Qualifying
/ Eligible Educational Loans
FLRP participants must apply FLRP
loan repayments to the principal and interest
of eligible educational loans. Eligible
educational loans are Government (Federal,
State, or local) and commercial loans
obtained by the participant for school
tuition and required fees; other reasonable
educational expenses; and reasonable living
expenses. The tuition, fees and expenses
are limited to those incurred by the participant
for undergraduate and / or graduate education
leading to a degree in the health profession
in which the participant will satisfy
his / her 2 year FLRP service obligation.
Consolidated
/ Refinanced Loans
If eligible educational loans are consolidated
and / or refinanced, the original loan
documentation must be submitted to establish
the educational purpose and contemporaneous
nature of such loans. The consolidated
/ refinanced loan must be from a Government
(Federal, State, or local) and / or commercial
lender for the applicant’s qualifying
educational loans only. If an eligible
educational loan is consolidated / refinanced
with any debt other than another eligible
educational loan(s) of the applicant,
no portion of the consolidated / refinanced
loans will be eligible for repayment.
Applicants who have consolidated and /
or refinanced their loans must provide
either a copy of their promissory note(s)
for the original loan(s) or a copy of
the consolidated promissory note from
the current lender(s) that shows, for
each loan being consolidated, the amount,
date of original disbursement, and type
of loan.
For
loans to remain eligible for FLRP, applicants
must keep their eligible educational loans
separated from all other debts. Also,
eligible educational loans should not
be consolidated with loans owed by any
other person, such as a spouse or child.
Finally, borrowers should submit a disclosure
statement on the consolidated loans from
their lenders.
Ineligible
Education Loans
The following loans are not eligible
and do not qualify for repayment under
FLRP:
-
Loans that are paid in full
-
Loans for which documentation is not
available
-
Loans that incur an obligation for service
if not repaid
-
Loans not obtained from a Government
entity or commercial lending institution
-
Loans, or those parts of loans, obtained
for educational or living expenses while
at school, that exceed the "reasonable"
level, as determined by the school's
standard budgets in the year the loan
was made
-
Loans for which the associated documentation
does not identify the loans as applicable
to undergraduate or graduate education
leading to a degree in the applicant’s
health profession in which he or she
will be serving
FLRP
loan repayments may not be applied to
ineligible loans.
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