Health Professions Student Loans, Including Primary Care Loans/Loans for Disadvantaged Students (93.342)
Program
93.342 Health Professions Student Loans, Including Primary Care Loans/Loans for Disadvantaged Students
Federal Agency
HEALTH RESOURCES AND SERVICES ADMINISTRATION, DEPARTMENT OF HEALTH AND HUMAN SERVICES
Authorization
Public Health Service Act, Title VII, Part C, Section 721-735, 42 U.S.C. 292q-292y; Health Professions Education Partnerships Act of 1998, Public Law 105-392.
Program Number
93.342
Last Known Status
Active
Objectives
To increase educational opportunities for students in need of financial assistance to pursue a course of study in specified health professions by providing long-term, low-interest loans.
Types of Assistance
Direct Loans.
Uses and Use Restrictions
Funds are allocated to schools by statutory formula for the purpose of capitalizing a student loan fund. Funds on deposit can only be used for loans to eligible students pursuing a full-time course of study; for costs in connection with the collection of any obligation to the fund. The maximum amount a student may borrow is cost of attendance (including tuition, other reasonable educational expenses and reasonable living expenses). Third and fourth year medical and osteopathic medicine students may be eligible for additional funding to repay earlier educational loans. The interest rate is 5 percent. Effective July 1, 1993, to be eligible for a Health Professions Student Loan (HPSL), students of allopathic medicine and osteopathy must meet financial need criteria and agree to enter and complete a residency training program in primary health care not later then 4 years after the date on which the student graduates from such school and to practice primary health care through the date on which the loan is repaid in full. To be eligible for Loans for Disadvantaged Students (LDS) students must meet the HPSL criteria and also be from a disadvantaged background as defined by the Secretary. To be eligible for LDS funds a school must be carrying out a program for recruiting and retaining students from disadvantaged backgrounds, including racial and ethnic minorities and carrying out a program for recruiting and retaining minority faculty. In addition, the school must agree to ensure that adequate instruction regarding minority health issues is provided for in the curricula of the school; with respect to health clinics providing services to a significant number of individuals who are from disadvantaged backgrounds, including members of minority groups, to enter into arrangements with one or more such clinics for the purpose of providing students of the school with experience in providing clinical services to such individuals; with respect to secondary educational institutions and undergraduate institutions of higher education, to enter into arrangements with one or more such institutions for the purpose of carrying out programs regarding the educational preparation of disadvantaged students, including minority students, to enter the health professions and regarding the recruitment of such individuals into the health professions; to establish a mentor program for assisting disadvantaged students, including minority students, regarding the completion of the educational requirements for degrees from the school.
Eligibility Requirements
Applicant Eligibility
Any accredited public or other nonprofit private school of medicine, dentistry, osteopathic medicine, optometry, podiatry, pharmacy, or veterinary medicine which provides a course of study leading respectively to a degree of Doctor of Medicine, Doctor of Dentistry (or an equivalent degree), Doctor of Osteopathic Medicine, Doctor of Optometry (or an equivalent degree), Doctor of Podiatric Medicine (or an equivalent degree), Bachelor of Science in Pharmacy (or an equivalent degree), Doctor of Pharmacy (or an equivalent degree), or Doctor of Veterinary Medicine (or an equivalent degree), located in the United States, or the District of Columbia, the Commonwealth of Puerto Rico, or the Mariana Islands, the Virgin Islands, Guam, the American Samoa or the Trust Territory of the Pacific Islands, the Republic of Palau, the Republic of the Marshall Islands, and the Federated State of Micronesia.
Beneficiary Eligibility
A student must be enrolled or accepted for enrollment in a school, as above, and pursuing a course of study which constitutes a full-time academic workload, as determined by the school, leading to a degree as specified above and have financial need. A student applicant must be a citizen, national or lawful permanent resident of the United States or the District of Columbia, the Commonwealths of Puerto Rico or the Mariana Islands, the Virgin Islands, Guam, the American Samoa or the Trust Territory of the Pacific Islands, the Republic of Palau, the Republic of the Marshall Islands, and the Federated State of Micronesia.
