Frequently Asked Questions (FAQs)

Do you have questions? We've got answers. Scroll down — chances are just about any query you have is addressed. Please contact your Analyst before you make any school- or life-related decisions.

• Payment-related Questions
• Training-related Questions
• Deferment/Residency-related Questions

1. How much is the stipend?
   
   Effective July 1, 2004 the amount of the stipend will be $1,128/month. However, this amount changes every year.
   
   
2. Are the stipend and other educational expenses taxable income? How much tax will be withheld?
   
   The Internal Revenue Service (IRS) considers only the stipend as taxable income. The amount withheld is determined by the number of exemptions claimed on your W-4 form.
   
   The NHSC does not withhold State taxes. It is the Scholar's responsibility to inquire with State and local taxing jurisdictions regarding tax liability.
   
   
3. When will I receive my stipends each month?
   
   The stipend is usually disbursed between the 1st and 7th of the month following the month the payment is due. Scholars should call the NHSC after the 7th of the month if the payment is not received.
   
   Scholars should receive the first stipend payment prior to November 7th. It will include a lump sum amount for stipend support for the period July 1 through October as well as the annual payment for other reasonable costs (ORC).
   
   
4. When do I receive tuition payment?
   
   The Notice of Award Letter issued by the NHSC will serve as authorization to the school to bill the NHSC directly for tuition and required fees. Additionally, in October the NHSC will send the school a letter authorizing it to submit invoices for your tuition. Payment of tuition and fees are made directly to the school on the Scholar's behalf. You will need to review your Data Collection Worksheet when you receive it in October to determine what fees are billed and paid directly to the school and what fees have been included in the Other Reasonable Costs amount that you will receive.
   
   
5. Will the NHSC cover my tuition and fees for my program if it started prior to July 1?
   
   The NHSC will pay for tuition and fees for any semester that falls within the contract period. Therefore, any semester that begins before July 1 but ends after that date will be paid to the school upon receipt of a complete and correct invoice.
   
   
6. How are stipend and ORC payments issued?
   
   Stipend and ORC payments are transferred electronically to each Scholar's financial institution through direct deposit. Direct deposit is mandatory. If at any time you change you financial institution, you will need to submit a new Direct Deposit Form. NOTE: Do not close your old account until you have received your first payment in the new account.
   
   
7. If scholarship support is not awarded by the start of school, how do I handle my tuition?
   
   Scholars may be responsible for initial payment of tuition. Those Scholars who have paid their tuition and required fees prior to entering the NHSC should be reimbursed by the school after payment is received from the NHSC for that school year.
   
   
8. If I have to borrow money to start school, will I receive money from the NHSC to pay the interest on my loan?
   
   No. Additional funds will not be awarded to cover interest charges or any other fees related to loans.
   
   
9. How does the NHSC know how much my tuition, fees, and other reasonable costs (ORC) will be when making a scholarship award?
   
   In the spring of each year, the NHSC requests each accredited school's financial aid office to send the projected amount for tuition, fees, and ORC for each year of the training program. The tuition, fees, and ORC amounts utilized by the NHSC are based on information provided by the school. However, please note that the NHSC has the final say on the items that will be covered. Each October, Scholars will receive a copy of the list of tuition, fees, and other reasonable costs applicable for that year.
   
   
10. If I have to buy additional books or materials during the school year, will the scholarship cover those expenses?
    
    During the fall of the school year, the NHSC will make a single ORC payment to the Scholar. This payment is to cover all eligible ORC expenses during that school year. If additional expenses for books and other materials arise, those expenses will not be covered individually by the NHSC; the Scholar will be responsible for paying those expenses from the ORC amount they receive. It is the responsibility of the Scholar to budget their ORC money for their needs throughout the year.
    
    
11. What is included in "fees"? Can I include health insurance in my fees?
    
    Health insurance will be covered for students at the unmarried rate if the school requires health coverage for all students. If the school mandates that coverage is obtained through its institution and indicates this on the DCW as part of its tuition and fees, the health insurance will be covered in full. If the school gives students the option of purchasing health insurance outside of the institution, the NHSC will pay the students directly for health insurance as part of their ORC. NOTE: When the amount is included in the ORC, the NHSC will only pay what is deemed a reasonable amount for health insurance.
    
    
12. Will the scholarship pay for my boards?
    
    If the school requires medical students to successfully complete Parts I and II (both skills and clinical portions) of either the USMLE or COMLEX, the NHSC will pay for these exams. However, the NHSC will not pay for Part III of the USMLE for medical residents -- or certification exams for other health professionals -- since they are not graduation requirements.
    
