13 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | B | Subpart B—Eligibility for Youth Services | § 681.320 Must youth participants enroll to participate in the youth program? | DOL | (a) Yes, to participate in youth programs, participants must enroll in the WIOA youth program. (b) In order to be a participant in the WIOA youth program, all of the following must occur: (1) An eligibility determination; (2) The provision of an objective assessment; (3) Development of an individual service strategy; and (4) Participation in any of the 14 WIOA youth program elements. | |||||
| 20:20:4.0.1.1.10.2.5.2 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | B | Subpart B—Eligibility for Youth Services | § 681.210 Who is an “out-of-school youth”? | DOL | An OSY is an individual who is: (a) Not attending any school (as defined under State law); (b) Not younger than age 16 or older than age 24 at time of enrollment. Because age eligibility is based on age at enrollment, participants may continue to receive services beyond the age of 24 once they are enrolled in the program; and (c) One or more of the following: (1) A school dropout; (2) A youth who is within the age of compulsory school attendance, but has not attended school for at least the most recent complete school year calendar quarter. School year calendar quarter is based on how a local school district defines its school year quarters. In cases where schools do not use quarters, local programs must use calendar year quarters; (3) A recipient of a secondary school diploma or its recognized equivalent who is a low-income individual and is either basic skills deficient or an English language learner; (4) An offender; (5) A homeless individual aged 16 to 24 who meets the criteria defined in sec. 41403(6) of the Violence Against Women Act of 1994 (42 U.S.C. 14043e-2(6)), a homeless child or youth aged 16 to 24 who meets the criteria defined in sec. 725(2) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a(2)) or a runaway; (6) An individual in foster care or who has aged out of the foster care system or who has attained 16 years of age and left foster care for kinship guardianship or adoption, a child eligible for assistance under sec. 477 of the Social Security Act (42 U.S.C. 677), or in an out-of-home placement; (7) An individual who is pregnant or parenting; (8) An individual with a disability; or (9) A low-income individual who requires additional assistance to enter or complete an educational program or to secure or hold employment. | |||||
| 20:20:4.0.1.1.10.2.5.3 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | B | Subpart B—Eligibility for Youth Services | § 681.220 Who is an “in-school youth”? | DOL | An ISY is an individual who is: (a) Attending school (as defined by State law), including secondary and postsecondary school; (b) Not younger than age 14 or (unless an individual with a disability who is attending school under State law) older than age 21 at time of enrollment. Because age eligibility is based on age at enrollment, participants may continue to receive services beyond the age of 21 once they are enrolled in the program; (c) A low-income individual; and (d) One or more of the following: (1) Basic skills deficient; (2) An English language learner; (3) An offender; (4) A homeless individual aged 14 to 21 who meets the criteria defined in sec. 41403(6) of the Violence Against Women Act of 1994 (42 U.S.C. 14043e-2(6)), a homeless child or youth aged 14 to 21 who meets the criteria defined in sec. 725(2) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a(2)), or a runaway; (5) An individual in foster care or who has aged out of the foster care system or who has attained 16 years of age and left foster care for kinship guardianship or adoption, a child eligible for assistance under sec. 477 of the Social Security Act (42 U.S.C. 677), or in an out-of-home placement; (6) An individual who is pregnant or parenting; (7) An individual with a disability; or (8) An individual who requires additional assistance to complete an educational program or to secure or hold employment. | |||||
| 20:20:4.0.1.1.10.2.5.4 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | B | Subpart B—Eligibility for Youth Services | § 681.230 What does “school” refer to in the “not attending or attending any school” in the out-of-school and in-school eligibility criteria? | DOL | In general, the applicable State law for secondary and postsecondary institutions defines “school.” However, for purposes of WIOA, the Department does not consider providers of adult education under title II of WIOA, YouthBuild programs, the Job Corps program, high school equivalency programs, or dropout re-engagement programs to be schools. Therefore, in all cases except the one provided below, WIOA youth programs may consider a youth to be an OSY for purposes of WIOA youth program eligibility if he or she attend adult education provided under title II of WIOA, YouthBuild, Job Corps, high school equivalency programs, or dropout re-engagement programs regardless of the funding source of those programs. Youth attending high school equivalency programs funded by the public K-12 school system who are classified by the school system as still enrolled in school are an exception; they are considered ISY. | |||||
| 20:20:4.0.1.1.10.2.5.5 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | B | Subpart B—Eligibility for Youth Services | § 681.240 When do local youth programs verify dropout status? | DOL | Local WIOA youth programs must verify a youth's dropout status at the time of WIOA youth program enrollment. An individual who is out of school at the time of enrollment, and subsequently placed in any school, is an OSY for the purposes of the 75 percent expenditure requirement for OSY throughout his/her participation in the program. | |||||
| 20:20:4.0.1.1.10.2.5.6 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | B | Subpart B—Eligibility for Youth Services | § 681.250 Who does the low-income eligibility requirement apply to? | DOL | (a) For OSY, only those youth who are the recipient of a secondary school diploma or its recognized equivalent and are either basic skills deficient or an English language learner, and youth who require additional assistance to enter or complete an educational program or to secure or hold employment, must be low-income. All other OSY meeting OSY eligibility under § 681.210(c)(1), (2), (4), (5), (6), (7), and (8) are not required to be low-income. (b) All ISY must be low-income to meet the ISY eligibility criteria, except those that fall under the low-income exception. (c) WIOA allows a low-income exception where five percent of WIOA youth may be participants who ordinarily would be required to be low-income for eligibility purposes and meet all other eligibility criteria for WIOA youth except the low-income criteria. A program must calculate the five percent based on the percent of newly enrolled youth in the local area's WIOA youth program in a given program year who would ordinarily be required to meet the low-income criteria. (d) In addition to the criteria in the definition of “low-income individual” in WIOA sec. 3(36), a youth is low-income if he or she receives or is eligible to receive a free or reduced price lunch under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq. or if he or she lives in a high poverty area. | |||||
| 20:20:4.0.1.1.10.2.5.7 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | B | Subpart B—Eligibility for Youth Services | § 681.260 How does the Department define “high poverty area” for the purposes of the special regulation for low-income youth in the Workforce Innovation and Opportunity Act? | DOL | A youth who lives in a high poverty area is automatically considered to be a low-income individual. A high poverty area is a Census tract, a set of contiguous Census tracts, an American Indian Reservation, Oklahoma Tribal Statistical Area (as defined by the U.S. Census Bureau), Alaska Native Village Statistical Area or Alaska Native Regional Corporation Area, Native Hawaiian Homeland Area, or other tribal land as defined by the Secretary in guidance or county that has a poverty rate of at least 25 percent as set every 5 years using American Community Survey 5-Year data. | |||||
| 20:20:4.0.1.1.10.2.5.8 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | B | Subpart B—Eligibility for Youth Services | § 681.270 May a local program use eligibility for free or reduced price lunches under the National School Lunch Program as a substitute for the income eligibility criteria under title I of the Workforce Innovation and Opportunity Act? | DOL | Yes, WIOA sec. 3(36) defines a low-income individual to include an individual who receives (or is eligible to receive) a free or reduced price lunch under the Richard B. Russell National School Lunch Act. | |||||
| 20:20:4.0.1.1.10.2.5.9 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | B | Subpart B—Eligibility for Youth Services | § 681.280 Is a youth with a disability eligible for youth services under the Workforce Innovation and Opportunity Act if his or her family income exceeds the income eligibility criteria? | DOL | Yes, for an individual with a disability, income level for eligibility purposes is based on the individual's own income rather than his or her family's income. WIOA sec. 3(36)(A)(vi) states that an individual with a disability whose own income meets the low-income definition in clause (ii) (income that does not exceed the higher of the poverty line or 70 percent of the lower living standard income level), but who is a member of a family whose income exceeds this income requirement is eligible for youth services. Furthermore, only ISY with a disability must be low income. OSY with a disability are not required to be low-income. | |||||
| 20:20:4.0.1.1.10.3.5.1 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | C | Subpart C—Youth Program Design, Elements, and Parameters | § 681.400 What is the process used to select eligible youth service providers? | DOL | (a) The grant recipient/fiscal agent has the option to provide directly some or all of the youth workforce investment activities. (b) However, as provided in WIOA sec. 123, if a Local WDB chooses to award grants or contracts to youth service providers to carry out some or all of the youth workforce investment activities, the Local WDB must award such grants or contracts on a competitive basis, subject to the exception explained in paragraph (b)(4) of this section: (1) The Local WDB must identify youth service providers based on criteria established in the State Plan (including such quality criteria established by the Governor for a training program that leads to a recognized postsecondary credential) and take into consideration the ability of the provider to meet performance accountability measures based on the primary indicators of performance for youth programs. (2) The Local WDB must procure the youth service providers in accordance with the Uniform Guidance at 2 CFR parts 200 and 2900, in addition to applicable State and local procurement laws. (3) If the Local WDB establishes a standing youth committee under § 681.100 it may assign the committee the function of selecting of grants or contracts. (4) Where the Local WDB determines there are an insufficient number of eligible youth providers in the local area, such as a rural area, the Local WDB may award grants or contracts on a sole source basis. | |||||
| 20:20:4.0.1.1.10.3.5.10 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | C | Subpart C—Youth Program Design, Elements, and Parameters | § 681.490 What is adult mentoring? | DOL | (a) Adult mentoring for youth must: (1) Last at least 12 months and may take place both during the program and following exit from the program; (2) Be a formal relationship between a youth participant and an adult mentor that includes structured activities where the mentor offers guidance, support, and encouragement to develop the competence and character of the mentee; and (3) While group mentoring activities and mentoring through electronic means are allowable as part of the mentoring activities, at a minimum, the local youth program must match the youth with an individual mentor with whom the youth interacts on a face-to-face basis. (b) Mentoring may include workplace mentoring where the local program matches a youth participant with an employer or employee of a company. | |||||
| 20:20:4.0.1.1.10.3.5.11 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | C | Subpart C—Youth Program Design, Elements, and Parameters | § 681.500 What is financial literacy education? | DOL | The financial literacy education program element may include activities which: (a) Support the ability of participants to create budgets, initiate checking and savings accounts at banks, and make informed financial decisions; (b) Support participants in learning how to effectively manage spending, credit, and debt, including student loans, consumer credit, and credit cards; (c) Teach participants about the significance of credit reports and credit scores; what their rights are regarding their credit and financial information; how to determine the accuracy of a credit report and how to correct inaccuracies; and how to improve or maintain good credit; (d) Support a participant's ability to understand, evaluate, and compare financial products, services, and opportunities and to make informed financial decisions; (e) Educate participants about identity theft, ways to protect themselves from identify theft, and how to resolve cases of identity theft and in other ways understand their rights and protections related to personal identity and financial data; (f) Support activities that address the particular financial literacy needs of non-English speakers, including providing the support through the development and distribution of multilingual financial literacy and education materials; (g) Support activities that address the particular financial literacy needs of youth with disabilities, including connecting them to benefits planning and work incentives counseling; (h) Provide financial education that is age appropriate, timely, and provides opportunities to put lessons into practice, such as by access to safe and affordable financial products that enable money management and savings; and (i) Implement other approaches to help participants gain the knowledge, skills, and confidence to make informed financial decisions that enable them to attain greater financial health and stability by using high quality, age-appropriate, and relevant strategies and channels, including, where possible, timely and customized inf… | |||||
