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Glossary of Terms
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Account Statement
A statement of a loan account provided by the lender or servicing agent for the loan. This document details the current loan balance, interest charges, and other information, such as an account number or payment address. NIH asks for this statement for all eligible student loans before issuing a LRP contract. NIH accepts an account statement received through the US Mail or a statement printed from a lender’s or servicing agent’s website.
Accrued interest
Interest (not penalties) accumulated and due on loans. Accrued interest is considered a part of qualified student debt and is eligible to be repaid by NIH. If your loan is in repayment status, accrued interest is the amount of interest accumulated since your last payment. If your loan is not in repayment status, accrued interest is the amount accumulated since the original disbursement of the loan (or since the beginning of a period of grace, deferment, or forbearance).
ALP (Alternative Loan Program)
Low-interest student loans backed by TERI, The Education Resources Institute, a non-profit organization that sponsors loans for both graduate and undergraduate students. TERI – also called ALP (Alternative Loan Program) – loans are qualified for NIH loan repayment. Please see “TERI loans.”
Assessment of Research Activities
Please see “research supervisor.”
Biosketch
A biosketch is your curriculum vitae presented in a specified NIH format. Your CV is not acceptable where a biosketch is requested.
Breach of contract
LRP participants breach, or violate, their legally binding contract with NIH by leaving their research before the end of their two- or three-year research commitment without NIH approval. See “service obligation.”
Capitalization (capitalized interest)
Unpaid interest added to the principal balance of a loan when a loan enters repayment (e.g., after periods of school, deferment or forbearance). This results in an increase in the size of the loan, and the interest is charged on the new balance. Capitalized interest should not be reported to LRP combined with “accrued interest” since it is included in the principal balance reported by the lender.
Center for Scientific Review (CSR)
CSR refers LRP applications to NIH Institutes and Centers (ICs) for peer review and scoring based on a scientific review of the application.
Change of Institution (COI)
A Change of Institution, or COI, occurs when a participant physically moves from one institution to another to continue their research. A Change of Institution involves providing updated research information as well as naming a new Supervisor and Organizational Contact. COIs are reviewed by the Institute or Center that funded the LRP award.
Clinical research
“Patient-oriented research conducted with human subjects, or research on the causes and consequences of disease in human populations involving material of human origin (such as tissue specimens and cognitive phenomena) for which an investigator or colleague directly interacts with human subjects in an outpatient or inpatient setting to clarify a problem in human physiology, pathophysiology or disease, epidemiologic or behavioral studies, outcomes or health services research, or developing new technologies, therapeutic interventions, or clinical trials.”
Clinical Research Loan Repayment Program
A loan repayment program designed to attract or retain health professionals in clinical research careers.
Consolidation loan
Consolidation of qualified student loans into a single loan. See “Ineligible loans” to learn what pitfalls to avoid if you are considering consolidating your loans. See “FFEL Consolidation Loan” for consolidation of federally guaranteed student loans.
Contraception and Infertility Research Loan Repayment Program
This LRP is for health professionals, including graduate students, conducting qualified contraception and infertility research at sites designated by the National Institute of Child Health and Human Development.
Debt threshold
The minimum amount of qualified student loan debt allowing an applicant to be eligible for a NIH loan repayment program. To satisfy the debt threshold, a LRP applicant must have qualified student loans equal to or exceeding 20% of the applicant’s institutional base salary.
Deferment
A period of time when a lender suspends payments on principal or interest charges, or both, on a loan. On Federally-subsidized student loans, the Federal government may pay the interest during a deferment. Deferment may be obtained or extended for a variety of reasons, including financial hardship or continuing education. Deferments vary by lender and by type of loan.
Delinquent student loans
A loan is considered delinquent when payments are late or missed. LRP will exclude all delinquent loans when "qualifying debt" is determined, and will not pay late fees upon loans that go into delinquent status.
Disclosure statement
Provides the borrower with information about the actual cost of the loan, including the interest rate, origination, insurance, and loan fees, and any other kinds of finance charges. Lenders are required to provide the borrower with a disclosure statement before issuing a loan. The NIH LRP accepts a copy of this document in lieu of a promissory note to document qualified student debt.
Doctoral-level degree
NIH recognizes the following educational degrees as eligible to apply for the LRP: M.D., Ph.D., Pharm.D., Psy.D., D.O., D.D.S., D.M.D., D.P.M., D.C., N.D., or an equivalent doctoral degree from an accredited institution. D.V.M. is also a qualifying degree for the Pediatric Research LRP and Health Disparities LRP, but not for the Clinical Research LRP.
Educational debt
The sum of qualified student loans (principal + interest + related expenses) recorded at the start of the NIH LRP contract.
Eligible loans
A loan is considered eligible if it is issued by any US government (Federal, state or local), academic institution, or commercial lender for school tuition or other reasonable educational or living expenses (including room and board and transportation) while attending undergraduate, graduate, medical, dental, or veterinary schools.
