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JUN 3 0 2009

TO: Holders and Servicers Participating in the Health Education Assistance Loan (HEAL) Program

FROM: Acting Associate Administrator

SUBJECT: Maximum HEAL Interest Rates for the Quarter Ending September 30, 2009
Lender Policy Memorandum L-2009-3

Section 60.13 (a)(4) of the HEAL Regulations requires the Secretary of Health and Human Services to announce the maximum quarterly interest rate in effect for HEAL loans.

For loans made before January 27, 1981, the variable interest rate is 3 ^3/4 percent.

For variable rate loans executed on or after January 27, 1981 through October 21, 1985, the interest rate is 3 ^3/4 percent.

For variable rate loans executed on or after October 22, 1985, the interest rate is 3 ^1/4 percent.

The average bond equivalency rate for 91-day U.S. Treasury Bills during the period April 1, 2009 through June 30, 2009 was .178 percent.

We have attached the HEAL quarterly interest rates for the last four quarters. Interest rates since the inception of the program are available upon request.

If you have any questions regarding the HEAL interest or Treasury Bill rates, please do not hesitate to contact Ms. Carolyn Robinson at (301) 443-3760.

Diana Espinosa, M.P.P.

HEAL Variable Interest Rates
HEALTH EDUCATION ASSISTANCE LOAN (HEAL) PROGRAM
Division of Health Careers Diversity and Development

Rates for Quarter Ending	Loans Made Prior to 01/27/1981	Loans Made On or After 01/27/1981*	Loans Made On or After 10/22/1985**
September 30, 2009	3 3/4 %	3 3/4 %	3 1/4 %
June 30, 2009	3 3/4 %	3 3/4 %	3 1/4 %
March 31, 2009	3 7/8 %	3 7/8 %	3 3/8 %
December 31, 2008	5 1/4 %	5 1/4 %	4 3/4 %

*Legislation Amended - 12 percent annual interest cap repealed - quarterly interest rate on loans made on or after 01/27/1981, became a floating rate based on 91-day T-Bill rate plus 3 1/2 percent.
**Legislation Amended - Variable interest rate calculation amended - quarterly interest rate on loans made on or after 10/22/1985 is based on loans made on a floating rate of the average 91-day T-Bill rate plus 3 percent.