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Student Loan Repayment

Discover key student loan repayment assistance programs for rural health providers, including Federal Perkins Cancellation and State of Nebraska Loan Repayment Program. Find benefits, drawbacks, and contact details for NHSC Loan Repayment Program.

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Student Loan Repayment

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  1. Student Loan Repayment Assistance for Rural Providers

  2. Three Main Programs • Federal Perkins Cancellation • State of Nebraska Loan Repayment Program for Rural Health Professionals • U.S Department of Health and Human Services Health Resources and Services Administration Bureau of Health Professionals National Health Service Corps Loan Repayment Program

  3. Federal Perkins Cancellation • A number of service fields qualify • “working full time in a public or private nonprofit child or family service agency for 12 consecutive months providing or supervising provision of services to high-risk children from low-income communities and families of such children” • Can cancel 15% of qualifying Perkins loans for years 1 – 3, 20% for years 4 – 5 • Loans are in deferment while being repaid by service, so no payments are due • Ifap.ed.gov/sfahandbooks/attachments/vol5Ch6.pdf

  4. State of NE Loan Repayment Program for Rural Health Professionals • Operated by Nebraska Office of Rural Health • Started in 1994 • Clinical psychologists, master’s level providers eligible

  5. Requirements • Fully licensed status • Must provide service within designated shortage areas • Communities must apply to become approved loan repayment sites • Three year commitment of service • Can be either new provider or for “retention” purposes

  6. Benefits • Master’s level providers receive $10,000 per year toward qualifying student loan debt • Psychologists receive up to $20,000 per year toward qualifying student loan debt • Amount varies depending on debt load and fund availability

  7. Drawbacks • State only provides “matching funds” – communities or agencies must provide 50% of repayment • Must continue to pay interest on loans as payments are being made • Funds given for loan repayment are taxable as ordinary income

  8. Contact information • Nebraska Office of Rural Health • P.O. Box 95044 • Contact person Marlene Janssen • Marlene.janssen@hhss.ne.gov • 402-471-2337 • Website with more information • www.hhs.state.ne.us/hew/orh/LoansState.htm

  9. NHSC Loan Repayment Program • US Department of Health and Human Services Program • Originally intended to recruit primary care providers to rural settings • Now includes physicians, nurse practitioners, nurse-midwives, physician assistants, dentists, mental health • Mental health includes clinical or counseling psychologists, licensed clinical social workers, licensed professional counselors, marriage and family therapists • School Psychologists are not eligible

  10. Requirements • Fully licensed status, no supervision required • Agency of employment must be a designated loan repayment site • Service in underserved area • Two year commitment required, can be extended pending available funding

  11. Benefits • Psychologists receive $25,000 per year for two years toward payment of qualifying student loan debt • New federal laws make this money non-taxable!! • Repayment options can (depending upon lenders rules) mean that no payments are due from borrower during two year period

  12. Drawbacks • Must get sites designated • LOTS of paperwork involved • Need official loan documentation, copies of licenses, licensing exam results, biographical statement, request for information self-disclosure from National Practitioner data bank, copies of degrees, letters of reference, proof of citizenship, site information, vita, etc • Very particular rules regarding hours of practice, number of hours in what settings, etc (designed more with physicians in mind) • 32/40 hours in “direct patient care” in clinic setting only • Remaining 8 in other activities

  13. Getting a site designated • Likelihood depends on HPSA score of site (how rural is it?) • Must complete “recruitment and retention assistance application” • Who is the site? • Separate application for each clinic if in different locations • Can take extended period for sites to be designated

  14. Contact • Division of National Health Service Corps NHSC Loan Repayment Program c/o IQ Solutions 11300 Rockville Pike, Suite 901 Rockville, MD 20852 1-800-638-0824 NHSC@iqsolutions.com • Website: nhsc.bhpr.hrsa.gov/join_us/lrp.cfm

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