| 20:20:4.0.1.1.10.3.5.12 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | C | Subpart C—Youth Program Design, Elements, and Parameters | § 681.510 What is comprehensive guidance and counseling? | DOL | Comprehensive guidance and counseling provides individualized counseling to participants. This includes drug and alcohol abuse counseling, mental health counseling, and referral to partner programs, as appropriate. When referring participants to necessary counseling that cannot be provided by the local youth program or its service providers, the local youth program must coordinate with the organization it refers to in order to ensure continuity of service. | |||||
| 20:20:4.0.1.1.10.3.5.13 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | C | Subpart C—Youth Program Design, Elements, and Parameters | § 681.520 What are leadership development opportunities? | DOL | Leadership development opportunities are opportunities that encourage responsibility, confidence, employability, self-determination, and other positive social behaviors such as: (a) Exposure to postsecondary educational possibilities; (b) Community and service learning projects; (c) Peer-centered activities, including peer mentoring and tutoring; (d) Organizational and team work training, including team leadership training; (e) Training in decision-making, including determining priorities and problem solving; (f) Citizenship training, including life skills training such as parenting and work behavior training; (g) Civic engagement activities which promote the quality of life in a community; and (h) Other leadership activities that place youth in a leadership role such as serving on youth leadership committees, such as a Standing Youth Committee. | |||||
| 20:20:4.0.1.1.10.3.5.14 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | C | Subpart C—Youth Program Design, Elements, and Parameters | § 681.530 What are positive social and civic behaviors? | DOL | Positive social and civic behaviors are outcomes of leadership opportunities, which are incorporated by local programs as part of their menu of services. Positive social and civic behaviors focus on areas that may include the following: (a) Positive attitudinal development; (b) Self-esteem building; (c) Openness to work with individuals from diverse backgrounds; (d) Maintaining healthy lifestyles, including being alcohol- and drug-free; (e) Maintaining positive social relationships with responsible adults and peers, and contributing to the well-being of one's community, including voting; (f) Maintaining a commitment to learning and academic success; (g) Avoiding delinquency; and (h) Positive job attitudes and work skills. | |||||
| 20:20:4.0.1.1.10.3.5.15 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | C | Subpart C—Youth Program Design, Elements, and Parameters | § 681.540 What is occupational skills training? | DOL | (a) The Department defines occupational skills training as an organized program of study that provides specific vocational skills that lead to proficiency in performing actual tasks and technical functions required by certain occupational fields at entry, intermediate, or advanced levels. Local areas must give priority consideration to training programs that lead to recognized postsecondary credentials that align with in-demand industry sectors or occupations in the local area. Such training must: (1) Be outcome-oriented and focused on an occupational goal specified in the individual service strategy; (2) Be of sufficient duration to impart the skills needed to meet the occupational goal; and (3) Lead to the attainment of a recognized postsecondary credential. (b) The chosen occupational skills training must meet the quality standards in WIOA sec. 123. | |||||
| 20:20:4.0.1.1.10.3.5.16 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | C | Subpart C—Youth Program Design, Elements, and Parameters | § 681.550 Are Individual Training Accounts permitted for youth participants? | DOL | Yes. In order to enhance individual participant choice in their education and training plans and provide flexibility to service providers, the Department allows WIOA Individual Training Accounts (ITAs) for OSY, ages 16 to 24 using WIOA youth funds when appropriate. | |||||
| 20:20:4.0.1.1.10.3.5.17 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | C | Subpart C—Youth Program Design, Elements, and Parameters | § 681.560 What is entrepreneurial skills training and how is it taught? | DOL | Entrepreneurial skills training provides the basics of starting and operating a small business. (a) Such training must develop the skills associated with entrepreneurship. Such skills may include, but are not limited to, the ability to: (1) Take initiative; (2) Creatively seek out and identify business opportunities; (3) Develop budgets and forecast resource needs; (4) Understand various options for acquiring capital and the trade-offs associated with each option; and (5) Communicate effectively and market oneself and one's ideas. (b) Approaches to teaching youth entrepreneurial skills include, but are not limited to, the following: (1) Entrepreneurship education that provides an introduction to the values and basics of starting and running a business. Entrepreneurship education programs often guide youth through the development of a business plan and also may include simulations of business start-up and operation. (2) Enterprise development which provides supports and services that incubate and help youth develop their own businesses. Enterprise development programs go beyond entrepreneurship education by helping youth access small loans or grants that are needed to begin business operation and by providing more individualized attention to the development of viable business ideas. (3) Experiential programs that provide youth with experience in the day-to-day operation of a business. These programs may involve the development of a youth-run business that young people participating in the program work in and manage. Or, they may facilitate placement in apprentice or internship positions with adult entrepreneurs in the community. | |||||
| 20:20:4.0.1.1.10.3.5.18 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | C | Subpart C—Youth Program Design, Elements, and Parameters | § 681.570 What are supportive services for youth? | DOL | Supportive services for youth, as defined in WIOA sec. 3(59), are services that enable an individual to participate in WIOA activities. These services include, but are not limited to, the following: (a) Linkages to community services; (b) Assistance with transportation; (c) Assistance with child care and dependent care; (d) Assistance with housing; (e) Needs-related payments; (f) Assistance with educational testing; (g) Reasonable accommodations for youth with disabilities; (h) Legal aid services; (i) Referrals to health care; (j) Assistance with uniforms or other appropriate work attire and work-related tools, including such items as eyeglasses and protective eye gear; (k) Assistance with books, fees, school supplies, and other necessary items for students enrolled in postsecondary education classes; and (l) Payments and fees for employment and training-related applications, tests, and certifications. | |||||
| 20:20:4.0.1.1.10.3.5.19 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | C | Subpart C—Youth Program Design, Elements, and Parameters | § 681.580 What are follow-up services for youth? | DOL | (a) Follow-up services are critical services provided following a youth's exit from the program to help ensure the youth is successful in employment and/or postsecondary education and training. Follow-up services may include regular contact with a youth participant's employer, including assistance in addressing work-related problems that arise. (b) Follow-up services for youth also may include the following program elements: (1) Supportive services; (2) Adult mentoring; (3) Financial literacy education; (4) Services that provide labor market and employment information about in-demand industry sectors or occupations available in the local area, such as career awareness, career counseling, and career exploration services; and (5) Activities that help youth prepare for and transition to postsecondary education and training. (c) All youth participants must be offered an opportunity to receive follow-up services that align with their individual service strategies. Furthermore, follow-up services must be provided to all participants for a minimum of 12 months unless the participant declines to receive follow-up services or the participant cannot be located or contacted. Follow-up services may be provided beyond 12 months at the State or Local WDB's discretion. The types of services provided and the duration of services must be determined based on the needs of the individual and therefore, the type and intensity of follow-up services may differ for each participant. Follow-up services must include more than only a contact attempted or made for securing documentation in order to report a performance outcome. | |||||
| 20:20:4.0.1.1.10.3.5.2 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | C | Subpart C—Youth Program Design, Elements, and Parameters | § 681.410 Does the requirement that a State and local area expend at least 75 percent of youth funds to provide services to out-of-school youth apply to all youth funds? | DOL | Yes. The 75 percent requirement applies to both statewide youth activities funds and local youth funds with 2 exceptions. (a) Only statewide funds spent on direct services to youth are subject to the OSY expenditure requirement. Funds spent on statewide youth activities that do not provide direct services to youth, such as most of the required statewide youth activities listed in WIOA sec. 129(b)(1), are not subject to the OSY expenditure requirement. For example, administrative costs, monitoring, and technical assistance are not subject to OSY expenditure requirement; while funds spent on direct services to youth such as statewide demonstration projects, are subject to the OSY expenditure requirement. (b) For a State that receives a small State minimum allotment under WIOA sec. 127(b)(1)(C)(iv)(II) for youth or WIOA sec. 132(b)(1)(B)(iv)(II) for adults, the State may submit a request to the Secretary to decrease the percentage to not less than 50 percent for a local area in the State, and the Secretary may approve such a request for that program year, if the State meets the following requirements: (1) After an analysis of the ISY and OSY populations in the local area, the State determines that the local area will be unable to use at least 75 percent of the local area WIOA youth funds to serve OSY due to a low number of OSY; and (2) The State submits to the Secretary, for the local area, a request including a proposed percentage decreased to not less than 50 percent to provide workforce investment activities for OSY. (c) In the exercise of discretion afforded by WIOA sec. 129(a)(4), the Secretary has determined that requests to decrease the percentage of funds used to provide youth workforce investment activities for OSY will not be granted to States that received 90 percent of the allotment percentage for the past year. Therefore, when the Secretary receives such a request from a State, the request will be denied. (d) For local area funds, the administrative costs of carrying out local workforce investment… | |||||
| 20:20:4.0.1.1.10.3.5.20 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | C | Subpart C—Youth Program Design, Elements, and Parameters | § 681.590 What is the work experience priority and how will local youth programs track the work experience priority? | DOL | (a) Local youth programs must expend not less than 20 percent of the funds allocated to them to provide ISY and OSY with paid and unpaid work experiences that fall under the categories listed in § 681.460(a)(3) and further defined in § 681.600. (b) Local WIOA youth programs must track program funds spent on paid and unpaid work experiences, including wages and staff costs for the development and management of work experiences, and report such expenditures as part of the local WIOA youth financial reporting. The percentage of funds spent on work experience is calculated based on the total local area youth funds expended for work experience rather than calculated separately for ISY and OSY. Local area administrative costs are not subject to the 20 percent minimum work experience expenditure requirement. | |||||
| 20:20:4.0.1.1.10.3.5.21 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | C | Subpart C—Youth Program Design, Elements, and Parameters | § 681.600 What are work experiences? | DOL | (a) Work experiences are a planned, structured learning experience that takes place in a workplace for a limited period of time. Work experience may be paid or unpaid, as appropriate. A work experience may take place in the private for-profit sector, the non-profit sector, or the public sector. Labor standards apply in any work experience where an employee/employer relationship, as defined by the Fair Labor Standards Act or applicable State law, exists. Consistent with § 680.840 of this chapter, funds provided for work experiences may not be used to directly or indirectly aid in the filling of a job opening that is vacant because the former occupant is on strike, or is being locked out in the course of a labor dispute, or the filling of which is otherwise an issue in a labor dispute involving a work stoppage. Work experiences provide the youth participant with opportunities for career exploration and skill development. (b) Work experiences must include academic and occupational education. The educational component may occur concurrently or sequentially with the work experience. Further academic and occupational education may occur inside or outside the work site. (c) The types of work experiences include the following categories: (1) Summer employment opportunities and other employment opportunities available throughout the school year; (2) Pre-apprenticeship programs; (3) Internships and job shadowing; and (4) On-the-job training (OJT) opportunities as defined in WIOA sec. 3(44) and in § 680.700 of this chapter. | |||||
