HEALTH RESOURCES AND SERVICES
ADMINISTRATION, DEPARTMENT OF HEALTH AND HUMAN SERVICES
AUTHORIZATION:
Public Health Service Act, Title VII, Part C, Section
721-735, 42 U.S.C. 292q-292y; Health Professions Education Partnerships Act of
1998, Public Law 105-392.
To increase educational opportunities for students in
need of financial assistance to pursue a course of study in specified health
professions by providing long-term, low-interest loans.
TYPES OF ASSISTANCE:
Direct Loans. Place Cursor Here for Definition
USES AND USE RESTRICTIONS:
Funds are allocated to schools by statutory formula for the purpose of
capitalizing a student loan fund. Funds on deposit can only be used for loans
to eligible students pursuing a full-time course of study; for costs in
connection with the collection of any obligation to the fund. The maximum
amount a student may borrow is cost of attendance (including tuition, other
reasonable educational expenses and reasonable living expenses). Third and
fourth year medical and osteopathic medicine students may be eligible for
additional funding to repay earlier educational loans. The interest rate is 5
percent. Effective July 1, 1993, to be eligible for a Health Professions
Student Loan (HPSL), students of allopathic medicine and osteopathy must meet
financial need criteria and agree to enter and complete a residency training
program in primary health care not later then 4 years after the date on which
the student graduates from such school and to practice primary health care
through the date on which the loan is repaid in full. To be eligible for Loans
for Disadvantaged Students (LDS) students must meet the HPSL criteria and also
be from a disadvantaged background as defined by the Secretary. To be eligible
for LDS funds a school must be carrying out a program for recruiting and
retaining students from disadvantaged backgrounds, including racial and ethnic
minorities and carrying out a program for recruiting and retaining minority
faculty. In addition, the school must agree to ensure that adequate
instruction regarding minority health issues is provided for in the curricula
of the school; with respect to health clinics providing services to a
significant number of individuals who are from disadvantaged backgrounds,
including members of minority groups, to enter into arrangements with one or
more such clinics for the purpose of providing students of the school with
experience in providing clinical services to such individuals; with respect to
secondary educational institutions and undergraduate institutions of higher
education, to enter into arrangements with one or more such institutions for
the purpose of carrying out programs regarding the educational preparation of
disadvantaged students, including minority students, to enter the health
professions and regarding the recruitment of such individuals into the health
professions; to establish a mentor program for assisting disadvantaged
students, including minority students, regarding the completion of the
educational requirements for degrees from the school.
ELIGIBILITY REQUIREMENTS:
Applicant Eligibility: Any accredited public or
other nonprofit private school of medicine, dentistry, osteopathic medicine,
optometry, podiatry, pharmacy, or veterinary medicine which provides a course
of study leading respectively to a degree of Doctor of Medicine, Doctor of
Dentistry (or an equivalent degree), Doctor of Osteopathic Medicine, Doctor of
Optometry (or an equivalent degree), Doctor of Podiatric Medicine (or an
equivalent degree), Bachelor of Science in Pharmacy (or an equivalent degree),
Doctor of Pharmacy (or an equivalent degree), or Doctor of Veterinary Medicine
(or an equivalent degree), located in the United States, or the District of
Columbia, the Commonwealth of Puerto Rico, or the Mariana Islands, the Virgin
Islands, Guam, the American Samoa or the Trust Territory of the Pacific
Islands, the Republic of Palau, the Republic of the Marshall Islands, and the
Federated State of Micronesia.
Beneficiary Eligibility: A student must be
enrolled or accepted for enrollment in a school, as above, and pursuing a
course of study which constitutes a full-time academic workload, as determined
by the school, leading to a degree as specified above and have financial need.
A student applicant must be a citizen, national or lawful permanent resident
of the United States or the District of Columbia, the Commonwealths of Puerto
Rico or the Mariana Islands, the Virgin Islands, Guam, the American Samoa or
the Trust Territory of the Pacific Islands, the Republic of Palau, the
Republic of the Marshall Islands, and the Federated State of Micronesia.
