96-1978. Program Announcement for Contracts for the Disadvantaged Health Professions Faculty Loan Repayment Program for Fiscal Year 1996  

  • [Federal Register Volume 61, Number 22 (Thursday, February 1, 1996)]
    [Notices]
    [Pages 3716-3718]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-1978]
    
    
    
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    DEPARTMENT OF HEALTH AND HUMAN SERVICES
    Health Resources and Services Administration
    
    
    Program Announcement for Contracts for the Disadvantaged Health 
    Professions Faculty Loan Repayment Program for Fiscal Year 1996
    
        The Health Resources and Services Administration (HRSA) announces 
    that applications for contracts for fiscal year (FY) 1996, for the 
    Disadvantaged Health Professions Faculty Loan Repayment Program (FLRP) 
    are now being accepted under section 738(a) of the Public Health 
    Service Act (The Act).
        This program announcement is subject to reauthorization of the 
    legislative authority and to the appropriation of funds. Applicants are 
    advised that this program announcement is a contingency action being 
    taken to assure that should authority and funds become available for 
    this purpose, they can be awarded in a timely fashion consistent with 
    the needs of the program as well as to provide for even distribution of 
    funds throughout the fiscal year. At this time, given a continuing 
    resolution and the absence of FY 1996 appropriations for title VII 
    programs, the amount of available funding for this program cannot be 
    estimated.
    
    Purpose
    
        The purpose of the Disadvantaged Health Professions Faculty Loan 
    Repayment Program (FLRP), authorized by section 738(a), is to attract 
    disadvantaged health professionals into faculty positions in accredited 
    health professions schools. The program provides a financial incentive 
    for degree-trained health professions personnel from disadvantaged 
    backgrounds who will serve as members of the faculties of those 
    schools. The FLRP is directed at those individuals available to serve 
    immediately or within a short time as ``new'' full-time faculty 
    members. Loan repayment may be provided only for an individual who has 
    not been a member of the faculty of any school at any time during the 
    18-month period preceding the date on which the Secretary receives the 
    request of the individual for a repayment contract (i.e., ``new'' 
    faculty).
        Section 738(b) makes available grants and contracts with schools of 
    medicine, osteopathic medicine, dentistry, veterinary medicine, 
    optometry, podiatric medicine, pharmacy, public health, health 
    administration, clinical psychology and other public or private 
    nonprofit health or educational entities to assist in increasing the 
    number of underrepresented minority faculty. Section 738(b) will be 
    implemented as a separate program.
    
    Eligible Individuals
    
        Individuals from disadvantaged backgrounds are eligible to compete 
    for participation in the FLRP if they:
        1. Have degrees in medicine, osteopathic medicine, dentistry, 
    nursing, pharmacy, podiatric medicine, optometry, veterinary medicine, 
    public health or clinical psychology; or
        2. Are enrolled in an approved graduate training program in one of 
    the health professions listed above; or
        3. Are enrolled as full-time students in the final year of health 
    professions training, leading to a degree from an eligible school.
        Established faculty members are not eligible to apply for funds 
    under the FLRP. Only individuals that have not taught in the last 18 
    (eighteen) months prior to application to the program will be 
    considered.
    
    Statutory Requirements
    
        Prior to submitting an application for a contract for loan 
    repayment, individuals must sign a contract with an eligible school, as 
    prescribed by the Secretary, setting forth the terms and conditions of 
    the FLRP. This contract with the school must require the individual to 
    serve as a full-time member of the faculty, as determined by the 
    school, for not less than 2 years, whereby the school agrees to pay, 
    for each year, a sum (in addition to faculty salary) equal to that paid 
    by the Secretary towards the repayment of principal due on the 
    applicant's health professions educational loans. Additionally, the 
    individual involved may not have been a member of the faculty of any 
    school at any time during the last 18 months prior to application to 
    the program.
    