| 20:20:4.0.1.1.10.3.5.22 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | C | Subpart C—Youth Program Design, Elements, and Parameters | § 681.610 Does the Workforce Innovation and Opportunity Act require Local Workforce Development Boards to offer summer employment opportunities in the local youth program? | DOL | No, WIOA does not require Local WDBs to offer summer youth employment opportunities as summer employment is no longer its own program element under WIOA. However, WIOA does require Local WDBs to offer work experience opportunities using at least 20 percent of their funding, which may include summer employment. | |||||
| 20:20:4.0.1.1.10.3.5.23 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | C | Subpart C—Youth Program Design, Elements, and Parameters | § 681.620 How are summer employment opportunities administered? | DOL | Summer employment opportunities are a component of the work experience program element. If youth service providers administer the work experience program element, they must be selected by the Local WDB according to the requirements of WIOA sec. 123 and § 681.400, based on criteria contained in the State Plan. However, the summer employment administrator does not need to select the employers who are providing the employment opportunities through a competitive process. | |||||
| 20:20:4.0.1.1.10.3.5.24 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | C | Subpart C—Youth Program Design, Elements, and Parameters | § 681.630 What does education offered concurrently with and in the same context as workforce preparation activities and training for a specific occupation or occupational cluster mean? | DOL | This program element reflects an integrated education and training model and describes how workforce preparation activities, basic academic skills, and hands-on occupational skills training are to be taught within the same time frame and connected to training in a specific occupation, occupational cluster, or career pathway. | |||||
| 20:20:4.0.1.1.10.3.5.25 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | C | Subpart C—Youth Program Design, Elements, and Parameters | § 681.640 Are incentive payments to youth participants permitted? | DOL | Yes, incentive payments to youth participants are permitted for recognition and achievement directly tied to training activities and work experiences. The local program must have written policies and procedures in place governing the award of incentives and must ensure that such incentive payments are: (a) Tied to the goals of the specific program; (b) Outlined in writing before the commencement of the program that may provide incentive payments; (c) Align with the local program's organizational policies; and (d) Are in accordance with the requirements contained in 2 CFR part 200. | |||||
| 20:20:4.0.1.1.10.3.5.26 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | C | Subpart C—Youth Program Design, Elements, and Parameters | § 681.650 How can parents, youth, and other members of the community get involved in the design and implementation of local youth programs? | DOL | Local WDBs and programs must provide opportunities for parents, participants, and other members of the community with experience working with youth to be involved in the design and implementation of youth programs. Parents, youth participants, and other members of the community can get involved in a number of ways, including serving on youth standing committees, if they exist and they are appointed by the Local WDB. They also can get involved by serving as mentors, serving as tutors, and providing input into the design and implementation of other program design elements. Local WDBs also must make opportunities available to successful participants to volunteer to help participants as mentors, tutors, or in other activities. | |||||
| 20:20:4.0.1.1.10.3.5.3 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | C | Subpart C—Youth Program Design, Elements, and Parameters | § 681.420 How must Local Workforce Development Boards design Workforce Innovation and Opportunity Act youth programs? | DOL | (a) The design framework services of local youth programs must: (1) Provide for an objective assessment of each youth participant that meets the requirements of WIOA sec. 129(c)(1)(A), and includes a review of the academic and occupational skill levels, as well as the service needs and strengths, of each youth for the purpose of identifying appropriate services and career pathways for participants and informing the individual service strategy; (2) Develop, and update as needed, an individual service strategy based on the needs of each youth participant that is directly linked to one or more indicators of performance described in WIOA sec. 116(b)(2)(A)(ii), that identifies career pathways that include education and employment goals, that considers career planning and the results of the objective assessment and that prescribes achievement objectives and services for the participant; and (3) Provide case management of youth participants, including follow-up services. (b) The local plan must describe the design framework for youth programs in the local area, and how the 14 program elements required in § 681.460 are to be made available within that framework. (c) Local WDBs must ensure appropriate links to entities that will foster the participation of eligible local area youth. Such links may include connections to: (1) Local area justice and law enforcement officials; (2) Local public housing authorities; (3) Local education agencies; (4) Local human service agencies; (5) WIOA title II adult education providers; (6) Local disability-serving agencies and providers and health and mental health providers; (7) Job Corps representatives; and (8) Representatives of other area youth initiatives, such as YouthBuild, and including those that serve homeless youth and other public and private youth initiatives. (d) Local WDBs must ensure that WIOA youth service providers meet the referral requirements in WIOA sec. 129(c)(3)(A) for all youth participants, including: (1) Providing these participants with informati… | |||||
| 20:20:4.0.1.1.10.3.5.4 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | C | Subpart C—Youth Program Design, Elements, and Parameters | § 681.430 May youth participate in both the Workforce Innovation and Opportunity Act (WIOA) youth and adult programs concurrently, and how do local program operators track concurrent enrollment in the WIOA youth and adult programs? | DOL | (a) Yes, individuals who meet the respective program eligibility requirements may participate in adult and youth programs concurrently. Such individuals must be eligible under the youth or adult eligibility criteria applicable to the services received. Local program operators may determine, for these individuals, the appropriate level and balance of services under the youth and adult programs. (b) Local program operators must identify and track the funding streams which pay the costs of services provided to individuals who are participating in youth and adult programs concurrently, and ensure no duplication of services. (c) Individuals who meet the respective program eligibility requirements for WIOA youth title I and title II may participate in title I youth and title II concurrently. | |||||
| 20:20:4.0.1.1.10.3.5.5 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | C | Subpart C—Youth Program Design, Elements, and Parameters | § 681.440 How does a local youth program determine if an 18 to 24 year old is enrolled in the Workforce Innovation and Opportunity Act (WIOA) youth program or the WIOA adult program? | DOL | A local program must determine the appropriate program for the participant based on the service needs of the participant and if the participant is career-ready based on an assessment of their occupational skills, prior work experience, employability, and the participant's needs. | |||||
| 20:20:4.0.1.1.10.3.5.6 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | C | Subpart C—Youth Program Design, Elements, and Parameters | § 681.450 For how long must a local Workforce Innovation and Opportunity Act youth program serve a participant? | DOL | Local youth programs must provide service to a participant for the amount of time necessary to ensure successful preparation to enter postsecondary education and/or unsubsidized employment. While there is no minimum or maximum time a youth can participate in the WIOA youth program, programs must link participation to the individual service strategy and not the timing of youth service provider contracts or program years. | |||||
| 20:20:4.0.1.1.10.3.5.7 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | C | Subpart C—Youth Program Design, Elements, and Parameters | § 681.460 What services must local programs offer to youth participants? | DOL | (a) Local programs must make each of the following 14 services available to youth participants: (1) Tutoring, study skills training, instruction and evidence-based dropout prevention and recovery strategies that lead to completion of the requirements for a secondary school diploma or its recognized equivalent (including a recognized certificate of attendance or similar document for individuals with disabilities) or for a recognized postsecondary credential; (2) Alternative secondary school services, or dropout recovery services, as appropriate; (3) Paid and unpaid work experiences that have academic and occupational education as a component of the work experience, which may include the following types of work experiences: (i) Summer employment opportunities and other employment opportunities available throughout the school year; (ii) Pre-apprenticeship programs; (iii) Internships and job shadowing; and (iv) On-the-job training opportunities; (4) Occupational skill training, which includes priority consideration for training programs that lead to recognized postsecondary credentials that align with in-demand industry sectors or occupations in the local area involved, if the Local WDB determines that the programs meet the quality criteria described in WIOA sec. 123; (5) Education offered concurrently with and in the same context as workforce preparation activities and training for a specific occupation or occupational cluster; (6) Leadership development opportunities, including community service and peer-centered activities encouraging responsibility and other positive social and civic behaviors; (7) Supportive services, including the services listed in § 681.570; (8) Adult mentoring for a duration of at least 12 months, that may occur both during and after program participation; (9) Follow-up services for not less than 12 months after the completion of participation, as provided in § 681.580; (10) Comprehensive guidance and counseling, which may include drug and alcohol abuse counseling, as well as r… | |||||
| 20:20:4.0.1.1.10.3.5.8 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | C | Subpart C—Youth Program Design, Elements, and Parameters | § 681.470 Does the Department require local programs to use Workforce Innovation and Opportunity Act funds for each of the 14 program elements? | DOL | No. The Department does not require local programs to use WIOA youth funds for each of the program elements. Local programs may leverage partner resources to provide some of the readily available program elements. However, the local area must ensure that if a program element is not funded with WIOA title I youth funds, the local program has an agreement in place with a partner organization to ensure that the program element will be offered. The Local WDB must ensure that the program element is closely connected and coordinated with the WIOA youth program. | |||||
| 20:20:4.0.1.1.10.3.5.9 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | C | Subpart C—Youth Program Design, Elements, and Parameters | § 681.480 What is a pre-apprenticeship program? | DOL | A pre-apprenticeship is a program designed to prepare individuals to enter and succeed in an apprenticeship program registered under the Act of August 16, 1937 (commonly known as the “National Apprenticeship Act”; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et. seq. ) (referred to in this part as a “registered apprenticeship” or “registered apprenticeship program”) and includes the following elements: (a) Training and curriculum that aligns with the skill needs of employers in the economy of the State or region involved; (b) Access to educational and career counseling and other supportive services, directly or indirectly; (c) Hands-on, meaningful learning activities that are connected to education and training activities, such as exploring career options, and understanding how the skills acquired through coursework can be applied toward a future career; (d) Opportunities to attain at least one industry-recognized credential; and (e) A partnership with one or more registered apprenticeship programs that assists in placing individuals who complete the pre-apprenticeship program in a registered apprenticeship program. | |||||
