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, you may use funds from other state education loan repayment programs, donations from eligible service sites, and donations from private foundations and community organizations.

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.  

The maximum award amount per provider that the federal government will support through its grant to your state is $50,000 per year, with a minimum service commitment of two years. Your state may offer awards to providers above $50,000 per year; however, any funds awarded to a provider over $50,000 per year are entirely the responsibility of your state, and the individual must agree to serve at a site that would qualify to receive an NHSC Scholar.

Depending on your state program, the award may be renewed in exchange for additional years of service as determined by your state and the availability of funding.