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Implications for Participants

Home > About the Programs > Intramural LRPs > Implications for Participants

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Implications for Participants

Loans Qualifying for Repayment.

The LRP will repay lenders for the extant principal and capitalized interest, interest that accrues during the LRP Contract, and related expenses (such as the required insurance premiums on the unpaid balances of some loans) of qualified Government (Federal, State, local), academic institutions, and commercial educational loans obtained by participants for the following:
  • Undergraduate, graduate, and health professional school tuition expenses;
  • Other reasonable educational expenses required by the school(s) attended, including fees, books, supplies, educational equipment and materials, and laboratory expenses; and
  • Reasonable living expenses, including the cost of room and board, transportation and commuting costs, and other living expenses as determined by the Secretary.
Determination of reasonable educational and living expenses will be based on estimates contained in the standard school budget for each of the schools' degree programs and years attended. If there is no standard budget available from the school or if the participant requests repayment for educational and living expenses that exceed the standard student budget, additional contemporaneous documentation may be requested to substantiate the reasonableness of all educational and living expenses incurred.

Loans Eligible for Deferment

Commissioned Officers of the Public Health Service may be eligible for deferments of monthly payments on their Stafford Loans (formerly Guaranteed Student Loans), Perkins Loans (formerly NDSL) and SLS Loans. Other loans may also be eligible for deferment. Additionally, full-time participation in an eligible graduate fellowship or other training programs may also qualify some individuals for deferments of certain loans. Participants are strongly encouraged to review their loan documentation (promissory notes and repayment agreements) to determine eligibility for deferments. Deferments may also prevent the accumulation of additional interest on your loan, and reduce your debt.

Payments to Multiple Lenders

Payment of qualifying educational loans will be made directly to a participant's lender(s). Loans will be repaid in the following order unless the Secretary determines that significant savings would result from a different order of priority (examples within each section are not fully inclusive of all such loans):

1. Loans guaranteed by the U.S. Department of Health and Human Services

Health Education Assistance Loan(HEAL)
Health Professions Student Loan(HPSL)
Loans for Disadvantaged Students(LDS)
Nursing Student Loan Program(NSL)

2. Loans guaranteed by the U.S. Department of Education

Direct SubsidizedStafford Loan
Direct UnsubsidizedStafford Loan
Direct ConsolidationLoan
Perkins Loan
FFEL SubsidizedStafford Loan
FFEL UnsubsidizedStafford Loan
FFEL Consolidation Loan

3. Loans made or guaranteed by a State, the District of Columbia, the Commonwealth of Puerto Rico, or a territory or possession of the United States

4. Loans made by Academic Institutions

5. Private (“Alternative”) Educational Loans

Private (non-guaranteed) Consolidation Loan

Payments on Consolidated Loans

The LRP will make repayments on those portions of consolidated loans that originally obtained by the participant for educational purposes. Applicants must submit the loan agreement for consolidated loans, as well as loan agreements for each of the underlying loans. Loan consolidations which include the underlying loans of spouses or other individuals are ineligible for repayment consideration.

Leave Without Pay

Loan repayments will not be made for periods of leave without pay (LWOP), which is defined as any temporary non-pay status and non-duty status (or absence from a prescheduled tour of duty), granted at the employee's request even if these individuals are employed by the NIH.

Loans Not Qualifying for Repayment

The following loans are not eligible for repayment through the LRPs:

  1. Loans not obtained from a U.S. government (federal, state, or local) entity, U.S. academic institution, or commercial or other chartered U.S. lending institution, including loans from friends, relatives, or other individuals, and non-educational loans such as home equity loans.
  2. Loans that have been consolidated with loans of other individuals, such as a spouse or child. More information is available on the Loan Consolidation page.
  3. Loans for which contemporaneous documentation (current account statement and promissory note or lender disclosure statement) is not available.
  4. Loans or portions of loans obtained for educational or living expenses, which exceed a reasonable level, as determined by the standard school budget for the year in which the loan was made, and are not determined by the LRP to be reasonable based on additional contemporaneous documentation provided by the applicant.
  5. Loans, financial debts, or service obligations incurred under the following programs (or other programs where an incurred service obligation converts to a loan upon failure to satisfy the service obligation):
    • Armed Forces (Army, Navy, or Air Force) Health Professions Scholarship Program
    • Indian Health Service (IHS) Scholarship Program
    • National Institutes of Health Undergraduate Scholarship Program (UGSP)
    • National Research Service Award (NRSA) Program
    • Nurse Faculty Loan Program
    • Physicians Shortage Area Scholarship Program (federal or state)
    • Primary Care Loan (PCL) Program
    • Public Health Service (PHS) and National Health Service Corps (NHSC) Scholarship Program
  6. Loans that are delinquent, in default, or not current in their repayment schedule. Late fees, penalty fees, additional interest charges or collections costs will not be repaid by the LRP.
  7. PLUS Loans to parents. PLUS Loans disbursed to graduate and professional students on or after July 1, 2006, do qualify for repayment.
  8. Loans that have been paid in full.
  9. Loans obtained after the execution of the initial NIH Loan Repayment Program Contract (e.g., promissory note signed after the LRP contract has been awarded).

During lapses in loan repayments, due either to LRP administrative complications or a break in service, LRP participants are wholly responsible for making payments or other arrangements which maintain loans current, such that increases in either principal or interest do not occur. Penalties assessed participants as a result of LRP administrative complications to maintain a current payment status may be considered for reimbursement.

Date Last Updated: June 3, 2015

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