Launching Your Career on Solid Footing · · 2018-01-10Launching Your Career on Solid Footing: ... Initiative,” recognizing our importance to expand direct ... {Up to $50,000

Launching Your Career on Solid Footing: Financial Planning 101 for ECPs (Part II)

Loan Repayment & Loan Forgiveness ProgramsByDarryl S. Salvador, Psy.D.

Committee on Early Career Psychologists – Public Interest RepresentativeCommunity Ambassador, National Health Service Corps

2008 APA Annual ConventionAugust 16, 2008

Some slides used with permission from the National Health Service Corps, a division of the Bureau of Health Professions of the Health Resources Services Administration

Loan Repayment Programs Available to Psychologists

Faculty Loan Repayment ProgramNational Institutes of HealthVeterans AffairsFederal Student Loan Forgiveness ProgramNational Health Service Corps

HRSA Faculty Loan Repayment Programhttp://bhpr.hrsa.gov/dsa/flrp/

Program designed to increase the number of faculty from disadvantaged backgrounds in eligible health profession disciplines

Purpose of the program is to repay the educational loans of eligible individuals who agree to serve as faculty at eligible health professions schools for a minimum of 2 years

HRSA Faculty Loan Repayment Program

$20,000 per year toward principal and interest of eligible student loansMaximum amount is $40,000 for 2 yearsParticipants should also receive matching funds from their employing educational institution.Can be graduated and already faculty or in final year of graduate schoolApplications due in mid-July and awards given mid-August and September 30, 2008.

National Institutes of Health (NIH)http://www.lrp.nih.gov

Provides financial assistance for individuals interested in pursuing research critical to the fields of public health at any nonprofit, university or government organizationIn exchange for a 2-year commitment, NIH will:

Repay qualified educational debt up to $35,000/yrReimburse Federal and state taxes resulting from your repayment award

National Institutes of Health (NIH)

Eligibility RequirementsDoctoral degree (Ph.D. or equivalent)Funding for research at any domestic nonprofit, university, or government organizationEducational loan debt equal to at least 20% of your annual salaryConduct research for an average 20 hours/wkU.S. citizen or permanent resident


5 Loan Repayment ProgramsClinical Research (406/1026)Pediatric Research (198/517)Health Disparities Research (167/274)Clinical Researchers from Disadvantaged Backgrounds (16/40)Contraception and Infertility Research (17/43)

*FY 2007 data


NIH Employee Student Loan Repayment Program

Tool to facilitate the recruitment and retention of highly qualified candidates and employees for NIH

NIH may repay eligible student loans up to $10,000 per calendar year with a $60,000 lifetime maximum.

Department of Veterans Affairswww.va.gov www.usajobs.com

Education Debt Reduction ProgramRepays up to $44,000 in education loans for newly appointed health care professionals in certain hard to fill occupationsPayments made over 5 yearsEach EDR payment is made at the conclusion of a 12-month service periodNo commitment requirement

Only designated positions are eligible

Federal Loan Forgiveness Programhttp://www.equaljusticeworks.org/resource/ccraa

Sections 302/401 of the College Cost Reduction Access Act of 2007 established a federal student loan repayment program for high-debt, lower-income graduates, including a loan forgiveness program for those who spend 10 years in full time public service

Government agencies and non-profit organizations exempt from taxation under Sec. 501 (c) 3 of the tax law

Federal Loan Forgiveness Program

You can qualify for forgiveness if you:Do not defaultCurrently playing principal and interest on an eligible Federal Direct LoanMake 120 consecutive payments

You must be employed full-time in a public service job (local, state, or federal)More detailed information about this program will be put out in November 2008

NHSC OVERVIEW

What is the National Health Service Corps (NHSC)?

The NHSC is made up of thousands of talented and dedicated clinicians who, over the past three decades, have extended out to rural, “inner city” urban, and frontier communities across the country to practice primary health care in underserved communities where the need is greatest.

NHSC OVERVIEW

What is the need?

Approximately 53 million people live in communitieswithout access to primary health care. The NHSC isworking to change this by helping these communitiesrecruit and retain primary care clinicians to bridge thisgap.

NHSC OVERVIEW

NHSC is a Presidential Initiative

President Bush has declared the NHSC a “PresidentialInitiative,” recognizing our importance to expand directaccess to healthcare for those who need it most. Therecouldn’t be a better time than now to join the NHSCand make a difference in a community that needs you!

NHSC OVERVIEW

What does the NHSC do?

The NHSC recruits clinicians who are dedicated andcommitted to providing primary health care services tothose most in need. These clinicians providecomprehensive team-based primary health care thatbridges geographic, financial, cultural, and languagebarriers.

NHSC OVERVIEW

Who are the NHSC clinicians?

Primary Care clinicians who are:

Dedicated to serviceCulturally competentCommunity responsiveInterdisciplinary team members

NHSC OVERVIEW

Where do the NHSC clinicians serve?

NHSC clinicians practice in NHSC sites ingeographic areas or with populations that have beendesignated by the Secretary of the Department ofHealth and Human Services as having a shortage ofhealth professionals. These areas are called HealthProfessional Shortage Areas (HPSAs).

NHSC OVERVIEW

HPSA designation

The NHSC works with communities in which the need is greatest—those that have been designated by theFederal Government as having a shortage of healthprofessionals.

Health Professional Shortage Areas (HPSAs) areassigned a numerical score based on the level of need.The higher the score – the greater the need.

