[Federal Register Volume 60, Number 40 (Wednesday, March 1, 1995)]
[Notices]
[Pages 11101-11104]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-4964]
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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 1995
The Health Resources and Services Administration (HRSA) announces
that applications for contracts for fiscal year (FY) 1995, 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).
In FY 1995, approximately $823,000 is available for competing
applications for the Disadvantaged Health Professions Faculty Loan
Repayment Program. It is expected that 30 contracts averaging $27,433
($13,717 per year for two years) will be supported with these funds.
Previous Funding Experience
Previous funding experience information is provided to assist
potential applicants to make better informed decisions regarding
submission of an application for this program. In fiscal years 1991,
1992, 1993 and 1994, HRSA entered into a total of 129 contracts under
this program, averaging $25,030 ($12,515 per year for 2 years).
Purpose
The purpose of the Disadvantaged Health Professions Faculty Loan
Repayment Program (FLRP) is to attract disadvantaged health professions
faculty members for 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 any year for which
repayments are made, not to exceed 20 percent of the outstanding
principal and interest on [[Page 11102]] the individual's educational
loans. Of the repayment, the Secretary pays half, up to $20,000. 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 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 1995.
Definitions
For purposes of the FLRP in FY 1995, 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 1995.
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Income
Size of parents' family\1\ level\2\
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1............................................................. $9,700
2............................................................. 12,600
3............................................................. 15,000
4............................................................. 19,200
5............................................................. 22,600
6 or more..................................................... 25,400
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\1\Includes only dependents listed on Federal income tax forms.
\2\Adjusted gross income for calendar year 1993 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 [[Page 11103]] 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, 1995.
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 administrative charges will be assessed in
accordance with Federal Law (45 CFR 30.13).
Review Criteria
The HRSA will review fiscal year 1995 applications taking into
consideration the following criteria:
1. The extent to which the applicant meets the requirements of
section 738 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, DC 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 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, 1995. 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: February 23, 1995.
Ciro V. Sumaya,
Administrator.
Contract for the Disadvantaged Health Professions Faculty Loan
Repayment Program With U.S. Department of Health and Human Services--
Public Health Service; Health Resources and Services Administration;
Bureau of Health Professions
Section 738 of the Public Health Service Act (``Act'') [42
United States Code 293 et seq.], as added by Pub. L. 102-408,
authorizes the Secretary of Health and Human Services
(``Secretary'') to repay the educational loans of applicants from
disadvantaged backgrounds selected to be participants in the Loan
Repayment Program Regarding Service on Faculties of Certain Health
Professions Schools (``Faculty Loan Repayment Program''). In return
for these loan repayments, applicants must agree to provide teaching
faculty services at an approved accredited health professions school
determined by the Secretary for a designated period of obligated
service pursuant to section 738 of the Act.
Section 738(a)(5)&(7) of the Act require applicants to submit
with their applications a signed contract with an accredited health
professions school and a signed contract which states the terms and
conditions of participation in the Faculty Loan Repayment Program.
The Secretary shall sign only those contracts submitted by
applicants who are selected for participation.
The terms and conditions of participating in the Faculty Loan
Repayment Program are set forth below:
Section A--Obligations of the Secretary
Subject to the availability of funds appropriated by the
Congress of the United States for the Faculty Loan Repayment
Program, the Secretary agrees to:
1. Pay, in the amount provided in paragraph 2 of this section,
the undersigned applicant's qualifying educational loans. Qualifying
educational loans consist of the principal and interest on
educational loans [[Page 11104]] received by the applicant for the
following expenses of enrollment:
a. tuition expenses;
b. all other reasonable educational expenses such as fees,
books, supplies, educational equipment and materials required by the
school, and incurred by the applicant; or
c. reasonable living expenses as determined by the Secretary.
2. If the applicant agrees to serve 2 or more years:
a. Except as provided in subparagraph b. of this paragraph, pay
up to $20,000 of the outstanding principal and interest of a
participant's non delinquent educational loans, but not more than
half of the 20 percent of the qualified outstanding educational
loans for such year for each year of eligible faculty service; or
b. The Secretary's liability will not exceed a cap of $20,000 of
principal and interest annually. This would include the 10 percent
waived under Sec. 738(a) of the Act for the School's proportionate
share of the loan repayment amounts. The applicant must pay that
portion not covered.
3. Make loan repayments for a year of obligated service no later
than the end of the fiscal year in which the applicant completes
such year of service.