Credentials/Documentation: Participating schools
are required to renew their agreement periodically as specified by the
Secretary to operate a student loan fund with the agency responsible for
administering the program. Student applications for financial assistance
indicating the basis of approval or disapproval of a loan are maintained on
file in the school. Costs will be determined in accordance with DHHS
Regulation 45 CFR Part 74, Subpart Q.
Pre-application Coordination: Not applicable. This
program is excluded from coverage under E.O. 12372.
Application Procedure: Students apply at student
aid office of school of their choice for assistance in applying for a loan.
The school then tabulates requests for funds based on estimated needs of
students. Application forms distributed to eligible schools and must be
returned to the Central Office by date specified in application materials.
This program is subject to the provisions of OMB Circular No. A-110.
Award Procedure: The Notice of Award is sent to
the School's Contact Person notifying the school of the amount of Federal
funds allocated for loans prior to the beginning of the academic year in which
the award is to be utilized. Student is notified by student aid office of
approval or disapproval at times determined by schools.
Deadlines: Contact Headquarters Office for
application deadlines.
Range of Approval/Disapproval Time: Approximately
2 months.
Appeals: Not applicable.
Renewals: Applications are required for new
schools.
ASSISTANCE CONSIDERATIONS:
Formula and Matching Requirements: Allotment of
funds based on statutory formula which takes into account the ratio each
school's enrollment bears to the enrollments of all schools making application
for funds but never in excess of request of school. Under the Federal Capital
Contribution method, a school must match Federal Capital Contribution with an
amount equal to one-ninth of the funds drawn down.
Length and Time Phasing of Assistance: The time
required by a student to complete the necessary course of study leading to a
degree and subject to the availability of funds.
POST ASSISTANCE REQUIREMENTS:
Reports: "Annual Operating Report" through
electronic submission at http://wrs.hrsa.gov.
Audits: In accordance with the provisions of OMB
Circular No. A- 133 (Revised, June 24, 1997), "Audits of States, Local
Governments, and Nonprofit Organizations, " nonfederal entities that
expend financial assistance of $300,000 or more in Federal awards will have a
single or a program-specific audit conducted for the year. Nonfederal entities
that expend less than $300,000 a year in Federal awards are exempt from
Federal audit requirements for that year, except as noted in Circular No.
A-133. In addition, grants and cooperative agreements are subject to
inspection and audits by DHHS and other Federal government officials.
Records: Financial records must be kept until
such time as agreed upon with the Secretary as specified in 42 CFR 57.215.
FINANCIAL INFORMATION:
Account Identification: 75-0350-0-1-550.
Obligations: (Federal Capital Contribution) FY 01
$11,280,000; FY 02 est $14,000,000; and FY 03 est $14,500,000.
Range and Average of Financial Assistance: From
$25,000 to $150,000. Average: $59,200.
In fiscal year 2001, support was provided to 3,000 students. It is estimated
that 3,500 students will be supported in fiscal years 2002 and 2003.
REGULATIONS, GUIDELINES, AND LITERATURE:
See 42 CFR 57201-57218. "A Guide for Repayment and Deferment Provisions
of Health Professions Student Loans"; Health Professions Student Loan
Fact Sheet; Loans for Disadvantaged Students Fact Sheet.
INFORMATION CONTACTS:
Regional or Local Office: None.
Headquarters Office: Program Contact: Mary
Farrington, Division of Health Careers Diversity and Development, Bureau of
Health Professions, Health Resources and Services Administration, Public
Health Service, Department of Health and Human Services, Parklawn Building,
Room 8-34, 5600 Fishers Lane, Rockville, MD 20857. Telephone: (301) 443-4776.
Use the same number for FTS.
Web Site Address: http://bhpr.hrsa.gov/dsa
EXAMPLES OF FUNDED PROJECTS:
HPSL: (1) Long-term low-interest loans made to students
of Allopathic Medicine, Osteopathic Medicine, Dentistry, Pharmacy, Optometry,
Podiatric Medicine; and Veterinary Medicine; and (2) funds provided to Health
Professions Schools to capitalize loan funds. LDS: First awards were made in
September 1991.
CRITERIA FOR SELECTING PROPOSALS:
Applications will be reviewed for completeness,
accuracy, and to determine if applicant schools meet minimum program
requirements.