| 20:20:4.0.1.1.10.4.5.1 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | D | Subpart D—One-Stop Services to Youth | § 681.700 What is the connection between the youth program and the one-stop delivery system? | DOL | (a) WIOA sec. 121(b)(1)(B)(i) requires that the youth program function as a required one-stop partner and fulfill the roles and responsibilities of a one-stop partner described in WIOA sec. 121(b)(1)(A). (b) In addition to the provisions of part 678 of this chapter, connections between the youth program and the one-stop delivery system may include those that facilitate: (1) The coordination and provision of youth activities; (2) Linkages to the job market and employers; (3) Access for eligible youth to the information and services required in § 681.460; (4) Services for non-eligible youth such as basic labor exchange services, other self-service activities such as job searches, career exploration, use of one-stop center resources, and referral as appropriate; and (5) Other activities described in WIOA sec. 129(b)-(c). (c) Local WDBs must either colocate WIOA youth program staff at one-stop centers and/or ensure one-stop centers and staff are trained to serve youth and equipped to advise youth to increase youth access to services and connect youth to the program that best aligns with their needs. | |||||
| 20:20:4.0.1.1.10.4.5.2 | 20 | Employees' Benefits | V | 681 | PART 681—YOUTH ACTIVITIES UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT | D | Subpart D—One-Stop Services to Youth | § 681.710 Do Local Workforce Development Boards have the flexibility to offer services to area youth who are not eligible under the youth program through the one-stop centers? | DOL | Yes. However, Local WDBs must ensure one-stop centers fund services for non-eligible youth through programs authorized to provide services to such youth. For example, one-stop centers may provide basic labor exchange services under the Wagner-Peyser Act to any youth. | |||||
| 34:34:4.1.1.1.1.1.1.1 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | A | Subpart A—General Program Description | § 681.1 What is the HEAL program? | ED | (a) The Health Education Assistance Loan (HEAL) program is a program of Federal insurance of educational loans that were made to graduate students in the fields of medicine, osteopathic medicine, dentistry, veterinary medicine, optometry, podiatric medicine, pharmacy, public health, chiropractic, health administration, and clinical psychology. The basic purpose of the program is to encourage lenders to make loans to students in these fields who desire to borrow money to pay for their educational costs. In addition, certain nonstudents (such as doctors serving as interns or residents) could borrow in order to pay the current interest charges accruing on earlier HEAL loans. By taking a HEAL loan, the borrower is obligated to repay the lender or holder the full amount of the money borrowed, plus all interest which accrues on the loan. (b) HEAL loans were made by schools, banks, credit unions, State agencies, and other institutions eligible as lenders under § 681.30. HEAL school eligibility is described in § 681.50. (c) The Secretary insures each lender or holder for the losses of principal and interest it may incur in the event that a borrower dies; becomes totally and permanently disabled; files for bankruptcy under chapter 11 or 13 of the Bankruptcy Act; files for bankruptcy under chapter 7 of the Bankruptcy Act and files a compliant to determine the dischargeability of the HEAL loan; or defaults on his or her loan. In these instances, if the lender or holder has complied with all HEAL statutes and regulations and with the lender's or holder's insurance contract, then the Secretary pays the amount of the loss to the lender or holder and the borrower's loan is assigned to the Secretary. Only after assignment does the Secretary become the holder of the HEAL loan and the Secretary will use all collection methods legally authorized to obtain repayment of the HEAL loan, including, but not limited to, reporting the borrower's default on the loan to consumer credit reporting agencies, certifying the debt for offset in … | |||||
| 34:34:4.1.1.1.1.2.1.1 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | B | Subpart B—The Borrower | § 681.5 Who is an eligible student borrower? | ED | To receive a HEAL loan, a student must satisfy the following requirements: (a) He or she must be a citizen, national, or lawful permanent resident of the United States, permanent resident of the Trust Territory of the Pacific Islands (the Republic of Palau), the Republic of the Marshall Islands, the Federated States of Micronesia, the Commonwealth of the Northern Mariana Islands, or American Samoa, or lawful permanent resident of the Commonwealth of Puerto Rico, the Virgin Islands or Guam; (b) He or she must be enrolled or accepted for enrollment at a HEAL school in a course of study that leads to one of the following degrees: (1) Doctor of Medicine. (2) Doctor of Osteopathic Medicine. (3) Doctor of Dentistry or equivalent degree. (4) Doctor of Veterinary Medicine or equivalent degree. (5) Doctor of Optometry or equivalent degree. (6) Doctor of Podiatric Medicine or equivalent degree. (7) Bachelor or Master of Science in Pharmacy or equivalent degree. (8) Graduate or equivalent degree in Public Health. (9) Doctor of Chiropractic or equivalent degree. (10) Doctoral degree in Clinical Psychology. (11) Masters or doctoral degree in Health Administration. (c) He or she must be carrying or plan to carry, during the period for which the loan is intended, the normal work load of a full-time student, as determined by the school. The student's work load may include any combination of courses, work experience, research or special studies that the school considers sufficient to classify the student as full time. (d) If currently enrolled in school, he or she must be in good standing, as determined by the school. (e)(1) In the case of a pharmacy student, he or she must have satisfactorily completed 3 years of training toward the pharmacy degree. These 3 years of training may have been taken at the pharmacy school or at a different school whose credits are accepted on transfer by the pharmacy school. (2) The Doctor of Pharmacy degree is considered to be an equivalent degree if it is taken in a school that doe… | |||||
| 34:34:4.1.1.1.1.2.1.2 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | B | Subpart B—The Borrower | § 681.6 Who is an eligible nonstudent borrower? | ED | To receive a HEAL loan, a person who is not a student must satisfy all of the following requirements: (a) He or she must have received a HEAL loan prior to August 13, 1981, for which he or she is required to make payments of interest, but not principal, during the period for which the new loan is intended. This may be the grace period or a period of internship, residency, or deferment. (b) He or she must continue to meet the citizenship, nationality, or residency qualifications required of student borrowers. (c) He or she must agree that all funds received under the proposed loan will be used solely for payment of currently accruing interest on HEAL loans and the HEAL insurance premium. (d) If required under section 3 of the Military Selective Service Act to present himself for and submit to registration under such section, he must have presented himself and submitted to registration under such section. | |||||
| 34:34:4.1.1.1.1.2.1.3 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | B | Subpart B—The Borrower | § 681.7 The loan application process. | ED | (a)(1)(i) A student seeking a HEAL loan applies to a participating lender for a HEAL loan by submitting an application form supplied by the school. (ii) The applicant must fill out the applicant sections of the form completely and accurately. (2) The student applicant must have been informed of the Federal debt collection policies and procedures in accordance with the Health and Human Services (HHS) Claims Collection Regulation (45 CFR part 30) prior to the student receiving the loan. The applicant must sign a certification statement attesting that the applicant has been notified of the actions the Federal Government can take in the event that the applicant fails to meet the scheduled payments. This signed statement must be maintained by the school and the lender or holder as part of the borrower's official record. (3) A student applicant must have his or her school complete a portion of the application providing information relating to: (i) The applicant's eligibility for the loan; (ii) The cost of his or her education; and (iii) The total financial resources that are actually available to the applicant for his or her costs of education for the period covered by the proposed HEAL loan, as determined in accordance with § 681.51(f), and other student aid that the applicant has received or will receive for the period covered by the proposed HEAL loan. (4) The student applicant must certify on the application that the information provided reflects the applicant's total financial resources actually available for his or her costs of education for the period covered by the proposed HEAL loan and the applicant's total indebtedness, and that the applicant has no other financial resources that are available to the applicant or that the applicant will receive for the period covered by the proposed HEAL loan. (5) A student applicant must certify on the application that if required under section 3 of the Military Selective Service Act to present himself for and submit to registration under such section, he has presen… | |||||
| 34:34:4.1.1.1.1.2.1.4 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | B | Subpart B—The Borrower | § 681.8 What are the borrower's major rights and responsibilities? | ED | (a) The borrower's rights. (1) Once the terms of the HEAL loan have been established, the lender or holder may not change them without the borrower's consent. (2) The lender must provide the borrower with a copy of the completed promissory note when the loan is made. The lender or holder must return the original note to the borrower when the loan is paid in full. (3) A lender must disburse HEAL loan proceeds as described in § 681.33(f). (4) The lender or holder must provide the borrower with a copy of the repayment schedule before repayment begins. (5) If the loan is sold from one lender or holder to another lender or holder, or if the loan is serviced by a party other than the lender or holder, the buyer must notify the borrower within 30 days of the transaction. (6) The borrower does not have to begin repayment until 9 full months after leaving school or an accredited internship or residency program as described in § 681.11. (7) The borrower is entitled to deferment from repayment of the principal and interest installments during periods described in § 681.12. (8) The borrower may prepay the whole or any portion of the loan at any time without penalty. (9) The lender or holder must allow the borrower to repay a HEAL loan according to a graduated repayment schedule. (10) The borrower's total loan obligation is cancelled in the event of death or total and permanent disability. (11) To assist the borrower in avoiding default, the lender or holder may grant the borrower forbearance. Forbearance, including circumstances in which the lender or holder must grant forbearance, is more fully described in § 681.37. (12) Any borrower who received a fixed interest rate HEAL loan in excess of 12 percent per year could have entered into an agreement with the lender which made this loan for the reissuance of the loan in accordance with section 739A of the Public Health Service Act (the Act). (b) The borrower's responsibilities. (1) The borrower must pay any insurance premium that the lender may require as more … | |||||
| 34:34:4.1.1.1.1.3.1.1 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | C | Subpart C—The Loan | § 681.10 How much can be borrowed? | ED | (a) Student borrower. An eligible student may borrow an amount to be used solely for expenses, as described in § 681.5(g), incurred or to be incurred over a period of up to an academic year and disbursed in accordance with § 681.33(f). The maximum amount he or she may receive for that period shall be determined by the school in accordance with § 681.51(f) within the following limitations: (1) A student enrolled in a school of medicine, osteopathic medicine, dentistry, veterinary medicine, optometry or podiatric medicine may borrow up to $80,000 under this part. The amount received may not exceed $20,000 in any academic year. (2) A student enrolled in a school of public health, pharmacy, or chiropractic, or a graduate program in health administration, clinical psychology, or allied health, may borrow up to $50,000 under this part. The amount received may not exceed $12,500 per academic year. (3) For purposes of this paragraph, an academic year means the traditional approximately 9-month September-to-June annual session. For the purpose of computing academic year equivalents for students who, during a 12-month period, attend for a longer period than the traditional academic year, the academic year will be considered to be 9 months in length. (4) The student's estimated cost of attendance shall not exceed the estimated cost of attendance of all students in like circumstances pursuing a similar curriculum at that school. (b) Non-student borrower. An eligible nonstudent may borrow amounts under this authority with the following restrictions: (1) In no case may an eligible nonstudent borrower receive a loan that is greater than the sum of the HEAL insurance premium plus the interest that is expected to accrue and must be paid on the borrower's HEAL loans during the period for which the new loan is intended. (2) An eligible nonstudent in the field of medicine, osteopathic medicine, dentistry, veterinary medicine, optometry, or podiatric medicine may borrow up to $80,000 under this part including loans obtaine… | |||||
| 34:34:4.1.1.1.1.3.1.10 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | C | Subpart C—The Loan | § 681.19 Forms. | ED | All HEAL forms are approved by the Secretary and may not be changed without prior approval by the Secretary. HEAL forms shall not be signed in blank by a borrower, a school, a lender or holder, or an agent of any of these. The Secretary may prescribe who must complete the forms, and when and to whom the forms must be sent. All HEAL forms must contain a statement that any person who knowingly makes a false statement or misrepresentation in a HEAL loan transaction, bribes or attempts to bribe a Federal official, fraudulently obtains a HEAL loan, or commits any other illegal action in connection with a HEAL loan is subject to possible fine and imprisonment under Federal statute. | |||||
