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To encourage students to select particular specialties and to work in locations which may have a great health manpower need, some federal, state and private loan repayment programs have been established. Through these programs, an individual may qualify for federal, state or private funds to repay educational loans in exchange for primary care service in a particular community or underserved area of the country. Typically, you would apply for these programs during your final year of residency training. Some of the existing loan repayment programs are listed below. By no means should you consider this a complete listing. It is meant to give you an idea of the opportunities which currently exist. Keep your eyes open to other possibilities.
The Public Service Loan Forgiveness Program is intended to encourage individuals to enter and remain in public service. The program grants public service loan forgiveness of the full remaining Direct Loan balance when the borrower has made 120 qualifying monthly payments through an eligible repayment plan after October 1, 2007, while employed in public service fields considered eligible under the Public Service Loan Forgiveness Program. The borrower must also be employed in public service at the time of applying for forgiveness and when any remaining loan amount is forgiven.
National Health Service Corps Loan Repayment Program: This program will pay up to $60,000 for a two-year commitment, up to $100,000 for a three-year commitment, up to $140,000 for a four-year commitment with an additional $30,000 more for each additional year of service ($170,000 for 5 years and $200,000 for 6 years) for educational loan repayment in exchange for practicing in a primary care health manpower shortage area of the country. A minimum of two years of service is required. Specialties typically needed are Family Practice, Obstetrics- Gynecology, Internal Medicine, Pediatrics and Psychiatry.
NHSC Fact Sheet
National Health Service CorpsLoan Repayment Program4350 East-West Highway, 10th FloorBethesda, MD 20814800-435-6464 or 301-594-4400http://nhsc.hrsa.gov/loanrepayment/http://www.hhs.gov/
This program will pay up to $30,000/year in loan repayments for a two year commitment, with an additional income tax liability of up to 32% of loan repayment contract for each year of clinical practice in the Indian Health Service. A minimum of two years of service is required. A wider selection of specialties is available for this program: Family Practice, Internal Medicine, Pediatrics, Obstetrics-Gynecology, Otolaryngology, Psychiatry, Emergency Medicine, General Surgery, Orthopedics, Ophthalmology, Anesthesiology and Radiology.
Indian Health Service Loan Repayment ProgramIndian Health ServiceTwinbrook Metro Plaza Building12300 Twinbrook Parkway, #100Rockville, MD 20852301 443-3396http://www.ihs.gov/JobsCareerDevelop/careers/displaypage.cfm?module=loanrepay&titlescore=4
Physicians involved in AIDS research or physicians from disadvantaged backgrounds involved in clinical research at NIH may have up to $35,000 per year in educational loans repaid. To qualify, researchers must have education debt exceeding 20% of their annual NIH basic pay or stipend. One third of the repayable debt will be repaid for each year of qualified service, up to a maximum of $35,000 per year. A two-year minimum service is required, and a federal tax incentive is also provided.
NIH Aids Research Loan Repayment ProgramDirector, Loan Repayment ProgramNational Institute of Health7550 Wisconsin Avenue, Rm. 604Bethesda, MD 20892-9121800-528-7689http://www.lrp.nih.gov/
The U.S. Army may repay Federal Stafford/Perkins loans for people serving in the Army or Army Reserve. For each year on active duty the Army will repay up to one-third of this outstanding debt. For each year in the reserves, the program eliminates up to 15% of this outstanding debt.
Check with your local or regional Army Health Professions Recruiting Office.
The FAP provides financial assistance to eligible residents in designated residency programs in return for a combined active duty and reserve service obligation in either the Army, Navy or Air Force. Recipients are paid about $19,000 in annual grants and a monthly stipend in addition to a usual military’s resident salary. Eligible specialties presently are Anesthesiology, General Surgery, Neurosurgery, Ophthalmology, Orthopedic Surgery, Otolaryngology, Urology, Cardiology, Family Practice, Ob-Gyn, Psychiatry, Radiology and a few other surgical subspecialties.
Check with you local or regional military recruiting office for each branch of the military
This program may repay up to $20,000 total in educational loans, with a maximum of $3,000 per year, for service in the National Guard for physicians in the following surgical specialties:
Check with your local or regional National Guard health professions recruiter.
This program was authorized by the Iowa Legislature in 1994 to encourage qualified primary health care professions to provide primary care services to designated health professional shortage areas of the state. It offers annual loan forgiveness of up to $30,000 for eligible physicians (as well as select other health professionals) in exchange for a minimum of two years of full-time obligated service in a rural, federally designated Health Professions Shortage Area as a primary care provider (or year for year of support, whichever is greater). Funding for the program is supported by both federal and state funds. Eligible specialties include family practice, obstetrics gynecology, general internal medicine or general pediatrics. You must be eligible to begin practice at the site within 60 days of a notification of award.
Contact: Program ManagerCenter for Rural Health and Primary CareIowa Department of Public HealthLucas State Office Building, 3rd Floor321 East 12th StreetDes Moines, IA 50319-0075(515) 281-7224http://www.idph.state.ia.us/hpcdp/primecarre.asp
For other states' repayment programs:http://www.services.aamc.org/fed_loan_pub
Division of Student AssistanceBureau of Health ProfessionsHealth Resources and Services AdministrationRockville, MD 20857Phone: 301-44300846http://bhpr.hrsa.gov/dsa/flrp/
Physicians from disadvantaged backgrounds who sign a contract agreeing to serve for two years as a full-time faculty member at a participating school, may have up to $20,000 of debt repaid for each year of faculty service.
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