[Federal Register Volume 59, Number 201 (Wednesday, October 19, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-25923]


[[Page Unknown]]

[Federal Register: October 19, 1994]


      
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Part III





Department of Health and Human Services





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Public Health Service



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National Institutes of Health Clinical Research Loan Repayment Program 
for Individuals From Disadvantaged Backgrounds; Notice
DEPARTMENT OF HEALTH AND HUMAN SERVICES

Public Health Service
RIN 0905-ZA73

 
National Institutes of Health Clinical Research Loan Repayment 
Program for Individuals From Disadvantaged Backgrounds

AGENCY: National Institutes of Health, Public Health Service, HHS.

ACTION: Notice.

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SUMMARY: Pending approval by the Office of Management and Budget (OMB) 
under the requirements of the Paperwork Reduction Act of 1980, the 
National Institutes of Health (NIH) announces the availability of 
educational loan repayment under the NIH Clinical Research Loan 
Repayment Program for Individuals from Disadvantaged Backgrounds (the 
Program). The Program, which is authorized by Section 487E of the 
Public Health Service (PHS) Act (42 U.S.C. 288-5), as added by the 
National Institutes of Health Revitalization Act of 1993 (Pub. L. 103-
43), provides for the repayment of the educational loan debt of health 
professionals who are from disadvantaged backgrounds, who have 
substantial debt relative to income, and who agree to conduct clinical 
research as employees of the NIH. The Program provides for the 
repayment of up to $20,000 of the principal and interest of the 
educational loans of such health professionals for each year of 
obligated service. The purpose of the Program is the recruitment and 
retention of highly qualified health professionals, who are from 
disadvantaged backgrounds, to clinical research careers at the NIH. 
Through this notice, the NIH invites health professionals, who are from 
disadvantaged backgrounds and interested in engaging in clinical 
research as NIH employees for at least two years, to apply for 
participation in the NIH Clinical Research Loan Repayment Program for 
Individuals from Disadvantaged Backgrounds.

DATES: Interested persons may request information about the Program 
beginning on October 19, 1994.

ADDRESSES: Information regarding the requirements and application 
procedures for the Program may be obtained by calling or writing: Mr. 
Marc Horowitz, Director, NIH Loan Repayment Programs, National 
Institutes of Health, Federal Building, Room 102, 7550 Wisconsin 
Avenue, Bethesda, Maryland 20892-9905 (800-528-7689).

SUPPLEMENTARY INFORMATION: The National Institutes of Health 
Revitalization Act of 1993 (Pub. L. 103-43) was enacted on June 10, 
1993, adding section 487E of the Public Health Service (PHS) Act (42 
U.S.C. 288-5). Section 487E authorizes the Secretary to carry out a 
program of entering into contracts with appropriately qualified health 
professionals who are from disadvantaged backgrounds with substantial 
educational loan debt relative to income. Under such contracts, 
qualified health professionals agree to conduct clinical research as 
employees of the NIH for at least two years in consideration of the 
Federal Government agreeing to repay, for each year of service, not 
more than $20,000 of the principal and interest of the educational 
loans of such health professionals. This program is known as the NIH 
Clinical Research Loan Repayment Program for Individuals from 
Disadvantaged Backgrounds (Clinical Research LRP).

