NHSC Part-Time Loan Repayment Demonstration Project FREQUENTLY ASKED QUESTIONS

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1 NHSC Part-Time Loan Repayment Demonstration Project FREQUENTLY ASKED QUESTIONS General Questions 1. What is the NHSC Part-Time Loan Repayment The National Health Service Corps (NHSC) is offering a Part-Time Loan Repayment Demonstration Project. The NHSC is administered by the Health Resources and Services Administration (HRSA) of the U.S. Department of Health & Human Services (HHS). The NHSC Part-Time Loan Repayment Demonstration Project recruits fully trained health professionals to provide culturally competent, interdisciplinary primary health services to underserved populations located in selected Health Professional Shortage Areas (HPSAs) identified by the Secretary of HHS. HPSAs can be found in rural, frontier, and urban communities across the Nation. In return, the NHSC LRP Part-Time Demonstration Project provides clinicians with assistance in repayment of qualifying outstanding educational loans. 2. Who is eligible to participate in the Part-Time Loan Repayment Primary care physicians, nurse practitioners, certified nurse-midwives, physician assistants, dentists, dental hygienists, and behavioral and mental health providers are eligible for an award of up to $50,000 in loan repayments for the initial 4-year part-time service commitment and may be eligible to continue their loan repayment beyond 4 years if they have unpaid qualifying educational loans and continue to serve at an eligible NHSC Site. 3. What is considered part time? Part-time is defined as a 20- to 39-hour work week. A minimum of 16 hours must be spent providing direct clinical services and patient management for a minimum of 2 days per week and for no more than 12 hours per day. Direct clinical services are defined as conducting health assessments, reading x-rays, interpreting lab results and other studies, and making follow-up telephone calls to patients. 4. What is the loan repayment award amount and service commitment time period? Eligible clinicians may receive up to $50,000 in loan repayment for the initial 4-year, part-time service commitment. 5. Can a current NHSC member change from full time to part time service? This option will become available in October However, the initial application period will be for those clinicians who currently do not have an existing service commitment from the NHSC. All NHSC-approved Sites and Clinicians will be notified when the option becomes available. 6. Can a part time Awardee work at more than one NHSC approved Site? Yes. Awardees may practice at up to four NHSC-approved Sites. 7. How will the NHSC select Awardees to participate in the Part Time Loan Repayment Eligible applicants from disadvantaged backgrounds will be funded first. Other applicants will be selected for an award based upon the need of the community as defined by the practice sites HPSA score. The higher the score, the greater the need. 8. How many awards will be made in fiscal year (FY) 2010? The NHSC anticipates making approximately 400 awards.

2 Application Questions 9. Who can help me if I need assistance with completing my application? For help with your NHSC Part-Time Loan Repayment Demonstration Project application, CallCenter@hrsa.gov or phone (toll-free). 10. Should I make a copy of my supplemental forms and supporting documentation before I mail them? Yes. A copy of the application documents that you mail to the NHSC Part-Time Loan Repayment Demonstration Project should be maintained for your records and for future reference if needed. 11. Will application materials submitted after the deadline be considered? No. All required forms and supplemental documentation must be submitted by the application deadline listed in the Application and Program Guidance. 12. Will a credit check be conducted under the NHSC Part-Time Loan Repayment As part of the application review process, the applicant s credit report will be obtained to assess his/her eligibility, creditworthiness, and suitability to participate in the NHSC Part-Time Loan Repayment Demonstration Project; and to verify his/her educational loans. 13. Can State Loan Repayment participants use the part-time option? No. Eligible applicants cannot have an existing service obligation. 14. Will there be another application cycle for the Part-Time Loan Repayment Demonstration Project? Yes, there will be an FY 2011 part-time application cycle. Eligibility: Educational Loans 15. What types of loans are considered eligible? Government and commercial loans obtained by the participant, commensurate with the participant s completed undergraduate and/or graduate education, to pay for: a. School tuition and required fees b. Other reasonable educational expenses (see Definition of Terms in the Application and Program Guidance (APG) c. Reasonable living expenses (see Definition of Terms in the APG) 16. What are some examples of loans that are not eligible for repayment? Examples of loans or other financial obligations that do not qualify for repayment by NHSC Part- Time Loan Repayment Demonstration Project 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 not obtained from a U.S. or other Government entity or commercial lending institution most loans made by private foundations to individuals are not eligible for repayment c. Loans, or a portion of a loan, obtained for educational or living expenses that exceed the school s estimated standard student budget in the year the loan was made (if the applicant is able to substantiate that the excess educational and/or living expenses were reasonable, the NHSC Part-Time Loan Repayment Demonstration Project may reconsider) d. Loans that have been repaid in full e. PLUS Loans (made to parents) f. Personal lines of credit or credit cards g. Residency relocation loans h. Primary Care Loan (PCL) Program loans 2

