Faculty Loan Repayment Program Application

FACULTY LOAN REPAYMENT PROGRAM

Fiscal Year 2015
Application & Program Guidance
May 2015

U.S. Department of Health and Human Services
Health Resources and Services Administration
Bureau of Health Workforce
5600 Fishers Lane
Rockville, Maryland 20857
Authority: Section 738(a) of the Public Health Service Act (42 USC 293b(a)), as amended. Future changes in the governing
statute and Program Guidance may also be applicable to Faculty Loan Repayment Program participants.

Faculty Loan Repayment Program
U.S. Department of Health and Human Services
Health Resources and Services Administration

TABLE OF CONTENTS
PRIVACY ACT NOTIFICATION STATEMENT………………………………………………………………………………………….3
PROGRAM OVERVIEW
INTRODUCTION……………………………………………………………………………………………………………………………….5
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What is the Faculty Loan Repayment Program?
What are the benefits of the Faculty Loan Repayment Program?

ELIGIBILITY REQUIREMENTS, FUNDING PREFERENCES AND APPLICATION PROCESS……………………….5
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What are the eligibility requirements?
What types of educational loans qualify for the Faculty Loan Repayment Program?
What are the requirements of the Faculty Loan Repayment Program applicant's employing institution?
How does the Faculty Loan Repayment Program determine which applicants will receive loan repayment?
What should I know before I apply?
What should I expect if I am selected as a possible recipient of a Faculty Loan Repayment Program award?

SERVICE REQUIREMENTS…………………………………………………………………………………………………………………12
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What are the service requirements?
When does the service obligation begin?
Will I earn a salary during my service obligation?
May I be absent from my academic facility and receive service credit?

SERVICE VERIFICATION…………………………………………………………………………………………………………………...13
 How does the Faculty Loan Repayment Program verify my service?
TRANSFER REQUESTS…………………………………………………………………………………………………………………..…..13
 What steps do I need to take if I want to transfer to a different school prior to completing
my service?
 How do I request a transfer to another Faculty Loan Repayment Program-approved school?
BREACHING THE CONTRACT…………………………………………………………………………………………………………….14
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What if I breach the Faculty Loan Repayment Program contract?

SUSPENSION AND WAIVER………………………………………………………………………………………………………………15
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What should I do if I feel I cannot continue my service or payment obligation?
When would my service obligation be cancelled?

APPLY NOW
TIPS AND IMPORTANT DATES………………………………………………………………………………………………………….13
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What should I do before I apply?
When is the application deadline?
What materials will I need when I apply?

INSTRUCTIONS…………………………………………………………………………………………………………………………………18
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Instructions for Online Application
Instructions for Completing Supporting Documents and Supplemental Forms

CHANGE IN STATUS DURING APPLICATION PROCESS………………………………………………………………………23
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What if I change jobs?
May I withdraw my application?
What if I want to consolidate my educational loans?

ADDITIONAL MATERIALS
RESOURCES FOR APPLICANTS…………………………………………………………………………………………………….……24
DEFINITIONS…………………………………………………………………………………………………………………………………….24
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Faculty Loan Repayment Program
U.S. Department of Health and Human Services
Health Resources and Services Administration

PRIVACY ACT NOTIFICATION STATEMENT
General
This information is provided pursuant to the Privacy Act of 1974 (Public Law 93-579), as amended, for
individuals supplying information for inclusion in a system of records.
Statutory Authority
Section 738(a) of the Public Health Service Act (42 United States Code, Section 293b(a)), as amended.
Purpose and Uses
The purpose of the Faculty Loan Repayment Program (Program) is to increase the recruitment and
retention of faculty members from disadvantaged backgrounds with an eligible health professions
degree or certificate to serve at an eligible academic institution. The Program provides financial
assistance and thereby decreases the economic barriers associated with pursuing such careers. The
information applicants provide will be used to evaluate their eligibility for participating in the Faculty
Loan Repayment Program. In addition, information from other sources will be considered (e.g., credit
bureau reports).
An individual’s contract, application, required supplemental forms, supporting documentation,
correspondence, and related data are maintained in a system of records to be used within the U.S.
Department of Health and Human Services to monitor Program-related activities. The information
may also be disclosed outside the Department, as permitted by the Privacy Act and Freedom of
Information Act, to the Congress, the National Archives, the Government Accountability Office, and
pursuant to court order and various routine uses (see
http://www.hrsa.gov/about/privacyact/09150037.html).
Effects of Non-Disclosure
Disclosure of the information sought is voluntary; however, if not submitted, except for the replies to
questions related to Race/Ethnicity (Part II of the online application), an application will be
considered incomplete and therefore will not be considered for an award under this announcement.
Paperwork Reduction Act Public Burden Statement
An agency may not conduct or sponsor, and a person is not required to respond to, a collection of
information unless it displays a current OMB control number. The current OMB control number for
information collected through this application process is 0915-0150 and expires on 10/31/2015. The
public reporting burden for this collection is estimated to average 6 hours per response, including the
time for reviewing instructions, searching existing data sources, gathering and maintaining the data
needed, and completing and reviewing the collection of information. Send comments regarding this
burden estimate or any other aspect of this collection of information, including suggestions for
reducing this burden, to HRSA Reports Clearance Office, 5600 Fishers Lane, Room 10-33, Rockville,
Maryland 20857.

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Faculty Loan Repayment Program
U.S. Department of Health and Human Services
Health Resources and Services Administration

Discrimination Prohibited
In accordance with applicable Federal laws and the U.S. Department of Health and Human Services
policy, the Department does not discriminate on the basis of any non-merit factor, including race,
color, national origin, religion, sex, sexual orientation, gender identity, disability (physical or mental),
age, status as a parent, or genetic information.

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Faculty Loan Repayment Program
U.S. Department of Health and Human Services
Health Resources and Services Administration

