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.

OBJECTIVES:

To increase educational opportunities by providing long-term, low-interest loans to students in need of financial assistance and in pursuit of a course of study in an approved health discipline.

TYPES OF ASSISTANCE:

Direct Loans Place Cursor Here for Definition

USES AND USE RESTRICTIONS:

Funds on deposit can only be used for loans to eligible students pursuing a full-time course of study. 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 higher-interest educational loans. The interest rate is 5 percent.

Effective July 1, 1993, to be eligible for a Primary Care Loan (PCL), students of allopathic medicine and osteopathic medicine must meet financial need criteria and agree to enter and complete a residency training program in primary health care not later than 4 years after the date on which the student graduates from such school. The PCL borrower must also practice primary health care until 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. 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 to be eligible for LDS funds. In addition, the school must agree to ensure that adequate instruction regarding minority health issues is in the curricula of the school. Health clinics must provide services to a significant number of individuals who are from disadvantaged backgrounds, including members of minority groups and enter into arrangements with one or more such clinics for the purpose of providing students of the school with experience in clinical services to such individuals. Secondary educational institutions and undergraduate institutions of higher education, must 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 recruit such individuals into the health professions. These institutions should also establish a mentor program for assisting disadvantaged students, including minority students, toward completion of the educational requirements for degrees from the school. Funds on deposit can only be used for loans to eligible students pursuing a full-time course of study. 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 higher-interest educational loans. The interest rate is 5 percent.

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 to a degree of Doctor of Medicine or Doctor of Osteopathic Medicine for PCL borrowers, Doctor of Dentistry (or an equivalent degree), 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) for HPSL and LDS borrowers. Additionally, the school must be located in the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Mariana Islands, the Virgin Islands, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Republic of Palau, the Republic of the Marshall Islands, or the Federated State of Micronesia.

Beneficiary Eligibility:   A student applicant must have financial need and be enrolled; or accepted for enrollment in a school, as mentioned above; and pursuing a full-time course of study leading to a degree as specified above. A student applicant must be a citizen, national or lawful permanent resident of the United States, the District of Columbia, the Commonwealths of Puerto Rico, the Mariana Islands, the Virgin Islands, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Republic of Palau, the Republic of the Marshall Islands, or the Federated State of Micronesia.

Credentials/Documentation:   Applicants should review the individual HRSA Guidance documents issued under this CFDA program for any required proof or certifications which must be submitted prior to or simultaneous with submission of an application package. OMB Circular No. A-87 applies to this program.

Pre-application Coordination:   Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.

Application Procedure:   OMB Circular No. A-102 applies to this program. OMB Circular No. A-110 applies to this program. Students should apply at financial aid office of school of their choice for assistance in applying for a loan. The school then tabulates requests for financial aid and award loans based on needs of students and available funds.

Award Procedure:   Notification is made in writing by a Notice of Grant Award. When Federal Capital Contribution funds are available for re-distribution, a Notice of Award is sent to the School's Contact Person notifying the school of the amount of Federal funds allocated for loans within program and discipline prior to the beginning of the academic year in which the award is to be utilized. Students are notified by the school’s financial aid office of approval or disapproval of loans at times determined by schools.

Deadlines:   Contact the headquarters or regional office, as appropriate, for application deadlines.

Range of Approval/Disapproval Time:   

Approximately 6 months.

Appeals:   

Not Applicable.

Renewals:   

Applications are required only for new schools.

	back to top

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:   

Statutory Formula: 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. Matching Requirements: Percent: 90.%. MOE requirements are not applicable to this program.

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. See the following for information on how assistance is awarded/released: Grantees drawdown funds, as necessary, from the Payment Management System (PMS). PMS is the centralized web based payment system for HHS awards.

POST ASSISTANCE REQUIREMENTS:

Reports:   Annual Operating Report (AOR) through electronic submission at http:// bhpr.hrsa.gov./dsa. AOR must be submitted 45 days after the end of each budget period. No cash reports are required. No progress reports are required. No expenditure reports are required. No performance monitoring is required.

Audits:   In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133.

Records:   Financial records must be kept until such time as agreed upon with the Secretary as specified in 42 CFR 57.215.

FINANCIAL INFORMATION:

Account Identification:  

75-0350-0-1-550.

Obligations:   (Project Grants (to capitalize loan funds)) FY 15 $6,257,399; FY 16 est $3,461,345; and FY 17 est $4,859,372 - PCL Project Grants (to capitalize loan funds). (Project Grants (to capitalize loan funds)) FY 15 $861,955; FY 16 est $791,876; and FY 17 est $826,915 - HPSL Project Grants (to capitalize loan funds). (Project Grants (to capitalize loan funds)) FY 15 $4,819,117; FY 16 est $7,522,358; and FY 17 est $6,170,737 - LDS Project Grants (to capitalize loan funds).

Range and Average of Financial Assistance:  

$1,000 to $5,257,399 for FY 15: Average: $186,538 per institution for FY 15.

	back to top