Grants for State Loan Repayment

Published on AidPage by IDILOGIC on Jun 24, 2005

Purpose of this program:

To increase the availability of primary care in health professional shortage areas (HPSAs) by assisting States in operating programs for the repayment of educational loans of health professionals in return for their practice in HPSAs.

Possible uses and use restrictions...

State programs are to be similar to 93.162, the National Health Service Corps Loan Repayment Program. Similar provisions include: (1) Applicants for State programs must have completed a course of study required to practice as one of the following health care professionals: allopathic or osteopathic physician, dentist, nurse midwife, nurse practitioner, physician assistant, clinical psychologist, clinical social worker, psychiatric nurse specialist, marriage and family therapist, licensed professional counselors or dental hygienist; and (2) participants must provide full-time clinical service for a minimum of two years in a public or non-profit entity located in a federally designated health professional shortage area. The Federal share of the support for State programs cannot exceed 50 percent of the contract costs. The State's 50 percent share must be spent for repayment of loans and the State must absorb program administrative costs.

Who is eligible to apply...

The term "State" means each of the fifty States. Any State is eligible to apply for a grant.

Eligible Applicant Categories:
Eligible Functional Categories:

In addition to requirements of Form PHS 5161-1 (Standard Form 424), State applicants will be required to provide: (1) adequate assurances that sufficient funds are available to cover nonfederal share of program costs; (2) description of the source of and plans for the use of nonfederal matching funds; (3) description of the State program; and (4) description of the State's need for Federal assistance. Costs will be determined in accordance with OMB Circular No. A-87 for State and local governments.

Note:This is a brief description of the credentials or documentation required prior to, or along with, an application for assistance.

About this section:

This section indicates who can apply to the Federal government for assistance and the criteria the potential applicant must satisfy. For example, individuals may be eligible for research grants, and the criteria to be satisfied may be that they have a professional or scientific degree, 3 years of research experience, and be a citizen of the United States. Universities, medical schools, hospitals, or State and local governments may also be eligible. Where State governments are eligible, the type of State agency will be indicated (State welfare agency or State agency on aging) and the criteria that they must satisfy.

Certain federal programs (e.g., the Pell Grant program which provides grants to students) involve intermediate levels of application processing, i.e., applications are transmitted through colleges or universities that are neither the direct applicant nor the ultimate beneficiary. For these programs, the criteria that the intermediaries must satisfy are also indicated, along with intermediaries who are not eligible.

How to apply...

Application Procedure:

Applicants must submit proposals using appropriate form(s)Public Health Service (PHS) Application Form 5161-1. These forms contain additional general information and instructions for grant applications, proposal narratives, and budgets. These forms may be obtained from the following sites: Downloading from Or Contacting the HRSA Grants Application Center at: The Legin Group, Inc. 901 Russell Avenue, Suite 450 Gaithersburg, MD 20879 Telephone: (877) 477-2123

Note: Each program will indicate whether applications are to be submitted to the Federal headquarters, regional or local office, or to a State or local government office.

Award Procedure:

Grant applications will be given an objective review by the Bureau of Bureau of Health Professions. Awards will be issued to successful applicants by the Director of BHPR.

Note: Grant payments may be made by a letter of credit, advance by Treasury check, or reimbursement by Treasury check. Awards may be made by the headquarters office directly to the applicant, an agency field office, a regional office, or by an authorized county office. The assistance may pass through the initial applicant for further distribution by intermediate level applicants to groups or individuals in the private sector.

Deadlines and process...


Deadlines will be published in the HRSA Discretionary Grant Planning and Public Notification System. Contact Headquarters Office listed below for further information.

Note: When available, this section indicates the deadlines for applications to the funding agency which will be stated in terms of the date(s) or between what dates the application should be received. When not available, applicants should contact the funding agency for deadline information.

Range of Approval/Disapproval Time

Approximately 120 days.

Preapplication Coordination

This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or officials designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review. The single point of contact for a State may be obtained from the Director, Division of State, Community and Public Health, Bureau of Health Professions, Health Resources and Services Administration (HRSA), Room 9-105, 5600 Fishers Lane, Rockville, MD 20857.

Note: This section indicates whether any prior coordination or approval is required with governmental or nongovernmental units prior to the submission of a formal application to the federal funding agency.



Note: In some cases, there are no provisions for appeal. Where applicable, this section discusses appeal procedures or allowable rework time for resubmission of applications to be processed by the funding agency. Appeal procedures vary with individual programs and are either listed in this section or applicants are referred to appeal procedures documented in the relevant Code of Federal Regulations (CFR).


Subsequent funding depends upon the availability of funds and program performance. Renewals are funded through a competitive process each year.

