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Loans Qualifying for Repayment
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The Extramural Loan Repayment Programs will repay lenders for the extant principal and capitalized interest, interest that accrues during your
LRP Contract, and related expenses (such as the required insurance premiums on the unpaid balances of some loans) of loans obtained from qualifying
U.S. Government (Federal, State, local) or chartered U.S. academic institutions, and commercial educational lenders that are subject to examination and supervision in their capacity as lending institutions by an agency of the United States or of the State in which the lender has its principal place of business obtained by participants for the following:
- Undergraduate, graduate, and health professional school tuition expenses;
- Other reasonable educational expenses required by the school(s) attended, including fees, books, supplies, educational equipment and materials, and laboratory expenses; and
- Reasonable living expenses, including the cost of room and board, transportation and commuting costs, and other living expenses as determined by the Secretary.
Promissory Notes, Disclosure Statements, and Account Statements
Promissory notes and current account statements must be submitted for all loans submitted for repayment consideration.
- Account statements must be less than 90 days old when submitted, and must include the current balance and payoff amount for the loan.
- A disclosure statement can be submitted in lieu of a promissory note. These documents are available from the lending institution or loan servicing agent.
- A consolidated promissory note or disclosure
statement is acceptable for consolidated
loans, however, the underlying promissory notes may be required to determine eligibility.
- If you are submitting a Master Promissory Note, please note that if the Master Promissory Note does not indicate the loan amount, you must submit a disclosure
statement to augment the Master Promissory Note.
- Educational loan consolidations that include the underlying loans of spouses or other individuals are ineligible for repayment consideration. Personal loans that are used to consolidate educational debt, but are not educational consolidation loans, are ineligible.
Payments to Multiple Lenders
Payment of qualifying educational loans will be made directly to a participant's lender(s). Loans will be repaid in the following order:
Loans Not Qualifying for Repayment
The following loans are not repayable under the Extramural Loan Repayment Program:
- Loans not obtained from a U.S. government entity, accredited U.S. academic institution, or a commercial or other chartered lending institution
that is subject to examination and supervision in its capacity as a lending institution by an agency of the United States or of the State in which the lender has its principal place of business, such as loans from friends, relatives, or other individuals, and non-educational loans, such as home equity and personal loans;
- Loans for which contemporaneous documentation (current account statement, and promissory note or disclosure statement) is not available;
- Loans or portions of loans obtained for educational or living expenses which exceed a reasonable level, as determined by the standard school budget for the year in which the loan was made, and are not determined by the LRP to be reasonable based on additional contemporaneous documentation provided by the applicant;
- Loans, financial debts, or service obligations incurred under the following programs, or other programs that incur a service obligation that converts to a loan on failure to satisfy the service obligation:
Physicians Shortage Area Scholarship Program (Federal or State)
National Research Service Award Program
Public Health and National Health Service Corps Scholarship Program
Armed Forces (Army, Navy, Air Force) Health Professions Scholarship Program
Indian Health Service Scholarship Program;
- Delinquent loans, loans in default, or loans not current in their payment schedule;
- PLUS loans to parents. PLUS loans disbursed to graduate and professional students on or after July 1, 2006 qualify for LRP repayment
- Any loan that has been consolidated with a loan of another individual, including spouses;
- Loans that have been paid in full;
- Loans obtained after the execution of the NIH Loan Repayment Program Contract (e.g., promissory note signed after the program effective date);
- Primary Care Loans.
During lapses in loan repayments, due to Extramural Loan Repayment Program administrative complications, Loan Repayment Program participants are wholly responsible for making payments or other arrangements to keep loans in good standing (e.g., not delinquent, not in default, or not current in payment schedule). Late fees, penalty fees, additional interest charges or collection costs will not be repaid by the NIH.
Loans Paid-in-Full
When a loan account is scheduled to be paid-in-full (e.g., final payment), the Loan Repayment Program will contact the lender to obtain the estimated payoff amount. Because payoff amounts are only estimates that are valid for certain periods, Loan Repayment Program repayments often do not completely pay off a loan balance, leaving a small amount in the participant's loan balance.
If the remaining balance is $100 or less, you (the LRP participant) are responsible for making a payment to the lender to completely pay off the loan. You are also required to provide documentation to the NIH that shows the loan was granted paid-in-full status. Your payment will also be credited towards the fulfillment of your participant obligation. Click here for information on participant obligation. If you have already paid the amount required to satisfy your obligation, the amount is eligible for reimbursement. Reimbursement requests must include a payment history that shows the payoff amount paid. Click here for information on reimbursements to participants.
If the remaining balance is greater than $100, the NIH will repay the amount. To initiate this repayment, you will be required to provide the NIH with an updated statement that shows the remaining account balance.
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