[Federal Register Volume 63, Number 78 (Thursday, April 23, 1998)]
[Notices]
[Pages 20208-20211]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-10872]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Public Health Service


National Institute of Child Health and Human Development 
Contraception and Infertility Research Loan Repayment Program

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

ACTION: Notice

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SUMMARY: The Center for Population Research of the National Institute 
of Child Health and Human Development (NICHD), the National Institutes 
of Health (NIH), announces the availability of educational loan 
repayment under the NICHD Contraception and Infertility Research Loan 
Repayment Program (CIR-LRP or the Program). The CIR-LRP, which is 
authorized by Section 487B of the Public Health Service (PHS) Act (42 
U.S.C. 288-2) as added by the NIH Revitalization Act of 1993 (Pub. L. 
103-43). provides for the repayment of the educational loan debt of 
qualified health professionals (including graduate students) who agree 
to commit to a period of obligated service of not less than two years 
conducting research with respect to contraception and/or infertility. 
The CIR-LRP will pay up to $20,000 of the principal and interest of 
such individual's educational loans for each year of obligated service. 
In addition to the loan repayments, the CIR-LRP will pay participants 
an amount equal to 39 percent of the total amount of the loan 
repayments made for the taxable year in order to provide reimbursement 
for tax liability caused by the Program's loan repayments. The purpose 
of the CIR-LRP is the recruitment and retention of highly qualified 
health professionals conducting contraception and/or infertility 
research. Through this notice, the NICHD, NIH, announces changes in the 
eligibility criteria for participation in the CIR-LRP, and invites 
health professionals who meet the prescribed eligibility criteria to 
apply.

DATES: Interested persons who meet the eligibility requirements may 
request information about the CIR-LRP beginning on March 1, 1998. 
Applications for participation in the CIR-LRP can be submitted at any 
time after April 1, 1998.

ADDRESSES: Information regarding the CIR-LRP may be obtained by 
contacting: Dr. Louis V. DePaolo, Coordinator, Contraception and 
Infertility Research Loan Repayment Program, Center for Population 
Research, National Institute of Child Health and Human Development, 
NIH, Building 61E, Rm. 8B01, Bethesda, Maryland 20892-7510 (Voice: 301/
496-6515; FAX: 301/496-0692; E-Mail: [email protected]).
    Applications can be submitted at any time after April 1, 1998 to: 
Contraception and Infertility Research Loan Repayment Program, Center 
for Population Research, National Institute of Child Health and Human 
Development, NIH, Building 61E, Rm. 8B01, Bethesda, Maryland 20892-
7510. For courier deliveries, the following address should be used: 
Contraception and Infertility Research Loan Repayment Program, Center 
for Population Research, National Institute of Child Health and Human 
Development, NIH, 6100 Executive Boulevard, Room 8B01, Rockville, 
Maryland 20851.

SUPPLEMENTARY INFORMATION: The NIH Revitalization Act of 1993 (Pub. L. 
103-43) was enacted on June 10, 1993, adding section 487B of the PHS 
Act (42 U.S.C. 288-2). Section 487B authorizes the Secretary of Health 
and Human Services in consultation with the Director of NICHD to 
establish a program of entering into contracts with qualified 
professionals under which such health professionals agree to conduct 
contraception and/or infertility research in consideration of the 
Federal Government agreeing to repay, for each year of such service, 
not more than $20,000 of the principal and interest of their 
outstanding graduate and/or undergraduate educational loans. The 
Secretary, in consultation with the Director of NICHD, has established 
a program to provide such loan repayments. This program is known as

[[Page 20209]]

the Contraception and Infertility Research Loan Repayment Program (CIR-
LRP). In return for these loan repayments, applicants must agree to 
participate in contraception and/or infertility research for a period 
of obligated service of not less than two years. Selected applicants 
become participants in the CIR-LRP only upon the signing of a written 
contract by the Director, NICHD, the Secretary's designate.
    On March 24, 1997, the NICHD, NIH published a notice in the Federal 
Register announcing the availability of educational loan repayment 
under the CIR-LRP (62 FR 13892). In that notice, the NICHD, NIH 
announced the initial implementation of the program would be limited to 
employees of the three NICHD Contraception Research Centers and two 
NICHD Infertility Research Centers due to limited availability of 
funds. The NICHD, NIH is modifying that original eligibility criteria 
to read as follows:

Eligibility Criteria

    Qualified health and allied health professionals including, but not 
limited to, physicians, Ph.D.-level scientists, nurses and physician 
assistants, as well as graduate students and postgraduate research 
fellows training in the health professions are eligible to apply 
provided that they will be or are engaged, at the time of participation 
in the CIR-LRP, in employment/training at an NICHD intramural 
laboratory or one of the following NICHD-supported extramural sites: 
(1) A Cooperative Specialized Contraception or Infertility Research 
Center; (2) a Cooperative Specialized Research Center in Reproduction 
Research; (3) a Women's Reproductive Health Research Career Development 
Center; or (4) a Reproductive Medicine Unit identified as a clinical 
site for the National Cooperative Reproductive Medicine Network. As 
such, applicants will be expected to participate in research relating 
to infertility and/or contraception. For purposes of the CIR-LRP, 
infertility research is defined as research whose long-range objective 
is to evaluate, treat or ameliorate conditions which result in the 
failure of couples to either conceive or bear young, and contraception 
development is defined as research whose ultimate goal is to provide 
new or improved methods of preventing pregnancy.
    In order to be considered for selection into the CIR-LRP, an 
applicant meeting the above eligibility requirements must submit a 
completed and signed application form. In addition, the individual 
must: (1) Sign and submit a CIR-LRP contract by which he/she agrees to 
serve the obligated minimum period of two years conducting 
contraception or infertility research at an NICHD intramural laboratory 
or an eligible NICHD-supported extramural site approved by the 
Director, NICHD; (2) have completely satisfied any other service 
obligation for health professional service which is owed under an 
agreement with the Federal Government, State Government or other entity 
prior to beginning the period of service under the CIR-LRP, and (3) 
certify that he/she is not delinquent on any amounts which are owed to 
the Federal Government.
    Participants must be U.S. citizens, nationals or permanent 
residents. Individuals who are fulfilling internship, residency or 
other advanced primary-care training requirements are not eligible to 
participate.

Applicaiton Procedure and Selection Process

    Submission of applications for participation in the CIR-LRP by 
eligible individuals will be made to NICHD on behalf of the applicant 
by the extramural grantee institution or the NICHD for intramural 
employees/affiliates. The application will include: (1) Institutional 
assurance of future employment/affiliation with the NICHD intramural 
laboratory or eligible NICHD-supported extramural site (e.g., contract 
between individual and institution) of not less than two years from the 
anticipated effective date of the CIR-LRP contract between the 
individual and NICHD; (2) a description of the applicant's proposed 
role in the scientific research on contraception and/or infertility 
being conducted in the NICHD intramural laboratory or eligible NICHD-
supported extramural site, and (3) a brief statement addressing the 
applicant's long-range career plan for engaging in contraception or 
infertility research. The application will be reviewed by the CIR-LRP 
Panel (Panel), chaired by the Deputy Director, NICHD, and comprised of 
representatives of the NICHD's Office of Administrative Management, the 
respective Program Officers of the Center for Population Research, and 
special consultants as required. The Panel will review and select 
applications for approval based upon the credentials of the applicant 
and other criteria the Secretary deems appropriate such as the 
scientific merit of the research and the nature of the applicant's 
career plan focus. Priority will be given to applicants with a clear 
career focus in the specialized areas of contraception and/or 
infertility research over those engaging in general reproductive 
sciences research. In addition to this review, the CIR-LRP will 
determine whether the educational loan debt qualifies for loan 
repayment assistance under this Program (see below). All selections are 
subject to final approval by the Director, NICHD. The NICHD will notify 
the applicant of the outcome of the review. It is anticipated that the 
selection process will take approximately six to eight weeks following 
receipt of the application.

Program Administration

    The applicant is required to submit: (1) a completed and signed 
CIR-LRP contract, and (2) a copy of an institutional assurance of 
employment/affiliation with an NICHD intramural laboratory or eligible 
NICHD-supported extramural site for no less than a two-year period from 
the anticipated effective date of the CIR-LRP contract. Neither the 
applicant nor the Federal Government is bound by this contract until: 
(1) the applicant has submitted and had approved by the Director, 
NICHD, a complete, accurate application as required by this program 
announcement, (2) the contract is signed by the Director, NICHD, and 
(3) authorized funds are available to the NICHD to carry out the 
contract.
    The effective date of the contract will be the date it is signed by 
the Director or the date employment/training begins at the NICHD 
intramural laboratory or eligible NICHD-supported extramural site, 
whichever is later. Initial contracts will be executed to cover a two-
year service period. Following conclusion of this initial contract, 
participants may be considered for one-year renewal contracts, subject 
to approval of the Panel, for up to two additional years. Graduate 
students must maintain full-time enrollment (as determined by the 
academic institution of study), and be in good academic standing (as 
determined by the academic institution of study) while participating in 
the CIR-LRP.

Program Benefits for Participants

    The CIR-LRP will pay up to $20,000 of the principal and interest of 
a participant's preexisting, nondelinquent qualified (see below) 
educational (graduate and/or undergraduate) loan balance for each year 
of obligated service that is fulfilled by the applicant.
    The CIR-LRP's payments to lenders on behalf of the participants 
represent taxable income to the participant. The CIR-LRP reports each 
year to the Internal Revenue Service the payments it makes to all 
participants. Section 338B of the Public Health Service Act (42 U.S.C. 
2541-1), incorporated by reference in section 487B, provides,

[[Page 20210]]

however, that in addition to the loan payments made to lenders, the 
CIR-LRP will also pay to the participants an amount equal to 39 percent 
of the total amount of the loan repayments made for the taxable year. 
Participants should note that this payment is also considered taxable 
income by the Internal Revenue Service and many State and local taxing 
authorities.
    The CIR-LRP will make quarterly payments to the lenders. Payment is 
made by a U.S. Treasury check shortly after the end of each full 
quarter of satisfactory service. Since the first payment to lenders 
will not be made until after the end of the first quarter of obligated 
service, participants should continue to make monthly loan payments for 
the first three months of his/her service to avoid defaulting on his/
her loans and affecting his/her credit ratings.