Credentials/Documentation
Participating schools are required to renew their agreement periodically as specified by the Secretary to operate a student loan fund with the agency responsible for administering the program. Student applications for financial assistance indicating the basis of approval or disapproval of a loan are maintained on file in the school. Costs will be determined in accordance with DHHS Regulation 45 CFR Part 74, Subpart Q.
Application and Award Process
Preapplication Coordination
Not applicable. This program is excluded from coverage under E.O. 12372.
Application Procedure
Students apply at student aid office of school of their choice for assistance in applying for a loan. The school then tabulates requests for funds based on estimated needs of students. Application forms distributed to eligible schools and must be returned to the Central Office by date specified in application materials. This program is subject to the provisions of OMB Circular No. A-110.
Award Procedure
The Notice of Award is sent to the School's Contact Person notifying the school of the amount of Federal funds allocated for loans prior to the beginning of the academic year in which the award is to be utilized. Student is notified by student aid office of approval or disapproval at times determined by schools.
Deadlines
Contact Headquarters Office for application deadlines.
Range of Approval/Disapproval Time
Appeals
Not applicable.
Renewals
Applications are required for new schools.
Assistance Considerations
Formula and Matching Requirements
Allotment of funds based on statutory formula which takes into account the ratio each school's enrollment bears to the enrollments of all schools making application for funds but never in excess of request of school. Under the Federal Capital Contribution method, a school must match Federal Capital Contribution with an amount equal to one-ninth of the funds drawn down.
Length and Time Phasing of Assistance
The time required by a student to complete the necessary course of study leading to a degree and subject to the availability of funds.
Post Assistance Requirements
Reports
"Annual Operating Report" through electronic submission at http://wrs.hrsa.gov.
Audits
In accordance with the provisions of OMB Circular No. A- 133 (Revised, June 24, 1997), "Audits of States, Local Governments, and Nonprofit Organizations, " nonfederal entities that expend financial assistance of $300,000 or more in Federal awards will have a single or a program-specific audit conducted for the year. Nonfederal entities that expend less than $300,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. In addition, grants and cooperative agreements are subject to inspection and audits by DHHS and other Federal government officials.
Records
Financial records must be kept until such time as agreed upon with the Secretary as specified in 42 CFR 57.215.
Program Accomplishments
In fiscal year 2002, support was provided to 3,500 students. It is estimated that 3,700 students will be supported in fiscal years 2003 and 2004.
Financial Information
Account Identification
75-0350-0-1-550.
Obligations
(Federal Capital Contribution) FY 02 $16,200,000; FY 03 est $22,000,000 and FY 04 est $26,000,000.
Range and Average of Financial Assistance
$25,000 to $150,000; $11,000.
Regulations, Guidelines and Literature
See 42 CFR 57201-57218. "A Guide for Repayment and Deferment Provisions of Health Professions Student Loans"; Health Professions Student Loan Fact Sheet; Loans for Disadvantaged Students Fact Sheet.
Related Programs
84.038, Federal Perkins Loan Program_Federal Capital Contributions.
Information Contacts
Regional or Local Office
None.
Headquarters Office
Program Contact: Mary Farrington, Division of Health Careers Diversity and Development, Bureau of Health Professions, Health Resources and Services Administration, Public Health Service, Department of Health and Human Services, Parklawn Building, Room 8-34, 5600 Fishers Lane, Rockville, MD 20857. Telephone: (301) 443-4776. Use the same number for FTS.
Web Site Address
Examples of Funded Projects
HPSL: (1) Long-term low-interest loans made to students of Allopathic Medicine, Osteopathic Medicine, Dentistry, Pharmacy, Optometry, Podiatric Medicine; and Veterinary Medicine; and (2) funds provided to Health Professions Schools to capitalize loan funds. LDS: First awards were made in September 1991.
Criteria for Selecting Proposals
Applications will be reviewed for completeness, accuracy, and to determine if applicant schools meet minimum program requirements.
