Loan Repayment for Healthcare Professionals in Louisiana
Healthcare professionals serving in health professional shortage areas (HPSA) across the state may be eligible for Louisiana’s State Loan Repayment Program. This program repays governmental or commercial educational loans in exchange for serving in rural and underserved facilities.
Physicians, psychiatrists and dentists can receive up to $30,000 annually for a three-year initial commitment. Other healthcare professionals can receive up to $20,000 annually for a three-year initial commitment. Participants who complete their original three-year commitment in compliance, remain in an eligible site in a HPSA, and still have educational loans to repay may be able to extend their commitment with a two-year renewal to receive $15,000 annually.
Find out if you are in a Health Professional Shortage Area
Healthcare professionals can utilize the Health Resources & Services Administration (HRSA) Find Shortage Areas site to determine if their practice facility is in a HPSA or Medically Underserved Area (MUA) area. You can search your facility location by address, state, or country. HRSA Find provides the type of HPSA (geographic, population, or facility-based), score, HPSA type, and other details.
The Louisiana State Loan Repayment Program utilizes the criteria described below to determine how individuals are selected to participate in the program. A point-based system is used to review/select recipients. Applying for this program does not guarantee automatic funding.
Eligible Health Professionals
The following are eligible to receive a SLRP award:
- Physicians (allopathic or osteopathic) including
- General practice (with completed residency training program)
- Family practice
- Internal medicine
- General psychiatry
- Dentists (DDS or DMD general or pediatric)
- Primary care physician assistants
- Primary care certified nurse practitioners
- Certified nurse midwives
- Registered clinical dental hygienists
- Licensed clinical or counseling psychologists (Ph.D. or equivalent required)
- Health service psychologists (Ph.D. or equivalent required)
- Psychiatric nurse specialists
- Licensed professional counselors (Masters or Ph.D. required)
- Marriage and family therapists (Masters or Ph.D. required)
- Licensed clinical social workers (Masters or Ph.D. required)
- Alcohol and substance abuse counselors (Masters of Ph.D. required)
- Physicians (allopathic or osteopathic) including
Application Criteria for Eligibility
- Professionals who are United States citizens/nationals must have a current license by the appropriate licensing agency to practice in Louisiana.
- Professionals must agree to serve a minimum of three years in a federally designated HPSA appropriate for their discipline.
- Professionals must work full-time (40 hours/week), with a minimum of 32 hours per week providing clinical services in an outpatient/ambulatory care setting located in a federally designated HPSA.
- There is an exception for obstetrics/gynecologists or nurse midwives who work at least 21 of those hours (per week) providing clinical services in an outpatient/ambulatory care setting.
- The professional must not have a work week that is compressed into less than 4 days per week.
- The professional shall not work more than 12 hours in any 24-hour period during their “regular” work week.
- Time spent on call and travel time to a practice site will not count toward the 40 hours of work per week.
- Hours worked over the required 40 hours per week will not be applied toward any other work week.
- Professionals who have not breached a health professional service contract with the federal, state, or local government, or other entities.
- Professionals who have completely satisfied any other obligation for health professional service that is owed under an agreement with the federal government, state government, the local governing body, or other entities prior to the beginning of service under this program.
- Professionals under contract to work for a public or nonprofit facility must agree to accept Medicare, all applicable Medicaid managed health plans, and to treat patients regardless of their ability to pay.
- Individuals in the Reserve Component of the U.S. Armed Forces or National Guard.
- Professionals who are willing to spend no more than seven weeks a year away from the practice site for vacations, holidays, continuing professional education, illness or any other reason; professionals with absences greater than seven weeks in a service year must extend their service commitment date.
- Professionals whose educational loans are from certified educational lenders, whether governmental or commercial, must have been incurred during completion of their education. Also, the loan funds must have been applied toward tuition, education, and reasonable living expenses for their own graduate/medical/undergraduate degrees.
- Professionals who have not had a lien levied against their property for a debt to the United States government.