| 34:34:4.1.1.1.1.3.1.11 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | C | Subpart C—The Loan | § 681.20 The Secretary's collection efforts after payment of a default claim. | ED | After paying a default claim on a HEAL loan, the Secretary attempts to collect from the borrower and any valid endorser in accordance with the Federal Claims Collection Standards (4 CFR parts 101 through 105), the Office of Management and Budget Circular A-129, issued January 2013, and the Department's Claims Collection Regulation (34 CFR parts 30, 31, and 34). The Secretary attempts collection of all unpaid principal, interest, penalties, administrative costs, and other charges or fees, except in the following situations: (a) The borrower has a valid defense on the loan. The Secretary refrains from collection against the borrower or endorser to the extent of any defense that the Secretary concludes is valid. Examples of a valid defense include infancy or proof of repayment in part or in full. (b) A school owes the borrower a refund for the period covered by the loan. In this situation, the Secretary refrains from collection to the extent of the unpaid refund if the borrower assigns to the Secretary the right to receive the refund. (c) The school or lender or holder is the subject of a lawsuit or Federal administrative proceeding. In this situation, if the Secretary determines that the proceeding involves allegations that, if proven, would provide the borrower with a full or partial defense on the loan, then the Secretary may suspend collection activity on all or part of a loan until the proceeding ends. The Secretary suspends collection activity only for so long as the proceeding is being energetically prosecuted in good faith and the allegations that relate to the borrower's defense are reasonably likely to be proven. (d) The borrower dies or becomes totally and permanently disabled. In this situation, the Secretary terminates all collection activity against the borrower. The Secretary follows the procedures and standards in 34 CFR 685.213 and 34 CFR 685.212(a) to determine if the borrower is totally and permanently disabled. If the borrower dies or becomes totally and permanently disabled, the Secr… | |||||
| 34:34:4.1.1.1.1.3.1.12 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | C | Subpart C—The Loan | § 681.21 Refunds. | ED | (a) Student authorization. By applying for a HEAL loan, a student authorizes a participating school to make payment of a refund that is allocable to a HEAL loan directly to the original lender (or to a subsequent holder of the loan note, if the school has knowledge of the holder's identity). (b) Treatment by lenders or holders. (1) A holder of a HEAL loan must treat a refund payment received from a HEAL school as a downward adjustment in the principal amount of the loan. (2) When a lender receives a school refund check for a loan it no longer holds, the lender must transfer that payment to the holder of the loan and either inform the borrower about the refund check and where it was sent or, if the borrower's address is unknown, notify the current holder that the borrower was not informed. The current holder must provide the borrower with a written notice of the refund payment. | |||||
| 34:34:4.1.1.1.1.3.1.2 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | C | Subpart C—The Loan | § 681.11 Terms of repayment. | ED | (a) Commencement of repayment. (1) The borrower's repayment period begins the first day of the 10th month after the month he or she ceases to be a full-time student at a HEAL school. The 9-month period before the repayment period begins is popularly called the “grace period.” (i) Postponement for internship or residency program. However, if the borrower becomes an intern or resident in an accredited program within 9 full months after leaving school, then the borrower's repayment period begins the first day of the 10th month after the month he or she ceases to be an intern or resident. For a borrower who receives his or her first HEAL loan on or after October 22, 1985, this postponement of the beginning of the repayment period for participation in an internship or residency program is limited to 4 years. (ii) Postponement for fellowship training or educational activity. For any HEAL loan received on or after October 22, 1985, if the borrower becomes an intern or resident in an accredited program within 9 full months after leaving school, and subsequently enters into a fellowship training program or an educational activity, as described in § 681.12(b)(1) and (2), within 9 months after the completion of the accredited internship or residency program or prior to the completion of such program, the borrower's repayment period begins on the first day of the 10th month after the month he or she ceases to be a participant in the fellowship training program or educational activity. Postponement of the commencement of the repayment period for either activity is limited to 2 years. (iii) Non-student borrower. If a nonstudent borrower obtains another HEAL loan during the grace period or period of internship, residency, or deferment (as defined in § 681.12), the repayment period on this loan begins when repayment on the borrower's other HEAL loans begins or resumes. (2) An accredited internship or residency program must be approved by one of the following accrediting agencies: (i) Accreditation Council for Gradua… | |||||
| 34:34:4.1.1.1.1.3.1.3 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | C | Subpart C—The Loan | § 681.12 Deferment. | ED | (a) After the repayment period has commenced, installments of principal and interest need not be paid during any period: (1) During which the borrower is pursuing a full-time course of study at a HEAL school or at an institution of higher education that is a “participating school” in the William D. Ford Federal Direct Loan Program; (2) Up to 4 years during which the borrower is a participant in an accredited internship or residency program, as described in § 681.11(a)(2). For a borrower who receives his or her first HEAL loan on or after October 22, 1985, this total of 4 years for an internship or residency program includes any period of postponement of the repayment period, as described in § 681.11(a)(1); (3) Up to 3 years during which the borrower is a member of the Armed Forces of the United States; (4) Up to 3 years during which the borrower is in service as a volunteer under the Peace Corps Act; (5) Up to 3 years during which the borrower is a member of the National Health Service Corps; or (6) Up to 3 years during which the borrower is a full-time volunteer under title I of the Domestic Volunteer Service Act of 1973. (b) For any HEAL loan received on or after October 22, 1985, after the repayment period has commenced, installments of principal and interest need not be paid during any period for up to 2 years during which the borrower is a participant in: (1) A fellowship training program, which: (i) Is directly related to the discipline for which the borrower received the HEAL loan; (ii) Begins within 12 months after the borrower ceases to be a participant in an accredited internship or residency program, as described in § 681.11(a)(2), or prior to the completion of the borrower's participation in such program; (iii) Is a full-time activity in research or research training or health care policy; (iv) Is not a part of, an extension of, or associated with an internship or residency program, as described in § 681.11(a)(2); (v) Pays no stipend or one which is not more than the annual stipend level … | |||||
| 34:34:4.1.1.1.1.3.1.4 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | C | Subpart C—The Loan | § 681.13 Interest. | ED | (a) Rate. At the lender's option, the interest rate on the HEAL loan may be calculated on a fixed rate or on a variable rate basis. However, whichever method is selected must continue over the life of the loan, except where the loan is consolidated with another HEAL loan. (1) For all loans made on or after October 22, 1985, for each calendar quarter, the Secretary determines the maximum annual HEAL interest rate by determining the average of the bond equivalent rates reported for the 91-day U.S. Treasury bills auctioned for the preceding calendar quarter, adding 3 percentage points, and rounding that amount to the next higher one-eighth of 1 percent. (2) Interest that is calculated on a fixed rate basis is determined for the life of the loan during the calendar quarter in which the loan is executed. It may not exceed the rate determined for that quarter by the Secretary under paragraph (a)(1) of this section. (3) Interest that is calculated on a variable rate basis varies every calendar quarter throughout the life of the loan as the market price of U.S. Treasury bills changes. For any quarter it may not exceed the rate determined by the Secretary under paragraph (a)(1) of this section. (4) The Secretary announces the rate determined under paragraph (a)(1) of this section on a quarterly basis through a notice published on the Department's student aid Web site at www.ifap.ed.gov . (b) Compounding of interest. Interest accrues from the date the loan is disbursed until the loan is paid in full. Unpaid accrued interest shall be compounded not more frequently than semiannually and added to principal. However, a lender or holder may postpone the compounding of interest before the beginning of the repayment period or during periods of deferment or forbearance and add interest to principal at the time repayment of principal begins or resumes. (c) Payment. Repayment of principal and interest is due when the repayment period begins. A lender or holder must permit a borrower to postpone paying interest before th… | |||||
| 34:34:4.1.1.1.1.3.1.5 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | C | Subpart C—The Loan | § 681.14 The insurance premium. | ED | (a) General. (1) The Secretary insures each lender or holder for the losses of principal and interest it may incur in the event that a borrower dies; becomes totally and permanently disabled; files for bankruptcy under chapter 11 or 13 of the Bankruptcy Act; files for bankruptcy under chapter 7 of the Bankruptcy Act and files a complaint to determine the dischargeability of the HEAL loan; or defaults on his or her loan. For this insurance, the Secretary charges the lender an insurance premium. The insurance premium is due to the Secretary on the date of disbursement of the HEAL loan. (2) The lender may charge the borrower an amount equal to the cost of the insurance premium. The cost of the insurance premium may be charged to the borrower by the lender in the form of a one-time special charge with no subsequent adjustments required. The lender may bill the borrower separately for the insurance premium or may deduct an amount attributable to it from the loan proceeds before the loan is disbursed. In either case, the lender must clearly identify to the borrower the amount of the insurance premium and the method of calculation. (3) If the lender does not pay the insurance premium on or before 30 days after disbursement of the loan, a late fee will be charged on a daily basis at the same rate as the interest rate that the lender charges for the HEAL loan for which the insurance premium is past due. The lender may not pass on this late fee to the borrower. (4) HEAL insurance coverage ceases to be effective if the insurance premium is not paid within 60 days of the disbursement of the loan. (5) Except in cases of error, premiums are not refundable by the Secretary, and need not be refunded by the lender to the borrower, even if the borrower graduates or withdraws from the school, defaults, dies or becomes totally and permanently disabled. (b) Rate. The rate of the insurance premium shall not exceed the statutory maximum. The Secretary announces changes in the rate of the insurance premium through a notice publ… | |||||
| 34:34:4.1.1.1.1.3.1.6 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | C | Subpart C—The Loan | § 681.15 Other charges to the borrower. | ED | (a) Late charges. If the borrower fails to pay all of a required installment payment or fails to provide written evidence that verifies eligibility for the deferment of the payment within 30 days after the payment's due date, the lender or holder will require that the borrower pay a late charge. A late charge must be equal to 5 percent of the unpaid portion of the payment due. (b) Collection charges. The lender or holder may also require that the borrower pay the holder of the note for reasonable costs incurred by the holder or its agent in collecting any installment not paid when due. These costs may include attorney's fees, court costs, telegrams, and long-distance phone calls. The holder may not charge the borrower for the normal costs associated with preparing letters and making personal and local telephone contacts with the borrower. A service agency's fee for normal servicing of a loan may not be passed on to the borrower, either directly or indirectly. No charges, other than those authorized by this section, may be passed on to the borrower, either directly or indirectly, without prior approval of the Secretary. (c) Other loan making costs. A lender may not pass on to the borrower any cost of making a HEAL loan other than the costs of the insurance premium. | |||||
| 34:34:4.1.1.1.1.3.1.7 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | C | Subpart C—The Loan | § 681.16 Power of attorney. | ED | Neither a lender nor a school may obtain a borrower's power of attorney or other authorization to endorse a disbursement check on behalf of a borrower. The borrower must personally endorse the check and may not authorize anyone else to endorse it on his or her behalf. | |||||
| 34:34:4.1.1.1.1.3.1.8 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | C | Subpart C—The Loan | § 681.17 Security and endorsement. | ED | (a) A HEAL loan must be made without security. (b) With one exception, it must also be made without endorsement. If a borrower is a minor and cannot under State law create a legally binding obligation by his or her own signature, a lender may require an endorsement by another person on the borrower's HEAL note. For purposes of this paragraph, an “endorsement” means a signature of anyone other than the borrower who is to assume either primary or secondary liability on the note. | |||||
