[Federal Register Volume 62, Number 60 (Friday, March 28, 1997)]
[Notices]
[Pages 14925-14926]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-7838]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Availability of Funds for the National Health Service Corps Loan 
Repayment Program

AGENCY: Health Resources and Services Administration, PHS, HHS.

ACTION: Notice.

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SUMMARY: The Health Resources and Services Administration (HRSA) 
announces that applications will be accepted for fiscal year (FY) 1997 
for awards for educational loan repayment under the National Health 
Service Corps (NHSC) Loan Repayment Program (LRP) (Section 338B of the 
Public Health Service (PHS) Act).
    The HRSA, through this notice, invites health professionals to 
apply for participation in the NHSC LRP. The HRSA estimates that 
approximately 664 NHSC Loan Repayment awards (465 new awards and 199 
extension awards) totaling $37 million will be made to health 
professionals providing primary health services.
    The PHS is committed to achieving the health promotion and disease 
prevention objectives of Healthy People 2000, a PHS-led national 
activity for setting health priority areas. These programs will 
contribute to the Healthy People 2000 objectives by improving access to 
primary health care services through coordinated systems of care for 
medically underserved populations in both rural and urban areas. 
Potential applicants may obtain a copy of Healthy People 2000 (Full 
Report, Stock No. 017-001-00474-01) or Healthy People 2000 (Summary 
Report; Stock No. 017-001-00473-1) through the Superintendent of 
Documents, Government Printing Office, Washington, D.C. 20402-9325 
(telephone 202-783-3238).
    PHS strongly encourages all grant recipients to provide a smoke-
free workplace and promote the non-use of all tobacco products. In 
addition, Public Law 103-227, the Pro-Children Act of 1994, prohibits 
smoking in certain facilities (or in some cases, any portion of a 
facility) in which regular or routine education, library, day care, 
health care or early childhood development services are provided to 
children.

ADDRESSES: Application materials may be obtained by calling or writing 
to: National Health Service Corps Loan Repayment Program, 2070 Chain 
Bridge Road, Suite 450, Vienna, Virginia 22182-2536, 1-800-221-9393 or 
(703) 821-8955. Completed applications must be returned to: Loan 
Repayment Programs Branch, Division of Scholarships and Loan 
Repayments, Bureau of Primary Health Care, HRSA, 4350 East-West 
Highway, 10th Floor, Bethesda, Maryland 20814, (301) 594-4400. The 24-
hour toll-free phone number is 1-800-435-6464, and the FAX number is 
301-594-4981. Applicants for the NHSC LRP will use HRSA Form 873 
approved under Office of Management and Budget (OMB) Number 0915-0127.

DATES: The deadline for applications is June 30, 1997, or until all 
appropriated funds have been obligated, whichever occurs first. Due to 
limited funding, it is anticipated that all appropriated funds will be 
obligated prior to June 30, 1997. The volume of applications is 
historically three times greater than the number of contracts that can 
be awarded. Therefore, to receive consideration for funding, health 
professionals must submit an application and proof of a job offer at an 
approved NHSC LRP Service Site.
    Applications will be considered to be on time if they are either: 
(1) Received on or before the deadline date; or (2) postmarked on or 
before the established deadline date and received in time for orderly 
processing. Applicants should request a legibly dated U.S. Postal 
Service postmark or obtain a legibly dated receipt from a commercial 
carrier or U.S. Postal Service. Private metered postmarks are not 
acceptable as proof of timely mailing. Applications received after the 
announced closing date will not be considered for funding.

FOR FURTHER INFORMATION CONTACT: For further program information and 
technical assistance, please contact Sharley L. Chen, Chief, Loan 
Repayment Programs Branch, HRSA/BPHC/DSLR, at the above address, phone 
or FAX number.

SUPPLEMENTARY INFORMATION: Section 338B of the PHS Act (42 U.S.C. 254l-
1) authorizes the Secretary to establish the NHSC LRP to help in 
assuring, with respect to the provision of primary health services, an 
adequate supply of trained primary care health professionals for the 
NHSC. The NHSC is used by the Secretary to provide primary health 
services in federally designated health professional shortage areas 
(HPSAs). Primary health services are services regarding family 
medicine, general internal medicine, general pediatrics, obstetrics and 
gynecology, dentistry, or mental health, that are provided by 
physicians or other health professionals.
    Under the NHSC LRP, the Secretary will repay qualifying graduate 
and undergraduate educational loans incurred by primary care health 
professionals. For the first 2 years of full-time clinical practice at 
an approved site in a federally designated HPSA, the Secretary will 
repay up to $25,000 per year of the educational loans of such 
individual. (There is a minimum 2-year service obligation.) For 
subsequent years of full-time clinical practice, if the NHSC LRP 
contract is extended, the Secretary will repay up to $35,000 per year. 
Participants must use the loan repayment funds for payment of their 
qualifying educational loans. The Secretary shall, in addition to such 
payments, make payments to the individual in an amount equal to 39 
percent of the total amount of loan repayments made for the taxable 
year involved. The 39% payment is authorized to reimburse participants 
for all or a part of the tax liability incurred as a result of their 
LRP funding. In addition to these amounts, NHSC LRP participants will 
receive a salary from the private or public entity which employs them 
while they are serving.
    In an effort to assist loan repayment participants to reduce their 
educational debt with as little interest expense as is possible, the 
LRP will disburse payments to participants on an advanced basis. Three 
methods of