- Professionals who have not defaulted on their educational loans at any time, unless corrective actions have been made and loans are now in good standing. Professionals must agree to share confidential information (name and social security number) with Louisiana Office of Student Financial Assistance (LOFSA) for the sole purpose of verifying loans are in good standing.
- Professionals who have not had a debt “written off” as uncollectible [pursuant to 31 U.S.C. 3711(a)(3)], or had any federal service or payment obligation waived.
- Professionals must offer a sliding fee scale (i.e., a discount fee schedule) to low-income, un-insured and under-insured people; must provide care at no cost for those unable to pay and must not discriminate against individuals based on their ability to pay or the type of payment offered. The sliding fee scale used must be based on the federal poverty guidelines and apply to at least those who are at or below the most recent 200% federal poverty level. Professionals must charge the usual and customary prevailing rates for the area in which their professional services are provided. The facility must have a posted sliding fee scale sign easily visible in the check-out or lobby area. One year of data for the site must be provided in order for the site to be eligible. This must be provided on the Louisiana SLRP Site Information Form by the facility at application and then updated at the end of the 1st and 3rd quarters throughout the duration of the contract. The site is not eligible if this cannot be provided.
- Professionals who agree to use these funds to repay qualifying educational loans. Public Law 111-148, the Patient Protection and Affordable Health Care Act, makes payments under the National Health Service Corps Loan Repayment Program and certain State Loan Repayment Programs tax exempt from federal tax. Up to six percent of these funds can be set aside to pay for the professionals’ Louisiana state income tax, however, any funds not needed for taxes must be paid towards educational loans.
- Professionals who are current on child support applications and those who are no longer in arrears with past child support payments.
- Professionals will be required to register as a vendor through Louisiana’s LAGov system. This will require logging into the system and supplying your information to receive a vendor number and vendor profile that will be used to track your contract. Additional instruction will be given to the applicants accepted into the program.
- If accepted into this program, the applicant must receive clearance from the Louisiana Department of Revenue (LDR) prior to being approved. It is the applicant’s responsibility to ensure there are no issues with taxes or penalties from previous filing years. Given that these issues can take a long time to clear up, the applicant should contact LDR to ensure there are no issues at application. A delay in LDR issues may result in the contract offer being rescinded. To check clearance, e-mail LDROSPClearances@la.gov.
Ineligible Health Professionals
The following are ineligible to receive a SLRP award:
- Non-citizens or non-nationals of the United States, including permanent resident aliens and other aliens.
- Professionals who have an outstanding contractual obligation to provide a health professional service to the Federal Government (e.g., an active military obligation, National Health Service Corps (NHSC) Loan Repayment Program, NHSC Scholarship Program, Nursing Educational Loan Repayment Program or Nursing Scholarship Program obligation), or a state or other entity, unless that service obligation will be completely satisfied before the SLRP contract has been signed.
- Be aware that certain bonus clauses in some employment contracts may impose a service obligation. If the SLRP participant’s military training or service, in combination with the participant’s other absences from the service site, exceed 35 workdays per service year, the SLRP service obligation should be extended to compensate for the break in “full-time” service.
- Professionals who have breached an obligation for health professional service to the federal government, state government, or local government or another entity.
- Professionals who owe an obligation for health professional service to the federal government or a state government, or another entity under an agreement with such federal, state, or other entity is ineligible for the loan repayment program, unless the obligation will be completely satisfied prior to the beginning of this program.
- Professionals who are obligated under another loan or scholarship payback program, regardless of source. Once a person has fulfilled other obligations, that person may apply for a SLRP. Professionals applying must meet all other eligibility requirements for a period that begins after the other obligation(s) end.
- Professionals who are delinquent on their child support payment obligation.
- Professionals who have a judgment lien against their property for a debt to the United States.
- Professionals who have a loan(s) in default status at time of application.
- Physicians who have not completed residency training programs.
