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Loan Repayment Program Fiscal Year 2009 Applicant Information Bulletin

Applications Due January 31
On-Line Application
Adobe Icon Printer-friendly Applicant Information Bulletin (PDF - 648 KB)
Applicant Information Bulletin Home
Special Items of Importance
Summary of Important Dates
Eligibility Requirements and Funding Preferences
Service Requirements
Qualifying Educational Loans
Community Site Employment
Full-Time Clinical Practice
Leaving the Community Site
Breaching the NHSC LRP Contract
Suspension, Waiver, Cancellation and Termination
The Application Process
Power-of-Attorney, Privacy Act Release Authorization and Change of Contact Information
NHSC LRP Checklist
Adobe Icon Forms (248 KB)
Adobe Icon Standard Form 1199A (Direct Deposit Form, PDF - 102 KB)
Job Opportunities
Frequently Asked Questions
Join an Applicant Conference Call
2:30 to 4:30 pm ET
January 13 & 14

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1. Loan Repayments

The NHSC LRP will provide funds to program participants to repay their outstanding qualifying educational loans (See Section F).

  1. The NHSC LRP will pay up to $50,000 for two years of service, based on the participant’s outstanding balance of qualifying educational loans.  If the total amount of the participant’s qualifying educational loans is less than $50,000, the NHSC LRP will pay the remaining balance of the total qualifying educational loans (as quoted in a pay off balance provided by the lender/holder) for two years of service.
  2. All loan repayments paid to the participant must be used by the participant to repay the approved qualifying educational loans during his/her contract period and must be applied within 30 days of receipt of funds.

2. Method of Disbursing Payment

To assist NHSC LRP participants in reducing their educational debts in a shorter period of time and reduce the cost of these loans to the Federal government, the NHSC LRP will disburse payments to participants in the form of a lump sum payment.  The lump sum payment will be electronically issued to the participants approximately 90 days after their contract start date.

Applicants should be aware that most lenders will expect you to continue to make monthly payments after you have applied the lump sum loan repayment award. 

Note:  Under the Treasury Offset Program, the Treasury Department is authorized to offset NHSC LRP payments for delinquent Federal and State debts, including delinquent child support payments.

3. Salary

The NHSC LRP participant will receive a salary and benefits from the employing approved NHSC community site.  Employment compensation packages are negotiated between the clinician and the approved NSHC community site.  Agreed-upon terms of employment are typically reduced to an employment contract.  The terms of the employment contract should be carefully reviewed and fully understood by the clinician before the contract is signed.  Applicants may want to seek legal guidance from private counsel before entering into an employment contract.  Employment contract negotiations are solely the responsibility of the NHSC LRP applicant.

Please Note:  A community site cannot guarantee that an employee will receive an NHSC LRP contract awardTherefore, NHSC loan repayments must not be part of employment and salary negotiations between clinicians and community sites.

next page: Qualifying Educational Loans

Questions? or 1-800-638-0824 Monday through Friday (except Federal holidays) 8:30 am to 5 pm ET.

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