[Code of Federal Regulations]

[Title 42, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 42CFR62.25]



[Page 365-366]

 

                         TITLE 42--PUBLIC HEALTH

 

    CHAPTER I--PUBLIC HEALTH SERVICE, DEPARTMENT OF HEALTH AND HUMAN 

                                SERVICES

 

PART 62_NATIONAL HEALTH SERVICE CORPS SCHOLARSHIP AND LOAN REPAYMENT 

PROGRAMS--Table of Contents

 

     Subpart B_National Health Service Corps Loan Repayment Program

 

Sec. 62.25  What does the Loan Repayment Program provide?



    (a) Loan repayment. For each year of service the individual agrees 

to serve, with a minimum of 2 years of obligated service, the Secretary 

may pay:

    (1) Except as provided in paragraph (a)(2) of this section, up to 

$20,000 per year of a Program participant's qualifying loans or

    (2) Up to $25,000 per year for a Program participant's qualifying 

loans if the Program participant agrees to provide obligated service in 

the Indian Health Service or a health facility or program operated by a 

tribe or tribal organization under the Indian Self-Determination Act.



The Secretary may establish different levels of annual loan repayment to 

encourage Program participants to serve in a manner which is in the best 

interest of the Loan Repayment Program. No loan repayments will be made 

for any professional practice performed prior to the effective date of 

the Loan Repayment Program Contract. Once a loan repayment contract has 

been signed by both parties, the Secretary will obligate such funds as 

will be necessary to ensure that sufficient funds will be available to 

make loan repayments for the duration of the period of obligated 

service.

    (b) Site visit. The Secretary may reimburse an individual for the 

actual and reasonable travel expenses associated with one trip from the 

individual's residence to a site for the purpose of evaluating such site 

for service under the Loan Repayment Program.

    (c) Tax liability payments. The Secretary may, upon a Program 

participant's written request, make payments in a reasonable amount, as 

determined by the Secretary, to reimburse the Program participant for 

all or part of the increased Federal, State and local tax liability 

resulting from loan repayments received under the Loan Repayment 

Program. To maximize the Federal resources available for placing 

participants in HMSAs, supplementary payments for increased tax 

liability will only be made under unusual circumstances, and in no cases 

will these tax liability payments exceed 20% of the annual amounts of 

the loans being repaid. Program participants wishing to receive tax 

liability payments must submit their requests for such payments in a 

manner prescribed by the Secretary and must provide the Secretary with 

any documentation the Secretary determines is necessary to



[[Page 366]]



establish a Program participant's increased tax liability. The Secretary 

will determine, based on the availability of funds and such other 

factors as the Secretary determines, the amounts of any such payments 

that may be made.



(Information collection requirements contained in paragraph (c) were 

approved by the Office of Management and Budget under control number 

0915-0131)



[54 FR 13462, Apr. 3, 1989, as amended at 57 FR 56996, Dec. 2, 1992]