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State Loan Repayment Program
1. Are loan repayment benefits taxable?
2. Are there any situations where the participant does not have to repay if unable to complete the service obligation?
3. Can part of my SLRP benefits be used to pay taxes incurred?
4. Can SLRP benefits be used to repay a debt or service obligation incurred while a student if repayment of the obligation now is not possible?
5. Can the funds from SLRP be used to repay any debts incurred while in school?
6. Does filing a completed application with SLRP guarantee the applicant will receive loan repayment benefits?
7. How do health care providers apply for SLRP?
8. How does SLRP define health care services?
9. How long does it take DHH to process the SLRP contract?
10. How much are the benefits for participating in the SLRP?
11. Is consolidation of loans necessary to receive SLRP?
12. May personal loans from family or others be included in the determination of loan repayment eligibility?
13. What are the eligibility requirements for participating in the SLRP?
14. What are the obligations of the health care professional?
15. What are the payment arrangements for the SLRP program?
16. What documentation of student loans is required?
17. What happens if participant doesn’t complete his/her service commitment?
18. What happens if the situation of an SLRP provider changes?
19. What is the Louisiana State Loan Repayment Program?
20. What loans may be included in the determination of loan repayment eligibility?
21. What types of health practitioners are eligible to participate in the SLRP?
22. What types of loans qualify for the Louisiana SLRP?
23. Who is not eligible to participate in the SLRP?
State Loan Repayment Program
 Are loan repayment benefits taxable? Back to Top

Yes, loan repayment benefits are taxable.  Each provider will be issued a Form 1099 each January.

 Are there any situations where the participant does not have to repay if unable to complete the service obligation? Back to Top

Waivers on SLRP obligations may be granted by the Secretary of DHH in the event of death, physical or mental disability resulting in the permanent inability of the participant to perform the service, bankruptcy, or at the request of the placement agency for a justifiable cause.

Suspensions of the SLRP contract obligations may be made for up to six months in the event of temporary physical or mental disability or for other justifiable causes.

 Can part of my SLRP benefits be used to pay taxes incurred? Back to Top

No more than 20% of loan repayment funds can be set aside to defray tax liability.

 Can SLRP benefits be used to repay a debt or service obligation incurred while a student if repayment of the obligation now is not possible? Back to Top
No.  Financial debt or service obligations incurred while a NSHC scholar or from other entities may not be repaid by SLRP funds. This includes obligations of other state loan repayment programs.
 Can the funds from SLRP be used to repay any debts incurred while in school? Back to Top

All loan repayment monies must be used to repay only approved qualifying educational loans.

 Does filing a completed application with SLRP guarantee the applicant will receive loan repayment benefits? Back to Top
No.  All SLRP contracts are contingent upon the availability of funds, the receipt of a copy of the contractor’s medical license, verification of employment, and verification that the place of employment accepts Medicaid, Medicare, free care or sliding scale indigent patients.  The contract is not binding until the Secretary or his designee has signed the SLRP contract and DHH Contract Review and DOA’s Office of Contractual Review have approved the contract.
 How do health care providers apply for SLRP? Back to Top
The SLRP requires a completed and signed application form. A complete application includes the Program Application, Environmental Tobacco Smoke Form, Hold Harmless Form, Waiver of Confidentiality Form, documentation of student loans, and a copy of an executed employment contract with a public or nonprofit entity.
 How does SLRP define health care services? Back to Top
For physicians, health care services are defined as:

·        Primary health care services rendered full-time in a public or non-profit private outpatient setting and are defined as a minimum 40 hour work week to be performed in no less than four days per week with no more than 12 hours of work to be performed in a 24 hour period.  Time spent in an "on-call" status will not count toward the 40 hours per week.

·        Physicians must provide 4,200 primary care encounters per 12 month period beginning on the effective date of the contract.  A primary health care encounter is a face-to-face contact between the contracting physician and a patient for the purpose of preventive care, diagnosis, and/or treatment.  Exception:  Obstetricians, gynecologists, and psychiatrists must provide 3,600 health care encounters, and dentists must provide 2,000 health care encounters per 12-month period.

·       Contacts with more than one health professional and/or multiple contacts with the same contracting physician that takes place on the same day constitutes a single encounter unless the patient, subsequent to the first visit, suffers illness or injury requiring additional diagnosis or treatment.

For mid-levels, health care services are defined as:

Outpatient, emergency room, or prenatal care rendered full-time in a public or non-profit private facility. Full-time employment for mid-levels is defined as a minimum 40-hour workweek to be performed in no less than four days per week with no more than 12 hours of work to be performed in a 24-hour period.
 How long does it take DHH to process the SLRP contract? Back to Top

Usually, the contract process is completed in 6-8 weeks, including approval by the Department of Administration’s (DOA’s) Office of Contractual Review.

 How much are the benefits for participating in the SLRP? Back to Top

Physicians, psychiatrists and dentists can receive up to $13,333 per year for a two-year commitment or up to $20,000 per year for a three-year commitment.

Mid-levels can receive up to $3,333 per year for a two-year commitment or up to $5,000 per year for a three-year commitment.

Should a primary care physician work in one of the priority parishes, he/she can receive up to $30,000 per year for a three-year commitment.  Dentists will be eligible for up to $30,000per year if he/she accepts referrals for HIV infected patients from the Department of Health and Hospitals, Office of Public Health and/or the Louisiana State University Health Science Center’s outpatient sites.