Federal Direct Student Loan Program
The William D. Ford Federal Direct Loan Program (aka the Direct Loan Program) is a federal program where the school becomes the lending agency and manages the funds directly, with the Federal government providing the loan funds. Similar to the Federal Family Education Loan Program (FFELP). The funds for these loans are provided by the US government directly to students and their parents through their schools. The FDSLP includes the Federal Direct Stafford Loan (Subsidized and Unsubsidized) and the Federal Direct Parent Loan for Undergraduate Students (PLUS).
These loans, including PLUS loans disbursed to graduate and professional students on or after July 1, 2006, qualify for LRP repayment. PLUS loans to parents do not qualify.
Federal Family Education Loan Program (FFELP)
Includes the Federal Stafford Loan (Subsidized and Unsubsidized), the Federal Perkins Loan, and the Parent Loan for Undergraduate Students (PLUS). The funds for these loans are provided by private lenders, such as banks, credit unions, and savings and loan associations. These loans are guaranteed against default by the federal government.
These loans, including PLUS loans disbursed to graduate and professional students on or after July 1, 2006, qualify for LRP repayment. PLUS loans to parents do not qualify.
FFEL Consolidation Loan
Consolidated, Federally-sponsored student loans. FFEL Consolidated loans are eligible for repayment. Also see “FFEL Program,” “SMART Loans” and “Stafford Loans.”
Forbearance
A period in which a lender suspends regular loan payments. Interest charges accumulate and are added to the balance at the end of the forbearance period. Forbearance is usually granted for financial hardship. NIH LRP will repay the interest charges that accumulate while a loan is in forbearance.
Grace Period
A short period after graduation/separation from school during which the borrower is not required to make student loan payments. See “forbearance,” “deferment,” and “service obligation.”
Health Disparities Research Loan Repayment Program
This LRP is designed to attract and retain health professionals in minority health and health disparities research careers.
Health Education Assistance Loan (HEAL)
Student loans sponsored by the Department of Health & Human Services. HEAL loans qualify for repayment.
Health Professions Student Loan (HPSL)
Loans sponsored by the Department of Health & Human Services. HPSL loans qualify for repayment. Applicants with HPSL loans also meet the disadvantaged background criteria for the Clinical Researcher Loan Repayment Program for Individuals from Disadvantaged Backgrounds.
Help Line
A toll-free number (866-849-4047) to call to reach staff for assistance with your on-line LRP application.
Income tax reimbursement
LRP repayments made to lenders are taxable income to participants. To offset this income tax liability, NIH makes payments on the participant’s behalf directly to the IRS equal to 39% of the total repayment amount.
Ineligible loans
Any loans which do not fall under the LRP’s criteria for “eligible loans” are ineligible for LRP consideration. This includes non-educational loans, PLUS* loans to parents (federally guaranteed educational loans for parents), loans consolidated with another individual’s loan (including a spouse or a child), home equity loans, and loans received from family or friends.
*Please note that PLUS loans disbursed to graduate and professional students on or after July 1, 2006 qualify for LRP repayment.
Institutional base salary
The total annual compensation an applicant receives from his/her supporting institution. Institutional base salary (also called “base salary”) includes pay for research, teaching, or other activities. Institutional base salary excludes fringe payments, administrative or reimbursed expenses, and income earned outside of duties to the institution.
Institutional contact
An individual authorized to act in an official capacity on behalf of a LRP applicant's employer. The institutional contact is asked to report the applicant's salary and confirm to NIH that (1) the applicant will be provided time and resources to engage in research for the term of the LRP contract; (2) the applicant is or will be engaged in qualifying research for at least 50% or more of his/her total level of effort for an average of at least 20 hours per week during each quarterly service period. That is, during each contract quarter, the participant must conduct the required research for a minimum of 240 hours (based on a 12-week quarter) or 260 hours (based on a 13-week quarter ; and (3) the employer is a non-profit organization.
Loans for Disadvantaged Students (LDS)
Loans issued by the US Department of Health & Human Services. LDS loans qualify for repayment. Applicants with LDS loans also meet the disadvantaged background criteria for the Clinical Researcher Loan Repayment Program for Individuals from Disadvantaged Backgrounds.
Master Promissory Note (MPN)
A contract borrowers sign when taking out either subsidized or unsubsidized Stafford Loans. When submitting the MPN to LRP, you are required to include the attachment that lists loan amounts and dates for all disbursements. For students who attended four-year or graduate schools, the MPN also covers Stafford Loans for future enrollment periods at the same school within a 10-year period. See “Stafford Loans.”
MEDEX Loan
Sponsored by the Association of American Medical Colleges, this loan is offered to medical students exclusively for expenses incurred with residency interviews and relocation. MEDEX Loans qualify for repayment.
MEDLOANS
A loan program sponsored by the Association of American Medical Colleges and offered exclusively to medical students. The loans include the loans under the federally-subsidized Stafford Loans and Alternative Loan Program (See “Alternative Loan Program - ALP”). MEDLOANS qualify for repayment.
Nonprofit
Applicants must conduct qualifying research supported by a domestic non-profit foundation, non-profit professional association, or other non-profit institution, or a U.S. or other government agency (Federal, State, or local). A domestic foundation, professional association, or institution is considered to be non-profit if exempt from Federal tax under the provisions of Section 501 of the Internal Revenue Code (26 U.S.C. 501).
