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Applicant Information Bulletin

Introduction

What is the National Health Service Corps (NHSC) Loan Repayment Program (LRP)?

The NHSC LRP is a loan repayment program administered by the Health Resources and Services Administration (HRSA) of the U.S. Department of Health and Human Services (HHS).  The NHSC LRP recruits fully-trained health professionals to provide culturally competent, interdisciplinary primary health care services to underserved populations located in selected Health Professional Shortage Areas (HPSAs) identified by the HHS Secretary.  HPSAs can be found in rural and urban communities across the Nation.  In return, the NHSC LRP assists clinicians in their repayment of qualifying educational loans that are still owed. 

Primary care physicians, nurse practitioners, certified nurse-midwives, physician assistants, dentists, dental hygienists, and behavioral and mental health providers are eligible for up to $50,000 in loan repayments for the initial two-year service commitment and may be eligible to continue their loan repayment beyond two years if they have unpaid qualifying educational loans and continue to serve at an eligible site.

The NHSC seeks clinicians who demonstrate the characteristics for and interest in serving the Nation’s medically underserved populations and remaining in HPSAs beyond their service commitment. It is important to remember that service to HPSA populations, not the repayment of educational loans, is the primary purpose of the NHSC LRP.

Since 1970, more than 28,000 primary health care providers have heeded the call to serve our Nation’s most vulnerable populations by  becoming a member of the the NHSC.  NHSC members are a unique group of dedicated and caring primary health care clinicians who care for millions of people who live in communities where health care is scarce.  

To assist you, the NHSC can reduce your educational financial debt with tax free loan repayment awards in exchange for a service commitment to a healthcare delivery site in an underserved area.   Over 70% of NHSC clinicians stay working in underserved areas after they complete their service commitment.  More than a job and a paycheck, find a meaningful career through the NHSC and discover how the NHSC can help you bring health and hope to the millions of children and adults still waiting for care.

What are the benefits of the NHSC LRP?

1. Service – By joining the thousands of NHSC Clinicians across the country, you have an opportunity to provide primary health care services to communities in need.
2. Loan Repayment – The NHSC LRP will provide funds to program participants to repay their outstanding qualifying educational loans.  Payments are disbursed in the form of a lump sum payment.  The lump sum payment will be electronically issued to participants approximately 90 days after the contract start date.  Applicants should contact their lenders regarding prepayment options.  Some lenders will accept the advanced payment but expect the participant to continue to make monthly payments.  The loan repayments are exempt from Federal income and employment taxes.  These funds are not included as wages when determining benefits under the Social Security Act.
   1. The NHSC LRP will pay up to $50,000 for two (2) years of service, based on the participant’s outstanding balance of qualifying educational loans.  If the total amount of the participant’s qualifying educational loans is less than $50,000, the NHSC LRP will pay the remaining balance of the total qualifying educational loans for two (2) years of service.
      
   2. A NHSC LRP participant may be eligible to continue loan repayment beyond two years, one year at a time; to the extent that the individual has unpaid qualifying educational loans, continues to serve at an NHSC-approved site, and meets all other program eligibility criteria in effect at the time the participant is being considered for an amendment contract.
      There is no guarantee that a participant will receive an amendment contract (additional loan repayment funds) for continued participation in the program beyond the initial 2-year contract period.  Amendment contracts will be made at the Government’s discretion and are subject to the availability of appropriated funds.

Under the Treasury Offset Program, the Treasury Department is authorized to offset NHSC LRP payments for application to delinquent Federal and State debts, including delinquent child support payments. 

3. Salary – Most NHSC LRP participants will be employees of the NHSC-approved sites and will receive a salary and benefits from the employing service site. Employment compensation packages are negotiated between the clinician and the approved NHSC service site. Agreed-upon terms of employment are typically reduced to an employment contract.  The terms of the employment contract should be carefully reviewed and fully understood by the clinician before the contract is signed. Applicants may want to seek legal guidance from private counsel before entering into an employment contract. Employment contract negotiations are solely the responsibility of the NHSC LRP applicant.  Further, the service site cannot guarantee an NHSC LRP contract award; therefore, NHSC loan repayments must not be part of salary negotiations between clinicians and service sites.

Are There Additional Funds Available for the NHSC LRP Under the Recovery Act?

On February 17, President Obama signed into law the American Recovery and Reinvestment Act of 2009 (“Recovery Act”).  The Recovery Act provides additional funding for the National Health Service Corps (NHSC) Loan Repayment Program (LRP).

Due to the availability of Recovery Act funding through September 30, 2010, the Bureau of Clinician Recruitment and Service is able to provide more loan repayment awards to primary health care clinicians who wish to deliver quality primary health care services in NHSC-approved sites located in health professional shortage areas of greatest need throughout the United States and its territories, as designated by the Secretary of Health and Human Services.  Until September 30, 2010, NHSC LRP awards will be available for Primary Care Allopathic or Osteopathic physicians, Certified Nurse Practitioners, Certified Nurse Midwives, Physician Assistants, General Practice Dentists, Pediatric Dentists, Registered Dental Hygienists, Health Service Psychologists, Licensed Clinical Social Workers, Psychiatric Nurse Specialists, Marriage and Family Therapists, and Licensed Professional Counselors.

To support the mission of the Recovery Act, the NHSC LRP application process will be open continuously for receipt of applications and supporting documents until July 29, 2010. Qualified applicants are encouraged to apply early.

next > Eligibility Requirements, Qualification Factors and Funding Preferences

revised 10/21/2009