PROGRAM OVERVIEW
INTRODUCTION
What is the Faculty Loan Repayment Program?
The Faculty Loan Repayment Program is administered by the Bureau of Health Workforce in the
Health Resources and Services Administration of the U.S. Department of Health and Human Services
(HHS). The Faculty Loan Repayment Program provides individuals who have an interest in pursuing a
career in a health professions school to receive loan repayment, while serving as a faculty member in
an accredited and eligible health professions school. Program participants contribute to the Health
Resources and Services Administration’s, Bureau of Health Workforce’s goal of increasing the
recruitment and retention of health professions faculty. Supporting careers for health professions
educators is vital for preparing the next generation of health care professionals, and the Program
encourages participants to promote careers in their respective health care fields.
Faculty Loan Repayment Program applicants must be from a disadvantaged background, have an
eligible health professions degree or certificate, and have an employment commitment to be a
faculty member at an approved health professions institution for a minimum of two (2) years (see
“Eligibility Requirements, Funding Preferences and Application Process” section).
What are the benefits of the Faculty Loan Repayment Program?
(1) Mentoring the future healthcare workforce. By joining the past and current Faculty Loan
Repayment Program participants across the country, you have the opportunity to educate
and train the next generation of health professionals.
(2) Loan Repayment. The Faculty Loan Repayment Program provides funds to program
participants to repay qualifying educational loans. The Program awards a lump sum, up to a
maximum of $40,000, for a two-year service obligation. All loan repayments paid to the
participant must be used to repay qualifying educational loans and are subject to periodic
verification.
(3) Tax Assistance Payment. The Faculty Loan Repayment Program payments are subject to
Federal income tax and Federal Insurance Contributions Act (FICA) taxes. To assist
participants in meeting their tax burden, they receive an additional amount (equal to 39% of
the loan repayment amount), which the Program withholds (and pays directly to the IRS) on
behalf of the participant for their Federal income and FICA tax liability. All Program
payments and Federal taxes withheld will be reported to the participant and the IRS on a
Form W-2 after the end of the tax year. These payments may also be subject to State and
local income tax.
ELIGIBILITY REQUIREMENTS, FUNDING PREFERENCES AND APPLICATION PROCESS
What are the eligibility requirements?
To be eligible for a Faculty Loan Repayment Program award, all applicants must:
(1) Be a U.S. citizen (either U.S. born or naturalized), U.S. National or Lawful Permanent
Resident. A Lawful Permanent Resident (LPR) is any person not a citizen of the U.S. who is
residing in the U.S. under legally recognized and lawfully recorded permanent residence as
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U.S. Department of Health and Human Services
Health Resources and Services Administration

an immigrant. An LPR is also known as a "Permanent Resident Alien," "Resident Alien Permit
Holder," and "Green Card Holder."
(2)

Provide certification from the health professions school (previously attended by the
applicant) that identifies the applicant as coming from a disadvantaged background based
on environmental and/or economic factors. HHS defines an individual from a disadvantaged
background as one who comes from 1) an environment that has made obtaining the
knowledge, skills, and abilities required to enroll in and graduate from a graduate or
undergraduate school challenging for the individual, or 2) a family with an annual income
below established low-income thresholds. Applicants also have the option of submitting
documentation which satisfies any of the environmental factors listed on pages 25-26 of this
Guidance. (For more details, refer to the term, “Individual from a Disadvantaged
Background” under the Definitions section.)

(3)

Have a degree or certificate in one of the following eligible health profession disciplines:
a. Allopathic Medicine;
b. Osteopathic Medicine;
c. Podiatric Medicine;
d. Veterinary Medicine;
e. Dentistry;
f. Respiratory Therapy
g. Pharmacy;
h. Optometry;
i. Nursing (RN or Advanced Practice RN);
j. Public Health (graduate level only);
k. Physician Assistant;
l. Behavioral and Mental Health: clinical psychology, clinical social work, professional
counseling, or marriage and family therapy (graduate level only); or
m. Allied Health Professions: dental hygiene, medical laboratory technology, occupational
therapy, physical therapy, radiology technology, speech pathology, audiology, and
registered dietitians (baccalaureate or graduate level; see Definitions, page 24).

Please note that any degrees or certificates obtained after the applicant’s eligible health professions
degree or certificate will not be eligible. For more information regarding eligibility, applicants may
contact the Faculty Loan Repayment Program at 1-800-221-9393 or email Gethelp@hrsa.gov.

An applicant in the final year of approved graduate training or final year of study must submit, by the
application closing date of June 25, 2015, a letter of good standing from his/her Program Director
indicating the expected date of graduation. The individual must graduate no later than June 28, 2015
to be eligible for the Faculty Loan Repayment Program in Fiscal Year (FY) 2015.

(4)

Have an employment commitment from an eligible health professions school for a full-time
or part-time (as defined by the school) faculty position for a minimum of 2 years, with
employment to commence on or before July 31, 2015.
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U.S. Department of Health and Human Services
Health Resources and Services Administration

Eligible health professions schools must be located in a State and be an accredited public or
non-profit private school (see exception below) of:
a. Allopathic or osteopathic medicine;
b. Dentistry;
c. Nursing;
d. Pharmacy;
e. Allied health;
f. Podiatric medicine;
g. Optometry;
h. Veterinary medicine;
i. Public health (graduate level);
j. A school offering respiratory therapy education programs;
k. A school offering physician assistant education programs; or
l. A school offering graduate programs in behavioral and mental health.
Exception: Schools of nursing and schools offering physician assistant education
programs may be one of the following: public, private non-profit, or private for
profit. All other schools listed above must be public or private non-profit institutions.

(5)

Have a written agreement with the eligible health professions school in which the school has
agreed to pay principal and interest due on the applicant’s educational loans in an amount
equivalent to the loan repayments made by the HHS under the Faculty Loan Repayment
Program, unless the school has been granted a full or partial waiver of this requirement
from the Program. This amount is in addition to the salary the individual would otherwise
receive as a faculty member. (See “What are the requirements of the Faculty Loan
Repayment Program applicant’s employing institution?” below.)

Applicants must provide supporting documentation (i.e. an official agreement from the applicant’s
employing institution) stating the type of match (full or partial) the institution will be providing to the
employee within the two-year service period.
For institutions that are unable to provide matching loan repayments, applicants must provide an official
letter from the entity requesting a full or partial waiver from Faculty Loan Repayment Program, with
supporting documentation of undue financial hardship.

Applicants will be deemed ineligible if they:
(1) Have any judgment liens arising from a Federal debt;
(2) Have an outstanding contractual obligation or existing service obligation (e.g., under the
National Health Service Corps Loan Repayment Program, the State Loan Repayment
Program, the NURSE Corps Loan Repayment Program, the Nurse Faculty Loan Program, any
local or State-sponsored loan repayment/forgiveness program, any employer-sponsored
scholarship or recruitment/retention incentive programs, or Active Duty military obligation)
that will not be satisfied by the application submission deadline;
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U.S. Department of Health and Human Services
Health Resources and Services Administration

(3)

(4)

(5)
(6)
(7)

Have defaulted on any Federal payment obligations (e.g., Health Education Assistance
Loans, FHA Loans, Federal income tax liabilities, etc.) or non-Federal payment obligations
(e.g., court-ordered child support payments);
Have defaulted on a prior service obligation to the Federal government or a State or local
government, even if subsequently that obligation was satisfied through service, monetary
payment or other means;
Had any Federal or non-Federal debt written off as uncollectible or had any Federal service
or payment obligation waived;
Are currently excluded, debarred, suspended, or disqualified by a Federal agency from
participating in a covered transaction; or
Have failed to apply all Faculty Loan Repayment Program funds previously received (if
applicable) toward the qualifying educational loans. Payment histories from the lender(s)
will be required.

