Determine State Loan Repayment Program Eligibility and Application Requirements

HRSA's Bureau of Health Workforce funds the National Health Service Corps' (NHSC) State Loan Repayment Program (State LRP) through a grant.

The NHSC State LRP provides cost-sharing grants to states and territories. They use these funds to operate their own loan repayment programs.

These programs offer loan repayment to primary medical, mental/behavioral, and dental health care clinicians. They must be working in Health Professional Shortage Areas.

Some elements may differ by state or territory, including:

• Eligible disciplines
• Practice sites
• Length of required service commitment
• The amount of loan repayment awards offered

The NHSC State LRP complements other NHSC loan repayment programs. It allows states and territories to design their own loan repayment programs. These programs address their residents' most pressing health care needs. The programs also increase the number of primary care clinicians serving in high-need areas.

How do states and territories qualify?

You must meet three requirements to be eligible for the State LRP:

• Location
• Grant management
• Using federal funds

Location

Your entity falls in one of the 50 states, or in:

• Washington, D.C.
• Puerto Rico
• U.S. Virgin Islands
• Guam
• American Samoa
• Palau
• Marshall Islands
• Northern Mariana Islands

Matching funds

For the 2026 application cycle, there is a/an:

1. Restoration of Matching Requirements: Grantees will need to secure a 1:1 match from non-federal sources, such as state appropriations, state licensing fees, foundation support, or contributions from service sites.
2. End of the 10% Administrative Cost Allowance: The entire award amount must be directed to loan repayment awards. States must independently fund the administrative costs of managing the grant.

Federal funds that support the NHSC State LRP are exempt from federal income and employment taxes.

What types of funds can be used to match?

You may use funds from:

• Other state education loan repayment programs
• Donations from eligible service sites, private foundations, or community organizations

The NHSC State LRP allows you to expand your loan repayment programs without additional state costs.

Your state/territory cannot:

• Make NHSC State LRP awards to people already obligated under the state program unless they complete their state obligation before their NHSC State LRP service begins
• Operate on terms that are more favorable than what the NHSC Loan Repayment Program (LRP) provides
  • There are many ways to make your NHSC State LRP stands out from the NHSC LRP through the:
    • Eligible disciplines you fund
    • Practice sites where program participants may serve
    • Length of the service commitment your program requires

Grant management

A state agency must manage the NHSC State LRP grant.

Use of federal funds

The state agency must use federal funds received through the NHSC State LRP to make loan repayment awards.

Who determines award amounts for clinicians?

The NHSC State LRP grantees determine the annual award amount for each clinician receiving loan repayment.

However, clinicians cannot receive more than the total amount of their outstanding school debt.

• Full-time dental and mental health care providers can receive awards of up to $50,000 in loan repayment for two years of service at approved sites located in a dental and mental health HPSA.
• For full-time primary care providers at a primary care HPSA, the limit is $75,000.
• Any amount above this, or the dental and mental health cap of $50,000, must come from non-federal sources.

Can states and territories renew awards?

You may renew a clinician’s award in exchange for additional years of service. However, it does depend on your state program and its available funding.

How do I apply for the State LRP?

Before you apply for a HRSA grant, you must:

• Complete mandatory registrations.
• Read the most recent funding notice (PDF - 501 KB) for program details.

How can I contact you?

Email: Opeoluwa Daramola
Call: (301) 945-3086