 Is consolidation of loans necessary to receive SLRP? Back to Top
Yes, if allowable.  SLRP participants must consolidate all qualifying loans in order to receive repayment by the program.  For specific questions, contact the Gerrelda Davis at 225-342-1583 or
gdavis@dhh.la.gov.
 May personal loans from family or others be included in the determination of loan repayment eligibility? Back to Top
No.  Only loans with supporting documentation and loans obtained from a government entity or commercial lending institution are qualified for repayment by the SLRP. 
 What are the eligibility requirements for participating in the SLRP? Back to Top
  • Work in a federally designated HPSA
  • Work for a public or nonprofit private entity
  • Work at least 32 hours per week in an outpatient capacity
  • Accept assignment of Medicare and Medicaid
  • Accept low-income, uninsured patients on a sliding scale
  • Be a United States citizen
  •  Have an unrestricted license to practice in Louisiana
  • Have no other obligation for health professional services
  • Have medical education debt at least equal to the total loan repayment contract amount
  • Have not defaulted on educational loans
  • Have not breached a health professional services contract
 What are the obligations of the health care professional? Back to Top
  • To serve a minimum of two years or a maximum of three year
  • To provide primary health care services within the officially designated HPSA(s)
  •  To agree to accept Medicare, Medicaid, Sliding Fee Scale patients, as well as, provide free care for those who are unable to pay
  •  To provide health care encounters/services
  •  To provide DHH with a signed monthly service report which totals the number of encounters rendered
  • To provide DHH with documentation of practice in a HPSA or a copy of an employment contract with a public or nonprofit facility located in a HPSA
 What are the payment arrangements for the SLRP program? Back to Top

Present SLRP policy requires the SLRP contractors submit a monthly service report form by mail or fax to DHH’s BPRRH.  The form documents the number of primary care encounters (face-to-face contacts), the total number of patients attended for each month, hours worked in outpatient care, and the total number of hours worked including inpatient and on-call.  Submitting the monthly service report after the 15th of the month may delay the issuance of a participant’s check. 

A copy of the current monthly service report can now be downloaded from the Recruitment Services page on the BPCRH website at www.dhh.la.us.state/pcrh. 

 What documentation of student loans is required? Back to Top
Applicants must provide lender information on their application forms and written verification of current balance of loan(s), including principal, interest, and loan fees.
 What happens if participant doesn’t complete his/her service commitment?  Back to Top
Should a participant fail to complete his/her service contract, he/she will be liable to the State of Louisiana for the amount that has been paid on their behalf under the program contract. The default amount is three times the amount paid on behalf of the SLRP participant plus 18% interest on that amount multiplied by the proportion of months remaining on the obligation. See Attachment C of the SLRP Contract or contact the Paula Villar Kramer, Program Coordinator, at 225-342-4702 or
pkramer@dhh.la.gov.
 What happens if the situation of an SLRP provider changes? Back to Top
 All SLRP contractors and applicants must notify the SLRP Program Coordinator of any change in their situation.  These situations include, but are not limited to, changes in mailing address (new Form W-9 must be obtained), telephone number, loan default status, and licensure status. The contract may not relocate to another employment site without prior approval of the SLRP Program Coordinator.  If there are any questions about changes in an SLRP participant’s situation, contact Gerrelda Davisat 225-342-1583 or
gdavis@dhh.la.gov .
 What is the Louisiana State Loan Repayment Program? Back to Top

Section 338 of the Public Health Service Act (42 USC 254-1) authorizes the Secretary of Health and Human Services, through the Health Resources and Services Administration to administer the State Loan Repayment Program (SLRP) which is funded with 50% state dollars and 50% federal dollars.  The state Department of Health and Hospitals (DHH) through the Bureau of Primary Care and Rural Health (BPCRH) administers the SLRP for Louisiana.

The purpose of the SLRP is to recruit and retain primary care practitioners to difficult-to-fill shortage areas by reducing their educational debt.  The mission of the program is to alleviate the state’s problem of a substantial maldistribution of primary care health professionals in rural and inner city areas designated as health professional shortage areas (HPSAs).

 What loans may be included in the determination of loan repayment eligibility? Back to Top
All loans from government entities and commercial lenders may be included in the determination of loan repayment benefits.
 What types of health practitioners are eligible to participate in the SLRP? Back to Top

Eligible primary care practitioners include those who are board certified or have completed a residency in family practice, osteopathic general practice, obstetrics/gynecology, general internal medicine, pediatrics, psychiatry or dentistry.  Eligible mid-levels include physician assistants, advanced nurse practitioners and nurse midwives.

 What types of loans qualify for the Louisiana SLRP? Back to Top

The program will repay governmental or commercial educational loans for tuition expenses, other reasonable education expenses required by the health professional school including books, laboratory expenses and other fees, and reasonable living expenses as determined by published university standards.  For more information, see page five of the Louisiana State Loan Repayment Program Policy.

 Who is not eligible to participate in the SLRP? Back to Top
  • Persons who are not citizens or nationals of the United States, including permanent resident aliens and other aliens
  • Persons who have breached an obligation for health professional services to the Federal Government, a State Government, local government body or other entity.  Any person with a similar obligation is ineligible for the SLRP unless such obligation is completely satisfied.
  • Persons 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 loan repayment.
  • Students or residents who will not be licensed and ready to work at the approved health professional shortage site by the end of the current fiscal year.
  • Licensed Registered Nurses and Practical Nurses are not eligible.
  • Persons who have a judgment lien against their property for a debt to the United States.
  • Persons with loans in a default status.

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