What types of educational loans qualify for the Faculty Loan Repayment Program?
Faculty Loan Repayment Program participants will receive funds (up to $40,000 for 2 years of service)
from the Program to repay the outstanding principal and interest of qualifying educational loans (see
Definitions, page 24). The qualifying educational loans must be obtained prior to the application
deadline of June 25, 2015. Loans incurred after the application deadline will not be considered for
loan repayment under a FY 2015 contract (but could be considered under a subsequent Faculty Loan
Repayment Program application and contract).
(1)

Qualifying Educational Loans include loans obtained from government (Federal, State or
local) or commercial lenders for actual costs paid for:
a. Tuition, fees, and other reasonable educational expenses (see Definitions) for
undergraduate and/or graduate education; and
b. Reasonable living expenses (see Definitions) incurred while enrolled in undergraduate
and/or graduate education.
Examples of qualifying educational loans include: Federal Perkins student loans that are not
subject to cancellation, Stafford Loans, and commercial Supplemental Loans for Students.

(2)

Consolidated Loans may also be eligible within the following guidelines:
a. The consolidated/refinanced loan must be from a Government (Federal, State, or local)
or commercial lender and must include only qualifying educational loans of the
applicant.
b. If an otherwise eligible educational loan of the applicant is consolidated/refinanced
with ineligible (non-qualifying) debt of the applicant or loans of another individual, no
portion of the consolidated/refinanced loan will be eligible for loan repayment.
Non-Qualifying Loans include but are not limited to:
a. Loans for which the associated documentation does not identify the loan as applicable
to undergraduate or graduate education.
b. Loans obtained from family members, or from private institutions or other entities
that are not subject to Federal or State examination and supervision as lenders.
c. Loans that have been paid in full.
d. PLUS Loans (made to parents).

(3)

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U.S. Department of Health and Human Services
Health Resources and Services Administration

e. Credit Cards or Personal Lines of Credit.
f. Loans subject to cancellation (e.g., Federal Perkins loans subject to cancellation for
faculty employment at Tribal College or University; Nursing Faculty Loan Program
loans subject to cancellation for faculty employment at a school of nursing), unless the
applicant can provide documentation as indicated in the Instructions for Supporting
Documentation and Supplemental Forms (page 19), that such loans are not subject to
cancellation.
Documentation of loans will be required. Qualifying educational loans must have documentation to
establish that they were contemporaneous with the education received. Loan documentation will be
verified by contacting lender(s)/holder(s) and checking the applicant’s credit report.
NOTE: The original date of the applicant’s qualifying educational loan(s) must occur prior to or within 3
months from the date the health professions degree or certificate was received.

What are the requirements of the Faculty Loan Repayment Program applicant’s employing
institution?
The employing institution must be an eligible health professions school and must satisfy the following
requirements:
(1) Employment Contract (applicable only if serving as a non-tenured faculty member). The
employing institution must enter into a contract with the applicant to serve as a full-time or
part-time (as defined by the school) faculty member for a minimum of two years.
(2) Letter of Employment (applicable only if serving as a tenured faculty member). The
employing institution must write a letter (official letterhead) to indicate that the applicant will
serve as a full-time or part-time (as defined by the school) faculty member for a minimum of
two years.
(3) Loan Repayment Agreement/Waiver of Employer’s Loan Repayment Requirement (Match).
The employing institution must enter into a written agreement with the applicant to make
loan repayments in an amount equal to the amount of the Faculty Loan Repayment Program
loan repayments or the employing institution must request and be granted a full or partial
waiver of this loan repayment requirement.
a. Loan Repayment Agreement. The employing institution’s loan repayment agreement
must provide that:
i.

The institution will make payments of the principal and interest due on the
educational loans of the faculty member in an amount equal to the amount of
such payments made by HHS under its two-year Faculty Loan Repayment
Program contract (the maximum amount is $40,000 for two years);

ii.

The loan repayments made by the school will be in addition to the salary that the
faculty member would otherwise receive and the amount of the faculty
member’s salary will be determined without regard to the amount of the
payments made by HHS under its two-year Faculty Loan Repayment Program
contract.
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Faculty Loan Repayment Program
U.S. Department of Health and Human Services
Health Resources and Services Administration

b. Waiver of Employer’s Loan Repayment Requirement (Match). The Secretary of the
HHS or his/her designee may waive all or part of the employing institution’s match
requirement if the Secretary or his/her designee determines, based on documentation
submitted by the employing institution, that the requirement will impose an undue
financial hardship on the employing institution. The following items are examples of
documentation that would support a waiver request:
i.

Documentation of diminished financial resources (e.g., consistent budget cuts,
reduced earnings on endowments, and/or unexpected expenditures), such that
payment of all or part of the matching loan repayment funds would impose an
undue financial hardship; or

ii.

Documentation showing the institution is engaged in collective bargaining
agreement(s) that either prohibits such differential compensation or that would
require the institution to provide a similar amount of support for faculty not
covered under the Faculty Loan Repayment Program.

In instances where a partial waiver is requested, the employing institution must also
enter into a written agreement with the applicant to pay the remaining portion of the
loan repayment match amount outlined in subsection 3.a. above.
(4)

Completion of “Institution Employment/Loan Repayment Verification Form.” The
employing institution must complete this form. The form provides employment
information, verification that the applicant will serve as a faculty member for a minimum of
two years, and information regarding the institution’s ability to make loan repayments.

NOTE: Applicants previously awarded by the Faculty Loan Repayment Program who are re-applying for
the current cycle, must provide documentation (i.e. an official record/receipt from the applicant’s former
employing institution) that indicates that previous payments were made in accordance to the specific
match promised by the entity.
If the institution is non-compliant and defaults on their agreed institutional match to the Faculty Loan
Repayment Program, future applicants will not be eligible to apply if they are employed at that specific
institution.

How does the Faculty Loan Repayment Program determine which applicants will receive loan
repayment?
The program uses funding preferences to determine the sequential order in which awards are made
to qualified applicants. A funding preference will be given based on the applicant’s employing eligible
health professions school’s institutional match status (i.e., fully matching the HHS level of loan
repayments, partially matching the HHS level of loan repayments, or no match). For the "partial
match” and “no match” statuses, the applicant’s employing school must have received or have
obtained approval for a partial or full waiver of the matching requirement.
Applicants will be grouped into one of the funding preference levels described below. Awards will be
made to applicants, starting with the first preference level, in order of decreasing financial need
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U.S. Department of Health and Human Services
Health Resources and Services Administration

within each level, until funds are expended. Priority will also be given to those serving as full-time
faculty and to faculty who demonstrate a commitment to promoting health care careers.
FUNDING PREFERENCE LEVEL
First Preference
Second Preference
Third Preference

INSTITUTIONAL MATCH
Full Time with Full (100%)Match
Part Time with Full (100%)Match
Full Time with Partial (1-99%) Match/Waiver
Part Time with Partial (1-99%)Match/Waiver
Full Time with No (0%)Match/ Waiver
Part Time with No (0%)Match/ Waiver

