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2008 Faculty Loan Repayment Program Applicant Information Bulletin

Discrimination Prohibited
Purpose
Administration
Benefits
Applicant
Qualifying / Eligible Educational Loans
Service Obligation Requirement
Application Submission
Award Information
Breach of Contract
Contact Information

Applicant Information Bulletin

JUNE 2008

Discrimination Prohibited
Title VI of the Civil Rights Act of 1964 states:  “No person in the United States shall, on the ground of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance.”

Section 504 of the Rehabilitation Act of 1973, as amended, provides that no otherwise qualified individual with a disability in the United States shall, solely by reason of his / her disability, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance.

Title IX of the Education Amendments of 1972, as amended, provides that no person in the United States shall, on the basis of sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance.

Title III of the Age Discrimination Act of 1975, as amended, provides that no person in the United States shall, on the basis of age, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance.

Purpose
The Faculty Loan Repayment Program (FLRP) is authorized by Section 738(a) of the Public Health Service Act, as amended.  The purpose of the program is to repay the educational loans of eligible applicants from disadvantaged backgrounds selected to be participants in the Loan Repayment Program.

Under the FLRP, the Secretary of the U.S. Department of Health and Human Services (HHS) or his / her designee enters into contracts with eligible individuals from disadvantaged backgrounds who agree to serve as faculty at eligible health professions schools for a minimum of two years.  This program is designed to increase the number of faculty from disadvantaged backgrounds in eligible health profession disciplines, who act as role models and mentors for students from similar backgrounds.  Hence, faculty, as used in this section, means a position that is primarily teaching, rather than administrative or research.

Administration
The Faculty Loan Repayment Program (FLRP) award process is administered by the Health Resources and Services Administration (HRSA), Bureau of Clinician Recruitment and Service (BCRS).  HRSA is an agency of the U.S. Department of Health and Human Services (HHS).  Within the BCRS, the Division of Applications and Awards (DAA), National Health Service Corps Loan Repayment Branch (NHSC LRB) administers the FLRP application and awards process. 

Following receipt of a FLRP award, the Division of Scholar and Clinician Support, Clinician Service Support Branch, monitors FLRP participants while serving their commitment, reviews and approves or denies requests for service transfers, and determines if participants have completed their service commitment.

Benefits
The FLRP will provide funds to participants to repay their outstanding qualifying educational loans.  FLRP will pay up to $20,000 a year in return for a two year service commitment obligation, based on the participant’s outstanding balance of eligible educational loans (the maximum amount is $40,000 for 2 years).  Participants should also receive matching funds from their employing educational institution.  All payments made to the participant must be used to repay the approved eligible educational loans during his / her contract period.

In addition, FLRP participants will receive a tax liability benefit equal to 39% of the HHS loan repayment amount.

Applicant:

  1. To be eligible to apply, an applicant must:
  • Be from a disadvantaged background
    Some schools provide financial or other assistance to students identified as being from a "disadvantaged background."  If your undergraduate or graduate school so identified you, indicate "Yes" to Question #6 on the application, even though you may not have actually received assistance, and enclose a copy of a statement from a school official certifying that you were identified as having a "disadvantaged background."  Documentation must be submitted to confirm your "disadvantaged background.”
  • Be a citizen or National of the U.S.
    Applicants must submit documentation to verify status as a U.S. citizen or national (e.g., a copy of a birth certificate, a certificate of citizenship, passport or  naturalization certificate).
  • Have completed, or be in the final year of training, in an eligible health profession
    An applicant must have a degree in, be enrolled in the final year of a graduate training program or be enrolled as a full-time student in the final year of study at an accredited school leading to a degree in one of the following health professions:  Allopathic Medicine; Osteopathic Medicine; Podiatric Medicine; Veterinary Medicine; Dentistry; Pharmacy; Optometry; Nursing (RN only); Public Health; Behavioral and Mental Health (graduate level only); Clinical Psychology (graduate level only); Clinical Social Work (graduate level only); Marriage and Family Therapy (graduate level only); or schools of Allied Health.
  • Have an employment commitment from an eligible college or university for a full-time or part-time faculty position for a minimum of 2 years for the 2008 Fall Term and that Fall Term must start no later than September 30, 2008
    Faculty member duties must primarily consist of teaching in a classroom; not research or administrative activities.  An eligible college or university must be an accredited school of medicine, osteopathic medicine, dentistry, nursing, pharmacy, allied health, podiatric medicine, optometry, veterinary medicine, public health or a school offering graduate programs in behavioral or mental health.
  • Have an agreement with the eligible college or university for equivalent loan repayment
    Each school, unless it has received a waiver from the HHS awarding agency, must agree to make loan repayments to the applicant in an amount equal to the loan repayments made by HHS.  This amount is in addition to the pay the individual would otherwise receive as a faculty member. 
  • Be currently repaying eligible undergraduate and/or graduate health professions educational loans
  • The date of  employment must begin on or before September 30, 2008
  1. An individual is not eligible to participate if he / she:
  • Has a court judgment lien against his/her property for a debt owed to the United States
    Debtors with judgment liens for Federal debts are precluded from receiving Federal financial assistance under the FLRP
  • Has an existing service obligation that will not be satisfied on or before June 10, 2008
  • Does not submit an application and all required supplemental documents
  • Has been excluded or disqualified from Covered Transactions
    The receipt of funding under the FLRP Program is a “covered transaction” pursuant to Title 2 of the Code of Federal Regulations (CFR) Part 180, as adopted by HHS pursuant to 2 CFR Part 376.  Before entering into a loan repayment contract, the applicant is required, under Subpart C of Part 180, to report certain information, which is described in the “Certification Regarding Debarment, Suspension, Disqualification and Related Matters”.  The applicant should sign the Certification that is applicable to his / her situation.

    Individuals who are currently excluded (suspended or debarred) or disqualified by any Federal agency from participating in covered transactions are ineligible to receive an award under the FLRP Program.  Individuals with reportable problems other than exclusion or disqualification may, or may not, be selected to participate in the FLRP Program, based on the Program’s consideration and evaluation of the applicant’s circumstances.

    As a condition of participating in the FLRP Program, a participant must agree to comply with the requirements of Subpart C of Part 180, which include providing immediate written notice to DAA if the applicant learns that he/she failed to make a required disclosure or that a disclosure is now required due to changed circumstances.

  • Has been delinquent or Defaulted on a Federal debt or breached an obligation for professional service to a Government Entity
    The application includes a certification that the applicant has not been delinquent or defaulted on repayment of any Federal debt or breached a health professional service obligation to a governmental entity.  A Federal debt includes debts arising from Federal taxes, Federal loans, federally guaranteed or insured loans such as student or home mortgage loans, an overpayment of Federal benefits and any other debt owed to the Federal Government.  An applicant is considered to be delinquent or in default of a Federal debt if he or she has ever been more than 31 days past due on a scheduled payment. Delinquent applicants will not be selected for FLRP regardless of circumstances.