Loan Repayment Programs
National Health Service Corps (NHSC)
In 1988, the National Health Service Corps (NHSC) began offering a loan repayment program in which physicians and other health professionals who agree to serve in federally-designated shortage areas of the U.S. are eligible for loan repayments up to $25,000 annually for each year of service with a minimum commitment of two years. Recipients may reapply for additional years, during which $35,000 will be repaid in student loans. The payments are sent to the student's lender(s) according to a payment schedule that the participant determines (e.g., quarterly, annually, and biannually). The loan repayments are exempt from gross income and employment taxes. These funds are not included as wages when determining benefits under the Social Security Act. Unlike the NHSC scholarship program, the loan repayment option allows students the benefit of making a service commitment much later training when their personal and professional goals are better defined.
NHSC Loan Repayment Program
The NHSC Loan Repayment Program is looking for physicians who have completed their residency requirements in the following areas: Family Medicine; General Pediatrics; General Internal Medicine; General Psychiatry; or Obstetrics/Gynecology. The listing of service sites is updated annually. Both rural and urban sites are included. Recipients apply to one of ten regional areas in the U.S. in which they wish to work and for which they are licensed.
More information regarding this program may be obtained by calling or writing to the Loan Repayment Program at:
National Health Service Corps
Loan Repayment Program
5600 Fishers Lane, Room 8A-55
Rockville, MD 20857
(800) 221-9393 or (301) 594-4400
> National Health Service Corps
Indian Health Service Loan Repayment Program
The Indian Health Service Loan Repayment Program is similar to the NHSC program described above, except that the service site would be in one of twelve geographic areas which are located primarily in the southwestern or western U.S. where there is a critical shortage of health care professionals among Native Americans. Participants are eligible for loan repayments of up to $20,000 annually, in addition to a tax adjustment which is sent directly to the IRS. For more information, please call or write to the IHS address below:
Indian Health Service
Loan Repayment Program
801 Thompson Avenue, Suite 120
Rockville, MD 20852
Tel. (301) 443-3396 Fax (301) 443-4815
> Indian Health Service
National Institutes of Health
The National Institutes of Health (NIH) offer several loan repayment programs, repaying up to $35,000 in qualified student educational loan debt in exchange for a two-year commitment in clinical research work. Individuals who wish to apply to these programs must provide assurance to the NIH that they will be provided with research support for two years from an Institute, Center, or Division (ICD) Personnel Department at the NIH. A more detailed description of this program is available in the Admissions and Financial Aid Office, or you may write to or call the following address for more information:
The NIH Loan Repayment Program
Bethesda, MD 20892-9015
HelpLine (866) 849-4047, Fax (866) 849-4046
Email: lrp@nih.gov
> NIH
American Academy of Family Physicians
A directory listing Funding Resources for Practice in Underserved Areas can be obtained through the American Academy of Family Physicians. This resource identifies and describes financial aid programs, scholarships, fellowships, grants, awards and other incentives to attract and retain health care personnel in scarcity areas. Refer to www.aafp.org/special/resource for more information.
The U.S. Air Force, Army and Navy
The U.S. Air Force, Army and Navy offer financial assistance programs (FAPS), which supplement a resident's salary with an annual grant and monthly stipend in return for Active Duty service upon completion of residency. The benefits and length of service vary among the branches. For more information on these programs please write or call:
U.S. Air Force
SrA Jake Turcotte
Health Professions Recruiter
United States Air Force
244 Weybosset Street
Providence, RI 02903
(401) 331-2046
Jacob.turcotte@rs.af.milU.S. Army
Mycle Mcconnehey
U.S. Army Health Care Recruiter
Barnes Building, Room #112
Boston, MA 02210-2182
(877) 834-4516 toll-free
FAX: (617) 753-4836
mycle.mcconnehey@usarec.army.milU.S. Navy
Lt. Jill Malderelli
Medical Programs Recuiter
485 Summer Street
Boston, MA 02210-2103
(617) 894-7689
FAX: (617) 453-3369
Jill.Maldarelli@navy.mil
Air National Guard
The Air National Guard offers a $50,000 Health Professional Loan Repayment Program. This program provides $3,000-$20,000 per year in student loan repayments, up to a maximum of $50,000 to qualifying physicians. In addition to the loan repayment program there is a $30,000 health profession cash bonus program that pays $10,000 per year for three years. Members in a residency program in certain specialties may also qualify for stipend participation that pays up to $41,000 over a three-year period (more than $1,100 monthly). Participants in the program must be commissioned in the Air Guard as physicians. For more information about this program, please contact:
SMSGT Doug Brodeur,
R.I. Health Professional Recruiter
1-800-54-GUARD or
(401) 886-1389.
AAMC Debt Management Resources
The AAMC has launched a new debt management initiative called FIRST for Medical Education. FIRST offers a full range of financial information, resources, services, and tools for applicants, medical school students, residents, advisors, and financial aid officers (FAOs). The program, developed with input from the AAMC Group on Student Affairs Committee on Student Financial Assistance and the Organization of Student Representatives, aims to help medical school students expand their financial literacy, make smart decisions about student loans, and manage their student debt wisely.
The FIRST program offers a Web site with a number of resources including: "First Facts," short, informational sheets on a variety of financial aid related topics; an FAO Lender Assessment Tool for financial aid administrators to sort survey data based on loan industry-related criteria in order to compare various loan programs; and a new Economic Hardship Deferment Calculator for medical students and residents to estimate eligibility for deferment. Future phases of FIRST will include streaming video, podcasts, a comprehensive debt management curriculum and additional Web-based tools. For more information go to http://www.aamc.org/programs/first/