Loan Documentation and Qualification

    A copy of the promissory note for each outstanding loan must be 
submitted with the application. (This usually may be obtained upon 
request to the lenders.) the CIR-LRP will determine if the loans were 
reasonably necessary to meet the costs of education, in terms of each 
individual loan and in terms of each applicant's total educational loan 
debts. Loans qualifying for repayment include preexisting loans 
obtained by the participant for:
    (1) Undergraduate and graduate tuition expenses;
    (2) All other reasonable educational expenses including fees, 
books, supplies, educational equipment and materials required by the 
school, and laboratory expenses; and
    (3) Reasonable living expenses including the costs of room and 
board, transportation, commuting and other costs incurred during an 
individual's attendance at school as determined by the Secretary.
    Applicants must complete a lender verification form for each loan. 
The most current balance of each loan--principal plus interest plus 
loan expenses (such as the required insurance premiums on the unpaid 
balances of some loans)--should be determined as accurately as possible 
and reported by the applicant on each form. This enables the CIR-LRP to 
reserve adequate funds for loan repayments under the contract should 
the applicant become a CIR-LRP participant. The CIR-LRP will send the 
loan verification forms to each lender for verification. If the CIR-LRP 
is unable to obtain adequate loan verification from the lender, the 
applicant may be asked to submit other document, such as copies of the 
original loan application, to document that the loan (or a stated 
portion of the loan) was obtained for the education purposes stated 
previously.
    Financial obligations not qualifying for repayment include:
    (1) Physician Shortage Area Scholarship Program;
    (2) Public Health Service and National Health Service Corps 
Scholarship Programs;
    (3) Armed Forces (Army, Navy or Air Force) Health Professions 
Scholarship Programs;
    (4) Indian Health Service Scholarship Program;
    (5) National Research Service Award Program;
    (6) Loans for which contemporaneous documentation is not available;
    (7) Loans or ``scholarship'' arrangements which impose financial 
obligations upon the applicant if service is not performed;
    (8) Loans without a promissory note made when the loan was given;
    (9) Loans that are delinquent, defaulted, or in any manner not in a 
current payment status as determined by the lender;
    (10) Loans, or those parts of loans, obtained for educational or 
living expenses while at school, which exceed the ``reasonable'' level, 
as determined by a review of the school's standard school budget or 
additional contemporaneous documentation for the year in which the loan 
was made, as determined by the CIR-LRP;
    (11) Loans which have been paid in full;
    (12) Loans not obtained from a Government entity or commercial or 
other charter lending institution, such as loans from friends and 
relatives or other private individuals;
    (13) Loans for graduate studies obtained following entry into the 
CIR-LRP.

Breach of the Loan Repayment Agreement

    In the event that the participant fails to begin or complete the 
two-year minimum period of obligatory participation in contraception or 
infertility research at an NICHD intramural laboratory or eligible 
NICHD-supported extramural site as set forth in the contract, and 
payments have been rendered to the lenders on behalf of the individual, 
he/she is in breach of the contractual agreement, and is liable to pay 
monetary damages to the United States Government. Participants who 
leave during the first year of the initial contract are liable for 
amounts already paid by the Program plus an amount equal to $1,000 
multiplied by the number of months of the original obligation. 
Participants who leave during the second year of the contract are 
liable for (a) the total of the amounts the Program paid the lenders, 
plus (b) an ``unserved obligation penalty'' of $1,000 for each month 
unserved. If a participant completed the two-year minimum obligatory 
period, but cannot complete additional obligatory periods, no 
obligation penalties will be levied, but the participant will owe the 
United States for any payments the CIR-LRP made to the lenders for 
which service by the participant was not performed unless, in the 
opinion of the CIR-LRP Panel, they continue to participate in 
contraception and/or infertility research during the additional 
obligatory periods. If a participant must terminate employment/training 
at an NICHD intramural laboratory of NICHD-supported extramural site 
for reasons beyond his/her control, and transfers to a site other than 
an NICHD intramural laboratory or eligible NICHD-supported extramural 
site, payments will cease upon transfer. He/she may not be liable for 
monetary damages as described above, if, in the judgement of the CIR-
LRP Panel, he/she continues to participate in contraception and/or 
infertility research. However, if he/she transfers to another NICHD 
intramural laboratory or eligible NICHD-supported extramural site and 
participates in contraception and/or infertility research with the 
approval of the Director, NICHD, the contract will be amended and the 
participant will still be considered bound by the ongoing contract 
obligations, and the lenders will continue to receive payments on 
behalf of the participant according to schedule.

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 1995. 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 CIR-LRP.

    The Catalog of Federal Domestic Assistance number for the CIR-
LRP is 93.209.


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    Dated: April 7, 1998.
Ruth L. Kirschstein,
Deputy Director, NIH.
[FR Doc. 98-10872 Filed 4-22-98; 8:45 am]
BILLING CODE 4140-01-M