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About LRP
Are You Eligible?
Applicants must be health or allied health professionals who:
- Are US citizens.
- Agree to sign a contract to practice at an Indian health program priority site.
- Can begin service on or before September 30 for two continuous years of
full-time clinical practice. - Are able to begin service on or before September 30.
- Have a degree in a health profession.
- Have a valid state license.
How Participants Are Selected
IHS has created a ranking system to distribute LRP awards with the utmost fairness. As the goal of the program is to fill staff vacancies in Indian health programs, the ranking system gives highest consideration to program staffing needs and shortages of specific health profession disciplines. Once the need is assessed, each site is ranked accordingly. Consistent with this priority, considerations in ranking applicants include:
- American Indian/Alaska Native — IHS gives priority to applications made by American Indians and Alaska Natives and to individuals recruited through the efforts of Indian Tribes, Tribal or Indian organizations.
- Current Service — Current LRP recipients requesting contract extensions are given priority over new awards.
- Current employment in an IHS, Tribal or Urban program.
- Date of availability for service (first come, first served).
- Date the application was received by the LRP.
Qualifying Loans
The LRP repays qualifying health professions education loans. For consolidated loans (health professions education loans combined with non-health professions education loans), only the health professions education portion can be repaid by the LRP.
LRP awards up to $20,000 per year for participants who sign a two-year service contract. Please see the LRP Payment Examples below for award and tax allocation details.
Payments and Examples
Letters of acceptance are sent on the last day of each month. For new recipients, payments begin 120 days from the date your contract is signed by the Department of Health and Human Services (HHS) Secretary’s representative. If you’re already employed by IHS, your payments begin 120 days from your entry on duty date. For example, if you have been accepted but are not scheduled to begin work until a later date, your payments will not begin until 120 days from your entry on duty date (same as contract date).
Examples of Typical Loan Repayment Situations
A. Participant with $90,000 in qualified educational loans and a two-year service contract.
- LRP paid recipient: $20,000 per year
- LRP paid income tax: $4,000 per year (20% of liability, paid to the IRS)
- LRP withheld FICA tax: $1,836 per year (recipient’s portion, withheld from the award amount)
- LRP paid FICA tax: $1,836 per year (the employer’s FICA portion, paid to the IRS)
- Total award to the participant over two years: $36,328.
- The participant applied for a contract extension for additional repayment funds.
- LRP paid recipient: $15,000 per year
- LRP paid income tax: $3,000 per year (20% of liability, paid to the IRS)
- LRP withheld FICA tax: $1,377 per year (recipient’s portion, withheld from the award amount)
- LRP paid FICA tax: $1,377 per year (the employer’s FICA portion, paid to the IRS)
- Total award to the participant over two years: $27,246.
- This participant’s educational debt was paid off entirely in two years.