- Students or residents who are not licensed and able to work full-time at an approved HPSA site at the time they apply.
- Professionals who are not working full-time (40 hours per week) at a public or nonprofit facility that treats everyone regardless of ability to pay.
Eligible Practice Sites
Health professionals participating in SLRP must fulfill their service obligation at an eligible practice site. The following site types are eligible to be approved as practice sites for participants:
- Federally Qualified Health Centers (FQHCs):
- Community Health Centers
- Migrant Health Centers
- Homeless Programs
- Public Housing Programs
- FQHC Look-A-Likes
- Centers for Medicare & Medicaid Services Certified Rural Health Clinics
- Other Health Facilities:
- Community Outpatient Facilities
- Community Mental Health Facilities
- State and County Health Department Clinics
- Immigration and Customs Enforcement Health Service Corps
- Free Clinics
- Mobile Units
- School-based Programs
- Critical Access Hospitals affiliated with a qualified outpatient clinic
- Long-term Care Facilities
- State Mental Health Facilities
- Indian Health Service Facilities, Tribally-Operated 638 Health Programs, and Urban Indian Health Programs:
- Federal Indian Health Service (IHS) Clinical Practice Sites
- Tribal/638 Health Clinics
- Urban Indian Health Program
- Correctional or Detention Facilities:
- Federal Prisons
- State Prisons
- Private Practices (Solo or Group)
- Federally Qualified Health Centers (FQHCs):
Practice Site Criteria
- Public and nonprofit private entities located in and providing health care services in HPSAs. Nonprofit private entity means an entity which may not lawfully hold or use any part of its net earnings to the benefit of any private shareholder or individual and which does not hold or use its net earnings for that purpose. A 501(c)(3) form from the IRS including the facility’s physical address is required.
- For-profit health facilities operated by nonprofit organizations must accept reimbursement from Medicare, Medicaid, and the Children’s Health Insurance Program, utilize a sliding fee scale, and see all patients regardless of their ability to pay.
- All practice sites must be located in federally designated HPSAs. Medically Underserved Areas or Populations and shortage areas designated by the state do not qualify.
- Eligible practice sites must charge for professional services at the usual and customary prevailing rates except free clinics.
- Eligible practice sites must provide discounts for individuals with limited incomes (i.e., use a sliding fee scale). For information about current HHS Poverty Guidelines, please visit the Federal Register website.
- For those with annual incomes at or below 100 percent of the HHS Poverty Guidelines, states must ensure that practice sites provide services at no charge or at a nominal charge
- For individuals between 100 and 200 percent of the HHS Poverty Guidelines, states must ensure that practice sites provide a schedule of discounts, which must reflect a nominal charge covered by a third party (either public or private)
- A state may allow practice sites to charge for services to the extent that payment will be made by a third party which is authorized or under legal obligation to pay the charges.
Applicants will be prioritized according to the following criteria requested when reviewing SLRP applications:
- Priority is given to applicants who work in facilities with the highest percentage of underserved patients, including those who use Medicaid managed health plans and Medicare, those who are uninsured and indigent or underinsured and unable to find treatment. Some of these types of priority facilities would include public health units, FQHCs and their satellite sites, School-Based Health Centers, state operated facilities or other eligible facilities that are subsidized by the state/federal government. A Louisiana SLRP Site Application Form must be completed at application and after the 1st quarter of every year of contract eligibility. At application this must include one year of data for the site. The site is not eligible if this cannot be provided.
- Priority is given to individuals who agree to serve in HPSAs with the highest degree of shortage, rural and whose service will have the greatest impact on underserved populations in these high-needs parishes (see maps of Louisiana HPSAs).
- Priority is given to individuals who agree to accept referrals and provide healthcare services to a significant portion (at least 25%) of the HIV/AIDS patient-base.
- Priority is given to applicants who agree to treat targeted populations who are designated as underserved in their service area (e.g. migrant farm workers, homeless, etc.).
