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Can you please clarify the following key terms used in your materials?
- Qualifying Debt–the total projected debt for the length of an LRP contract.
- Repayable Debt–the amount that is eligible for LRP repayment.
When are LRP payments issued to lenders?
LRP payments to your lenders are issued within two weeks of the end of each quarter. For your LRP payments to be released on schedule, you must
ensure that the following requirements are met:
Where are LRP payments sent–to me directly or to the lenders?
- Verification of your research service by your supervisor using the LRP website (the LRP requests service verifications)
- Verification of prior payments made by the LRP (additional information on verifications is included in Section III below)
LRP payments are issued directly to your lenders. They are issued by the U.S. Treasury, not NIH.
How are LRP payments applied to my loans? Can I tell the lender how I want the payment to be applied?
LRP payments are applied in accordance with LRP guidelines on prioritization of payments. Find more information about payment priority guidelines.
Can I have LRP payments applied to prepay future installments so I don't have to make payments myself?
Yes, you should contact your lenders directly to discuss how payments are allocated.
How do I verify the LRP payment is made by the NIH?
When an LRP payment is issued to your loan account, it is your responsibility to obtain a statement from your lender that shows the LRP payment date and amount as well as the resulting account balance. A copy of this statement should be faxed to 866 849-4046. NIH notifies you by e-mail when each payment is released.
Can I use a printout from my lender's website to verify an LRP payment?
Yes, printouts from the lender's website are acceptable if they show your name or account number, LRP payment date and amount, and the
Can I have my lenders fax the payment verifications directly to the NIH Division of Loan Repayment?
Yes, but we strongly encourage you to have the lender send the payment verifications to you directly so that you may retain copies for your
records. You are responsible for ensuring that all verifications are submitted to our office in a timely manner.
Eligibility of Loans
Based on my LRP payment schedule, some of my loans will not receive payments. Is it because they are ineligible for the LRP?
No. This is because these loans have a lower priority than the loans that will be receiving payments. Once the highest priority loan is paid off, we will begin to repay the loan with the next highest priority. Find more information about payment priority guidelines.
Can I consolidate my loans while I am in the LRP?
Yes, you may consolidate your loans during participation in the LRP. Once your loans are consolidated, you need to forward a copy of your
disclosure statement to our office. After submission of the disclosure statement, you will be advised by e-mail as to what is needed to
complete the process of adding the consolidation to your LRP portfolio.
What should I consider before consolidating my loans?
Consolidated loans cannot include loans that belong to another individual, such as a spouse or child, even if they are educational loans, nor
can any loans not currently in your LRP portfolio be included.
Additionally, do not consolidate your student loans with any non-student loans, such as a home equity or personal loan.
These loans are not repayable under the LRPs.
Federal and State Tax Coverage on LRP Payments
Will I incur taxes on LRP payments?
Yes, but each time NIH issues a payment to your lender, 39 percent of the payment amount is also sent to the IRS as a federal tax payment.
An additional tax payment at the rate of 7.5% of the loan repayment amount is also made to cover social security and FICA taxes for intramural LRP participants only.
How do I know how much tax has been paid on my behalf?
NIH will issue you an IRS Form 1099 in January. The 1099 form will specify the total amount of all payments made on your behalf to lenders and
the IRS, since both types of payments are considered income to you. Intramural participants will receive a W2 form instead of a 1099 form.
My current NIH grant will expire. Can I still renew my LRP contract?
Participants who continue to meet the eligibility requirements for the program and have remaining repayable debt are eligible to apply for a
competitive renewal during the application cycle for the fiscal year in which their existing contract ends. The renewal applications are
reviewed based on the same criteria as the original application, plus review of research progress during the contract. Please remember that
this is a competitive award process and continued funding is not guaranteed.
How do I apply for renewal of my LRP contract?
You will be required to complete and submit an online renewal application during the application cycle for the fiscal year in which your
existing contract ends. Please check your loan portfolio to determine the end date of your contract. For example, if your current LRP contract ends in June 2014, you would apply during the application cycle that begins on September 1, 2013.
Date Last Updated: October 22, 2012