Eligibility Criteria

    Specific eligibility criteria with regard to participation in the 
Clinical Research LRP include the following:
    (1) Participants must be United States citizens, nationals, or 
permanent residents;
    (2) Participants must have a M.D., Ph.D., D.O., D.D.S., D.M.D., 
A.D.N./B.S.N., or equivalent degree;
    (3) Participants must come from a disadvantaged background. An 
individual from a disadvantaged background is one who (a) comes from an 
environment that inhibited the individual from obtaining the knowledge, 
skill, and ability required to enroll in and graduate from a health 
professions school or (b) comes from a family with an annual income 
below a level based on low-income thresholds according to family size 
published by the U.S. Bureau of the Census, adjusted annually for 
changes in the Consumer Price Index, and adjusted by the Secretary for 
use in all health professions programs. The Secretary periodically 
publishes these income levels in the Federal Register;
    (4) Participants must have qualifying educational debt in excess of 
20 percent of their annual NIH salary at their expected date of program 
eligibility. In the case of U.S. Commissioned Corps officers, their NIH 
salary includes base pay plus quarters, subsistence, and variable 
housing allowances. Special and bonus pays, such as board certified, 
contract, and variable incentive pays, are not considered in the 
Clinical Research LRP's calculation of salary. For these employed under 
the Civil Service, salary does not include Physicians Comparability 
Allowances (PCAs). However, PCA recipients who are accepted into the 
Clinical Research LRP will have their PCAs reduced by the amount of 
loan repayments to be received. The expected date of program 
eligibility is the date by which the following conditions will be met: 
(a) An applicant agrees to begin clinical research as a NIH employee, 
and (b) the Secretary is expected to execute the Clinical Research LRP 
contract;
    (5) Participants must be employees of the NIH. The following are 
NOT considered NIH employees: (a) Intramural Research Training Award 
(IRTA) recipients, (b) Visiting Fellows, (c) National Research Service 
Award (NRSA) recipients, (d) Guest Researchers or Special Volunteers, 
(e) NIH-National Research Council (NRC) Biotechnology Research 
Associates Program participants, and (f) Intergovernmental Personnel 
Act (IPA) participants;
    (6) Participants may be appointed under a temporary or permanent 
employment mechanism, so long as their employment in a clinical 
research assignment has the potential to last a minimum of 2 years;
    (7) Individuals with existing service obligations to Federal, 
State, or other entities will not be considered for the Program unless 
and until the existing service obligation is discharged or deferred for 
the length of Program participation;
    (8) Applicants will not be excluded from consideration under the 
Program on the basis of age, race, culture, religion, gender, 
disability, or other non-merit factors.

Selection Process

    Since program participation is contingent upon employment with the 
NIH, an individual who wishes to apply must obtain a written commitment 
from an Institute or Center (IC) Personnel Office of the NIH to be 
employed in a clinical research position. The Director, LRP, provides 
current deadlines, sources for assistance, and additional details 
regarding application procedures in an annual Applicant Information 
Bulletin.
    Individuals submit their applications to the Director, LRP, who 
forwards those qualified to the Clinical Research Loan Repayment 
Committee (CR-LRC). The CR-LRC reviews, ranks, and approves or 
disapproves Clinical Research LRP applications. The LRC membership is 
made up of NIH scientific staff who are nominated by the Deputy 
Director, Intramural Research, NIH, and appointed by the Director, NIH. 
The CR-LRC is co-chaired by the Associate Director for Clinical 
Research, NIH, and the Associate Director for Research on Minority 
Health, NIH. The CR-LRC reviews and selects applications for approval 
based upon the following:
    (1) The merit of the clinical research assignment; and
    (2) The credentials of both applicant and supervisor and other 
criteria the Secretary deems appropriate.
    Clinical research activities are the biomedical and behavioral 
studies of etiology, epidemiology, prevention, prevention strategies, 
diagnosis, or treatment of diseases, disorders or conditions, including 
but not limited to clinical trials.
    Funds for repayment will only be awarded to LRC-approved 
applications. Priority in funding will be given to qualified health 
professionals who are from disadvantaged backgrounds and who are 
underrepresented in biomedical/behavioral research including members 
from minority groups, disabled individuals, and women.