    Eligible Schools
    
        Eligible schools are public or nonprofit private accredited schools 
    of medicine, nursing, as defined in section 853 of the Act, osteopathic 
    medicine, dentistry, pharmacy, podiatric medicine, optometry, 
    veterinary medicine or public health, or schools that offer graduate 
    programs in clinical psychology and which are located in States as 
    provided in section 799 of the Act.
    
    Provisions of the Loan Repayment Program
    
        Section 738(a) authorizes repayment, for each year of service, as 
    much as 20 percent of the outstanding principal and interest on the 
    individuals educational loans, not to exceed $20,000 for any given 
    year. The school pays an equal amount, unless the Secretary determines 
    that the repayment will impose an undue financial hardship on the 
    school in which case, the Secretary may pay up to the entire 20 
    percent.
        The school is required, for each such year, to make payments of 
    principal and interest in an amount equal to the amount of payment made 
    by the Secretary for that year. These payments must be in addition to 
    the faculty salary the participant otherwise would receive.
        Allowable educational loan repayment expenses include the 
    following:
        1. Tuition expenses;
        2. All other reasonable educational expenses such as fees, books, 
    supplies, educational equipment and materials required by the school, 
    and incurred by the applicant;
        3. Reasonable living expenses, as determined by the Secretary; and
        4. Partial payments of the increased Federal income tax liability 
    caused by the FLRP's payments and considered to be ``other income,'' if 
    the recipient requests such assistance.
        Prior to entering into a contract for repayment of loans, the 
    Secretary requires satisfactory evidence of the existence and 
    reasonableness of the individual's educational loans, including a copy 
    of the original written loan agreement establishing the outstanding 
    educational loan.
    
    Waiver Provision
    
        In the event of undue financial hardship to a school, the school 
    may obtain from the Secretary a waiver of its share of payments while 
    the participant 
    
    [[Page 3717]]
    is serving under the terms of the contract. For purposes of this 
    program, ``undue financial hardship'', as seen by the Secretary, is 
    based on a school's particular financial status as influenced by such 
    circumstances as budget cutbacks. Decisions will be made on a case-by-
    case basis, and must be supported by the school's documentation of 
    comparative yearly financial allocation of funds; or the most current 
    certified public accounting audit, including the Balance Sheet and 
    Statement of Income and Expenses for the past several years.
        If the Secretary waives the school's payment requirement, the 
    amount of the Federal loan repayment may be up to the full 20 percent 
    described above (regardless of the ``equal amount'' provision described 
    above), but cannot exceed the $20,000 repayment limit. The participant 
    must pay that portion of loan payment due which is not covered.
        The following Definitions, Program Requirements, Review Criteria 
    and Funding Preference were established in FY 1991 after public comment 
    dated October 2, 1991, at 56 FR 49896, and the Secretary is extending 
    them in FY 1996.
    
    Definitions
    
        For purposes of the FLRP in FY 1996, an ``Individual from a 
    Disadvantaged Background'' is defined as in 42 CFR 57.1804, as one who:
        1. Comes from an environment that has inhibited the individual from 
    obtaining the knowledge, skill, and abilities required to enroll in and 
    graduate from a health professions school, or from a program providing 
    education or training in an allied health profession; or
        2. Comes from a family with an annual income below a level based on 
    low income thresholds according to a family size published by the U.S. 
    Bureau of the Census, adjusted annually for changes in the Consumer 
    Price Index, and adjusted by the Secretary for use in health 
    professions and nursing programs. The Secretary will periodically 
    publish these income levels in the Federal Register. The following 
    income figures determine what constitutes a low income family for 
    purposes of the Faculty Loan Repayment Program for FY 1996.
    
    ------------------------------------------------------------------------
                                                                    Income  
                    Size of parents' family \1\                   level \2\ 
    ------------------------------------------------------------------------
    1..........................................................      $10,000
    2..........................................................       12,900
    3..........................................................       15,400
    4..........................................................       19,700
    5..........................................................       23,200
    6 or more..................................................      26,100 
    ------------------------------------------------------------------------
    \1\ Includes only dependents listed on Federal income tax forms.        
    \2\ Adjusted gross income for calendar year 1994 rounded to $100.       
    
