How Long Do I Have to Pay Back My HEAL Loan, and How Is the Interest Rate Figured?

What Is a HEAL Loan?#

The Health Education Assistance Loan (HEAL) Program insured loans made between 1978 and 1998 to graduate students studying medicine, osteopathy, dentistry, veterinary medicine, optometry, podiatry, public health, pharmacy, chiropractic, health administration, or clinical psychology.

HEAL Loans Are No Longer Being Made#

The Health Education Assistance Loan Program insured loans made between 1978 and 1998. No new HEAL loans have been issued since that lending period ended, so anyone repaying a HEAL loan today borrowed it sometime before 1998.

Grace Period Before Repayment Begins#

A HEAL loan borrower has a 9-month grace period after leaving a HEAL school as a full-time student. Repayment of a HEAL loan begins on the first day of the tenth month after the borrower stops being a full-time student at a HEAL school.

How Long You Have to Repay a HEAL Loan#

How the HEAL Interest Rate Cap Is Figured#

Under the Public Health Service Act, the interest rate on a HEAL loan cannot exceed a set formula. This formula uses the 91-day Treasury bill rate from the prior calendar quarter, adds 3 percent, and rounds up to the nearest eighth of a percent.

Is a Deferment Possible on a HEAL Loan?#

Interest continues to accrue during a HEAL loan deferment. HEAL deferment periods include:

• During full-time study at a HEAL school or at a higher education institution that is eligible to participate in Title IV student aid programs
• Up to 3 years during full-time active duty in the Armed Forces
• Up to 3 years for service in the Peace Corps, VISTA, or the National Health Service Corps (3 years per service program)
• Up to 2 years for specified fellowship and educational training programs
• Up to 4 years for internships and residency training
• Up to 1 year for graduates from schools of chiropractic
• Up to 3 years upon completion of an internship or residency training program in osteopathic general practice, family medicine, general internal medicine, preventive medicine, or general pediatrics while practicing primary care
• Up to 3 years for providing health care services to Indians through an Indian Health Service funded health program or facility

Forbearance and the 25-Year Repayment Limit#

For HEAL loans made on or after October 13, 1992, any period of forbearance does not count toward the 25-year repayment period. This means time spent in forbearance can extend the calendar time a HEAL loan borrower has to finish repaying, beyond the 25 years of counted repayment time.

How to Request Forbearance on a HEAL Loan

To request forbearance on a HEAL loan, you must contact your lender and loan servicer. Forbearance may be granted in periods of 6 months, up to a maximum of 3 years. An extension beyond that can only be granted by the Secretary.

What to Do Next#

Cambridge Credit Counseling’s student loan counseling can help a borrower understand repayment plans, talk through forbearance or deferment options, and address problems like garnishments or tax levies on federal student loans. Cambridge Credit Counseling’s student loan counseling does not cover private student loans and focuses only on the federal student loan repayment process.