This rule amends regulations for the Health Education Assistance Loan (HEAL) Program, authorized by the PHS Act, by: (1) removing the prohibition against receipt of a HEAL loan during the same school year in which a student receives loans from other federally provided or assisted loan programs under part B of Title IV of the Higher Education Act of 1965, (2) establishing a more flexible definition of academic year, (3) raising the maximum amount which may be borrowed, (4) changing the maximum interest rate, and (5) redesignating the location of the regulations in the code of Federal Regulations (CFR).