- Priority is given to providers working in an eligible facility that has an opioid treatment program with 25% of their caseload consists of these patients.
- Applicants who submit incomplete application packets will not be considered.
Participants must complete a State Loan Repayment Program application form providing all information requested in the application. The application should also include all the additional forms requested in the application and in this policy to be considered complete (see application review checklist below). Incomplete application packets will not be considered.
The 2023 application period is now closed.
A maximum of two professionals per practice facility will be approved. If more than two professionals per facility apply, the facility may be contacted for additional information in the funding decision regarding the professionals from that site.
Application submission does not guarantee funding. If total applicant need is greater than the amount of State Loan Repayment Program funding available, the priorities indicated above will be used to determine which applicants will receive funds.
The 2023 application period is open. Apply today!
Application Submission: Online or By Mail
Submission of online application:
You can upload all required documents using the online application. Note: You are unable to save your application and return back to it later. Please make sure you have all required documents needed prior to beginning the application. You can find a list of all required documents under “Application Review Checklist.”
Submission by mail:
If you prefer to submit your application via mail, you can download the application. You can mail it and associated documents to the following address:
Louisiana Department of Health
ATTN: Well-Ahead Louisiana Primary Care Office
P.O. Box 3118
Baton Rouge, LA 70821-3118
Application Review Checklist
The fully completed, signed application must be submitted along with the following forms and information:
- Online application or downloadable application. Please print the downloadable application if you prefer to submit via mail.
- Signed Site Information Form for all sites in which the applicant provides services
- Copy of executed employment contract OR a letter verifying employment, if an employment contract is not available
- For public employees, a letter of agreement with the governmental agency and verification of employment will be accepted in lieu of an employment contract
- Copy of current professional license
- Documentation of the current principle balance of the applicant’s certified educational debt. This should include name and account number for each loan
- Signed Site Agreement for All Participating SLRP Sites Form completed by employer
- Signed and notarized Attestation of No Other Obligation Form
- Signed Certification Regarding Environmental and Tobacco Smoke Form
- Signed Release from Liability Form
- Signed Consent for Release of Information Waiver of Confidentiality Form
- Documentation of employer’s sliding fee scale/discount fee policy (Example of Discounted/Sliding Fee Schedule)
- Documentation of employer’s sliding fee scale/discount fee schedule – actual scale
- Photo of employer’s sliding fee scale/discount fee policy posted in the checkout/lobby
- Photo of employer’s sign posted in the checkout/lobby that states “(Facility Name) accepts all patients regardless of ability to pay.”
- Copy of current Louisiana Medicaid Provider ID Number or a copy or application for this number (if provider does not have individual number, the facility number is acceptable)
- Completed IRS Form W-9-Request for Taxpayer ID Number that matches applicant address (this should include YOUR information, not your employer)
- Completed Electronic Funds Transfer Form with voided blank check or direct deposit form from financial institution (the bottom of this form should be completed by your financial institution; please make sure the box on the middle left of the page is checked)
- Proof of site’s nonprofit or public status (IRS Form 501c3 or Board Resolution)
Following notification of funding and receipt of the SLRP contract in the mail, the applicant should return the signed SLRP contract with the understanding that once the contract is signed by the Secretary of LDH, or their designee, and approved through the LDH contract approval process, the applicant is agreeing to accept repayment of their educational loans in exchange for providing outpatient primary care healthcare services for an agreed upon period of obligation in a federally designated HPSA.
Note: Neither the applicant nor the State is bound by the contract until:
- The Secretary of LDH, or their designee, has signed the SLRP contract;
- The contract has been approved by the Louisiana Division of Administration, Office of State Procurement.
Service Site Requirements
Participating in Louisiana SLRP requires the provision of full-time clinical services at an eligible SLRP service site for the period agreed upon in the program contract. These sites are specific health care practice opportunities identified by the SLRP in certain federally designated health professional shortage areas (HPSAs) that have experienced special difficulty recruiting or retaining health professionals because of the site’s geographic isolation, severe economic need, or the chronically poor health status of the population to be served.
