SLRP Contract Administration
Your State Loan Repayment Program (SLRP) grant application included a copy of your SLRP program participant contract. As a SLRP grantee, you are responsible for developing participant contracts that adhere to SLRP guidelines. If you did not consult with your legal counsel when developing the terms and conditions in the contract you submitted with your application, you are encouraged to have them review it.
Learn more about state SLRP contract requirements and the Contract Breach and Default Provision (PDF - 62 KB).
Reduction in SLRP Grant for Breached Contracts
When your SLRP has had one or more initial breaches by health professionals of SLRP contracts in the fiscal year preceding that of a grant application, the SLRP statute requires the Secretary of HHS to reduce your state’s next grant award as a means of “recovering” the Federal dollars invested in the health professional who failed to serve.
The offset formula is found at 42 U.S.C. § 254q-1(g)(2)(B). The amount to be offset equals the sum of the Federal funds disbursed to the SLRP defaulter, plus interest at the maximum legal rate prevailing for loans made during the time amounts were paid under the contract, as determined by the Treasurer of the United States. The Secretary may waive the offset requirement if the SLRP participant's breach was due solely to the participant having a serious illness.