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LRPs for NIH Employees - Intramural Programs
Loans Qualifying for Repayment
The LRP will repay lenders for the extant principal and capitalized interest,
interest that accrues during the LRP Contract, and related expenses (such as the required insurance premiums on the
unpaid balances of some loans) of qualified Government (Federal, State, local), academic institutions, and commercial
educational loans 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.
Determination of reasonable educational and living expenses will be based on estimates contained in the standard
school budget for each of the schools' degree programs and years attended. If there is no standard budget available
from the school or if the participant requests repayment for educational and living expenses that exceed the standard
student budget, additional contemporaneous documentation may be requested to substantiate the reasonableness of all
educational and living expenses incurred.
Loans Eligible for Deferment
Commissioned Officers of the Public Health Service may be eligible for deferments of monthly payments on their Stafford
Loans (formerly Guaranteed Student Loans), Perkins Loans (formerly NDSL) and SLS Loans. Other loans may also be eligible
for deferment.
Additionally, full-time participation in an eligible graduate fellowship or other training programs may also qualify some
individuals for deferments of certain loans. Participants are strongly encouraged to review their loan documentation (promissory
notes and repayment agreements) to determine eligibility for deferments. Deferments may also prevent the accumulation of
additional interest on your loan, and reduce your debt.
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 unless the Secretary determines that significant savings would result from a different order of priority
(examples within each section are not fully inclusive of all such loans):
1. Loans guaranteed by the U.S. Department of Health and Human Services
Health Education Assistance Loan(HEAL)
Health Professions Student Loan(HPSL)
Loans for Disadvantaged Students(LDS)
Nursing Student Loan Program(NSL)
2. Loans guaranteed by the U.S. Department of Education
Direct SubsidizedStafford Loan
Direct UnsubsidizedStafford Loan
Direct ConsolidationLoan
Perkins Loan
FFEL SubsidizedStafford Loan
FFEL UnsubsidizedStafford Loan
FFEL Consolidation Loan
3. Loans made or guaranteed by a State, the District of Columbia, the Commonwealth
of Puerto Rico, or a territory or possession of the United States
4. Loans made by Academic Institutions
5. Private ("Alternative") Educational Loans
MEDLOANS
Private (non-guaranteed) Consolidation Loan
Payments on Consolidated Loans
The LRP will make repayments on those portions of consolidated loans that originally
obtained by the participant for educational purposes. Applicants must submit the loan
agreement for consolidated loans, as well as loan agreements for each of the underlying
loans. Loan consolidations which include the underlying loans of spouses or other
individuals are ineligible for repayment consideration.
Leave Without Pay
Loan repayments will not be made for periods of leave without pay (LWOP), which is defined
as any temporary non-pay status and non-duty status (or absence from a prescheduled tour of
duty), granted at the employees's request even if these individuals are employed by the NIH.
Loans Not Qualifying for Repayment
The following loans are not repayable under the LRP:
1. 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 , or loans that are not educational, such as loans from friends, relatives, or other individuals, and non-educational loans, such as home equity and personal loans;
2. Loans for which contemporaneous documentation is not available;
3. 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;
4. Loans, financial debts, or service obligations incurred under the following programs,
or other programs which incur a service obligation which 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, or Air Force) Health Professions Scholarship Program
- Indian Health Service Scholarship Program;
5. Delinquent loans, loans in default, loans not current in their payment schedule, loans
already repaid or those for which
promissory notes have been signed after the program effective
date are not eligible for repayment;
6. Late fees, penalty fees, additional interest charges or collection costs will not be repaid
by the LRP; and
7. PLUS Loans to parents. PLUS loans disbursed to graduate and professional students on or after July 1, 2006 qualify for LRP repayment.
8. Primary Care Loans; and
9. Any loan that has been consolidated with a loan of another individual.
During lapses in loan repayments, due either to LRP administrative complications or a break in service,
LRP participants are wholly responsible for making payments or other arrangements which maintain loans
current, such that increases in either principal or interest do not occur. Penalties assessed participants
as a result of LRP administrative complications to maintain a current payment status may be considered for
reimbursement.
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