Loan Repayment
- National Health Service
Corps Loan Repayment Program
The loan repayment program now begins with an initial award of up to $60,000 for 2 years of service. Primary care medical, dental, and mental health clinicians may receive up to $170,000 in loan repayment for completing a 5-year service commitment and, with continued service, may be able to pay off all eligible student loans. The loan repayment program now offers three options for fulfilling the service obligatio: a 2-year full-time contract, a 4-year half-time contract, and a 2-year half-time contract.
The service obligation for clinical practice hours now includes a 20 percent credit for teaching and a 50 percent credit for teaching at a teaching health center. - To see if a site is in a Health Professional Shortage Area (HPSA), go to http://hrsa.hpsafind.gov.
- To learn more about the site requirements, go to http://nhsc.hrsa.gov/communities.
- Prospective clinicians can visit NHSC.hrsa.gov for more information or to begin the application process.
Comparison of Dentist Loan Repayment Programs |
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| Maximum loan repayment per year | $60,000 for first 2 years, Part-time option = $30,000 for 2 years; additional funding available for continued service; tax exempt. | Up to $25,000/yr first 2 years, up to $35,000 for 3rd and 4th years, tax exempt. | Up to $25,000/yr first 2 years, up to $35,000 for a 3rd year; tax exempt. |
| Length of obligation | Full-time—2 years initial contract, with 1 year amendments; Part-time—2 years. | 2 years initial, with 1 year amendments. | 1 year initial, with 1 year amendments. |
| Time commitment | Full-time clinicians work 40 hrs/wk; two or more part-time locations can equal one full-time commitment. Part-time clinicians work 20–39 hrs/wk. | 40 hrs/wk, two or more part-time locations can equal one full-time commitment. | 40 hrs/wk, two or more part-time locations can equal one full-time commitment. |
| Eligible professionals | General and pediatric dentists and dental hygienists. | General and pediatric dentists, hygienists not eligible. | General and pediatric dentists, hygienists not eligible. |
| Eligible service sites | Safety net or private practice, in federally designated dental HPSA. | Safety net or private practice, in federally designated or state-defined HPSA. | Safety net or private practice in federally designated dental HPSA. |
| Population to be served | Medicaid, refuse no one based on ability to pay. | Medicaid, refuse no one based on ability to pay. | Medicaid, refuse no one based on ability to pay. |
| Sliding fee scale | Required. | Not required. | Preferred. |
| Eligible expenses | Tuition, related educational and living expenses. | Tuition, related educational and living expenses. | Tuition, related educational and living expenses. |
| Qualifying loans | Government and commercial loans. | Government and commercial loans. | Government and commercial loans. |
| Provider requirements | Medicaid provider, U.S. citizen, or U.S. national with no outstanding obligation to federal programs. | Medicaid provider, U.S. citizen, (legal alien) with no outstanding obligation to federal programs. | Medicaid provider, U.S. citizen, (legal alien) with no outstanding obligation to federal programs. |
| Penalty for default | Repay for obligated service not completed, $7,500 times number of months not completed, and interest at maximum prevailing rate. | Three times total amount state agreed to pay in first two years of service, three times the amount the state is still obligated to repay after the first two years of service. | Three times total amount state agreed to pay for current year of service contract. |
| Application deadline | Applications will be accepted through May 26, 2011. Go to the website to request an application. | Applications will be accepted starting January 2012. | Future applications may be accepted in 2013, pending contract renewals. |
January 2011 |
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