New Program Helps Repay Student Loans of Doctors Who Work in Underserved Areas
A new federal program that helps repay the student loans of primary care physicians who agree to work in underserved areas of the United States announced on Monday that it had awarded $9.1 million in loan repayment assistance to medical students in 30 states and the District of Columbia.
The National Health Service Corps (NHSC) Students to Service Loan Repayment Program, a pilot program created by the Affordable Care Act, provides financial aid to fourth year medical students (MDs and DOs) who commit to a career in primary care and agree to work full-time for a minimum of three years or part-time for a minimum of six years in NHSC-approved communities with limited access to physicians, which the U.S. Department of Health & Human Services recognizes Health Professional Shortage Areas (HSPAs).
There are several details to the Students to Service program:
- Full-time clinical practitioners will receive up to $120,000 in student loan repayment assistance over three years; full-time is defined as working no less that 40 hours per week for a minimum of 45 weeks a year
- Part-time clinical practitioners will receive up to $120,000 in student loan repayment assistance over six years; part-time is defined as working no less than 20 hours per week, and no more than 39 hours per week, for a minimum of 45 weeks per year
- Maximum annual payments are capped at $30,000
- Physicians may continue to participate in the program after working for the required three or six years, resulting in the possibility of being able to pay off all qualifying student loans through the program
- If Students to Serve receives more qualified applications than it has available funding, the program will prioritize applications based on two criteria: 1) whether an applicant has a disadvantaged background, based on environmental and/or economic factors and whether an applicant received a Federal Exceptional Financial Need Scholarship, and 2) whether an applicant indicated a higher likelihood of continuing to serve in an HSPA once the service commitment is completed
The program is a win-win for physicians, according to Health & Human Services Department Administrator Mary K. Wakefield. “The average medical school debt of the students receiving these awards is more than $200,000,” Wakefield said. “The Students to Service program relieves a tremendous debt burden, allowing them to follow their passion for primary care and serve some of the country’s most underserved rural and urban communities” (“New Health Care Law Helps Expand Primary Care Physician Workforce,” Health & Human Services Department press release, Feb. 13, 2012).
