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Primary Care/ Family Medicine/ Community Medicine

Loan Repayments

Loan Repayment Programs

National Health Service Corps (NHSC) Loan Repayment Program

Loan Repayment Program is designated for primary care medical, dental and mental/behavioral health clinicians can get up to $50,000 to repay their health profession student loans in exchange for a two-year commitment to work at an approved NHSC site in a high-need, underserved area. The payment is free from Federal income tax and is made at the beginning of service so you can more quickly pay down your loans. Approved sites are located across the U.S., in both urban and rural areas.

After completing your initial service commitment, you can apply to extend your service and receive additional loan repayment assistance.

The amount you receive and length of your commitment depends on where you serve (service at sites in higher need areas yields greater loan repayments). It also depends on whether you select the full-time or half-time option. See the 2015 Application and Program Guidance (PDF – 383 KB) for details. See if your site is already approved at the NHSC Jobs Center.

National Health Service Corps (NHSC) Students to Service Loan Repayment Program

The National Health Service Corps (NHSC) Students to Service Loan Repayment Program (S2S LRP) provides up to $120,000 to medical students (MD and DO) in their final year of school in return for a commitment to provide primary health care full time for at least 3 years or half time for at least 6 years at an approved NHSC site in a Health Professional Shortage Area of greatest need.

National Health Service Corps (NHSC) State Loan Repayment Program

The State Loan Repayment Program (SLRP) is a federally-funded grant program to states and territories that provides cost-sharing grants to assist them in operating their own state educational loan repayment programs for primary care providers working in Health Professional Shortage Areas (HPSAs) within their state.

The State Loan Repayment Program (SLRP) does not provide loan repayment directly to individual health professionals, and not all states offer SLRP. Providers interested in obtaining information about their state’s educational loan repayment program must contact their individual state loan repayment program point of contact for information about eligibility and requirements.

Federal Scholarship and Loan Repayment Opportunities for Health Professionals–HRSA Presentation

Indian Health Service Loan Repayment Program

801 Thompson Avenue, Suite 120
Rockville, MD  20852
Tel. (301) 443-3396 Fax (301) 443-4815
Indian Health Service

National Health Service Corps (NHSC) Loan Repayment Program (LRP)

The National Health Service Corps (NHSC)/State Loan Repayment Program (SLRP) has recently received a grant for $2 million from the American Recovery and Reinvestment Act to repay outstanding government and commercial loans for expenses incurred during undergraduate or graduate education.

Up to $85,000 in funding is available on a first-come, first-serve basis for qualified primary healthcare providers who commit to a three-year service obligation at a public or private non-profit facility that is located in a Health Professional Shortage Area. Each facility is required to pay a matching grant, meaning that up to $42,500 is paid by the State, and up to $42,500 is paid by the facility.

This special NHSC/SLRP cycle began on December 14, 2009 and ends on September 29, 2010 or when funds are expended, whichever comes first.

Please visit our website for the most current loan repayment program application: www.oshpd.ca.gov/hwdd/slrp.html

Award Amount: Maximum repayment during the required initial 2-year contract is $25,000 each year

Budget/Funding:

$50,000 for the first 2 years with the option of additional years. Renewal is needed every year on an annual basis. 3rd year= $35,000, 4th year=$35,000, 5th year $25,000, 6th year=$20,000, 7th year and beyond= $15,000.

Requirements:

MD/DO primary care, US citizen, Permanent residents are NOT eligible, unrestricted health care license, no other existing service commitment, free of judgments arising from federal debt, be current on child support payments, employed or have accepted employment at eligible site.

Eligible Loans:

Government and commercial educational loans incurred for undergraduate education and graduate medical education (principal interest, related expenses for tuition, educational expenses and reasonable cost of living.

Application Process:

Various cycles, online application available

Factors Influencing Evaluation:

Applicants with documented disadvantaged background; Those committed to serve at an approve site with HPSA score of 10 of above.

Disbursement:

The award will be paid in ONE lump sum approximately 90 days after the beginning of the service obligation period; Money MUST be used for loans within 30 days of receiving money. Must be able to show proof of payment history.

Salary:

Stays the same; It is negotiated between clinician and site; Equivalent to federal civil service position.

Loan Payments:

Continue to make regular payments to lender throughout participation.

Reapply:

Recipients may renew/amend their contracts. There is no guarantee.

Tax-Free:

Yes, tax free; exempt from gross income and employment taxes

Service Term:

2 years, full time (40 hours per week for a min. of 45 weeks per year); min. of 32 hours at site providing direct patient care; time “on-call” does not count as full-time

Site Requirement:

Be public or private non-profit, facility is NHSC-approved site in federally designate HPSA, pay prevailing wages

Site Match:

No site match

Site Placement:

Clinician activities solicits jobs through the list of eligible sites

Penalties if Unable to Meet Service Terms:

Repay all loans received, plus $75,000 multiplied by the number of months of obligation not completed, plus interest (with a min. amount of $31,000). Have exactly one year to pay.