4. The effective date of the Contract will be the date it is
signed by the Director, Division of Disadvantaged Assistance or the
date employment begins as a faculty member of the contracting school
whichever is later.
Section B--Obligations of the Participant
1. The applicant agrees to:
a. Continue loan repayments to lenders for the first quarter
after which the Secretary will make delayed quarterly payments to
applicant for the years stated in paragraph c of this section.
Applicant must pay lender(s) these payments.
b. Serve his or her period of obligated faculty service as
contracted with the school and as determined by the Secretary to be
acceptable.
e. Serve in accordance with paragraph b. of this section for
______ years at ____________________. The applicant must serve a
minimum of two years.
2. If the applicant's eligibility to participate in the Faculty
Loan Repayment Program is based on section 738(a)(2) of the Act
(i.e. based on his or her enrollment in an accredited health
professions school), he or she also agrees to:
a. Maintain full-time enrollment, (as determined by the School),
in good academic standing as determined by the School, in the final
year of the course of study leading to a degree in medicine,
osteopathic medicine, dentistry, pharmacy, podiatric medicine,
optometry, veterinary medicine, nursing, or public health, or
schools offering graduate programs in clinical psychology in which
the applicant is currently enrolled, until completion of such course
of study;
b. Enter into a contract with an accredited school described in
subsection (a) of Section 738 to serve as a ``new'' member of the
faculty of the school for not less than 2 years according to the
requirements described in subsection (a)(5) of section 738.
c. Begin service obligation as contracted.
Section C--Breach of Written Loan Repayment Contract
1. If the participant fails to comply with section B.1.c. of
this contract or is dismissed for disciplinary reasons or
voluntarily terminates the contracts, neither the Secretary nor the
School is obligated to continue loan repayments as stated in Sec. A
of this Contract. The participant shall be liable to the United
States and the School for the amounts specified in paragraph 2 of
this section.
2. If the applicant agrees to serve as a full-time faculty
member for two years or more and fails to serve the 2-year minimum
requirement, he or she is liable to pay monetary damages to the
United States amounting to the sum of (a) the total amounts
specified in Section A.2 of this contract plus (b) an ``unserved
obligation penalty'' of $1,000 for each month unserved as set forth
in paragraph 3 of this section plus (c) any tax assistance paid plus
(d) interest, penalties and administrative charges for past due
payments.
3. The ``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 obligated penalty
shall be equal to the full period of obligated service multiplied by
$1,000.
4. It the applicant agrees to serve more than the 2-year minimum
service obligation and has completed the 2-year minimum he or she
will be liable for such sums paid for any months that are not a full
year beyond the 2-year minimum requirement as agreed to in Section
B.1.c of this contract, plus an ``unserved obligation penalty'' of
$1,000 for each month unserved.
5. Any amount the United States is entitled to recover shall be
paid within one year of the date the Secretary determines that the
applicant is in breach of this written contract. Failure to pay by
the due date will incur delinquent charges provided by Federal Law.
(45 CFR 30.13).
Section D--Cancellation, Suspension, and Waiver of Obligation
Any service or payment obligation may be canceled, suspended, or
waived under certain circumstances described below: (1) In the event
of death or permanent and total disability, the Secretary will
cancel obligations under this contract. To receive cancellation in
the event of death, the executor of the estate must submit an
official death certificate to the Secretary. To receive cancellation
for permanent and total disability, applicant or his/her
representative must apply to the Secretary, submitting medical
evidence of my condition, and the Secretary may cancel this
obligation in accordance with applicable Federal statutes and
regulations; (2) Upon receipt of supporting documentation the
Secretary may waive or suspend service or payment obligation under
this contract if the Secretary determines that: (a) meeting the
terms and conditions of the contract is impossible or would involve
extreme hardship; and (b) enforcement of the obligations would be
unconscionable. (3) Deferment will be granted in the event of long
term illness. Supporting documentation should be sent to: Division
of Disadvantaged Assistance, Room 8A-09 Parklawn Building, 5600
Fishers Lane, Rockville, MD 20857.
The Secretary or his/her authorized representative must sign
this contract before it becomes effective.
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Applicant Name (Please Print)
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Applicant Signature* Date
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Secretary of Health and Human Services or Designee
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Date
*Before signing, be sure you have completed section B.1.c. on
page 1 of this contract indicating the number of years of service
you agree to perform.
[FR Doc. 95-4964 Filed 2-28-95; 8:45 am]
BILLING CODE 4160-15-P
