How Loan Repayment Works Under IHS LRP

In order to be eligible for this program, NPs must have an offer to be employed or already be employed as full-time clinicians at an approved Indian health facility. NPs who have a job offer must begin work by September 30th of the fiscal year in which they signed the contract.

Full time is defined as 40 hours a week and 80 hours every two weeks. At least 64 of the 80 hours must be in direct patient contact.

Eligible NPs will receive a $20,000 payment at the start of each year they are qualified. The first installment is typically disbursed 120 days after award notification or the first day of work assignment, whichever is sooner. These awards are taxable, but the IHS LRP pays 20 percent in taxes for the recipient. Any additional tax burden is the responsibility of the NP.

Managing Consolidation

personal loans that report to credit bureaus

If an NP has consolidated their loans, they are still eligible for this program. However, only the amount directly related to the education required to become an NP will qualify for repayment.

The Bottom Line: Loan Repayment Under the IHS LRP

The IHS LRP award is specific to the location where the NP is employed at the time of application. All work transfer requests must be approved in advance in order to stay in compliance with this program.

The IHS offers a job matching service for NPs who are interested in pursuing employment at an approved site. Inquiries payday loans Nevada can be sent directly to a recruiter who will work with an NP to find an appropriate placement.

Awards are issued based on a site score, which is based on the HPSA assessment. Once all applications are received for the fiscal year, IHS LRP staff start with the highest site score and make awards, working down the list till the funds have been exhausted or all completed applications have received an award.

Public Service Loan Forgiveness (PSLF)

prequalify personal loans

To be eligible for Public Service Loan Forgiveness (PSLF), NPs must make 120 loan payments (do not need to be consecutive) on their direct federal loans under a qualifying repayment plan without defaulting. In the approximately ten years this takes, the NP must work the equivalent of full-time in a public service role. Upon completion of this requirement.

This program began in 2007, so the first eligible applications were received in 2017. Historically acceptance rates have been extremely low with the most generous estimates calculating that only 2 percent of applications have been approved. However, in , the US Department of Education announced an overhaul to this program in hopes to qualify more applicants.

Qualifying Loans for PSLF

  • Federal Direct
  • FFEL and/or Perkins Loans Consolidated into a Federal Direct Loan

Qualifying Employers for PSLF

In order to qualify for PSLF, NPs must work full-time for one employer or the equivalent of full-time for multiple employers in the following sectors:

  • Government (federal, state, local, or tribal)
  • Tax-exempt 501(c)(3) non-profits
  • AmeriCorps and Peace Corps
  • Non-tax-exempt organizations that provide qualifying public services (this includes NPs in a clinical setting)

To ensure that one’s employer qualifies, an NP can utilize the PSLF help tool. To ensure that their employment counts, it is recommended that those seeking PSLF submit an Employment Certification Form each calendar year, or when an NP changes employers.

It is also important to note that, when applying for PSLF, at the culmination of the 120-session payment period, the NP needs to be employed full-time at a qualified employer.

Managing Loan Repayment to Qualify for PSLF

  • Revised Pay As You Earn Repayment Plan (REPAYE)