[[Page 14926]]

advanced payments are currently available to LRP participants:
     Advanced Quarterly Payment Method--The participant will 
receive two payments in the first quarter of the service obligation. 
The first payment will be disbursed approximately 30 days after the 
beginning of service and the second payment will be disbursed at the 
end of the first quarter, thereby placing the payment schedule one 
quarter in advance for the remainder of the service commitment.
     Advanced Annual Lump Sum Payment Method--The participant 
will be paid one advanced annual lump sum payment up to $25,000 (plus 
39% of that payment for tax assistance), approximately 90 days after 
the beginning of the first year of service, and another advanced annual 
lump sum payment up to $25,000 (plus 39% of that payment for tax 
assistance), approximately 90 days after the beginning of the second 
year of service.
     Advanced Biennial Lump Sum Payment Method--The participant 
will receive one advanced biennial lump sum payment up to $50,000 (plus 
39% of that payment for tax assistance) approximately 90 days after the 
beginning of the first year of service.
    The Secretary will identify and make available annually a list of 
those HPSA sites which will be available for service repayment under 
the NHSC LRP. The Secretary will select applicants for consideration 
for participation in the NHSC LRP according to the following criteria:
    (1) The extent to which an individual's training in a health 
profession or specialty is determined by the Secretary to be needed by 
the NHSC in providing primary health services. From time to time, the 
Secretary will publish a notice detailing the professions and 
specialties most needed by the NHSC. Current professional and specialty 
priorities are outlined at the end of this notice.
    (2) The extent to which an individual is determined by the 
Secretary to be committed to serve in a HPSA.
    (3) The extent of an individual's demonstrated interest in 
providing primary health services.
    (4) The immediacy of an individual's availability for service. 
Individuals who have a degree, have completed all necessary 
postgraduate training in their profession and specialty (i.e., in the 
case of physicians, are certified or eligible to sit for the certifying 
examinations of a specialty board, and in the case of other health 
professions, are certified in their specialty), and have a current and 
unrestricted license to practice their profession in the State in which 
they intend to serve, will receive highest consideration.
    (5) The individual's academic standing, prior professional 
experience in a HPSA, board certification, residency achievements, peer 
recommendations, and other criteria related to professional competence 
or conduct will also be considered.
    In providing contracts under the NHSC LRP, priority will be given 
to an applicant:
     Whose health profession or specialty is most needed by the 
NHSC;
     Who has and whose spouse, if any, has characteristics that 
increase the probability of continuing to serve in a HPSA upon 
completion of his or her service obligation;
     Who is from a disadvantaged background, subject to the 
preceding paragraph.

Eligible Participants

    To be eligible to participate in the NHSC LRP, an individual must:
    (1) (a) Have a degree in allopathic or osteopathic medicine, 
dentistry, or other health profession, or be certified, in accordance 
with State licensure requirements, as a nurse midwife, nurse 
practitioner, or physician assistant. Other health professions include 
clinical psychology, clinical social work, and dental hygiene;
    (b) Be enrolled in an approved graduate training program in 
allopathic or osteopathic medicine, dentistry, or other health 
profession; or
    (c) Be enrolled as a full-time student at an accredited school in a 
State and in the final year of a course of study or program leading to 
a degree in allopathic or osteopathic medicine, dentistry, or other 
health profession.
    (2) Be eligible for, or hold an, appointment as a commissioned 
officer in the Regular or Reserve Corps of the PHS or be eligible for 
selection for civilian service in the NHSC (e.g., must be a citizen or 
national of the United States); and
    (3) Submit an application for a contract to participate in the NHSC 
LRP which contract describes the repayment of educational loans in 
return for the individual serving for an obligated period.
    Any individual who previously incurred an obligation for health 
professional service to the Federal Government, a State Government, or 
other entity is ineligible to participate in the NHSC LRP unless such 
obligation is completely satisfied prior to the beginning of service 
under this Program. Any individual who has breached an obligation to 
the Federal Government, a State Government, or other entity is 
ineligible to participate in the NHSC LRP.
    Any individual who has a judgment lien against his or her property 
for a debt to the United States is ineligible to participate in the 
NHSC LRP until the judgment is paid in full or otherwise satisfied.
    No loan repayments will be made for any professional practice 
performed prior to the effective date of the NHSC LRP contract. All 
individuals must have a current and unrestricted license to practice 
their profession in the State of practice prior to beginning service 
under this Program.

Professions and Specialties Needed by the NHSC

    At this time, the Secretary has determined, based on community 
demand, that priority will be given to: Physicians (M.D.s and D.O.s) 
who are certified or eligible to sit for the certifying examination in 
the specialty boards of family practice, obstetrics/gynecology, 
internal medicine, and pediatrics.

Other Award Information

    This program is not subject to the provisions of Executive Order 
12372, Intergovernmental Review of Federal Programs, since Executive 
Order 12372 does not cover payments to individuals. In addition, this 
program is not subject to the Public Health System Reporting 
Requirements, since the requirements do not cover payment to 
individuals.

    The OMB Catalog of Federal Domestic Assistance number for this 
program is 93.162.

    Dated: March 24, 1997.
Claude Earl Fox,
Acting Administrator.
[FR Doc. 97-7838 Filed 3-27-97; 8:45 am]
BILLING CODE 4160-15-P