HEAL Interest Rates

Below is information on the maximum interest rates for HEAL Program loans. The information is separated into two sections—Current Maximum Interest Rates and Maximum Interest Rates for Previous Three Quarters.

Current Maximum Interest Rates

Maximum Interest Rates for Quarter Ending March 31, 2021
Maximum variable interest rate for loans made before Jan. 27, 1981 3.625%
Maximum interest rate for variable rate loans executed on or after Jan. 27, 1981 through Oct. 21, 1985 3.625%
Maximum interest rate for variable rate loans executed on or after Oct. 22, 1985 3.125%

 

The average bond equivalency rate for 91-day U.S. Treasury Bills during the period Oct. 1, 2020 through Dec. 31, 2020 was .093 percent.

Maximum Interest Rates for Previous Three Quarters

Rates for Quarter Ending Loans Made Prior to 1/27/1981 Loans Made On or After 1/27/1981* Loans Made On or After 10/22/1985**
Dec. 31, 2020 3.625% 3.625% 3.125%
Sept. 30, 2020 3.75% 3.75% 3.25%
June 30, 2020 4.625% 4.625% 4.125%

 

* Legislation Amended – 12 percent annual interest cap repealed – quarterly interest rate on loans made on or after 1/27/1981 through 10/21/1985, became a floating rate based on 91-day T-Bill rate plus 3 1/2 percent, rounded to the next higher 1/8 of one percent.

** Legislation Amended – variable interest rate calculation amended – quarterly interest rate on loans made on or after 10/22/1985 became a floating rate based on 91-day T-Bill rate plus 3 percent, rounded to the next higher 1/8 of one percent.