| 34:34:4.1.1.1.1.3.1.9 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | C | Subpart C—The Loan | § 681.18 Consolidation of HEAL loans. | ED | HEAL loans may be consolidated as permitted in 34 CFR 685.220. | |||||
| 34:34:4.1.1.1.1.4.1.1 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | D | Subpart D—The Lender and Holder | § 681.30 Which organizations are eligible to apply to be HEAL lenders and holders? | ED | (a) A HEAL lender may hold loans under the HEAL program. (b) The following types of organizations were eligible to apply to the Secretary to be HEAL lenders: (1) A financial or credit institution (including a bank, savings and loan association, credit union, or insurance company) which is subject to examination and supervision in its capacity as a lender by an agency of the United States or of the State in which it has its principal place of business; (2) A pension fund approved by the Secretary; (3) An agency or instrumentality of a State; and (4) A private nonprofit entity, designated by the State, regulated by the State, and approved by the Secretary. (c) The following types of organizations are eligible to apply to the Secretary to be HEAL holders: (1) Public entities in the business of purchasing student loans; (2) Navient (formerly known as the Student Loan Marketing Association, or “Sallie Mae”); and (3) Other eligible lenders. (d) HEAL holders must comply with any provisions in the regulations required of HEAL lenders including, but not limited to, provisions regarding applications, contracts, and due diligence. | |||||
| 34:34:4.1.1.1.1.4.1.10 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | D | Subpart D—The Lender and Holder | § 681.39 Death and disability claims. | ED | (a) Death. The Secretary will discharge a borrower's liability on the loan in accordance with section 738 of the Act upon the death of the borrower. The holder of the loan may not attempt to collect on the loan from the borrower's estate or any endorser. The holder must secure a certification of death or whatever official proof is conclusive under State law. The holder must return to the sender any payments in accordance with § 685.212(a) received from the estate of the borrower or paid on behalf of the borrower after the date of death. (b) Disability. The Secretary will discharge a borrower's liability on the loan in accordance with 34 CFR 685.213. | |||||
| 34:34:4.1.1.1.1.4.1.11 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | D | Subpart D—The Lender and Holder | § 681.40 Procedures for filing claims. | ED | (a) A lender or holder must file an insurance claim on a form approved by the Secretary. The lender or holder must attach to the claim all documentation necessary to litigate a default, including any documents required to be submitted by the Federal Claims Collection Standards, and which the Secretary may require. Failure to submit the required documentation and to comply with the HEAL statute and regulations or the lender's or holder's insurance contract will result in a claim not being honored. The Secretary may deny a claim that is not filed within the period specified in this section. The Secretary requires for all claims at least the following documentation: (1) The original promissory note; (2) An assignment to the United States of America of all right, title, and interest of the lender or holder in the note; (3) The loan application; (4) The history of the loan activities from the date of loan disbursement through the date of claim, including any payments made; and (5) A Borrower Status Form (HEAL-508), documenting each deferment granted under § 681.12 or a written statement from an appropriate official stating that the borrower was engaged in an activity for which he or she was entitled to receive a deferment at the time the deferment was granted. (b) The Secretary's payment of a claim is contingent upon receipt of all required documentation and an assignment to the United States of America of all right, title, and interest of the lender or holder in the note underlying the claim. The lender or holder must warrant that the loan is eligible for HEAL insurance. (c) In addition, the lender or holder must comply with the following requirements for the filing of default, death, disability, and bankruptcy claims: (1) Default claims. Default means the persistent failure of the borrower to make a payment when due or to comply with other terms of the note or other written agreement evidencing a loan under circumstances where the Secretary finds it reasonable to conclude that the borrower no longer intend… | |||||
| 34:34:4.1.1.1.1.4.1.12 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | D | Subpart D—The Lender and Holder | § 681.41 Determination of amount of loss on claims. | ED | (a) General rule. HEAL insurance covers the unpaid balance of principal and interest on an eligible HEAL loan, less the amount of any judgment collected pursuant to default proceedings commenced by the eligible lender or holder involved. In determining whether to approve an insurance claim for payment, the Secretary considers legal defects affecting the initial validity or insurability of the loan. The Secretary also deducts from a claim any amount that is not a legally enforceable obligation of the borrower except to the extent that the defense of infancy applies. The Secretary further considers whether all holders of the loan have complied with the requirements of the HEAL regulations, including those concerned with the making, servicing, and collecting of the loan, the timely filing of claims, and the submission of documents with a claim. (b) Special rules for loans acquired by assignment. If a claim is filed by a lender or holder that obtained a loan by assignment, that lender or holder is not entitled to any payment under this section greater than that to which a previous holder would have been entitled. In particular, the Secretary deducts from the claim any amounts that are attributable to payments made by the borrower to a prior holder of the loan before the borrower received proper notice of the assignment of the loan. (c) Special rules for loans made by school lenders. (1) If the loan for which a claim is filed was originally made by a school and the claim is filed by that school, the Secretary deducts from the claim an amount equal to any unpaid refund that the school owes the borrower. (2) If the loan for which a claim is filed was originally made by a school but the claim is filed by another lender of holder that obtained the note by assignment, the Secretary deducts from the claim an amount equal to any unpaid refund that the school owed the borrower prior to the assignment. (d) Circumstances under which defects in claims may be cured or excused. The Secretary may permit a lender or hold… | |||||
| 34:34:4.1.1.1.1.4.1.13 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | D | Subpart D—The Lender and Holder | § 681.42 Records, reports, inspection, and audit requirements for HEAL lenders and holders. | ED | (a) Records. (1) A lender or holder must keep complete and accurate records of each HEAL loan which it holds. The records must be organized in a way that permits them to be easily retrievable and allows the ready identification of the current status of each loan. The required records include: (i) The loan application; (ii) The original promissory note; (iii) The repayment schedule agreement; (iv) Evidence of each disbursement of loan proceeds; (v) Notices of changes in a borrower's address and status as a full-time student; (vi) Evidence of the borrower's eligibility for a deferment; (vii) The borrower's signed statement describing his or her rights and responsibilities in connection with a HEAL loan; (viii) The documents required for the exercise of forbearance; (ix) Documentation of the assignment of the loan; and (x) Evidence of a borrower's creditworthiness, including the borrower's credit report. (2) The lender or holder must maintain for each borrower a payment history showing the date and amount of each payment received on the borrower's behalf, and the amounts of each payment attributable to principal and interest. A lender or holder must also maintain for each loan a collection history showing the date and subject of each communication with a borrower or endorser for collection of a delinquent loan. Furthermore, a lender or holder must keep any additional records which are necessary to make any reports required by the Secretary. (3) A lender or holder must retain the records required for each loan for not less than 5 years following the date the loan is repaid in full by the borrower. However, in particular cases the Secretary may require the retention of records beyond this minimum period. A lender or holder must keep the original copy of an unpaid promissory note, but may store all other records in microform or computer format. (4) The lender or holder must maintain accurate and complete records on each HEAL borrower and related school activities required by the HEAL program. All HEAL re… | |||||
| 34:34:4.1.1.1.1.4.1.14 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | D | Subpart D—The Lender and Holder | § 681.43 Limitation, suspension, or termination of the eligibility of a HEAL lender or holder. | ED | (a) The Secretary may limit, suspend, or terminate the eligibility under the HEAL program of an otherwise eligible lender or holder that violates or fails to comply with any provision of the Act, these regulations, or agreements with the Secretary concerning the HEAL program. Prior to terminating a lender or holder's participation in the program, the Secretary will provide the entity an opportunity for a hearing in accordance with the procedures under paragraph (b) of this section. (b)(1) The Secretary will provide any lender or holder subject to termination with a written notice, sent by certified mail, specifying his or her intention to terminate the lender or holder's participation in the program and stating that the entity may request, within 30 days of the receipt of this notice, a formal hearing. If the entity requests a hearing, it must, within 90 days of the receipt of the notice, submit material, factual issues in dispute to demonstrate that there is cause for a hearing. These issues must be both substantive and relevant. The hearing will be held in the Washington, DC metropolitan area. The Secretary will deny a hearing if: (i) The request for a hearing is untimely ( i.e., fails to meet the 30-day requirement); (ii) The lender or holder does not provide a statement of material, factual issues in dispute within the 90-day required period; or (iii) The statement of factual issues in dispute is frivolous or inconsequential. (2) In the event that the Secretary denies a hearing, the Secretary will send a written denial, by certified mail, to the lender or holder setting forth the reasons for denial. If a hearing is denied, or if as a result of the hearing, termination is still determined to be necessary, the lender or holder will be terminated from participation in the program. An entity will be permitted to reapply for participation in the program when it demonstrates, and the Secretary agrees, that it is in compliance with all HEAL requirements. (c) This section does not apply to a determination that… | |||||
| 34:34:4.1.1.1.1.4.1.2 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | D | Subpart D—The Lender and Holder | § 681.31 The application to be a HEAL lender or holder. | ED | (a) In order to be a HEAL lender or holder, an eligible organization must submit an application to the Secretary annually. (b) In determining whether to enter into an insurance contract with an applicant and what the terms of that contract should be, the Secretary may consider the following criteria: (1) Whether the applicant is capable of complying with the requirements in the HEAL regulations applicable to lenders and holders; (2) The amount and rate of loans which are currently delinquent or in default, if the applicant has had prior experience with similar Federal or State student loan programs; and (3) The financial resources of the applicant. (c) The applicant must develop and follow written procedures for servicing and collecting HEAL loans. These procedures must be reviewed during the biennial audit required by § 681.42(d). If the applicant uses procedures more stringent than those required by §§ 681.34 and 681.35 for its other loans of comparable dollar value, on which it has no Federal, State, or other third party guarantee, it must include those more stringent procedures in its written procedures for servicing and collecting its HEAL loans. (d) The applicant must submit sufficient materials with his or her application to enable the Secretary to fairly evaluate the application in accordance with these criteria. | |||||
| 34:34:4.1.1.1.1.4.1.3 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | D | Subpart D—The Lender and Holder | § 681.32 The HEAL lender or holder insurance contract. | ED | (a)(1) If the Secretary approves an application to be a HEAL lender or holder, the Secretary and the lender or holder must sign an insurance contract. Under this contract, the lender or holder agrees to comply with all the laws, regulations, and other requirements applicable to its participation in the HEAL program and the Secretary agrees to insure each eligible HEAL loan held by the lender or holder against the borrower's default, death, total and permanent disability, bankruptcy under chapter 11 or 13 of the Bankruptcy Act, or bankruptcy under chapter 7 of the Bankruptcy Act when the borrower files a complaint to determine the dischargeability of the HEAL loan. The Secretary's insurance covers 100 percent of the lender's or holder's losses on both unpaid principal and interest, except to the extent that a borrower may have a defense on the loan other than infancy. (2) HEAL insurance, however, is not unconditional. The Secretary issues HEAL insurance on the implied representations of the lender that all the requirements for the initial insurability of the loan have been met. HEAL insurance is further conditioned upon compliance by the holder of the loan with the HEAL statute and regulations, the lender's or holder's insurance contract, and its own loan management procedures set forth in writing pursuant to § 681.31(c). The contract may contain a limit on the duration of the contract and the number or amount of HEAL loans a lender may make or hold. Each HEAL lender has either a standard insurance contract or a comprehensive insurance contract with the Secretary, as described below. (b) Standard insurance contract. A lender with a standard insurance contract must submit to the Secretary a borrower's loan application for HEAL insurance on each loan that the lender determines to be eligible. The Secretary notifies the lender whether the loan is or is not insurable, the amount of the insurance, and the expiration date of the insurance commitment. A loan which has been disbursed under a standard contract of insur… | |||||