What should I know before I apply?
In FY 2014, Faculty Loan Repayment Program received 143 applications and made 19 awards to
faculty members working at eligible health profession schools.
The deadline for submitting an application is June 25, 2015. Applicants will receive an email
confirmation upon submission of an online application via the Customer Service Portal. Applicants
will be notified by October 31, 2015 as to whether or not they receive an award.
What should I expect if I am selected as a possible recipient of a Faculty Loan Repayment Program
award?
The Faculty Loan Repayment Program frequently corresponds with applicants by e-mail. It is critical
that applicants use and maintain a current email address. Please check your email during the
application process for correspondence from the Program and make certain to disable SPAM blockers
(or check your SPAM folder).
If your application is approved, the Faculty Loan Repayment Program will notify you by e-mail that
you have been identified as a possible recipient of an award. You will be asked to verify whether you
are still working at the eligible health professions school identified in your online application. You will
then be required to complete the additional required forms (e.g., Faculty Loan Repayment Program
contract and banking information) to facilitate electronic transfer of award funds via the Customer
Service Portal. This notification does not guarantee an award.
If an applicant is selected for a Faculty Loan Repayment Program award, the individual’s contract will
be countersigned by the Secretary of Health and Human Services or his/her designee. Please note
that a contract is not effective until signed by the Secretary or his/her designee. All awardees will
receive notice via email, directing them to download their award letter, a copy of the fully signed
contract, a Payment Authorization Worksheet, and a welcome packet from the Customer Service
Portal.
Award payments will be provided in one lump sum through an electronic funds transfer to the
participant’s checking or savings account identified on the banking information submitted by the
participant. A direct deposit is made approximately 90 days after the effective date of the contract.

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U.S. Department of Health and Human Services
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Individuals who are uncertain that they will be able to fulfill a two-year service commitment under
the Faculty Loan Repayment Program are advised not to apply to this program. An awardee who fails
to begin or complete his/her service obligation will be placed in default and subject to the monetary
damages specified in the Faculty Loan Repayment Program contract.
Please note that only the Secretary or his/her designee can make a Faculty Loan Repayment Program
contract award. An award cannot be guaranteed by a school, any other person, or entity .
Important Notes:
1) Participants must use the Faculty Loan Repayment Program payments to pay the lenders or
holders of their qualifying educational loans, as indicated on a Payment Authorization Worksheet
that will be provided to participants with their award notice. Periodically, the Program may
contact a participant’s lenders or holders to verify that award payments have been applied to the
approved loans.
2) Participants must immediately notify the Faculty Loan Repayment Program, via the Customer
Service Portal, of any changes to their mailing address, telephone number, email address, name,
or financial institution (bank information). In the case of a name change, please provide legal
documentation, such as a copy of a marriage certificate. Participants must also notify the Faculty
Loan Repayment Program of changes in employment status including extended periods of leave.
Participants must request a transfer if considering changing schools; this request must be at least
one (1) month in advance of the proposed change. To be approved, the transfer must comply
with eligibility requirements.
3) Previous Faculty Loan Repayment Program participants may re-apply for a new two-year contract
if they have 1) completed the previous Faculty Loan Repayment Program service obligation in
good standing; 2) have remaining qualifying educational loans; and 3) provide a payment history
showing that all Faculty Loan Repayment Program funds were applied to the approved qualifying
educational loans.
4) If for any reason a participant does not receive their award within 90 days of their contract start
date, the participant should contact Faculty Loan Repayment Program as soon as possible through
the Customer Service Portal, phone (1-800-221-9393), or email (gethelp@hrsa.gov).
SERVICE REQUIREMENTS
What are the service requirements?
A Faculty Loan Repayment Program participant must provide full or part time service (as defined by
the school) as a faculty member at an eligible health professions school, for a period of two
consecutive years beginning on the effective date of the contract. Under the guidelines of the
Program, it is expected that a participant will fulfill his/her service obligation at the employing
institution identified in his/her application. A faculty member position must primarily consist of
teaching (as defined by the employing academic institution).
When does the service obligation begin?
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U.S. Department of Health and Human Services
Health Resources and Services Administration

A participant’s Faculty Loan Repayment Program service start date will be the date the Secretary of
the Department of Health and Human Services or his/her designee countersigns the Faculty Loan
Repayment Program contract, or the date the participant commences employment at the eligible
health professions school, whichever is later.
The applicant’s signature alone on the contract does not constitute a contractual agreement.
Employment prior to the Secretary’s countersigning of the Faculty Loan Repayment Program contract
does not count toward the fulfillment of the service obligation.
Will I earn a salary during my service obligation?
Faculty Loan Repayment Program participants will receive salary and benefits from the employing
health professions school. Employment compensation packages may be negotiated between the
participant and his/her employer. The academic institution cannot guarantee a Faculty Loan
Repayment Program contract. Therefore, the Program loan repayments should not be a part of any
salary negotiations between the participant and his/her employer.
May I be absent from my academic facility and receive service credit?
No more than 7 weeks (i.e., 35 work days) of the applicant’s scheduled work period (9 to 12 months)
per service year can be spent away from the facility for vacation, holidays, continuing education,
illness, maternity/paternity/adoption, or any other reason. Program-approved absences totaling
greater than 7 weeks (i.e., 35 work days) during the scheduled work period of a service year require
an extension of the contract end date.
SERVICE VERIFICATION
How does the Faculty Loan Repayment Program verify my service?
The Faculty Loan Repayment Program verifies every six (6) months that participants are meeting
program requirements and fulfilling the service obligation. The In-Service Verification (ISV) process
must be completed by the approved health professions school through the Customer Service Portal.
By completing the ISV process, the school is certifying the participant’s compliance or noncompliance with the applicable service requirements during the six-month period. The ISV will also
record the time spent away from the facility (i.e., the total number of days during the six-month
period that the participant fell below the minimum service requirements).
Participants who fail to have the employing institution complete the six-month ISV process on time,
jeopardize receiving service credit, which may lead to a recommendation for default. Late
submissions may also impact eligibility for a future contract.
TRANSFER REQUESTS
What steps do I need to take if I want to transfer to a different facility prior to completing my
service?
The Faculty Loan Repayment Program expects that a participant will fulfill his/her service obligation
at the initial Program-approved academic institution; however, the Program understand that
circumstances may arise resulting in a participant’s need to leave the initial school and complete
service at another approved health professions school. If a participant feels he or she can no longer
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U.S. Department of Health and Human Services
Health Resources and Services Administration

