SLRP Funding Requirements

Cost-Sharing Requirement

Your State Loan Repayment Program (SLRP) grant requires a cost-sharing match from your state to fund your program. Your state must agree to make available (directly or through donations from public or private entities) non-Federal contributions in cash toward SLRP award contracts in an amount not less than $1 for each $1 of Federal funds provided in the grant.

Your state may not use any Federal funds or in-kind contributions to satisfy the non-Federal match requirement or for any administrative costs to execute your state loan repayment program. In addition, your state must verify that contributions from sources other than state-appropriated funds are non-Federal.

Your state share of the program may be used to repay qualifying loans of health professionals, administrative costs of the SLRP grant, or a combination of both.

Flexibility in Match Funding

Your state has flexibility in meeting the required match for funding. For example:

  • Funds appropriated for their own state loan repayment programs as the match for a federal SLRP grant under certain circumstances.
  • State education loan repayment programs
  • Donations from private foundations, corporations, community organizations and/or philanthropies
  • Donations from rurally oriented organizations requesting that those funds be used to support placement of practitioners in rural areas.

SLRP provides your state an opportunity to expand your educational loan repayment programs without additional state outlays. You may use funds appropriated for your own state loan repayment programs as the match for your federal SLRP grant.  However, as outlined in the program regulations, your state cannot make SLRP awards to individuals already obligated under the state program unless those individuals will have completed their state obligation before their SLRP service would begin.

The statutory requirements of the SLRP program state that your program cannot operate on terms that are more favorable than what the NHSC Loan Repayment Program (LRP) is authorized to provide. However, there is still a significant amount of flexibility for you to differentiate your SLRP from the NHSC LRP through the eligible disciplines you fund, the practice sites where program participants may serve and the length of the service commitment your program requires.

Participant Awards

Each SLRP grantee determines the annual award amount it will provide, however program participants cannot receive more than the total amount of their outstanding educational debt.  

SLRP Programs are allowed to make an award of up to $50,000 a year to a participant ($25,000 Federal funds; $25,000 State funds a year). This is the maximum loan repayment amount authorized under the NHSC LRP. See 42 U.S.C. 254/-1(g)(2)(A).

  • EXCEPTION: Grantees may make awards of more than $50,000 per year if the amount over and above the $50,000 authorized for NHSC LRP participants comes from non-Federal sources and the SLRP contract participant will serve in a site in a high need HPSA that is authorized for placement of an NHSC Scholarship Program participant.