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To: Lenders, Holders, and Servicers Participating in the Health Education Assistance Loan (HEAL) Program
Subject: Submission of Claims
with Judgment
Lender Policy Memorandum L-1998-5
Lender Policy Memorandum L-95-2 dated November 23, 1994 allows lenders up to 60 days to submit a claim for payment from the date a judgment is rendered without an interest deduction. This allowable 60 day period enables the lenders to obtain a certified or exemplified copy of the judgment from the court and subsequently submit the claim to the HEAL Program for payment. If a lender fails to submit a claim within this 60 day period, interest will be denied beyond the
60 day period unless the lender is waiting to obtain a certified or exemplified copy of the judgment from the court and has followed up with the court with a written request to obtain a certified or exemplified copy of the judgment every 15 days after this 60 day period.
However, an exception to the policy set forth in Lender Policy Memorandum L-95-2 will be made in those cases where lenders cannot meet the requirements of Lender Policy Memorandum L-95-2 without an interest penalty. We will make this exception by using an alternate two step procedure to assess interest penalties.
In the first step of this alternate procedure, lenders will be given up to 60 days to receive a certified or exemplified copy of the judgment from the date the judgment is rendered by the court without an interest penalty. If a lender fails to receive a certified or exemplified copy of the judgment from the court within this 60 day period, interest will be denied beyond the 60 day period unless the lender can document that it has followed up with the court with a written request to obtain a certified or exemplified copy of the judgment every 15 days after the 60 day period.
In the second step of this alternate procedure, lenders will be given up to 30 days to submit a claim from the date a certified or exemplified copy of the judgment is received by the lender from the court. If the lender fails to submit a claim within this 30 day period, interest will be denied beyond the 30 day period.
If you have any questions regarding this memorandum, please contact Dr. Ram B. Jain, Chief, HEAL Program Operations at (301) 443-1540 or at Rjain@HRSA.DHHS.GOV.
Stephen J. Boehlert
Associate Division Director, HEAL Branch Division of Student Assistance