continue working at the approved academic institution, the participant should contact the Program
immediately through the Customer Service Portal, phone (1-800-221-9393), or email
(Gethelp@hrsa.gov). If the participant leaves his/her approved academic institution without prior
written approval from the Program, he/she may be placed in default.
How do I request a transfer to another Faculty Loan Repayment Program-approved academic
facility?
If a participant needs to transfer to another site, the participant must notify the Faculty Loan
Repayment Program by submitting an inquiry through the Customer Service Portal before leaving the
health professions school. The request should include: (a) the reason for the transfer; and (b) a
letter/certification from the health professions school where the participant is requesting to transfer
to (i.e., the new academic institution) verifying the health professions school is eligible, including that
it is public, private non-profit, or private for profit (i.e. Schools of Nursing and Physician Assistants),
and to indicate what type of discipline the participant will be teaching.
Participants will receive an official decision from the Faculty Loan Repayment Program regarding the
approval or denial of a transfer request. Leaving the approved academic facility without prior
Program approval may lead to a recommendation for default. Failure to request or receive written
approval for a transfer will result in the participant being liable for any monetary damages specified
in the contract. If a transfer is approved, once the participant has commenced service at the new
eligible health professions school, the service end date will be extended to account for any break in
service. The new institution must agree to meet the requirements outlined in the “What are the
requirements of the Faculty Loan Repayment Program applicant’s employing institution?” section of
this guidance (page 9).
If a transfer is approved and the participant does not resume service at another eligible health
professions school within 60 days after ceasing employment at the initial employing institution, the
participant may be recommended for default of his/her Faculty Loan Repayment Program obligation.
BREACHING THE CONTRACT
What if I breach the Faculty Loan Repayment Program contract?
The Faculty Loan Repayment Program encourages participants to immediately contact the Program if
a situation arises in which a participant is potentially unable to fulfill his/her service obligation. The
Program will work with participants to assist them to the extent possible to avoid a breach and fulfill
the service obligation. A participant who breaches the Faculty Loan Repayment Program contract by
failing to begin or complete his/her two-year service obligation will be placed in default and will be
liable to pay an amount equal to the sum of the following:
(1)

(2)

The amount of loan repayments paid to the participant representing any period of obligated
service not completed, plus 39 percent of that amount (representing the amount
paid/withheld for Federal taxes on that amount); and
$1,000 multiplied by the number of months of obligated service not completed.

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Please note that a breach of the contract will permanently disqualify the individual from receiving
future awards under the Faculty Loan Repayment Program and some other Federal programs.
Any amounts the United States is entitled to recover, as set forth above, must be paid
within 30 days from the date the HHS’ first demand letter is mailed. If these amounts are
not repaid by the due date, interest and other delinquent charges will be assessed as
provided by 45 Code of Federal Regulations Section 30.18.
Failure to pay the Faculty Loan Repayment Program debt by the due date also has the following
consequences:
(1)
(2)

(3)

(4)

Report to Credit Agencies. The debt will be reported to credit reporting agencies as
“delinquent.”
Debt Collection. The debt will be referred to a debt collection agency and the Department
of Justice. Any Faculty Loan Repayment Program debt past due for 45 days will 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.
Administrative offset. Federal and/or State payments due to the participant (e.g., an IRS or
State income tax refund) may be offset by the Department of Treasury to repay a delinquent
Faculty Loan Repayment Program debt. Also, recovery through Administrative Wage
Garnishment may be enforced to repay a delinquent Program debt.
Bankruptcy. A financial obligation under the Faculty Loan Repayment Program 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.

SUSPENSION AND WAIVER
What should I do if I feel I cannot continue my service or payment obligation?
The Secretary of Health and Human Services may, under certain circumstances, suspend (put “on
hold”) or waive (excuse) the Faculty Loan Repayment Program service or payment obligation. A
request for a suspension or waiver must be submitted through the Customer Service Portal.
Additional supporting documentation will be required following submission of the request.
(1)

Suspension. This mechanism provides temporary relief to a Program participant if he/she
has short-term (not permanent) circumstances that currently make compliance with the
obligation impossible or would involve an extreme hardship such that enforcement of the
obligation would be unconscionable. Periods of approved suspension will extend a
participant’s Program service obligation end date.
All periods of time away from the approved academic institution should be documented by
the employer through the six-month In-Service Verification process. If the total time away
from the site, including the period of suspension, exceeds 7 weeks (i.e., 35 work days) per
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service year (See “Service Requirements” section) the service obligation end date will be
extended accordingly.
The major categories of service suspensions are set forth below.
a. Leave of Absence for Medical or Personal Reasons. A suspension may be granted for
up to one year, if the participant provides independent medical documentation of a
physical or mental health disability, or personal circumstances, including a terminal
illness of an immediate family member (e.g., child or spouse, including same-sex
spouse regardless of where the couple lives), which results in the participant’s
temporary inability to perform the Program obligation. Upon receipt of the
suspension request, the Program will notify the participant of instructions for
submitting supporting documentation.
b. Maternity/Paternity/Adoption Leave. Participants must notify the Program of
pending maternity/paternity/adoption leave and provide appropriate documentation.
Maternity/paternity/adoption leave of 12 weeks or less will be automatically
approved, if properly documented. If the participant’s maternity/paternity/adoption
leave will exceed 12 weeks during that service year, a suspension may be granted by
the Program based on documented medical need or if additional parental leave time is
permitted under State law.
c. Call to Active Duty in the Armed Forces. Participants who are also military reservists
and are called to active duty will be granted a suspension, for up to one year,
beginning on the activation date described in the reservist’s call to active duty order.
In addition to the written request for a suspension, a copy of the order to active duty
must be submitted to the Program. The suspension will be extended if the applicable
Armed Forces entity continues the period of active duty. The period of active military
duty will not be credited toward the Program service obligation.
(2)

Waiver. A waiver permanently relieves the participant of all or part of the Faculty Loan
Repayment Program obligation. A waiver will be granted only if the participant
demonstrates that compliance with his/her obligation is (a) permanently impossible or (b)
would involve an extreme hardship such that enforcement of the obligation would be
unconscionable. A waiver must be submitted by uploading a signed request letter, including
the reason(s) the waiver is being sought, as an inquiry to the Program through the Customer
Service Portal. The participant will be contacted by the Legal and Compliance Branch
regarding the medical and financial documentation necessary to complete the waiver
request, and this documentation can be submitted through the Customer Service Portal.
Note that waivers are not routinely granted, and require a demonstration of compelling
circumstances.

When would my service obligation be cancelled?
A participant’s obligation will be cancelled only in the unfortunate event of death. No liability will be
transferred to the participant’s heirs.

