[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