Note: In some instances, renewal procedures may be the same as for the application procedure, e.g., for projects of a non-continuing nature renewals will be treated as new, competing applications; for projects of an ongoing nature, renewals may be given annually.

Who can benefit...

State governments will benefit by securing the services of health professionals for health professional shortage areas in States. This program will also benefit health professions practitioners whose loans would be repaid for service in HPSAs under the State Loan Repayment Program.

About this section:

This section lists the ultimate beneficiaries of a program, the criteria they must satisfy and who specifically is not eligible. The applicant and beneficiary will generally be the same for programs that provide assistance directly from a Federal agency. However, financial assistance that passes through State or local governments will have different applicants and beneficiaries since the assistance is transmitted to private sector beneficiaries who are not obligated to request or apply for the assistance.

What types of assistance...

Project Grants

The funding, for fixed or known periods, of specific projects. Project grants can include fellowships, scholarships, research grants, training grants, traineeships, experimental and demonstration grants, evaluation grants, planning grants, technical assistance grants, survey grants, and construction grants.

How much financial aid...

Range and Average of Financial Assistance

$50,000 to $1,000,000; $250,000.

Note: This section lists the representative range (smallest to largest) of the amount of financial assistance available. These figures are based upon funds awarded in the past fiscal year and the current fiscal year to date. Also indicated is an approximate average amount of awards which were made in the past and current fiscal years.


(Grants) FY 03 $6,844,197; FY 04 est $7,000,000 and FY 05 est $7,000,000.

Note: The dollar amounts listed in this section represent obligations for the past fiscal year (PY), estimates for the current fiscal year (CY), and estimates for the budget fiscal year (BY) as reported by the Federal agencies. Obligations for non-financial assistance programs indicate the administrative expenses involved in the operation of a program.

Account Identification


Note: Note: This 11-digit budget account identification code represents the account which funds a particular program. This code should be consistent with the code given for the program area as specified in Appendix III of the Budget of the United States Government.

Examples of funded projects...

State Loan Repayment grants matched 200 providers at Health Professional Shortage Area Sites (HPSAs) in fiscal year 2000.

About this section

This section indicates the different types of projects which have been funded in the past. Only projects funded under Project Grants or Direct Payments for Specified Use should be listed here. The examples give potential applicants an idea of the types of projects that may be accepted for funding. The agency should list at least five examples of the most recently funded projects.

Program accomplishments...

There were 38 SLRP programs ongoing in fisvcal year 2003. It is expected that approximately 38 awards will be made in fiscal year 2004 and approximately 40 awards in fiscal year 2005.

Criteria for selecting proposals...

For new and competing continuation grants the following criteria will be used to evaluate State applications to determine which States are to be supported under this notice: (a) The extent of the State's need for health professionals consistent with the health professions and specialties identified later in this notice; (b) the extent to which special consideration will be extended to federally designated HPSAs with large minority populations; (c) the number and type of providers the State proposes to support through this program; (d) the appropriateness of the proposed placements of State LRP recipients (e.g., consistency and coordination with State-based plans to improve access to primary health services for the underserved communities and individuals); (e) the appropriateness of the qualifications, the administrative, and managerial ability of the staff to implement the proposed project; (f) the suitability of the State's approach and the degree to which the plan of a State is coordinated with Federal, State, and other programs for meeting the State's health professional needs and resources, including mechanisms for ongoing evaluation of the program's activities; (g) the source and plans for the use of the nonfederal match (the degree to which the nonfederal match exceeds the minimum requirements or has increased over time and the amount of the match relative to the needs and resources of the State); (h) for competing continuation applicants only, the grantee's progress in achieving stated goals and objectives for the previous year's grant; this includes a progress report on the impact the State LRP placements have had on the State's short-term and long-term professional needs: (i) an assessment of the reasons for initial breaches by health professionals of repayment contracts; and (j) the grantee's history of compliance with reporting requirements. Noncompeting continuation applications will be evaluated on the grantee's progress in achieving stated goals and objectives for the previous year's grant; this includes a progress report on the impact the State LRP placements have had on the State's short-term and long-term professional needs: (i) and assessment of the reasons for initial breaches by health professionals of repayment contracts; and (ii) the grantee's history of compliance with reporting requirements.

Assistance considerations...

Length and Time Phasing of Assistance

A grant award is for 1 year. Applicants may propose a project period of up to 5 years. States are asked to commit the full amount of funding for their loan repayment awards to students/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.

A formula may be based on population, per capita income, and other statistical factors. Applicants are informed whether there are any matching requirements to be met when participating in the cost of a project. In general, the matching share represents that portion of the project costs not borne by the Federal government. Attachment F of OMB Circular No. A-102 (Office of Management and Budget) sets forth the criteria and procedures for the evaluation of matching share requirements which may be cash or in-kind contributions made by State and local governments or other agencies, institutions, private organizations, or individuals to satisfy matching requirements of Federal grants or loans.