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APPLY NOW
TIPS AND IMPORTANT DATES
What should I do before I apply?
Please read the Application and Program Guidance in its entirety before proceeding with an
application. It explains the contractual obligations of the Secretary of Health and Human Services and
Faculty Loan Repayment Program participants. Be sure you understand the obligation to serve fulltime for 2 years (or the part-time equivalent) at an eligible health professions school, and the
financial consequences of failing to perform that obligation. Applicants are strongly encouraged to
print and retain a copy of the Application and Program Guidance for future reference.
When is the application deadline?
A complete electronic application must be submitted by 7:30 pm EST on June 25, 2015. All
supporting documentation for the application must be uploaded before you can submit a complete
application package. Also, the Institution Employment/Loan Repayment Verification Form must be
completed before an applicant can submit his/her application. Upon completion and submission of
the online application, applicants will receive a printable receipt indicating a successful submission.
Awards are subject to the availability of funds. Awards will be made no later than September 30,
2015. Applicants not selected for an award will be notified no later than October 31, 2015.
What materials will I need when I apply?
To apply to the Faculty Loan Repayment Program, you must submit a complete application package
consisting of:
(1) Online Application
a. The information collected in the online application will provide an initial ranking of
your application for purposes of the funding preferences.
(2)

Supporting Documentation
a. Copy of employment contract or letter of employment (applicable only if serving as a
tenured faculty);
b. Proof of U.S. Citizenship or U.S. National status (e.g., copy of birth certificate,
certificate of citizenship, passport, or naturalization certificate) or Lawful Permanent
Resident status;
c. Proof of Disadvantaged Background from an official at the health professions school
that the applicant attended;
d. Copy of health professional degree or certificate OR, if you are in the last year of a
course of study in an eligible discipline, a letter of good standing from your Program
Director which indicates your expected graduation date;
e. Curriculum Vitae (CV)/Resume;
f. Transcript(s) reflecting completion of your professional degree or certificate;
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g. Copy of written loan repayment match agreement OR request for waiver of loan
repayment match from employing institution.
The following Supporting Documentation is required, when applicable:
(1)
(2)

Copy of complete loan payment history of previous awarded funds (applicable to past
Program award recipients).
Letter of Good Standing from Program Director (for applicant in his/her final year of
approved graduate training or final year of study which indicates expected date of
graduation).

Application packages deemed incomplete (e.g., missing, illegible, or incomplete application materials)
after June 25, 2015 will not be considered for a Program award. Program staff will NOT fill in any
missing information or contact applicants regarding missing information.
You are strongly encouraged to upload all supporting documents in PDF format to expedite
processing of your application. You will be able to view the uploaded documents; it is your
responsibility to ensure that the information uploaded is accurate and viewable. When uploading
documents to your online application, please be sure that they do not exceed 5MB as the system
cannot handle larger documents. Multiple-paged documents should be scanned and saved into one
document.
INSTRUCTIONS
Instructions for Online Application
Instructions for completing the application are provided as necessary when an applicant is completing
it online. It is strongly recommended that before you attempt to complete the online application
you:
(1) Review the Application and Program Guidance completely;
(2) Download and complete all required and applicable Supplemental Documents and Forms;
(3) Develop a list of all institutions (diploma school, college, university) where loans were
incurred towards your respective health professions degree or certification for those loans
being submitted for loan repayment. Applicants will be asked to provide the type of degree
received, the school name and address, the attendance start and end dates, and the
graduation date if applicable; and
(4) Develop a Curriculum Vitae (CV)/Resume, which documents all education, training, and
degrees, and accounts for all time periods/employment since the applicant’s completion of
a qualifying health professions education.
Upon completion and submission of the online application, applicants will receive a receipt indicating
a successful submission and an email confirming the online submission.

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Instructions for Completing Supporting Documents and Supplemental Forms
(1)

Proof of U.S. Citizenship, U.S. National or Lawful Permanent Resident. Applicants must
provide proof of U.S. citizenship or status as a U.S. National or Lawful Permanent Resident
(e.g. U.S. birth certificate, a copy of a certificate of citizenship or nationalization, U.S.
passport ID page, or Green Card).

(2)

Loan Documentation. Please review the types of loans that qualify and do not qualify for
repayment under the Faculty Loan Repayment Program in the Program Overview section of
the Guidance under Eligibility Requirements (page 5).
Overview
Applicants must include all loans for undergraduate and/or graduate education they wish to
be considered with the application. Only those loans submitted with the application will be
considered for repayment.
In order to successfully complete the Faculty Loan Repayment Program loan module, you
will need to submit the following documentation:
Account Statements should contain:
 Current Balance (Principal and Interest)
To obtain a copy of your account statements visit the lender’s website or call your lender.
Disbursement Report should contain:
 Type of Loan
 Original Loan Date
 Original Loan Amount
 Consolidation dates if applicable
For Federal loans, the Aid Summary Report on the National Student Loan Data System
(NSLDS) website, http://www.nslds.ed.gov is considered a disbursement report.
For private loans, there are several types of documents that provide disbursement
information:
 Promissory notes
 Disclosure statements, and
 Letters directly from the lender containing the pertinent information
You may also obtain disbursement information for private loans on your lender’s website or
you can call the lender. All documentation must come from the lender.

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Please note that any loans that are considered subject to cancellation (e.g. Perkins loans)
are not eligible unless the applicant can provide documentation that such loans are not
subject to cancellation.
Submitting Your Loan Documentation
For Individual Federal Loans you must submit:


The main or landing page of your Aid Summary Report from the NSLDS website ONLY.
If you have multiple federal loans, only one report is required for submission.



The most recent Account Statements for each loan showing the current interest rate and
the current balance (call or visit your lender’s website).

For Consolidated Federal Loans you must submit:


An Aid Summary Report from the NSLDS website. Only one report is required for
submission, it must clearly show all loans in the consolidation.



The most recent account statement for each loan showing the current interest rate and
the current balance for the consolidation loan (call or visit your lender’s website).

For Individual Private Loans you must submit:


A disbursement report(s) from the lender, showing the loan type, original loan amount
and original loan date. You may need to submit more than one type of disbursement
report per loan to meet the requirements.



The most recent account statements for each loan showing the current interest rate and
the current balance (call or visit your lender’s website).

For Consolidated Private Loans you must submit:


A disbursement(s) report clearly showing all the loans in the consolidation. Each loan
must have its original loan amount and the original loan date indicated.



The most recent account statement for each loan showing the current interest rate and
the current balance for the consolidation loan (call or visit your lender’s website).

For any loans that are subject to cancellation you must submit:


A disbursement report(s) from the lender, showing the loan type, original loan amount
and original loan date. You may need to submit more than one type of disbursement
report per loan to meet the requirements.
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

The most recent account statements for each loan showing the current interest rate and
the current balance (call or visit your lender’s website).
AND



Documentation from the school showing that the loans are not subject to cancellation
under 34 CFR Part 674.
OR



Documentation from the current lender indicating that the loans were consolidated and
paid off.

The Faculty Loan Repayment Program will contact lenders/holders and check the applicant’s
credit report to determine repayment eligibility of submitted loans.
(3)

Institution Employment/Loan Repayment Verification Form. The applicant’s employer
must fill out this form and return it to the applicant. This form must be uploaded and
submitted with the online application. Please see the “Faculty Loan Repayment Program
Supplemental Forms” package for more details.
a. Name of Institution is the name of the university or college where the applicant will
work to fulfill the Faculty Loan Repayment Program service obligation.
b. Employment start date is the month, day, and year the applicant will begin or began
his/her faculty appointment. Faculty employment prior to the effective date of a
Program contract will not count toward the fulfillment of the two-year service
obligation.

