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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. A participant who breaches the NHSC LRP contract by failing to begin or complete the required NHSC LRP service will be placed in default and obligated to pay the United States an amount equal to the sum of the following:
    1. the amount of loan repayments paid to the participant representing any period of obligated service not completed; and
    2. $7,500 multiplied by the number of months of obligated service not completed; and
    3. interest on the above amounts at the maximum legal prevailing rate, as determined by the Treasurer of the United States, from the date of breach; except that the minimum amount the United States is entitled to recover will not be less than $31,000.
  2. Any amounts the United States is entitled to recover, as set forth above, must be paid within one year from the date of default.  Failure to pay the NHSC LRP debt by the due date has the following consequences:
    1. The debt will be reported to credit reporting agencies— During the one-year repayment period, the debt will be reported to credit reporting agencies as “current.”  If the debt becomes past due, it will be reported as “delinquent.”
    2. The debt may be referred to a debt collection agency and the Department of Justice—Any NHSC LRP debt past due for 45 days may be referred to a debt collection agency.  If the debt collection agency is unsuccessful in collecting payment in full, the debt will be referred to the Department of Justice for enforced collection.
    3. Administrative offset—Federal and/or State payments due to the participant (e.g., an IRS income tax refund) may be offset by the Department of Treasury to repay a delinquent NHSC LRP debt.  Also, recovery through Administrative Wage Garnishment may be enforced to repay a delinquent NHSC LRP debt.
    4. Bankruptcy - A financial obligation under the NHSC LRP may only be discharged in bankruptcy if the discharge is granted more than seven years after the due date and only if a bankruptcy court determines that the non-discharge of the debt would be unconscionable.

next page: Suspension, Waiver, Cancellation and Termination

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