Approval of SLRP contracts is contingent upon verification that the service site accepts all applicable Medicaid managed health plans, Medicare, and sliding fee scale/discount fee patients. The site must also provide proof of nonprofit/public status to the applicant for inclusion in the SLRP application. This can be done using the IRS form 501(c)(3) form or Board Resolution Statement.
Benefits for Participants
The State Loan Repayment Program has different award levels depending on your profession. Physicians, psychiatrists and dentists can receive up to $30,000 annually for a three-year initial commitment. Other healthcare professionals can receive up to $20,000 annually for a three-year initial commitment. Participants who complete their original three-year commitment in compliance, remain in an eligible site in a HPSA and still have educational loans to repay may be able to extend their commitment with a two-year renewal.
Funding from the State Loan Repayment Program is not taxable by Louisiana state income tax, and is disbursed on a quarterly schedule. The funds can be used towards loans for tuition, educational expenses and reasonable living expenses.
Grant Award Amounts/Length of Contracts
Payments to obligated health professionals for remittance to educational loan creditors may receive:
- Up to $30,000 annually (or the amount of the principle balance of the educational loan if less than the total eligible to receive) if the primary care physician, dentist, or psychiatrist agrees to work in an outpatient capacity at an approved facility for an initial period of three years; OR
- Up to $20,000 annually (or the amount of the principle balance of the educational loan if less than the total eligible to receive) if the primary care health care professional (all those eligible except physicians and dentists as noted in the “Eligible Health Professionals” section) works in an approved facility for an initial period of three years.
Participants who remain compliant and continue to meet all criteria previously stated in this application, and who have additional educational loans may be considered for a two-year extension for up to $30,000 pending budget availability.
Loan repayments are not taxable by the Louisiana state income tax. Contractors receive a 1099 to file with federal taxes, but are also given a tax code to exempt it, so no taxes are paid. All funds must be applied to certified educational debt.
Disbursement of Funds
Funds will be disbursed to the contractor quarterly upon receipt of a quarterly service report (QSR) and loan payment verification of payment (LPV) for the SLRP funds paid the prior quarter. The QSR will serve as both an invoice and a monitoring tool. These reports are due by the 15th of the month following the end of the quarter. Quarterly payments will be disbursed the 15th of the month following the due date for the duration of the SLRP contract as long as the contractor meets their service obligations under the terms of their contract and there is an unpaid loan balance.
Compensation During Service
SLRP participants shall negotiate their compensation packages (salary and fringe benefits) directly with the service sites. The amount of funding received through SLRP should not be considered by the employer when negotiating the professional’s compensation package.
Applicants must provide lender information and a copy of loan statement(s) with current balance along with their application. The most current principle balance of each educational loan should be determined as accurately as possible and reported by the applicant on the application form. The applicant should not include loans that have been paid off. It must include the name and account number of the applicant generated by the loan institution.
Loans Eligible for Repayment
Program participants may select from their qualifying loans those they wish to have included for repayment by the program, based on what they consider most advantageous. If an applicant has consolidated or refinanced loans, the applicant must provide a copy of the original loan documentation to establish the educational purpose and contemporaneous nature of such loans. If an eligible educational loan is consolidated or refinanced with any debt other than another eligible educational loan of the applicant, no portion of the consolidated or refinanced loan will be eligible for loan repayment.
To enhance the provision of the healthcare services, the program will repay the governmental or commercial educational loans obtained by the health professional for:
- Government and commercial loans for actual costs paid for tuition related to the undergraduate or graduate education of the participant leading to a degree in the health profession in which the participant will satisfy their SLRP service commitment.
- Other reasonable educational expenses required by the health professional school, including fees, books, and laboratory expenses, incurred by the participant. Note: Reasonable educational expenses are the costs of education, exclusive of tuition, such as fees, books, supplies, clinical travel, educational equipment, and materials, which do not exceed the school’s estimated standard student budget for educational expenses for the participant’s degree program and for the year(s) of that participant’s enrollment.