State HNSC (Not Administered by HPEF)

Budget/Funding:

$50,000 for the first 2 years with the option of 3rd and 4th year commitment and receive $35,000 for each additional year. Funded through Bureau of Health Professions, NHSC and administered by CA and OSHPD.

Requirements:

MD/DO primary care, US citizen, Permanent residents are NOT eligible, unrestricted health care license, no other existing service commitment, free of judgments arising from federal debt, be current on child support payments, employed or have accepted employment at CA State Loan Repayment eligible site.

Eligible Loans:

Government and commercial loans used to obtain a health professional education

Application Process:

Application available at www.oshpd.ca.gov, the application period is Aug. 1st-Oct. 1st every year; Notification is sent within 6 weeks

Factors Influencing Evaluation:

Training or work experience in underserved areas; cultural competency training and/or work experience; fluency in 2nd language; geographic distribution of SLRP awardees; distribution of discipline; area of greatest unmet need; rural/frontier vs. urban award distribution

Disbursement:

Recipients receive 3 payments throughout the 2 years (after 6 months=25% of the award ($12,500), after 18 months= 50% of the award ($25,000) and 24 months remaining=25% of the award ($12,500)

Salary:

Stays the same; It is negotiated between clinician and site

Loan Payments:

Continue to make regular payments to lender throughout participation.

Reapply:

Recipients may reapply for an additional 2 years. Existing participants are given priority.

Tax-Free:

Yes, tax free; exempt from gross income and employment taxes

Service Term:

2 years, full time (40 hours per week for a min. of 45 weeks per year); min. of 32 hours at site providing direct patient care and up to 8 hours in practice—related activities; time “on-call” does not count as full-time

Site Requirement:

Be public or private non-profit, be located in CA HPSA, be on the SLRP certified eligible site list, be willing to match the state award, commit to 2 year employment, pay prevailing wages, MOU with CA

Site Match:

Yes, site matches the state award (50/50)

Site Placement:

Clinician activities solicits jobs through the list of eligible sites

Penalties if Unable to Meet Service Terms:

Repay all loans received, plus $75,000 multiplied by the number of months of obligation not completed, plus interest (with a min. amount of $31,000). Have exactly one year to pay.

Steve Thompson (Administered by HPEF)

Budget/Funding:

$105,000 for 3 years, funded by $25 from all DO’s and MD’s collected by Medical Board of CA at the time of licensure and renewal, up to  1 million dollars will be transferred annually from Managed Care Administrative Fines and Penalties Fund, private donations and grants.

Requirements:

MD/DO, must be permanent CA resident and US Citizen, no other existing commitment

Eligible Loans:

Government and commercial educational loans incurred for undergraduate education and graduate medical education (principal interest, related expenses for tuition, educational expenses and reasonable cost of living.

Application Process:

The application period is March 24 every year. Staff will notify applicant within 120 days whether or not selected.

Factors Influencing Evaluation:

From areas of CA with greatest need (MUA with at least 50% of pt form MUP); speak a medi-cal threshold language, come from an economically disadvantaged background, have received significant training in cultural and linguistically appropriate service delivery, have 3 years working with MUA/MUP

Disbursement:

Applicants receive 3 payments throughout the 3 years [After 1st year= 24% of the award ($25,200), after 2nd year= 33% of the award ($34,650), after 3rd year= 43% of the award ($45,150)]

Salary:

Stays the same; It is negotiated between clinician and site

Loan Payments:

Continue to make regular payments to lender throughout participation

Reapply:

Recipients may receive total of 2 awards but there is no limit to the number of times one can apply

Tax-Free:

If loan repayments are used to pay principal, interest, related expenses to tuition, educational expenses then it is NOT considered gross income, but if used to repay loans for reasonable living cost then it is taxable

Service Term:

3 years, full time (40 hours per week for a min. of 45 weeks per year); min. of 32 hours at site providing clinical services; time “on-call” does not count as full-time

Site Requirement:

Facility is located in a HPSA, or facility holds a federal designation (community health center, FQHC,  FQHC-LA, rural health center, migrant health center, public housing health center)

Site Match:

No site match

Site Placement:

Clinician activities solicits jobs through the list of eligible sites

Penalties if Unable to Meet Service Terms:

Repay all loans received, plus 10% interest

OTHER RESOURCES

Financial Information, Resources, Services, and Tools (FIRST)

FIRST offers a full range of Financial Information, Resources, Services, and Tools to help medical school borrowers expand their financial literacy, make smart decisions about student loans, and manage their student debt wisely.

Applicants and Students Site:

http://www.aamc.org/programs/first/students/start.htm