E. Benefits
1. Loan Repayments
The NHSC LRP will provide funds to program
participants to repay their outstanding qualifying educational
loans (See Section F).
- The NHSC LRP will pay up to $50,000
for two years of service, based on the participant’s
outstanding balance of qualifying educational loans.
If the total amount of the participant’s qualifying
educational loans is less than $50,000, the NHSC LRP will
pay the remaining balance of the total qualifying
educational loans for two years of service.
- All loan repayments paid to the participant
must be used by the participant to repay the approved
qualifying educational loans during his/her contract period.
Method of Disbursing Payment
To assist NHSC LRP participants in reducing
their educational debts in a shorter period of time and
reduce the cost of these loans to the Federal government,
the NHSC LRP will disburse payments to participants in the
form of a lump sum payment. The lump sum payment will be
electronically issued to the awardee approximately 90 days
after their contract start date.
Applicants should contact their lenders
regarding prepayment options. Some lenders will accept
the advanced payment, but expect the participant to continue
to make monthly payments.
Note: Under the Treasury Offset Program,
the Treasury Department is authorized to offset NHSC LRP
payments for delinquent Federal and State debts, including
delinquent child support payments.
Salary
The NHSC LRP participant will receive
a salary and benefits from the employing community site.
Employment compensation packages are negotiated between
the professional and the community site and agreed-upon
terms of employment are typically reduced to an employment
contract. The terms of the employment contract should be
carefully reviewed and fully understood by the clinician
before the contract is signed. Applicants may want to seek
legal guidance from private counsel before entering into
an employment contract. Employment contract negotiations
are solely the responsibility of the LRP applicant.
The community site cannot guarantee an
NHSC LRP contract award. Therefore, the NHSC loan
repayments must not be part of the salary negotiations between
clinicians and community sites.
next page:
Qualifying Educational Loans
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