- Reasonable living expenses will be determined by the SLRP office in accordance with published university standards. Health professional schools that make direct loans to their students are considered commercial lenders for the purposes of the program. Note: Reasonable living expenses are the costs of room and board, transportation, and commuting costs and other costs that do not exceed the school’s estimated standard student budget for living expenses at that school for the participant’s degree program and for the year(s) of that participant’s enrollment.
Financial Obligations Not Qualified for Repayment
Loans with no supporting documentation or loans not obtained from a government entity or certified commercial educational lending institution, e.g., loans from friends and relatives or credit card debt, are not qualified for repayment by the program.
By accepting the funds from the State Loan Repayment Program, applicants agree to meet the service obligations indicated in the contract. Failure to meet these requirements may result in a breach of contract and could result in financial consequences.
Obligations of the Health Professional
- To serve a minimum of three years with two additional years possible.
- To provide primary health care services at an eligible facility, i.e., public or nonprofit entity located in a federally designated HPSA that is appropriate for their discipline (i.e., primary care professionals must be placed in a primary care HPSA, dental professionals must be placed in dental HPSAs, and mental health professionals in mental HPSAs).
- To be contracted with a pubic or nonprofit facility that agrees to accept Medicare and any applicable Medicaid managed health plans; provide a sliding fee scale/discounted fee rate if a person is at or below current 200% of federal poverty level or is unable to pay the full charge and is uninsured. Employer must post a sign in a conspicuous place in the waiting room or check out area of the practice that states, “We accept all patients regardless of ability to pay.”
- To charge for their professional services at the usual and customary prevailing rates in the area in which such services are provided, except if a person is unable to pay such charges, such person shall be charged at a reduced rate (i.e., discounted/sliding fee scale) or not charged any fee.
- To provide primary health services to any individual seeking care and agree not to discriminate on the basis of the patient’s ability to pay for such care or on the basis that payment for such care will be made pursuant to Medicare (established in Title XVIII of the Social Security Act) or any applicable Medicaid health plan.
- To accept assignment under Medicare (section 1842(b) (3) (B) (ii) of the Social Security Act) for all services for which payment may be made under Part B of Title XVIII.
- To enter into an appropriate agreement with the State agency that administers the State plans for Medicaid under Title XIX to provide service to individuals entitled to medical assistance under the plan.
- To provide health care services and encounters as defined:
- Provide full-time primary healthcare service or clinical practice in a public or nonprofit private entity located in a current federally designated HPSA that is appropriate for their discipline (e.g., dental professionals must be placed in dental HPSAs, etc.). For physicians, the practice will include ambulatory care, as well as hospital care appropriate to meet the needs of patients and to assure continuity of care.
- For all health professionals, “full-time clinical practice” is defined as a minimum of 40 hours per week of patient care at an approved service site, with no more than eight of those hours per week devoted to practice-related administrative activities. The practice will include hospital treatment coverage appropriate to meet the needs of patients of the approved service site and to ensure continuity of care.
- With the exception of obstetrician/gynecologist (OB/GYN) physicians, family practice physicians who practice obstetrics on a regular basis, or certified nurse midwives (CNM), all health professionals must spend at least 32 of the minimum 40 hours per week providing direct patient care. These services must be conducted during normally scheduled clinic hours at the approved service site. The remaining hours must be spent providing inpatient care to patients of the approved site or in practice-related administrative activities.
- For OB/GYN physicians, family practice physicians who practice obstetrics on a regular basis, and CNMs, at least 21 of the minimum 40 hours per week must be spent providing direct patient care. These services must be conducted during normally scheduled clinic hours at the approved service site. The remaining hours must be spent providing inpatient care to patients of the approved site or in practice-related administrative activities, not to exceed eight hours per week.