Program Administration and Details

    Under the Clinical Research LRP, the NIH will repay a portion of 
the extant qualified educational loan debt incurred by health 
professionals to pay for their undergraduate, graduate, and/or health 
professional school educational expenses. Upon application, individuals 
must have total qualified educational debt which exceeds 20% of their 
anticipated annual NIH salary (``debt threshold'') on the date of 
program eligibility.
    Only qualified loan amounts in excess of 50 percent of the debt 
threshold will be considered for repayment (``repayable debt''). The 
repayable debt of qualified health professionals will be satisfied at 
the rate of one-half per year, subject to a statutory limit of $20,000 
per year, for each year of obligated service. Obligated service 
requires selected individuals to serve at least 2 years as an NIH 
employee engaged in clinical research. Following conclusion of the 
initial two-year contract, participants may apply for renewal contracts 
to satisfy their remaining repayable debt. These continuation contracts 
may be submitted and approved on a year-to-year basis, subject to a 
finding by NIH that the applicant's clinical research accomplishments 
are acceptable. Funding of contracts is contingent upon appropriation 
and/or allocation of funds from the U.S. Congress and/or the NIH.
    In return for the repayment of their educational loans, 
participants must agree to (1) engage in clinical research as employees 
of the NIH for a minimum period of 2 years; (2) make payments to 
lenders on their own behalf for periods of Leave Without Pay (LWOP); 
(3) pay monetary damages as required for breach of contract; and (4) 
satisfy other terms and conditions of the Clinical Research LRP's 
contract and application procedures.
    Applicants must submit a signed contract, prepared by the NIH, 
agreeing to obligated service at the time they apply for consideration 
under the Clinical Research LRP. Substantial monetary penalties will be 
imposed for breach of contract.
    The NIH will repay lenders for the principal, interest, and related 
expenses (such as the required insurance premiums on the unpaid 
balances of some loans) of qualified Government (Federal, State, local) 
and commercial educational loans obtained by participants for the 
following:
    (1) Undergraduate, graduate, and health professional school tuition 
expenses;
    (2) Other reasonable educational expenses required by the school(s) 
attended, including fees, books, supplies, educational equipment and 
materials, and laboratory expenses; and
    (3) Reasonable living expenses, including the cost of room and 
board, transportation and commuting costs, and other living expenses as 
determined by the Secretary.
    Repayments will be authorized for direct payment to lenders, 
following receipt of (1) the supervisor's verification of completion of 
the prior period of obligated service and (2) lender verification of 
the crediting of prior loan repayments, including the resulting account 
balances and current account status. The NIH will repay loans in the 
following order unless significant savings would result from repaying 
loans in a different priority order:
    (1) Health Education Assistance Loans (HEAL);
    (2) other loans guaranteed by the Federal Government; and
    (3) other qualifying loans.
    The following loans are NOT repayable under the Clinical Research 
LRP:
    (1) Loans not obtained from a Government entity or commercial or 
other chartered lending institution, such as loans from friends and 
relatives, or other private individuals;
    (2) Loans for which contemporaneous documentation is not available; 
and
    (3) Loans, or those portions of loans, obtained for educational or 
living expenses which exceed a ``reasonable'' level as determined by a 
review of the standard school budget or additional contemporaneous 
documentation for the year in which the loan was made.
    In addition, for other programs which provide loans, scholarships, 
loan repayments, or similar awards in exchange for a future service 
obligation, the NIH will NOT repay any sums that may result from 
failure to serve as required or conversion of the obligation to a loan 
under these programs. This includes, but is not limited to the 
following:
    (1) Physicians Shortage Area Scholarship Program (Federal or 
State);
    (2) National Research Service Award Program;
    (3) Public Health Service and National Health Service Corps 
Scholarship Programs;
    (4) Armed Forces (Army, Navy, or Air Force) Health Professions 
Scholarship Programs; and
    (5) Indian Health Service Scholarship Program.
    Finally, payments will not be made under the Clinical Research LRP 
for loans which participants have already repaid, delinquent loans, 
loans in default, loans not current in their payment schedule, or loans 
for which promissory notes have been signed after the program 
eligibility date. During lapses in loan repayments, due either to 
administrative complications or a break in service, Clinical Research 
LRP participants are wholly responsible for making payments or other 
arrangements which maintain loans in a current payment status such that 
increases in either principal or interest do not occur. Penalties 
assessed participants as a result of NIH administrative complications 
may be considered for reimbursement.

Additional Program Information

    This program is not subject to the provisions of Executive Order 
12372, Intergovernmental Review of Federal Programs.
    This program is subject to OMB clearance under the requirements of 
the Paperwork Reduction Act of 1980. A Request for OMB Review and 
Approval of information collection associated with the program is being 
prepared by the NIH and will be sent to OMB for review and approval 
prior to implementation of the Clinical Research LRP.

    The Catalog of Federal Domestic Assistance number for the 
Clinical Research LRP is 93.220.

    Dated: September 7, 1994.
Ruth L. Kirschstein,
Deputy Director, NIH.
[FR Doc. 94-25923 Filed 10-18-94; 8:45 am]
BILLING CODE 4140-01-M