Nursing Student Loan Program (NSL)
Issued by the Department of Health & Human Services. NSL loans qualify for repayment.
Participant Obligation
When executing a LRP contract, NIH excludes a sum equal to 10% of the participant’s “institutional base salary” from the student debt eligible for NIH repayment. This sum is called the “participant obligation.” This obligation amount is set at the start of LRP. Participants do not need to pay any portion of that amount during their time in the LRP. See “Repayable Debt.”
Payment verification
When NIH releases a payment to a participant’s lender the participant is required to submit an “account statement” from the lender that details the payment amount and resulting account balance.
Pediatric Research Loan Repayment Program
This LRP attracts and retains health professionals in pediatric research careers. Pediatric research – Research directly related to diseases, disorders, and other conditions in children.
Perkins Loan
Formerly National Direct Student Loan Program, the Perkins loans are issued by educational institutions and they provide up to $3,000 per year for undergraduate programs and up to $6,000 a year for graduate school. Perkins loans are guaranteed by the U.S. Department of Education and qualify for repayment.
PLUS Loans (Parent Loan for Undergraduate Students)
Federally-guaranteed unsubsidized loans issued to parents for educational expenses incurred by their children.
PLUS loans disbursed to graduate and professional students on or after July 1, 2006, qualify for LRP repayment. PLUS loans to parents do not qualify.
Promissory note
The binding legal document that must be signed by the student borrower before loan funds are disbursed by the lender. The promissory note states the terms and conditions of the loan, including repayment schedule, interest rate, deferment policy and cancellations. The student should keep this document until the loan has been repaid. The NIH LRP relies on promissory notes or “disclosure statements” to determine a LRP participant’s student debt.
Program Eligibility Date
The date that the initial LRP contract is executed by the Secretary, or an authorized designee, of the Department of Health and Human Services (DHHS).
Qualifying debt
The total educational debt projected for the length of a LRP contract, including interest that will accrue to the loans during the course of the contract.
Recommenders
Individuals who can comment on the research skills and the abilities of the applicant. This includes the applicants’ research supervisor or most recent mentor.
Repayable debt
The amount of debt qualified for LRP participation. It represents total qualifying educational debt less the “participant obligation.” NIH repays 25% of a participant’s repayable debt for each year of participation during the initial two-year contract, for a total of 50% repayment during the initial contract.
Repayment start date
The date when any deferment or grace status ends and a borrower must start repaying student loans. Most student loans are automatically granted grace status at time of disbursement and remain in grace status as long as the borrowers are full-time students.
Research supervisor
NIH asks each LRP applicant’s research supervisor or mentor to complete two online forms: an “Assessment of Research Activities” and a recommendation. The assessment includes the supervisor’s concurrence with the applicant’s Research Activities Statement, outlining the Research Environment and Training/Mentoring Plan, plus the research supervisor’s biosketch.
Research Activities Statement
This statement is part of a LRP application. It describes the current or proposed research project and the applicant’s role in conducting the research. It includes a brief statement regarding the research environment and colleagues.
Service obligation
LRP participants are required to conduct qualified research for their contract period. Also, applicants with any remaining outside service obligations (other than to the LRP contact) must complete such outside commitments, or gain deferment, before they are eligible for LRPs.
Service Verification
The Service Verification is completed on a quarterly basis by the participant's Supervisor and is a required step before the release of funds to the lender(s). The Supervisor must verify that the participant continues to complete research at the accepted level and that the research is as described in the LRP application.
SMART Loans
Sallie Mae’s name for Federal Family Education Loans (FFEL) consolidation loans. SMART Loans qualify for NIH loan repayment programs
Stafford Loans
Federal loans that come in two forms: subsidized and unsubsidized. Subsidized loans are based on need; unsubsidized loans aren't. The interest on the subsidized Stafford Loan is paid by the Federal government while the student is in school and during the six month grace period. The subsidized Stafford Loan was formerly known as the Guaranteed Student Loan (GSL). These loans are eligible for LRP repayment.
Subsidized loans
The Federal government pays the interest that accrues to subsidized loans during all in-school, grace, authorized deferment, and (if applicable) post-deferment grace periods if the loan meets certain eligibility requirements. Examples include Stafford (either FFELP or direct), Perkins, Loans for Disadvantaged Students (LDS), and Health Professions Student Loans (HPSL).
TERI loans
Low-interest student loans backed by TERI, The Education Resources Institute, a non-profit organization that sponsors loans for both graduate and undergraduate students. Also called ALP (Alternative Loan Program) loans.
Unsubsidized loans
When student loans are unsubsidized, borrowers are responsible to pay all accrued interest, whether accrued in school, or during grace or deferment periods, or during NIH repayment contract periods. Examples include Federal Unsubsidized Stafford (either FFELP or Direct), Federal SLS, Federal PLUS, Health Education Assistance Loans (HEAL), private loans, and some institutional loans. See “Capitalization.”
William D. Ford Federal Direct Student Loan Program (FDSLP)
See “Federal Direct Student Loan Program.”
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