| 34:34:4.1.1.1.1.4.1.4 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | D | Subpart D—The Lender and Holder | § 681.33 Making a HEAL loan. | ED | The loan-making process includes the processing of necessary forms, the approval of a borrower for a loan, determination of a borrower's creditworthiness, the determination of the loan amount (not to exceed the amount approved by the school), the explanation to a borrower of his or her responsibilities under the loan, the execution of the promissory note, and the disbursement of the loan proceeds. A lender may rely in good faith upon statements of an applicant and the HEAL school contained in the loan application papers, except where those statements are in conflict with information obtained from the report on the applicant's credit history, or other information available to the lender. Except where the statements are in conflict with information obtained from the applicant's credit history or other information available to the lender, a lender making loans to nonstudent borrowers may rely in good faith upon statements by the borrower and authorizing officials of internship, residency, or other programs for which a borrower may receive a deferment. (a) Processing of forms. Before making a HEAL loan, a lender must determine that all required forms have been completed by the borrower, the HEAL school, the lender, and the authorized official for an internship, a residency, or other deferment activity. (b) Approval of borrower. A lender may make a HEAL loan only to an eligible student or nonstudent borrower. (c) Lender determination of the borrower's creditworthiness. The lender may make HEAL loans only to an applicant that the lender has determined to be creditworthy. This determination must be made at least once for each academic year during which the applicant applies for a HEAL loan. An applicant will be determined to be “creditworthy” if he or she has a repayment history that has been satisfactory on any loans on which payments have become due. The lender may not determine that an applicant is creditworthy if the applicant is currently in default on any loan (commercial, consumer, or educational) until … | |||||
| 34:34:4.1.1.1.1.4.1.5 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | D | Subpart D—The Lender and Holder | § 681.34 HEAL loan account servicing. | ED | HEAL loan account servicing involves the proper maintenance of records, and the proper review and management of accounts. Generally accepted account servicing standards ensure that collections are received and accounted for, delinquent accounts are identified promptly, and reports are produced comparing actual results to previously established objectives. (a) Borrower inquiries. A lender or holder must respond on a timely basis to written inquiries and other communications from a borrower and any endorser of a HEAL loan. (b) Conversion of loan to repayment status. (1) At least 30 and not more than 60 days before the commencement of the repayment period, the lender or holder must contact the borrower in writing to establish the terms of repayment. Lenders or holders may not charge borrowers for the additional interest or other charges, penalties, or fees that accrue when a lender or holder does not contact the borrower within this time period and a late conversion results. (2) Terms of repayment are established in a written schedule that is made a part of, and subject to the terms of, the borrower's original HEAL note. (3) The lender or holder may not surrender the original promissory note to the borrower until the loan is paid in full. At that time, the lender or holder must give the borrower the original promissory note. (c) Borrower contacts. The lender or holder must contact each borrower to request updated contact information for the borrower and to notify the borrower of the balance owed for principal, interest, insurance premiums, and any other charges or fees owed to the lender, at least every 6 months from the time the loan is disbursed. The lender or holder must use this notice to remind the borrower of the option, without penalty, to pay all or part of the principal and accrued interest at any time. (d) Skip-tracing. If, at any time, the lender or holder is unable to locate a borrower, the lender or holder must initiate skip-tracing procedures as described in § 682.411. | |||||
| 34:34:4.1.1.1.1.4.1.6 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | D | Subpart D—The Lender and Holder | § 681.35 HEAL loan collection. | ED | A lender or holder must exercise due diligence in the collection of a HEAL loan with respect to both a borrower and any endorser. In order to exercise due diligence, a lender or holder must implement the following procedures when a borrower fails to honor his or her payment obligations: (a) When a borrower is delinquent in making a payment, the lender or holder must remind the borrower within 15 days of the date the payment was due by means of a written contact. If payments do not resume, the lender or holder must contact both the borrower and any endorser at least 3 more times at regular intervals during the 120-day delinquent period following the first missed payment of that 120-day period. The second demand notice for a delinquent account must inform the borrower that the continued delinquent status of the account will be reported to consumer credit reporting agencies if payment is not made. Each of the required four contacts must consist of at least a written contact which has an address correction request on the envelope. The last contact must consist of a telephone contact, in addition to the required letter, unless the borrower cannot be contacted by telephone. The lender or holder may choose to substitute a personal contact for a telephone contact. A record must be made of each attempt to contact and each actual contact, and that record must be placed in the borrower's file. Each contact must become progressively firmer in tone. If the lender or holder is unable to locate the borrower and any endorser at any time during the period when the borrower is delinquent, the lender or holder must initiate the skip-tracing procedures described in § 681.34(d). (b) When a borrower is 90 days delinquent in making a payment, the lender or holder must immediately request preclaim assistance from the Department's servicer. The Secretary does not pay a default claim if the lender or holder fails to request preclaim assistance. (c) Prior to the filing of a default claim, a lender or holder must use, at a minimum, colle… | |||||
| 34:34:4.1.1.1.1.4.1.7 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | D | Subpart D—The Lender and Holder | § 681.36 Consequence of using an agent. | ED | The delegation of functions to a servicing agency or other party does not relieve a lender or holder of its responsibilities under the HEAL program. | |||||
| 34:34:4.1.1.1.1.4.1.8 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | D | Subpart D—The Lender and Holder | § 681.37 Forbearance. | ED | (a) Forbearance means an extension of time for making loan payments or the acceptance of smaller payments than were previously scheduled to prevent a borrower from defaulting on his or her payment obligations. A lender or holder must notify each borrower of the right to request forbearance. (1) Except as provided in paragraph (a)(2) of this section, a lender or holder must grant forbearance whenever the borrower is temporarily unable to make scheduled payments on a HEAL loan and the borrower continues to repay the loan in an amount commensurate with his or her ability to repay the loan. Any circumstance which affects the borrower's ability to repay the loan must be fully documented. (2) If the lender or holder determines that the default of the borrower is inevitable and that forbearance will be ineffective in preventing default, the lender or holder may submit a claim to the Secretary rather than grant forbearance. If the Secretary is not in agreement with the determination of the lender or holder, the claim will be returned to the lender or holder as disapproved and forbearance must be granted. (b) A lender or holder must exercise forbearance in accordance with terms that are consistent with the 25- and 33-year limitations on the length of repayment (described in § 681.11) if the lender or holder and borrower agree in writing to the new terms. Each forbearance period may not exceed 6 months. (c) A lender or holder may also exercise forbearance for periods of up to 6 months in accordance with terms that are inconsistent with the minimum annual payment requirement if the lender or holder complies with the requirements listed in paragraphs (c)(1) through (4) of this section. Subsequent renewals of the forbearance must also be documented in accordance with the following requirements: (1) The lender or holder must reasonably believe that the borrower intends to repay the loan but is currently unable to make payments in accordance with the terms of the loan note. The lender or holder must state the basis for i… | |||||
| 34:34:4.1.1.1.1.4.1.9 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | D | Subpart D—The Lender and Holder | § 681.38 Assignment of a HEAL loan. | ED | A HEAL note may not be assigned except to another HEAL lender or organization as specified in § 681.30 and except as provided in § 681.40. In this section “seller” means any kind of assignor and “buyer” means any kind of assignee. (a) Procedure. A HEAL note assigned from one lender or holder to another must be subject to a blanket endorsement together with other HEAL notes being assigned or must individually bear effective words of assignment. Either the blanket endorsement or the HEAL note must be signed and dated by an authorized official of the seller. Within 30 days of the transaction, the buyer must notify the following parties of the assignment: (1) The Secretary; and (2) The borrower. The notice to the borrower must contain a clear statement of all the borrower's rights and responsibilities which arise from the assignment of the loan, including a statement regarding the consequences of making payments to the seller subsequent to receipt of the notice. (b) Risks assumed by the buyer. Upon acquiring a HEAL loan, a new holder assumes responsibility for the consequences of any previous violations of applicable statutes, regulations, or the terms of the note except for defects under § 681.41(d). A HEAL note is not a negotiable instrument, and a subsequent holder is not a holder in due course. If the borrower has a valid legal defense that could be asserted against the previous holder, the borrower can also assert the defense against the new holder. In this situation, if the new holder files a default claim on a loan, the Secretary denies the default claim to the extent of the borrower's defense. Furthermore, when a new holder files a claim on a HEAL loan, it must provide the Secretary with the same documentation that would have been required of the original lender. (c) Warranty. Nothing in this section precludes the buyer of a HEAL loan from obtaining a warranty from the seller covering certain future reductions by the Secretary in computing the amount of insurable loss, if any, on a claim filed on t… | |||||
| 34:34:4.1.1.1.1.5.1.1 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | E | Subpart E—The School | § 681.50 Which schools are eligible to be HEAL schools? | ED | (a) In order to participate in the HEAL program, a school must enter into a written agreement with the Secretary. In the agreement, the school promises to comply with provisions of the HEAL law and the HEAL regulations. For initial entry into this agreement and for the agreement to remain in effect, a school must satisfy the following requirements: (1)(i) The school must be legally authorized within a State to conduct a course of study leading to one of the following degrees: (A) Doctor of Medicine. (B) Doctor of Osteopathic Medicine. (C) Doctor of Dentistry or equivalent degree. (D) Bachelor or Master of Science in Pharmacy or equivalent degree. (E) Doctor of Optometry or equivalent degree. (F) Doctor of Veterinary Medicine or equivalent degree. (G) Doctor of Podiatric Medicine or equivalent degree. (H) Graduate or equivalent degree in Public Health. (I) Doctor of Chiropractic or equivalent degree. (J) Doctoral degree of Clinical Psychology. (K) Masters or doctoral degree in Health Administration. (ii) For the purposes of this section, the term “State” includes, in addition to the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, the Virgin Islands, Guam, American Samoa, the Trust Territory of the Pacific Islands (the Republic of Palau), the Republic of the Marshall Islands, and the Federated States of Micronesia. (2)(i) The school must be accredited by a recognized agency approved for that course of study by the Secretary of Education, as described in paragraph (a)(2)(ii) of this section, except where a school is not eligible for accreditation solely because it is too new. A new school is eligible if the Secretary of Education determines that it can reasonably expect to be accredited before the beginning of the academic year following the normal graduation date of its first entering class. The Secretary of Education makes this determination after consulting with the appropriate accrediting agency and receiving reasonable as… | |||||