        The term ``Living expenses'' means the costs of room and board, 
    transportation and commuting costs, and other costs incurred during an 
    individual's attendance at a health professions school, as estimated 
    each year by the school as part of the school's standard student 
    budget. (National Health Service Corps Loan Repayment Program, 42 CFR 
    part 62.22)
        The term ``Reasonable educational expenses and living expenses'' 
    means the costs of those educational and living expenses which are 
    equal to or less than the sum of the school's estimated standard 
    student budgets for educational and living expenses for the degree 
    program and for the year(s) during which the Program participant is/was 
    enrolled in the school. (National Health Service Corps Loan Repayment 
    Program, 42 CFR part 62.22)
        The term ``Unserved Obligation Penalty'' means the amount equal to 
    the number of months of obligated service that were not completed by an 
    individual, multiplied by $1,000, except that in any case in which the 
    individual fails to serve 1 year, the unserved obligation penalty shall 
    be equal to the full period of obligated service multiplied by $1,000. 
    (Section 338E of the Act) See ``Breach of Contract'' section below.
    
    Program Requirements
    
        The following requirements will be applied to the applicant and to 
    the school.
    
    The Applicant
    
        The applicant will be required to do the following:
        1. Submit a completed application, including the applicant's 
    contract with an eligible school to serve as a full- time faculty 
    member for not less than 2 years;
        2. Provide evidence that the applicant has completely satisfied any 
    other obligation for health professional service which is owed under an 
    agreement with the Federal Government, State Government, or other 
    entity prior to beginning the period of service under this program;
        3. Certify that the United States does not hold a judgment against 
    the applicant; and
        4. Provide documentation to evidence the educational loans and to 
    verify their status.
    
    The School
    
        The school will be required to do the following:
        1. Enter into a contractual agreement with the applicant whereby 
    the school is required, for each year for which the participant serves 
    as a faculty member, to make payments of principal and interest in an 
    amount equal to the amount of such quarterly payments made by the 
    Secretary. These payments must be in addition to the faculty salary the 
    participant otherwise would receive.
        2. Verify the participant's continuous employment at intervals as 
    prescribed by the Secretary.
        The Secretary will pay participants in equal quarterly payments 
    during the period of service.
    
    Effective Date of Contract
    
        After an applicant has been approved for participation in the FLRP, 
    the Director, Division of Disadvantaged Assistance (DDA), will send the 
    applicant a contract with the Secretary. The effective date is either 
    the date work begins at the school as a faculty member or the date the 
    Director, DDA, signs the FLRP contract, whichever is later. Service 
    should begin no later than September 30, 1996.
    
    Breach of Contract
    
        The following areas under Breach of Contract are addressed in the 
    appended contract:
        1. If the participant fails to serve his or her period of obligated 
    faculty service (minimum of 2 years) as contracted with the school, he/
    she is then in breach of contract, and neither the Secretary nor the 
    school is obligated to continue loan repayments as stated in the 
    contract. The participant must then reimburse the Secretary and the 
    participating school for all sums of principal and interest paid on 
    his/her behalf as stated in the contract in addition to any income tax 
    assistance he/she may have received.
        2. Regardless of the length of the agreed period of obligated 
    service (2, 3, or more years), a participant who serves less than the 
    time period specified in his/her contract is liable for monetary 
    damages to the United States amounting to the sum of the total of the 
    amounts the Program paid him/her, plus an ``unserved obligation 
    penalty'' of $1,000 for each month unserved.
        3. Any amount which the United States is entitled to recover 
    because of a breach of the FLRP contract must be paid within 1 year 
    from the day the Secretary determines that the participant is in breach 
    of contract. If payment is not received by the payment date, additional 
    interest, penalties and 
    
    [[Page 3718]]
    administrative charges will be assessed in accordance with Federal Law 
    (45 CFR 30.13).
    
