Applicant Information Bulletin: School Year 2009-2010
Qualfying Educational Loans

1. Loans Qualifying for Repayment - FLRP participants will receive loan repayment funding to be applied to the principal and interest of Government (Federal, State, or local) and commercial loans obtained by the participant for:  school tuition; other reasonable educational expenses; and reasonable living expenses.  The loans for tuition and expenses are limited to those incurred by the participant for undergraduate or graduate education pursued prior to obtaining a degree in the health profession in which the participant will satisfy his or her FLRP service commitment.
   
   Loans incurred after an application is submitted will not be considered.
   
   Applicants must submit a Loan Information Verification Form for each loan and the following proof of their qualifying educational loans:  1) master promissory notes or disclosure statements, and 2) current account statements from the current holder(s) indicating the borrower’s name, original amount borrowed, date of original disbursement, type of loans, and your loan balance(s).  The current account statement must be dated not more than 30 days before the postmark date of the FLRP application.  Additional loan documentation may be required during the review process to determine the eligibility of the loan.
   
   All loans submitted for loan repayment will be verified to determine whether they are eligible for repayment under FLRP by contacting lenders and holders and checking the applicant’s credit report. 
   
2. Loans Not Qualifying for Repayment - The following are examples of financial obligations that do not qualify for repayment by the FLRP:
   1. loans for which the associated documentation (e.g., promissory notes and lender statements) does not identify the loans as applicable to undergraduate or graduate education;
   2. loans not obtained from a government entity or commercial lending institution.  Most loans made by private foundations or individuals are not eligible for repayment;
   3. loans, or that portion of loans, obtained for educational or living expenses which exceed the school’s estimated standard student budget in the year the loan was made and the student is unable to substantiate to the FLRP’s satisfaction that the excess educational and/or living expenses were reasonable;
   4. loans that have been repaid in full;
   5. loans for residency relocation (e.g., Medex loans);
   6. PLUS loans (made to parents);
   7. personal lines of credit; and
   8. loans for which there are co-borrowers (co-signers).
      
      
3. Consolidated Loans - If eligible educational loans are consolidated and/or refinanced, the original loan documentation must be submitted to establish the educational purpose and contemporaneous nature of such loans.  The consolidated/refinanced loan must be from a Government (Federal, State, or local) or commercial lender and be for the applicant’s qualifying educational loans only.  If an eligible educational loan is consolidated/refinanced with any debt other than another eligible educational loan of the applicant, no portion of the consolidated/refinanced loan will be eligible for loan repayment.
   
   For eligible loans to remain eligible for the FLRP, applicants must keep their eligible educational loans segregated from all other debts.  Also, eligible educational loans should not be consolidated with loans owed by any other person, e.g., spouse, or child.  Finally, borrowers should be sure to get a disclosure statement on the consolidated loans from their lenders.
   
   Loans incurred after an application has been submitted will not be considered. 

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