Indian Health Service Soliciting Applications for FY 2011 Loan Repayment Program

The Indian Health Service (IHS) is soliciting applications, via the attached February 15, 2011, FEDERAL REGISTER notice, for the repayment of health professions educational loans. Under the Loan Repayment Program (LRP), authorized under Section 108 of the Indian Health Care Improvement Act, the IHS may make awards to persons for the repayment of health professions educational loans in return for full-time clinical service in Indian health programs.

Loan repayment recipients may receive a maximum award of $20,000 per year for each year of contracted service, plus the IHS will provide an additional 20 to 39 percent of the participant’s total loan repayments to the Internal Revenue Service for the increased tax liability.

The IHS estimates that it will provide nearly $17.5 million in FY 2011 funds for the LRP, which will support “approximately 390 competing awards averaging $44,860 per award for a two-year contract.” Applications for the FY 2011 LRP will be accepted beginning February 25, 2011, and will continue to be accepted each month thereafter until all funds are exhausted.

The attached notice lists the priority health professions that will be considered in making awards under the LRP. The IHS does not establish percentages of awards for specific professions. The IHS will give priority to applications made by American Indians/Alaska Natives and to those individuals recruited through the efforts of tribes or tribal organizations. Other factors that will be taken into consideration are: 1) an applicant’s length of current employment in the IHS, tribal, or urban program; 2) availability for service earlier than other applicants, and 3) date of receipt of the individual’s application.

The notice points out that IHS Area Offices and Service Units are authorized to provide supplemental funds for LRP participants for use in their areas, but the total amount cannot exceed $35 million when combined with the $17.5 million made available in this notice.

Application materials may be obtained on line at or by contacting:

IHS Loan Repayment Program
801 Thompson Avenue, Suite 120
Rockville, Maryland 20852
(301) 443-3396

Additional information regarding this program may be obtained from Jacqueline Santiago, Chief of the IHS Loan Repayment Program, at the same contact information as above.

We remind potential applicants that because of the great demand for the IHS loan repayment funds, persons intending to apply should do so early. Inquiries regarding this Memorandum may be directed to the information below.