Loan Repayment

The Health Resources and Services Administration’s (HRSA) Bureau of Clinician Recruitment and Service is pleased to announce that it is seeking applicants for the 2009 Faculty Loan Repayment Program.

The Faculty Loan Repayment Program provides a financial incentive for degree-trained health professionals from disadvantaged backgrounds to pursue academic careers.

Individuals selected agree to serve on the faculty of an accredited health professions college or university for a minimum of two years.

In return, the Federal government agrees to pay, for each year of faculty service, up to $20,000 of the outstanding principal and interest on the participant's educational loans.

To learn more about the Faculty Loan Repayment Program and for application information, please visit http://bhpr.hrsa.gov/dsa/flrp/ or contact the HRSA Call Center at 1-800-221-9393.

The paragraphs below are informational only as this program was de-funded during the 2009 legislative session. The Office of Rural Health is working toward getting the program re-funded, however, no awards will be made until that time.

What is the Oregon Rural Health Services (RHS) Program?

The Oregon Rural Health Services Loan Repayment Program offers loan repayment to physicians, dentists, pharmacists, nurse practitioners, and physician assistants who agree to practice in a ‘qualifying practice site’ as defined in OAR 575-071-0000. The intent of the program is to attract health care providers to Oregon’s rural “areas of unmet health care need”.

In exchange for qualifying service, participants may receive funds to repay qualifying graduate-level, federal loan debt. The maximum total benefit from this program per participant is $100,000. Once the first payment from this program is received and processed, the participant is obligated to satisfy the minimum practice requirement or pay a penalty equal to 150% of the program benefit received.

Physicians, dentists and pharmacists may receive annual payments equal to 20% of the total qualifying loan principal for a minimum service obligation of three years and maximum program participation of five years. Physicians, dentists and pharmacists must serve a minimum of three years employment in a qualifying site to avoid penalties.

Nurse practitioners and physician assistants may receive annual payments equal to 25% of the total qualifying loan principal for a minimum service obligation of two years and maximum program participation of four years. Nurse practitioners and physician assistants must serve a minimum of two years employment in a qualifying site to avoid penalties.

Where are the qualifying areas?

The Office of Rural Health is responsible for determining the qualifying practice sites for the purposes of this program. Please see the map and list to the right for all of the qualifying communities. For your convenience, we currently know of these opportunities within qualifying communities.

Which student loans qualify?

• HEAL Loans
• Health Professions Loans
• Nursing Loans
• Perkins Loans
• Stafford Loans
• SLS Loans
• William D. Ford Direct Loans
• Medical/Dental/Nursing Loans
• Primary Care Loans (MDs only)
  

How do I apply?

The Oregon Student Assistance Commission (OSAC) posts an application in every October. The earliest a health professionals may apply is during the last year of schooling leading to his or her professional degree.

The application period is normally open during October and November each year and awards are made in December. Applicants will be asked to provide information about professional education, certification, and student loan indebtedness. Specific information regarding application deadlines will be published on the application.

Is the number of participants limited?

Yes. A maximum of 10 nurse practitioners, 10 pharmacists, 10 physicians, 10 dentists, and 10 physician assistants may be added to the program each year. When funding is limited, there will be fewer new participants than the maximum allowed by law. Factors considered in the selection process may include: rural background and/or practice experience in a rural community, and information pointing to the likelihood of an applicant’s eventual practice in a qualifying area.

What happens if I am selected?

Your qualifying loan debt will be verified and you and the Student Assistance Commission will sign an agreement that sets forth the following:

• Terms and conditions under which payments will be made toward the participant’s student loans;
• The maximum which may be paid in any year, and
• The cumulative amount payable over the maximum period of practice in a qualifying area
  

Placement information and assistant is provided through the Recruitment Services program administered by the Office of Rural Health at Oregon Health and Science University.

Who actually pays the participant’s student loans?

Participants are responsible for their own loan repayments. The RHS program will make a single payment to the participant after each year of qualifying practice. To remain in good standing with lenders, participants will need to make regular payments when they are due.

Are RHS payments taxable?

Yes, you must claim each annual payment as income on your taxes. The Student Assistance Commission will issue annual IRS 1099 forms to participants receiving payments. Participants are strongly advised to retain appropriate portions of RHS payments for the payment of U.S. income taxes. Health professionals in qualifying rural areas may also qualify for a State of Oregon income tax credit of up to $5,000 per year. Check with the IRS.

Are their any circumstances that could lead to a waiver of the financial penalties for failure to complete the minimum service obligation?

Yes, penalties may be waived:

• Upon the death of a participant
• Upon the documented total and permanent disability of the participant
• Upon favorable ruling on an appeal to the Student Assistance Commission
  

I would like to apply and I have other questions. Who can I talk to?

For the Oregon Rural Health Services Loan Repayment Program:
Rachel Cummings
Oregon Student Assistance Commission
1500 Valley River Drive, Suite 100
Eugene, OR 97401
Direct (541) 687-7387
Toll Free (800) 452-8807, ext. 7387
Fax (541) 687-7414
rachel.b.cummings@state.or.us

For more information about health care practice opportunities in rural Oregon, contact:
Jo Johnson
Recruitment Services
Oregon Health & Science University
Office of Rural Health - L593
3181 SW Sam Jackson Park Road
Portland, OR 97201 3098
Direct (503) 494-8685
Toll-free (866) 674-4376
Fax (503) 494-4798
www.ohsu.edu/oregonruralhealth

For a printable PDF version of this information, please click here.

Oregon Nursing Services Program  - Designed to recruit registered nurses (RNs) to the designated critical nursing shortage areas throughout Oregon. 

*The preceding is Informational Only – This program was de-funded during the 2009 legislative session. The Office of Rural Health is working toward getting the program re-funded, however, no awards will be made until that time.

Expanding Public Health Nursing Leadership in Oregon: An MPH/CPHN Online Program at OHSU. Responding to a critical shortage of nurses prepared for leadership in public health, the School of Nursing at Oregon Health & Science University will make it possible for nurses to earn a master's degree in public health nursing online. The School of Nursing offers the full Oregon Masters in Public Health/Community Public Health Nursing track online. For more information contact Sharon Bailey, director of recruitment for the MPH - online program, 503-494-3879.

The Nursing Education Loan Repayment Program (NELRP) offers registered nurses substantial assistance to repay educational loans in exchange for service in eligible facilities located in areas experiencing a shortage of nurses. Authorized by Section 846 of the Public Health Service Act, as amended, the purpose of the NELRP is to assist in the recruitment and retention of professional nurses dedicated to providing health care to under served populations.

Allied Health Programs At Mt. Hood Community College. Follow this link for educational information on the Allied Health Professions.

Oregon Center for Nursing was established by the Oregon Nursing Leadership Council in 2001 as a strategy for dealing with Oregon's severe nursing shortage. The non-profit organization identifies solutions to a nursing crisis that will seriously jeopardize the health care of Oregonians unless we act. Funding updates and recruitment strategies are posted regularly.

National Health Service Corp for loan repayment.

For more information on Recruitment Services for rural Oregon, contact: Jo Johnson, johnsjo@ohsu.edu, Recruitment Services Coordinator, toll- free 1-866-674-4376 (ORH-HERO) or 503-494-4450.