    Review Criteria
    
        The HRSA will review fiscal year 1996 applications taking into 
    consideration the following criteria:
        1. The extent to which the applicant meets the requirements of 
    section 738(a) of the Act;
        2. The completeness, accuracy, and validity of the applicant's 
    responses to application requirements;
        3. The submission of the signed contract with the school;
        4. An applicant's earliest available date to begin service as a 
    faculty member provided funding is available for that year; and
        5. An applicant's availability to enter into a service contract for 
    a longer period than the mandatory 2-year minimum.
        Factors to assure equitable distribution (e.g. geographic, 
    discipline) will be considered in determining the funding of completed 
    applications.
    
    National Health Objectives for the Year 2000
    
        The Public Health Service (PHS) is committed to achieving the 
    health promotion and disease prevention objectives of Healthy People 
    2000, a PHS-led national activity for setting priority areas. The 
    Disadvantaged Health Professions Faculty Loan Repayment Program is 
    related to the priority area of Educational and Community-Based 
    Programs. Potential applicants may obtain a copy of Healthy People 2000 
    (Full Report; Stock No. 017-001- 00474-0) or Healthy People 2000 
    (Summary Report; Stock No. 017- 001-00473-1) through the Superintendent 
    of Documents, Government Printing Office, Washington, D.C. 20402-9325 
    (Telephone (202) 783-3238).
    
    Education and Service Linkage
    
        As part of its long-range planning, HRSA will be targeting its 
    efforts to strengthening linkages between U.S. Public Health Service 
    education programs and programs which provide comprehensive primary 
    care services to the underserved.
    
    Smoke-Free Workplace
    
        The Public Health Service strongly encourages all grant recipients 
    to provide a smoke-free workplace and promote the nonuse of all tobacco 
    products, and Public Law 103-227, the Pro-Children Act of 1994, 
    prohibits smoking in certain facilities that receive Federal funds in 
    which education, library, day care, health care, and early childhood 
    development services are provided to children.
    
    Application Requests
    
        Requests for application materials and questions regarding program 
    information and business should be directed to: Lafayette Gilchrist, 
    Division of Disadvantaged Assistance, Bureau of Health Professions, 
    Health Resources and Services Administration, 5600 Fishers Lane, Room 
    8A-09, Rockville, Maryland 20857, Telephone: (301) 443-3680, FAX: (301) 
    443-5242.
        Completed applications should be returned to the address listed 
    above. The application deadline date is June 30, 1996. Applications 
    shall be considered to be ``on time'' if they are either:
        (1) Received on or before the established deadline date, or
        (2) Sent on or before the established deadline date and received in 
    time for orderly processing. (Applicants should request a legibly dated 
    U.S. Postal Service postmark or obtain a legibly dated receipt from a 
    commercial carrier or U.S. Postal Service. Private metered postmarks 
    shall not be acceptable as proof of timely mailing.)
        Late applications not accepted for processing will be returned to 
    the applicant.
        The application form and instructions for this program have been 
    approved by the Office of Management and Budget (OMB) under the 
    Paperwork Reduction Act. The OMB clearance number is 0915- 0150.
        The Disadvantaged Health Professions Faculty Loan Repayment Program 
    is listed at 93.923 in the Catalog of Federal Domestic Assistance. It 
    is not subject to the provisions of Executive Order 12372, 
    Intergovernmental Review of Federal Programs (as implemented through 45 
    CFR part 100).
        This program is not subject to the Public Health System Reporting 
    Requirements.
    
        Dated: January 25, 1996.
    Ciro V. Sumaya,
    Administrator.
    [FR Doc. 96-1978 Filed 1-31-96; 8:45 am]
    BILLING CODE 4160-15-P
    
    

Document Information

Published:
02/01/1996
Department:
Health Resources and Services Administration
Entry Type:
Notice
Document Number:
96-1978
Pages:
3716-3718 (3 pages)
PDF File:
96-1978.pdf