3 17. Why is a Parent PLUS Loan ineligible for repayment under the NHSC Part-Time Loan Repayment Parent PLUS Loans are ineligible because the parent is liable for repayment of the loan. 18. I consolidated my education loans. Are they still eligible for repayment? Yes, if the consolidation includes educational loans incurred while pursuing an undergraduate degree and health professions degree eligible for loan repayment ONLY. Eligibility: Employment 19. Can you provide a list of job opportunities where clinicians can fulfill the service? Yes. Visit What if a part-time NHSC Awardee would like to complete his/her service commitment in less than 4 years? Are they eligible to switch to a full-time schedule? No. Because this is a demonstration project, awardees will not be allowed to decrease their service commitment to less than 4 years by switching to a full-time service commitment. Awardees must also work a minimum of 45 weeks per year. 21. Can a clinician qualify for the NHSC Part Time Loan Repayment Demonstration Project if he or she only works 9 months (or 38 weeks) out of the year for example, in a schoolbased clinic? No. Awardees must work for a minimum of 45 weeks per year. 22. Which clinical disciplines are eligible for the NHSC Part-Time Loan Repayment All disciplines eligible to apply for the traditional NHSC Loan Repayment Program are also eligible to apply for the Part-Time Loan Repayment Demonstration Project. For a complete list of eligible disciplines, visit Will clinicians be paid for their work in addition to the loan repayment? The salary of clinicians participating in the NHSC Part-Time Loan Repayment Demonstration Project must be negotiated between the Site and the clinician. No salary is paid by the NHSC. 24. Do employers have a role in my application for this demonstration project? Employers may need to request a HPSA designation and apply to become an NHSC-approved Site. In addition, the Site must complete an Employment Verification Form to verify your employment and certify the number of hours you will practice at the Site. 25. Do the years that I have already worked at my facility count toward my service requirement? No. The NHSC Part-Time Loan Repayment Demonstration Project service obligation begins on the effective date of the contract. 26. What if my Site is not approved? Your Site must be approved by the NHSC by the application close date listed in the APG. Site Application information can be found by visiting After Submitting Your Application 27. Can I withdraw my application? If so, what is the process? You may withdraw your application or award by August 17, 2010, or before your contract is signed by the Secretary of Health & Human Services or her designee, and still be eligible to apply to NHSC Part-Time Loan Repayment Demonstration Project in the future. Applicants who decide 3

4 to withdraw from competition for an award must send notification to the NHSC Part-Time Loan Repayment Demonstration Project in writing at: Nursing Education Loan Repayment Branch Division of Applications and Awards Health Resources and Services Administration 5600 Fishers Lane, Room 8-37 Rockville, MD Your request for withdrawal can also be ed to or faxed to After Receiving an Award 28. When does the 4-year service commitment begin? Your service commitment begins when your NHSC Part-Time Loan Repayment Program Demonstration contract becomes effective, which is on the date the Secretary of HHS or a designee signs the contract. 29. How do I receive my loan repayments? Payments are disbursed via electronic funds transfer to your checking or savings account within 90 days after your start date, as indicated on the Banking Information Form you will submit if your application reaches the Final Review stage. 30. My checking and/or savings account information has changed. What do I need to do? To receive instructions for making changes and/or updates to your banking information, contact the Division of Scholar and Clinician Support (DSCS) office at It is imperative that you notify the DSCS promptly of all changes to your banking information because all NHSC Part-Time Loan Repayment Demonstration Project payments are credited to your account electronically. Without an accurate account number, we are unable to make the payment correctly. 31. Do I have to pay taxes on the NHSC Part-Time Loan Repayment Demonstration Project payments? No. NHSC Part-Time Loan Repayment Demonstration Project repayment is tax-free. 32. What role does my employer have during my participation in the program? To ensure performance of the required service obligation under NHSC Part-Time Loan Repayment Demonstration Project, your employer is required to complete an Employment Verification Form every 6 months during your participation as a NHSC member fulfilling your service commitment.. Completing the form requires minimal effort by your employer. 33. I want to transfer to another facility. What do I need to do? You are expected to complete your service obligation at your initial service Site. However, if you are unable to complete your service at the initial Site, you may request a transfer to another NHSC-approved Site. 34. If I need to be out on medical or personal leave after receiving an NHSC Part-Time Loan Repayment Demonstration Project award, how do I manage the extended time away from my service site during my service period? Notify the DSCS in advance of your expected departure from work date and return to work date. The time away from your service site will be combined with your other absences during the service year. If your cumulative time away from your service site will exceed 7 weeks per service year (12 weeks for maternity/paternity leave), your NHSC Part-Time Loan Repayment Demonstration Project payments will be discontinued, and you must submit a written request for a suspension of your service obligation (see the Changing Jobs subsection of the APG). Upon receipt of documentation of your return to service, your NHSC Part-Time Loan Repayment 4

5 Demonstration Project payments will resume, and your service end date will be extended to compensate for the interruption in service. 35. How do I update changes to my name or contact information? Send a written notification of the change to: Division of Scholar and Clinician Support Health Resources and Services Administration 5600 Fishers Lane; Room 8-15 Rockville, MD You may also send notification of a name or contact information change by to CallCenter@hrsa.gov or by fax to

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