The applicant’s employer or designated human resources officer’s name, title, mailing address,
phone, email, signature, and date of signature are required on the form.
(4) Authorization to Release Information Form. This form authorizes HHS, and/or its
contractors, to release information that identifies the applicant for purposes of obtaining
educational loan information from lenders. It also authorizes any program to which the
applicant owes a health profession service obligation to release information to HHS and/or its
contractors. This form must be uploaded and submitted with the online application. Please
see the “Faculty Loan Repayment Program Supplemental Forms” package for more details.
(5) Certification Regarding Debarment, Suspension, Disqualification, and Related Matters Form.
This form contains a certification regarding whether an applicant is barred by Federal law
from participating in “covered transactions” or has been convicted of, or indicted for, certain
offenses. Applicants should read the entire from and sign the certification at the bottom of
the form that is applicable to their situation.

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(6) Employment Contract (applicable only if serving as a non-tenured faculty member). The
applicant must submit a copy of the contract to validate his/her full-time or part-time
employment with the academic institution. The contract should document the individual’s
effective start and end dates in addition to his/her base salary. If the employment contract is
not submitted at time of application, the faculty member will be deemed ineligible for this
program.
(7) Letter of Employment (applicant only if serving as a tenured faculty member). The applicant
must submit a letter of employment (on official school letterhead) to validate his/her full-time
or part-time employment with the academic institution.
(8) Proof of Disadvantage Background. An official school document (on school letterhead)
provided by the health professions school (previously attended by the applicant) which must
be signed and authorized by a program or school administrator, indicating that the applicant
was economically and/or environmentally disadvantaged (see Definitions).
(9) Health Profession Degree or Certificate. A copy of the applicant’s official health professions
degree(s) or certificate(s) as awarded by the accredited institution(s) must be provided. The
document must include the applicant’s name, type of degree, date conferred, and signature
by an authorized program director, dean, or other school official.
(10) Curriculum Vitae/Resume. Individuals are required to submit a Curriculum Vitae (CV), which
documents all education, training, and degrees, and accounts for all time periods and
employment since the applicant’s completion of a qualifying health profession education.
(11) Transcripts. Applicants must submit transcript(s) from each college, university or health
professions school attended for all health profession education coursework directly related
to the attainment of their degree(s) or certificate(s), if the applicant is seeking repayment for
loans incurred while attending that institution. The transcript must state the name of the
institution, dates of attendance, and course taken. If a degree was obtained, the transcript
must include the type of degree and the date it was conferred. Unofficial and official
transcripts are acceptable.
(12) Employer’s Agreement to Loan Repayment Match/Request for a Waiver of the Loan
Repayment Match. The applicant must submit the documentation outlined in (a), (b) or (c)
below:
a. A copy of the employer’s written agreement to pay the applicant a loan repayment
amount equal to the HHS/ Program loan repayment amount;
b. A request from the applicant’s employer for a full waiver of the requirement to match
the HHS/ Program loan repayment amount, with supporting documentation of undue
financial hardship; OR
c. A request from the applicant’s employer for a partial waiver of the requirement to
match the HHS/ Program loan repayment amount, with supporting documentation of
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undue financial hardship, and a copy of the employer’s written agreement to pay the
applicant the remainder of the loan repayment match amount.
(13) Letter of Good Standing. For applicants in the final year of approved graduate training or
study, an official letter from the Program Director which indicates expected date of
graduation is required.
CHANGE IN STATUS DURING APPLICATION PROCESS
What if I change jobs?
Applicants may switch to a position at another eligible health professions school prior to submitting
their online application and still be considered for a Faculty Loan Repayment Program award.
However, the employment information in the online application must match the information on the
Employment Verification Form. Therefore, if an applicant changes jobs and the online application is
not updated or a completed Employment Verification is not uploaded from the corresponding facility
by deadline date, the applicant will not be considered for an award.
May I withdraw my application?
The Faculty Loan Repayment Program contract becomes effective on the date it is countersigned by
the Secretary or his/her designee. An applicant may withdraw his/her application at any time prior to
the Secretary signing the contract and remain eligible to apply for the Program in the future. Once
the contract becomes effective, the applicant is obligated to provide two years of full or part time
service at the health professions school identified in the application. If such applicant fails to
commence service on the effective date of the contract, the applicant will be in breach of the
contract, placed in default, and will be permanently disqualified from receiving future awards under
the Program and some other Federal programs.
As soon as the applicant becomes aware that he/she will not be able to commence his/her service at
the health professions school identified in the application, the applicant should submit a request to
withdraw the application through the Customer Service Portal.
What if I want to consolidate my educational loans?
Loan consolidations/refinances before the application deadline are acceptable, provided that the
applicant submits Loan Documentation for the consolidated/refinanced loans before the application
deadline of June 25, 2015. If the Loan Documentation is not received by the application deadline and
the consolidated loan does not appear on the online application, the consolidated/refinanced loan
will not be considered for loan repayment. If the applicant has consolidated otherwise qualifying
educational loans with any other debt or with the loans of another individual, the entire consolidated
loan is ineligible.
Loans that are consolidated/refinanced after the application deadline and prior to the date an award
is made will not be considered for loan repayment.

