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To: Lenders/Holders/Servicers Participating in the Health Education Assistance Loan (HEAL) Program

Subject: Borrower Loan Status Data Accuracy and Review of HEAL Borrower Loan Status Business Rules and Error Messages
Lender Policy Memorandum L-2004-4

Attached are the results of the Borrower Loan Status dataset you sent to us for processing. These results need to be reviewed and any accounts that appear on the BORROWER STATUS ERROR TRANSACTION REPORT must be corrected and resubmitted to the HEAL Program within 30 days from the process date reported on the Borrower Status Error Transaction Report. This includes closed and active loans. Also, the accounts appearing in the HEAL OPEN STATUS LOANS NOT RECEIVED report should be submitted to close out the loan record.

In the past, we have instructed the Lenders/Holders/Servicers to wait until the loan reconciliation was complete to investigate the errors. The loan reconciliation is now complete; therefore we are requiring Lenders/Holders/Servicers to begin correcting these errors according to the above guidelines. If these errors are not corrected the integrity of our database will suffer. If these errors remain unresolved we are considering the suspension of payment of claims until the required corrections are made. This is a step we do not wish to take but may be necessary to protect the accuracy of our database. We will not enforce this action until we have allowed the Servicers adequate time to resolve the outstanding errors. We will begin closely monitoring the “Borrower Status Error Transaction” report and the “HEAL Open Status Loans Not Received” report with the May 2004 submission of the April 2004 data.

Since the “HEAL Borrower Loan Status Business Rules” are the basis for the HOPS program that determines claim penalties, please perform a thorough review of our “HEAL Borrower Loan Status Business Rules” and the error messages contained therein and address any concerns to the HEAL program by April 1, 2004.

Thank you for your attention to this matter. If you have any questions, please contact Audrey Darden-Willis or Dick Horton of the HEAL program at 301 443-1540.

Henry Lopez, Jr.
Director
Division of Health Careers
Careers Diversity and Development