| 34:34:4.1.1.1.1.5.1.10 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | E | Subpart E—The School | § 681.59 Records and Federal access after a school is no longer a HEAL school. | ED | In the event a school ceases to participate in the HEAL program, the school (or its successor, in the case of a school which undergoes a change in ownership) must retain all required HEAL records and provide the Secretary of Education, the Comptroller General of the United States, and any of their authorized representatives access to them. | |||||
| 34:34:4.1.1.1.1.5.1.11 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | E | Subpart E—The School | § 681.60 Limitation, suspension, or termination of the eligibility of a HEAL school. | ED | (a) The Secretary may limit, suspend, or terminate the eligibility under the HEAL program of an otherwise eligible school that violates or fails to comply with any provision of the Act, these regulations, or agreements with the Secretary concerning the HEAL program. Prior to terminating a school's participation in the program, the Secretary will provide the school an opportunity for a hearing in accordance with the procedures under paragraph (b) of this section. (b)(1) The Secretary will provide any school subject to termination with a written notice, sent by certified mail, specifying his or her intention to terminate the school's participation in the program and stating that the school may request, within 30 days of the receipt of this notice, a formal hearing. If the school requests a hearing, it must, within 90 days of the receipt of the notice, submit material, factual issues in dispute to demonstrate that there is cause for a hearing. These issues must be both substantive and relevant. The hearing will be held in the Washington, DC metropolitan area. The Secretary will deny a hearing if: (i) The request for a hearing is untimely ( i.e., fails to meet the 30-day requirement); (ii) The school does not provide a statement of material, factual issues in dispute within the 90-day required period; or (iii) The statement of factual issues in dispute is frivolous or inconsequential. (2) In the event that the Secretary denies a hearing, the Secretary will send a written denial, by certified mail, to the school setting forth the reasons for denial. If a hearing is denied, or if as a result of the hearing, termination is still determined to be necessary, the school will be terminated from participation in the program. A school will be permitted to reapply for participation in the program when it demonstrates, and the Secretary agrees, that it is in compliance with all HEAL requirements. (c) This section does not apply to a determination that a HEAL school fails to meet the statutory definition of an “eligible s… | |||||
| 34:34:4.1.1.1.1.5.1.12 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | E | Subpart E—The School | § 681.61 Responsibilities of a HEAL school. | ED | (a) A HEAL school is required to carry out the following activities for each HEAL applicant or borrower: (1) Conduct and document an entrance interview with each student (individually or in groups) no later than prior to the loan recipient's first HEAL disbursement in each academic year that the loan recipient obtains a HEAL loan. The school must inform the loan recipient during the entrance interview of his or her rights and responsibilities under a HEAL loan, including the consequences for noncompliance with those responsibilities, and must gather personal information which would assist in locating the loan recipient should he or she depart from the school without receiving an exit interview. A school may meet this requirement through correspondence where the school determines that a face-to-face meeting is impracticable. (2) Conduct and document an exit interview with each HEAL loan recipient (individually or in groups) within the final academic term of the loan recipient's enrollment prior to his or her anticipated graduation date or other departure date from the school. The school must inform the loan recipient in the exit interview of his or her rights and responsibilities under each HEAL loan, including the consequences for noncompliance with those responsibilities. The school must also collect personal information from the loan recipient which would assist the school or the lender or holder in skiptracing activities and to direct the loan recipient to contact the lender or holder concerning specific repayment terms and options. A copy of the documentation of the exit interview, including the personal information collected for skiptracing activities, and any other information required by the Secretary regarding the exit interview must be sent to the lender or holder of each HEAL loan within 30 days of the exit interview. If the loan recipient departs from the school prior to the anticipated date or does not receive an exit interview, the exit interview information must be mailed to the loan recipient by … | |||||
| 34:34:4.1.1.1.1.5.1.2 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | E | Subpart E—The School | § 681.51 The student loan application. | ED | When the student completes his or her portion of the student loan application and submits it to the school, the school must do the following: (a) Accurately and completely fill out its portion of the HEAL application; (b) Verify, to the best of its ability, the information provided by the student on the HEAL application, including, but not limited to, citizenship status and Social Security number. To comply with this requirement, the school may request that the student provide a certified copy of his or her birth certificate, his or her naturalization papers, and an original Social Security card or copy issued by the Federal Government, or other documentation that the school may require. The school must assure that the applicant's I-151 or I-551 is attached to the application, if the applicant is required to possess such identification by the United States; (c) Certify that the student is eligible to receive a HEAL loan, according to the requirements of § 681.5; (d) Review the financial aid transcript from each institution previously attended by the applicant on at least a half-time basis to determine whether the applicant is in default on any loans or owes a refund on any grants. The school may not approve the HEAL application or disburse HEAL funds if the borrower is in default on any loans or owes a refund on any educational grants, unless satisfactory arrangements have been made between the borrower and the affected lender or school to resolve the default or the refund on the grant. If the financial aid transcript has been requested, but has not been received at the time the applicant submits his or her first HEAL application, the school may approve the application and disburse the first HEAL installment prior to receipt of the transcript. Each financial aid transcript must include at least the following data: (1) Student's name; (2) Amounts and sources of loans and grants previously received by the student for study at an institution of higher education; (3) Whether the student is in default on any of… | |||||
| 34:34:4.1.1.1.1.5.1.3 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | E | Subpart E—The School | § 681.52 The student's loan check. | ED | (a) When a school receives from a HEAL lender a loan disbursement check or draft payable jointly to the school and to one of its students, it must: (1) If the school receives the instrument after the student is enrolled, obtain the student's endorsement, retain that portion of funds due the school, and disburse the remaining funds to the student. (2) If the school receives the instrument before the student is enrolled, it must, prior to endorsing the instrument, send the instrument to the student to endorse and return to the school. The school may then retain that portion of funds then due the school but must hold the remaining funds for disbursement to the student at the time of enrollment. However, if the student is unable to meet other educational expenses due before the time of enrollment, the school may obtain the student's endorsement and disburse to the student that portion of funds required to meet these other educational expenses. (b) If a school determines that a student does not plan to enroll, the school must return a loan disbursement check or draft to the lender within 30 days of this determination. | |||||
| 34:34:4.1.1.1.1.5.1.4 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | E | Subpart E—The School | § 681.53 Notification to lender or holder of change in enrollment status. | ED | Each school must notify the holder of a HEAL loan of any change in the student's enrollment status within 30 days following the change in status. Each notice must contain the student's full name under which the loan was received, the student's current name (if different), the student's Social Security number, the date of the change in the enrollment status, or failure to enroll as scheduled for any academic period as a full-time student, the student's latest known permanent and temporary addresses, and other information which the school may decide is necessary to identify or locate the student. If the school does not know the identity of the current holder of the HEAL loan, it must notify the HEAL Program Office of a change in the student's enrollment status. This notification is not required for vacation periods and leaves of absence or other temporary interruptions which do not exceed one academic term. | |||||
| 34:34:4.1.1.1.1.5.1.5 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | E | Subpart E—The School | § 681.54 Payment of refunds by schools. | ED | A participating school must pay that portion of a refund that is allocable to a HEAL loan directly to the original lender (or to a subsequent holder of the loan note, if the school has knowledge of the holder's identity). At the same time, the school must provide to the borrower written notice that it is doing so. | |||||
| 34:34:4.1.1.1.1.5.1.6 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | E | Subpart E—The School | § 681.55 Administrative and fiscal procedures. | ED | Each school must establish and maintain administrative and fiscal procedures necessary to achieve the following objectives: (a) Proper and efficient administration of the funds received from students who have HEAL loans; (b) Protection of the rights of students under the HEAL program; (c) Protection of the United States from unreasonable risk of loss due to defaults; and (d) Compliance with applicable requirements for HEAL schools. | |||||
| 34:34:4.1.1.1.1.5.1.7 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | E | Subpart E—The School | § 681.56 Records. | ED | (a) In addition to complying with the requirements of section 739(b) of the Act, each school must maintain an accurate, complete, and easily retrievable record with respect to each student who has a HEAL loan. The record must contain all of the following information: (1) Student's name, address, academic standing and period of attendance; (2) Name of the HEAL lender, amount of the loan, and the period for which the HEAL loan was intended; (3) If a noncitizen, documentation of the student's alien registration status; (4) Amount and source of other financial assistance received by the student during the period for which the HEAL loan was made; (5) Date the school receives the HEAL check or draft and the date it either gives it to the student or returns it to the lender (if the school is not the lender); (6) Date the school disburses the loan to a student (if the school is the lender); (7) Date the school signs the loan check or draft (if the school is a copayee); (8) Amount of tuition, fees and other charges paid by the student to the school for the academic period covered by the loan and the dates of payment; (9) Photocopy of each HEAL check or draft received by the student; (10) Documentation of each entrance interview, including the date of the entrance interview and the signature of the borrower indicating that the entrance interview was conducted; (11) Documentation of the exit interview, including the date of the exit interview and the signature of the borrower indicating that the exit interview was conducted, or documentation of the date that the school mailed exit interview materials to the borrower if the borrower failed to report for the exit interview; (12) A photocopy made by the school of the borrower's I-151 or I-551, if the borrower is required to possess such identification by the United States, or other documentation, if obtained by the school, to verify citizenship status and Social Security number ( e.g., a certified copy of the borrower's birth certificate or a photocopy made by the… | |||||
| 34:34:4.1.1.1.1.5.1.8 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | E | Subpart E—The School | § 681.57 Reports. | ED | A school must submit reports to the Secretary at the times and in the manner the Secretary may reasonably prescribe. The school must retain a copy of each report for not less than 5 years following the report's completion, unless otherwise directed by the Secretary. A school must also make available to a HEAL lender or holder, upon the lender's or holder's request, the name, address, postgraduate destination and other reasonable identifying information for each of the school's students who has a HEAL loan. | |||||
| 34:34:4.1.1.1.1.5.1.9 | 34 | Education | VI | 681 | PART 681—HEALTH EDUCATION ASSISTANCE LOAN PROGRAM | E | Subpart E—The School | § 681.58 Federal access to school records. | ED | For the purposes of audit and examination, a HEAL school must provide the Secretary of Education, the Comptroller General of the United States, and any of their authorized representatives access to the records that the school is required to keep and to any documents and records pertinent to the administration of the HEAL program. |
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