- No more than seven weeks (35 workdays) per year can be spent away from the practice for vacation, holidays, continuing professional education, illness, or any other reason. Absences greater than seven weeks will extend the service commitment end date.
- The 40 hours per week may be compressed into no less than four days per week, with no more than 12 hours of work to be performed in any 24-hour period. Time spent in “on-call” status will not count toward the 40-hour week. Hours worked over the required 40 hours per week will not be applied to any other work week.
- Provide LDH with a signed QSR for monitoring purposes, which states the number of hours worked and totals the number of encounters rendered. The report also shall stipulate the number of encounters for each of the following types of patients: Medicare, all applicable Medicaid managed health plans, Sliding Fee Scale/Discounted Fee, and Uninsured/Unable to Pay, AND the following, if these patients were a factor in the amount of award received or initial funding in the program: HIV/AIDS, Substance Abuse, Homeless, Migrant, and Elderly (65 and over). One year of data for the site must be provided at application in order for the site to be eligible. The site is not eligible if this cannot be provided.
- Submit LPV with the QST each quarter. The LPV should contain the contractor’s name and account number generated by the loan institution and should include all posted payment since the last quarter. These payments must equal the amount of SLRP funds received from the last quarter.
- Complete two surveys after contract is finished (3 months and 6 months post-contract).
- Notify Well-Ahead Louisiana’s Primary Care Office of any changes in status. This may include, but is not limited to, changes in mailing address, phone number, employment, employer policies related to target patient type, loan default status, and licensure status.
Note: The contractor MUST have written approval from the Louisiana Primary Care Office before relocating to another employment site.
Breaching the Contract Agreement
State Loan Repayment Program Contractors who fail to begin or complete their service obligation, or otherwise breach the terms and conditions of the obligation, are in default of their contract and are subject to the financial consequences outlined below. Examples of default are:
- Failure to begin or complete service term
- Failure to accept any applicable Medicaid managed health plans, Medicare assignment or implement a sliding fee schedule for low-income, uninsured people
- Failure to provide documentation of qualifying loans upon request/demand
- Failure to apply SLRP funds to either the repayment of qualifying educational loan balances
- Failure to maintain eligibility as a Medicaid or Medicare provider
If the Contractor breaches a SLRP obligation, the contractor will be subject to pay an amount equal to the sum of the following:
- The total amount paid by the SLRP to, or on behalf of, the participant for loan repayment for any period of obligated service not served;
- An amount equal to the number of months of obligated service not completed multiplied by $7,500;
- Interest on the above amounts at the maximum legal prevailing rate, as determined by the treasurer of the United States, from the date of breach.
Note: The minimum amount that LDH is entitled to recover will not be less than $31,000.
Cancellations, Waivers, Bankruptcy, Suspensions and Defaults
The only permissible basis for canceling a SLRP contract is the death of the SLRP participant. States cannot cancel a SLRP contract in order to allow an individual to participate in the NHSC LRP or for any other reason except the participant’s death.
Waiver of the SLRP obligation is a permanent status. In order to qualify for a waiver of the SLRP obligation, a participant must document a medical condition or a personal situation that makes compliance with the obligation permanently impossible or an extreme hardship, such that enforcement would be against equity and good conscience. The Secretary of the LDH will review the documentation of this medical condition or personal situation. The Secretary is the only one who can grant a waiver of the SLRP obligation.
Suspensions of the SLRP contract obligations may be made for up to one year in the event of temporary physical or mental disability of the contractor or other justifiable causes. Documentation of the medical condition or personal situation which would make completion of the obligation temporarily impossible or an extreme hardship, such that enforcement would be against equity and good conscience, would be presented to the Secretary of LDH. The Secretary is the only one who can grant a suspension of the SLRP obligation.
Defaults occur when participants fail to begin or complete their SLRP service obligation or otherwise breach the terms and conditions of the obligation. Participants who are in default of their contracts are subject to the financial consequences outlined in their contracts and in this policy in the prior section entitled Financial Consequences.