    
13. How long does it take for my tuition and fees to be paid?
    
    It takes approximately 6 weeks from the day a complete and correct invoice is received for the school to receive payment.
    
    
14. Can the rules change after I have accepted the scholarship?
    
    Yes. As the NHSC is authorized by statute, Scholars may be subject to subsequent changes in the statute, regulations, or policies.
    
    
15. What happens if the NHSC runs out of scholarship money or the program is discontinued?
    
    When a scholarship is awarded, funds are set aside and made available based on the number of years requested by the applicant and agreed to by the Secretary, as indicated in the signed contract. If the applicant did not sign a contract through the date of graduation, he/she will be given priority for continued funding when the initial contract expires. However, if no new funds are appropriated for the Program, a new contract cannot be funded. For this reason, we urge Scholars to sign contracts through their graduation date. Service obligations will be based on the number of contract years in which a Scholar receives scholarship support. They may decline support for a future contract year prior to beginning that year, thereby eliminating that year as a service obligation year.
    
    

16. What happens if I take a leave of absence, repeat course work, and/or become a part-time student?
    
    The NHSC will immediately discontinue the payment of all benefits while the Scholar is: 1) on a school-approved leave of absence, 2) repeating coursework that delays the Scholar's graduation date (support will continue if the repeat coursework does not delay the graduation date, however, the repeat coursework will not be paid as part of the tuition), 3) enrolled part-time in the approved course of study.
    
    The Scholar must notify the NHSC in writing and in advance of the above changes and have the school send written verification as well.
    
    
17. May I transfer to another school?
    
    Yes, as long as you continue to pursue the same course of study at an NHSC-approved institution. However, the NHSC can only pay an increase in school costs if funds are available. Prior notification is required. A letter of acceptance from the new school with your anticipated graduation date must be submitted. A copy of your official transcript from your old school and a projected course outline with the required courses to graduate must also be submitted. You need to also receive your approval from the NHSC prior to transferring to a new school. The NHSC will NOT pay for any coursework at the new school that was already supported at the prior school.
    
    
18. Does the NHSC provide scholarship support for dual degrees, i.e., MD/MPH?
    
    The NHSC does not pay for the dual degree of a Masters of Public Health (MPH). However, a Scholar may pursue an MPH by taking a 1 year leave of absence from school prior to completion of their program and graduation date.
    
    
19. May I go from a physician assistant or family nurse practitioner training program to medical school before serving my NHSC commitment?
    
    No. If a Scholar receives support to become a physician assistant or family nurse practitioner, upon completion of the training program the Scholar must immediately begin service as a physician assistant or family nurse practitioner.
    
    
20. What if I am dismissed or withdraw from school?
    
    Scholarship recipients who are dismissed from school for academic or disciplinary reasons, or who voluntarily terminate academic training before graduation from the educational program for which the scholarship was awarded, will be declared in breach of their scholarship commitment and held liable for the repayment of all NHSC Scholarship funds paid to them and to the school on their behalf. If full payment is not made within the 3-year repayment period, interest will be assessed.
    
    

21. What if I do not complete my residency program? Can I still satisfy my service obligation?
    
    No. A Scholar must complete an approved residency program prior to beginning their service obligation.
    
    
22. What if I change my mind about going into primary care while in residency?
    
    Scholarship participants who fail to comply with the terms and conditions of their contract and enter into a training program not approved by the NHSC will be considered for default of their obligation and will owe THREE TIMES the amount that was paid to them and on their behalf plus interest. The interest starts to accrue from the date each scholarship payment was disbursed.
    
    
23. Do I continue receiving assistance while I am in residency?
    
    No. Scholarship support ceases the month after graduation.
    
    
24. Can physician assistants, family nurse practitioners, or nurse-midwives receive a deferment for post-degree advanced training?
    
    At this time, based on the need to get clinicians into underserved communities as soon as possible, no post-degree training for family nurse practitioners, nurse-midwives, or physician assistants is being approved.
    
    
25. I want to specialize in internal medicine but would like to sub-specialize. Will I be allowed to do this before serving my commitment?
    
    No. An Internal Medicine sub-specialty, such as Cardiology, will not be approved.
    
    
26. Will I be allowed to enroll in fellowship training after residency?
    
    No. The NHSC does not approve fellowship training.
    
    
27. Will I be allowed to enroll in a second primary care residency?
    
    No. However, if a Scholar would like to take an approved primary care combined residency, it must be requested in advance and in writing. Deferments for residency training, including combined primary care residencies, may not exceed 4 years.