Cash contributions represent the grantees' cash outlay, including the outlay of money contributed to the grantee by other public agencies, institutions, private organizations, or individuals. When authorized by Federal regulation, Federal funds received from other grants may be considered as the grantees' cash contribution.

In-kind contributions represent the value of noncash contributions provided by the grantee, other public agencies and institutions, private organizations or individuals. In-kind contributions may consist of charges for real property and equipment, and value of goods and services directly benefiting and specifically identifiable to the grant program. When authorized by Federal legislation, property purchased with Federal funds may be considered as grantees' in-kind contribution.

Maintenance of effort (MOE) is a requirement contained in certain legislation, regulations, or administrative policies stating that a grantee must maintain a specified level of financial effort in a specific area in order to receive Federal grant funds, and that the Federal grant funds may be used only to supplement, not supplant, the level of grantee funds.

Post assistance requirements...


Recipient States must submit a biannual Uniform Progress Report, and final progress report along with an annual financial report in the format approved under OMB Circular No. 0915-0004.

Note: This section indicates whether program reports, expenditure reports, cash reports or performance monitoring are required by the Federal funding agency, and specifies at what time intervals (monthly, annually, etc.) this must be accomplished.


In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Nonprofit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133.

Note: This section discusses audits required by the Federal agency. The procedures and requirements for State and local governments and nonprofit entities are set forth in OMB Circular No. A-133. These requirements pertain to awards made within the respective State's fiscal year - not the Federal fiscal year, as some State and local governments may use the calendar year or other variation of time span designated as the fiscal year period, rather than that commonly known as the Federal fiscal year (from October 1st through September 30th).


Financial records must be kept available for 3 years after the submission of expenditure reports and for 5 years after the final disposition of non-expendable property.

Note: This section indicates the record retention requirements and the type of records the Federal agency may require. Not included are the normally imposed requirements of the General Accounting Office. For programs falling under the purview of OMB Circular No. A-102, record retention is set forth in Attachment C. For other programs, record retention is governed by the funding agency's requirements.



Public Health Service Act, Section 3381, 42 U.S.C. 254 q-1, as amended; National Health Service Corps Amendments Act of 1990, Title III, Public Law 101-597.

Note: This section lists the legal authority upon which a program is based (acts, amendments to acts, Public Law numbers, titles, sections, Statute Codes, citations to the U.S. Code, Executive Orders, Presidential Reorganization Plans, and Memoranda from an agency head).

Regulations, Guidelines, And Literature

Pertinent information is contained in Section 3381 of the Public Health Service (PHS) Act, 42 U.S.C. 254q-1, as amended by Title II, Public Law 101-597; National Health Service Corps Amendments of 1990, 45 CFR 74 and 45 CFR 100; and PHS Grants Policy Statement, DHHS Publication No. (OASH) 90-50,000, (Rev.) October 1, 1990.

Contact information...

Web Sites
Regional Or Local Office

Not applicable.

Note: This section lists the agency contact person, address and telephone number of the Federal Regional or Local Office(s) to be contacted for detailed information regarding a program such as: (1) current availability of funds and the likelihood of receiving assistance within a given period; (2) pre-application and application forms required; (3) whether a pre-application conference is recommended; (4) assistance available in preparation of applications; (5) whether funding decisions are made at the headquarters, regional or local level; (6) application renewal procedures (including continuations and supplementals) or appeal procedures for rejected applications; and (7) recently published program guidelines and material. However, for most federal programs, this section will instruct the reader to consult the so-called Appendix IV of the Catalog due to the large volume of Regional and Local Office Contacts for most agencies. This information is provided in Additional Contact Information (see below).

Headquarters Office

Director, Division of State, Community and Public Health, Bureau of Health Professions, Health Resources and Services Administration, Public Health Service, Department of Health and Human Services, 5600 Fishers Lane, Room 9-105, Rockville, MD 20857. Telephone: (301) 443-1648; Grants Management Contact: Division of Grants Management Operations, Health Resources and Services Administration, , Department of Health and Human Services, 5600 Fishers Lane, Room11-11, Rockville, MD 20857. S.

Note: This section lists names and addresses of the office at the headquarters level with direct operational responsibility for managing a program. A telephone number is provided in cases where a Regional or Local Office is not normally able to answer detailed inquiries concerning a program. Also listed are the name(s) and telephone number(s) of the information contact person(s) who can provide additional program information to applicants.

Additional Contact Information (Appendix IV)

Due to the large volume of regional and local office contacts for most agencies, full contact information is also provided separately here in a PDF format: