|
Award
Notices
Applicants will receive notification regarding
their selection (or non-selection) for
a FLRP award. The signed contract between
the individual and HHS is the authorizing
document. The contract becomes effective
once signed by the HHS Secretary or his
/ her designee. A copy of the 2-year
FLRP obligation contract with HHS’ official
signature will be sent to each awardee.
Anticipated
Award Announcement: between mid August
and September 30, 2008.
Method
of Disbursing Payments
HHS loan repayments will be provided to
participants in eight quarterly payments.
These payments are made electronically
by direct deposit. Payments will begin
in 2009 in mid-January, April, July and
October.
The
loan repayments and the 39% tax liability
benefit are regarded as income by the
U.S. Internal Revenue Service (IRS) and
are subject to Federal taxes. FLRP
will send the 39% tax liability benefit
directly to the IRS, and this will represent
the amount withheld by HHS to pay the
participant’s Federal income tax and Federal
Insurance Contributions Act (FICA) tax
for the HHS benefits received. All
HHS FLRP payments made and Federal taxes
withheld will be reported to the participant
and the IRS on a Form W-2 after the end
of the tax year. The FLRP payments
may also be subject to State and local
income taxes. Participants should
check with their State or local tax authority
concerning their tax liability for these
payments.
Appropriate
Use of FLRP Funds
All loan repayments received under FLRP
(from HHS and the employing institution)
must be applied, during the calendar year
of their receipt, to reduce the participant’s
eligible undergraduate and/or graduate
health professions educational loans.
In order to confirm that all FLRP funds
were appropriately applied, a detailed
payment history from the lender for each
approved loan must be submitted, approximately
early December 2009 and December 2010.
The payment history must reflect the lender’s
name, account holder’s name, and account
number. Cancelled checks and bank statements
cannot be used to confirm that funding
was applied to the approved loans.
| 
