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Student Loan Repayment

Student Loan Repayment

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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