Grants to States for Loan Repayment Program

Assistance Considerations

Length and Time Phasing of Assistance:
A grant award is for 1 year. Applicants may propose a project period of up to 3 years. States are asked to commit the full amount of funding for their loan repayment awards to practitioners in the current fiscal year to avoid out-year commitments for additional Federal funds.

Formula and Matching Requirements:
The Federal share of any program may not exceed 50 percent of the cost of loan repayment contracts made to eligible providers. The Federal share must be used to repay the government and commercial loans of health professionals for tuition, educational expenses and living expenses described in Section 338B(g)(1) of the Public Health Service Act. Other Federal funds cannot be used for the non-federal cost participation. No portion of the Federal share shall be used to pay for administrative or management costs of any State Loan Repayment Program. The non-federal share is to be issued for the repayment of loans. States must assume administrative costs.