B. Definitions

Commercial Loans - Commercial loans are defined as loans made by banks, credit unions, savings and loan associations, insurance companies, schools, and other financial or credit institutions which are subject to examination and supervision in their capacity as lenders by an agency of the United States or of the State in which the lender has its principal place of business.

Division of Applications and Awards (DAA)—A division of the Bureau of Clinician Recruitment and Service, Health Resources and Services Administration.

Fiscal Year (FY)—The Federal FY is defined as October 1 through September 30.

Full-Time Clinical Practice—Working a minimum of 40 hours per week, for a minimum of 45 weeks per service year in a primary care setting.  Please refer to the Full Time Clinical Practice section of this bulletin for a more detailed explanation of the full-time clinical practice requirement.

Government Loans—Government loans are loans made by Federal, State, county or city agencies authorized by law to make such loans.

Health Professional Shortage Area (HPSA)—A HPSA is a geographic area, population group, public or nonprofit private medical facility or other facility determined by the Secretary of Department of Health and Human Services to have a shortage of primary health care professionals. HPSAs may be identified on the basis of agency or individual requests for designation. Information considered when designating a primary care HPSA include health provider to population ratios, rates of poverty, and access to available primary health services. These HPSAs are designated by the Shortage Designation Branch, Bureau of Health Professions pursuant to Section 332 of the PHS Act (Title 42, U.S. Code, Section 254e) and implementing regulations (Title 42, Code of Federal Regulations, Part 5).  Specific NHSC sites are approved by the Bureau of Clinician Recruitment and Service, pursuant to Sections 333 and 333A of the PHS Act (Title 42, U.S. Code, Sections 254f and 254f-1)  

Health Resources and Services Administration (HRSA)—An operating agency of the U.S. Department of Health and Human Services.

Holder—The commercial or Government institution that currently holds the promissory note for the qualifying educational loan.

Lender—The commercial or Government institution that initially made the qualifying loan.

National Health Service Corps (NHSC)—"The Emergency Health Personnel Act of 1970," Public Law 91-623, established the NHSC on December 31, 1970.  The NHSC Program, within the Department of Health and Human Services, was created to eliminate the health professional shortages in HPSAs through the assignment of trained health professionals to provide primary health services in HPSAs. The NHSC seeks to improve the health of underserved Americans by bringing together communities in need and quality primary health care professionals.

National Health Service Corps (NHSC) Loan Repayment Program (LRP)—The NHSC LRP is authorized by Section 338B of the PHS Act.  Under the NHSC LRP, clinicians provide primary care health services in HPSAs in exchange for funds for the repayment of their qualifying educational loans. The NHSC LRP selects fully trained and licensed primary health care clinicians dedicated to meeting the health care needs of medically underserved communities.

Qualifying Educational Loans—Qualifying educational loans are Government and commercial loans for actual costs paid for tuition and reasonable educational and living expenses related to the undergraduate or graduate education of the participant prior to his or her receipt of the health professions degree being utilized by the NHSC LRP.  Such loans must have documentation that is contemporaneous with the education received. Participants will receive funds for repayment of qualifying educational loans that are still owed. If the applicant has consolidated educational loans with any other debt or consolidated his/her loans with loans of another individual, the consolidated loan is ineligible.  Residency relocation loans are not eligible.

Reasonable Educational Expenses—Reasonable educational expenses are the costs of education, exclusive of tuition, such as fees, books, supplies, clinical travel, educational equipment and materials, which do not exceed the school's estimated standard student budget for educational expenses for the participant's degree program and for the year(s) of that participant's enrollment.

Reasonable Living Expenses—Reasonable living expenses are the costs of room and board, transportation and commuting costs, and other costs which do not exceed the school's estimated standard student budget for living expenses at that school for the participant's degree program and for the year(s) of that participant's enrollment.

State—As used in this Bulletin, State includes the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Marianas, the U.S. Virgin Islands, Territory of American Samoa, Territory of Guam, Republic of Palau, Republic of the Marshall Islands, and Federated States of Micronesia.

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