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ADDITIONAL MATERIALS
RESOURCES FOR APPLICANTS
Any individual with questions about the Faculty Loan Repayment Program may contact the BHW
Customer Care Center Monday through Friday (except Federal holidays), from 8:00 AM to 8:00 PM,
ET.
 Gethelp@hrsa.gov
 1-800-221-9393
 TTY – 1-877-897-9910
DEFINITIONS
Commercial Loans –Loans made by banks, credit unions, savings and loan associations, insurance
companies, schools, and other financial or credit institutions which are subject to examination and
supervision in their capacity as lenders by an agency of the United States or of the State in which the
lender has its principal place of business.
Default of Payment Obligation or Debt – Being more than 120 days past due on the payment of a
financial obligation.
Default of Service Obligation – Failure to begin or complete a contractual service commitment.
Eligible Disciplines – Individuals in the following disciplines are eligible to apply for a Faculty Loan
Repayment Program award: allopathic, osteopathic, podiatric or veterinary medicine; dentistry,
pharmacy, optometry, nursing (RN or Advanced Practice RN), public health (graduate level only),
physician assistants, graduate programs in behavioral and mental health (clinical psychology, clinical
social work, professional counseling, and marriage and family therapy), and allied health
(baccalaureate or graduate degree programs of dental hygiene, respiratory therapy, medical
laboratory technology, occupational therapy, physical therapy, radiologic technology, speech
pathology, audiology, and registered dietitians).
Eligible Health Professions Schools – Public or private nonprofit schools located in a State which are
accredited schools of or have accredited programs of: allopathic, osteopathic, podiatric or veterinary
medicine; dentistry, pharmacy, optometry, public health, behavioral and mental health, or allied
health. Public, private nonprofit, or private for profit schools located in a State which are accredited
schools of or have accredited programs of nursing or physician assistant.
Existing Service Obligation – An obligation which is owed to and provided for under an agreement
with a Federal, State, or local government or any other entity (e.g., under the National Health Service
Corps Loan Repayment Program, the Nursing Scholarship Program, the State Loan Repayment
Program, the Nurse Faculty Loan Program, any local or State-sponsored loan repayment/forgiveness
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program, an employer-sponsored scholarship or recruitment/retention incentive programs or Active
Duty military obligation).
Faculty Loan Repayment Program – The Faculty Loan Repayment Program is authorized by Section
738(a) of the Public Health Service Act, as amended. Under the Program, eligible individuals from
disadvantaged backgrounds provide service as a faculty member at eligible health professions schools
in exchange for funds for the repayment of their qualifying educational loans.
Family and Family Member – As used in the guidance and for the purposes of the Faculty Loan
Repayment Program “family member” includes spouses, as well as unmarried partners (both samesex and opposite-sex).
Federal Judgment Lien - A lien that is placed on an individual’s home or property when a courtordered judgment is entered against the individual for an unpaid Federal debt (e.g., a Federal student
loan or a Federally-insured home mortgage). An IRS tax lien that is not created pursuant to a courtordered judgment is not a Federal judgment lien.
Fiscal Year (FY) – The Federal FY is October 1st through September 30th.
Funding Preferences – The funding of a specific category or group of approved applicants ahead of
other categories or group of approved applicants. See Program Overview in this Guidance.
Government Loans – Loans made by Federal, State, county or city agencies authorized by law to
make such loans.
Individual from a Disadvantaged Background – An individual who has been certified by the health
professions school (previously attended by the applicant) as having come from a “disadvantaged
background” based on economic and/or environmental factors.
Economically Disadvantaged - the individual comes from a family with an annual income
below a level based on low-income thresholds according to family size published by the U.S.
Bureau of the Census, adjusted annually for changes in the Consumer Price index, and
adjusted by the Secretary, HHS, for use in health professions and nursing programs.
Environmentally Disadvantaged – the individual comes from an environment that has
inhibited him/her from obtaining the knowledge, skill, and abilities required to enroll in and
graduate from a an undergraduate or graduate school based on factors including, but not
limited to, the following:
o Graduated from (or last attended) a high school from which a low percentage of
seniors received a high school diploma;
o Graduated from (or last attended) a high school at which, many of the enrolled
students are eligible for free or reduced price lunches;
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o Comes from a family that receives public assistance (e.g., Temporary Assistance to
Needy Families (TANF), food stamps, Medicaid, public housing);
o Comes from a family that lives/lived in an area that is designated under section 332 of
the Public Health Service Act as a Health Professional Shortage Area or is designated as
a Medically Underserved Area;
o Participated in an academic enrichment program funded in whole or in part by the
Health Careers Opportunity Program, authorized by section 739 of the Public Health
Service Act;
o Is a high school drop-out who received an AHS diploma or GED or has received or is
receiving public assistance;
o Comes from a school district where 50percent or less of graduates go to college or
where college education is not encouraged;
o Is the first generation to attend college or is on public assistance;
o Has a diagnosed physical or mental impairment that substantially limits the person’s
participation in educational experiences and opportunities offered by the college;
o English is not his/her primary language and took a Test of English as Foreign Language
(TOEFL) before entering health professions/nursing school; or
o Was accepted to the program after academic reassessment at the completion of
remedial courses.
Lender – The commercial or Government institution that initially made the qualifying educational
loan (e.g., Department of Education). As used in this Guidance, the “lender” also includes “holder,”
which is the commercial or Government institution that currently holds the promissory note for the
qualifying educational loan (e.g., Sallie Mae, PHEAA, etc.)
Qualified Applicant – A person who meets all of the eligibility requirements set forth in the
Application and Program Guidance.
Qualifying Educational Loans –Government and commercial loans for actual costs paid for tuition
and reasonable educational and living expenses related to the undergraduate or graduate education
of the participant. Such loans must have been incurred prior to the application deadline, and there
must be documentation to support that the loans were contemporaneous with the education
received. Participants will receive funds for repayment of qualifying educational loans that are still
owed. If the applicant has consolidated otherwise qualifying educational loans with any other debt
or consolidated his/her loans with loans of another individual, the consolidated loan is ineligible.
Residency relocation loans are not eligible.
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Reasonable Educational Expenses –The costs for books, supplies, laboratory expenses, clinical travel,
educational equipment and materials for qualifying education which do not exceed the school’s
estimated standard student budget for educational expenses for the participant’s degree program
and for the year(s) of that participant’s enrollment.
Reasonable Living Expenses –The costs of room and board, transportation and commuting costs, and
other costs which do not exceed the school’s estimated standard student budget for living expenses
at that school for the participant’s degree program and for the year(s) of that participant’s
enrollment.
Spouse and Marriage - As used in this Guidance and for the purposes of the Faculty Loan Repayment
Program includes same-sex couples, legally married in jurisdictions that recognize their marriages.
This applies regardless of whether the couple lives in a jurisdiction that recognizes same-sex marriage
or a jurisdiction that does not recognize same-sex marriage. Any same-sex marriage legally entered
into or recognized in one of the 50 states, the District of Columbia, a U.S. territory or a foreign
country will be recognized. However, this does not apply to registered domestic partnerships, civil
unions or similar formal relationships recognized under state law as something other than a marriage.
State – As used in this Guidance, State includes the 50 States, the District of Columbia, the
Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, the U.S. Virgin
Islands, Territory of American Samoa, Territory of Guam, Republic of Palau, Republic of the Marshall
Islands, and Federated States of Micronesia.
Suspension – A temporary status. A suspension of the service or payment obligation will be granted if
compliance with the obligation by the participant (1) is temporarily impossible or (2) would involve a
temporary extreme hardship such that enforcement of the obligation would be unconscionable. All
requests for a suspension must be submitted, in writing via the Customer Service Portal and be
supported by full medical and/or financial documentation.
Waiver (Employer) - The employing institution’s matching requirement may be waived by Secretary
of the HHS or his/her designee in full or part the Secretary or his/her designee determines, based on
documentation submitted by the employing institution, that the requirement will impose an undue
financial hardship on the employing institution.
Waiver (Participant) – A permanent status. A waiver of the service or payment obligation will only be
granted if compliance with the obligation by the participant (1) is permanently impossible or (2)
would involve a permanent extreme hardship such that enforcement of the obligation would be
unconscionable. All requests for a waiver must be submitted via the Customer Service Portal and be
supported by full medical and financial documentation.

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