NHSC OVERVIEW

There are a number of criteria used in the process ofdesignating communities as HPSAs. Some of the

criteriainclude:

Rational service areaPopulation count Clinician countContiguous resourcesHigh needs and/or insufficient capacity

NHSC OVERVIEW

NHSC Sites:

NHSC Sites are community based practices that include:

Community health centers, migrant health centers, private practices, rural health clinics, Indian Health Service sites and prisons.

These sites treat everyone regardless of their ability to pay.

NHSC OVERVIEW

What are the NHSC’s successes?

More than 24,500 health professionals have served with the NHSC since 1972.

Current field strength totals more than 3,600 primary care health care professionals.

These clinicians are serving over 5 million people.

LOAN REPAYMENT PROGRAM

What is the Loan Repayment Program?

The NHSC Loan Repayment Program (LRP) givesfully trained health professionals, who are dedicated to serving the underserved and have qualifyingeducational loans, the opportunity to compete forrepayment of those loans if they choose to serve in a health professional shortage area (HPSA).


What is the service commitment?A minimum 2-year commitment for full-time clinical practice at an approved clinic

It is possible to amend the contract beyond the initial 2 years for additional loan repayment. In this case, support is offered 1 year at a time.


What support is provided?

Up to $25,000 per year in repayments on health student loans during the first 2 years of service

Up to $35,000 per year in loan repayments if the individual’s initial 2-year service contract is extended


What support is provided?Up to $50,000 during the first 2 years of serviceUp to $35,000 for year 3 (beyond initial contract)Up to $35,000 for year 4Up to $25,000 for year 5Up to $20,000 for year 6Up to $15,000 for years 7 and beyond

Full amount shown is awarded if $50,000 or more in loans are left to be repaid. For less than$50,000, half the amount shown is awarded.


What additional support is provided?

A new law enacted on October 22, 2004 makes all funds disbursed on or after January 1, 2004 for the NHSC Loan Repayment Program exempt from gross income and employment taxes. This law also excludes these funds from being taken into account as wages in determining benefits under the Social Security Act.

NHSC Statistics

2000 Mathmatica Study found 52% of NHSC clinicians were still serving the underserved in some capacity up to 15 years after completion of the service commitment

Retention rates of clinicians in the NHSC are estimated to be 76% to 80%

Clinical Psychologists in the NHSC

777 clinical psychologists (CP) have served as part of the NHSC

Presently, there are 370 CPs serving within the NHSC LRP

NHSC LRP in FY 2007158 CP applied for NHSC LRP, of which 76 were awarded contracts

BH Disciplines awarded LRP contracts:76 clinical psychologists22 psychiatrists78 social worker

The HPSA score level for all awards for all disciplines was the HPSA score of 9

Priority/preferential funding score for LRP in the area of MH continues to be 17 for both FY 2008 and FY 2009


Who is eligible to participate?Applicants need to be U.S. citizens and practicing in, or in contract negotiations with, one of the approved NHSC Loan Repayment Sites and be in one of the NHSC’s primary care recruitable professions.

Clinicians need to first secure employment in an approved NHSC site.


How can I apply?

Review specific eligibility requirementsFind employment, using the NHSC’s online Job BankOnce employed, or in negotiations with a site, submit an NHSC LRP applicationDeadline is generally at the end of March


NHSC Loan Repayment Program ApplicationInformation Bulletin:

Complete information on selection criteria can be viewed in the NHSC Loan Repayment Application Information Bulletin at: http://nhsc.bhpr.hrsa.gov/applications/.


How are the loan repayment awards distributed?

Clinicians can choose how to receive their loan repayments from the NHSC.Clinicians can expect to receive their first loan repayment from the NHSC 60-90 days from the start date of their LRP contract.


Health care providers should be mindful that acceptance of an NHSC LRP award is a serious and binding obligation. There are significant penalties for failure to meet the NHSC service commitments.


Significant penalties for failure to meet the NHSC service requirement include:

Return of all loan repayments and tax assistance, plus interest, for periods not served A $7,500 penalty for each month of unfulfilled service commitmentPayment of the maximum allowable interest on the above amounts from date of breach.


Loan Repayment Program Application Timeline:

Applications are accepted from winter to spring, with all

awards finalized by late summer.

JOB OPPORTUNITIES LIST

What is the Job Opportunities List?

NHSC’s Job Opportunities List is a valuable careerresource available to all NHSC members—as well as toany primary health care student or clinician—interested

inworking at clinics located in health professional

shortageareas.


What is the Job Opportunities List?The NHSC Job Opportunities List is a searchabledatabase, updated weekly, and found on the NHSC’sWeb site at http://nhsc.bhpr.hrsa.gov/jobs/search_form.cfm.

It contains thousands of open positions in underservedcommunities across the country. Anyone can use it!


How do you use the Job Opportunities List?

This database is easy to use. A search can be done usingone or more of these filtering criteria:

DisciplineSpecialtyType of OpportunityRegionStateDate Added to List

JOIN THE NHSC

“The NHSC has served millions of people, and expandingthis program will help even more uninsured individualsand those in underserved areas to get the health carethey need.”

Tommy ThompsonSecretaryU.S. Department of Health & Human Services

JOIN THE NHSC

If you are interested in making a commitment to serving the underserved, join us! For more Information and to join the NHSC, speak with an Information Specialist today!

Call 1-800-221-9393 or visit the NHSC Web site at http://nhsc.bhpr.hrsa.gov

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Launching Your Career on Solid Footing · · 2018-01-10Launching Your Career on Solid Footing: ... Initiative,” recognizing our importance to expand direct ... {Up to $50,000