Applicant Information Bulletin: School Year 2009-2010
Employing Institution

The employing institution must be an eligible health professions school (i.e., an accredited school of medicine, osteopathic medicine, dentistry, nursing, pharmacy, allied health, podiatric medicine, optometry, veterinary medicine, public health, or a school offering graduate programs in behavioral or mental health) and must satisfy the following requirements.

1. Employment Contract – The employing institution must enter into a contract with the applicant to serve as a faculty member for a minimum of 2 years. 
2. Loan Repayment Agreement or Waiver of Loan Repayment Requirement – The employing institution must enter into a written agreement with the applicant to make loan repayments or request and be granted a full or partial waiver of this loan repayment requirement.

   Loan Repayment Agreement – The employing institution’s loan repayment agreement must provide that:

   • The institution will make payments of the principal and interest due on the educational loans of the faculty member in an amount equal to the amount of such payments made by HHS under its 2-year FLRP contract (the maximum amount is $40,000 for 2 years);
   • The loan repayments made by the school will be in addition to the pay that the faculty member would otherwise receive; and
   • The amount of the Faculty member’s pay will be determined without regard to the amount of the payments made by HHS under its 2-year FLRP contract.

   Waiver of Loan Repayment Requirement - The Secretary or his/her designee may waive all or part of the above requirement if the Secretary or his/her designee determines, based on documentation submitted by the employing institution, that the requirement will impose an undue financial hardship on the employing institution.  The following items are examples of documentation that would support a waiver request:

   • Documentation of diminished financial resources (e.g., consistent budget cuts, reduced earnings on endowments, and/or unexpected expenditures), such that payment of all or part of the matching loan repayment funds would impose an undue financial hardship.  This will be evaluated based on documentation provided for the last two or three years; or
   • Documentation showing the institution is engaged in collective bargaining agreement(s) that either prohibits such differential compensation or that would require the institution to provide a similar dollar amount of support for faculty not covered under the FLRP.
     
     
3. Institution Employment/Loan Repayment Verification – Complete the Institution Employment/Loan Repayment Verification form which verifies that the applicant will serve as a faculty member for a minimum of 2 years in one of the eligible health professions.

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