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(1) The minimum length of obligated service is two years, or such longer period as the Program participant may agree to. The maximum length of obligated service is four years. If a Program participant agrees to an original contract of two or three years, such contract may be extended, subject to the availability of appropriated funding, for one year or two years (up to the four-year maximum). A one-year extension will not reactivate the statutory minimum requirement of two years of service.

862.30 What other regulations and

statutes apply? Other regulations and statutes which apply to this subpart include but are not limited to:

Debt Collection Act of 1982, Pub. L. 97-365 (5 U.S.C. 5514) including Section 4, Requirement that Applicant Furnish Taxpayer Identifying Number;

Fair Credit Reporting Act (15 U.S.C. 1681 et seq.);

Privacy Act of 1974 (5 U.S.C. 552a);

Section 215(a) of the Public Health Service Act, as amended (42 U.S.C. 216(a)), for PHS commissioned officers, and 5 U.S.C. 3301 for civil service employees both of which authorize verification of an individual's suitability for employment;

Privacy Act of 1974; Alteration of System of Records, 52 FR 21622–21627, June 8, 1987, regarding the collection, maintenance and allowable use of personal information requested from program applicants.

Information collection requirements contained in paragraph (b)(2) were approved by the Office of Management and Budget under kontrol number 0915-0131)

Subpart C-Grants for State Loan

Repayment Programs

62.27 What will happen if an individ

ual does not comply with the terms and conditions of participation in the Loan Repayment Program? Program participants who default on their Loan Repayment Program ConTacts will be subject to the applicable monetary payment provisions set forth at section 338E of the Act. Payment of any amount owed under section 338E of he Act shall be made within one year of the date the participant breached his r her Loan Repayment Contract, as etermined by the Secretary.

AUTHORITY: Sec. 215 of the Public Health Service Act, 58 Stat. 690 as amended, 63 Stat. 35 (42 U.S.C. 216); sec. 338H of the Public Health Service Act, 101 Stat. 999 (42 U.S.C. 254q-1).

SOURCE: 54 FR 13464, Apr. 3, 1989, unless otherwise noted.

62.28 Under what circumstances can

the service or payment obligation be canceled, waived or suspended? A service or payment obligation nder the Loan Repayment Program rill be canceled or may be waived or uspended as provided in $62.12 of this art of the regulations.

62.29 Under what circumstances can

the Loan Repayment Program obligation be discharged in bank. ruptcy? Any payment obligation incurred nder $62.27 of this subpart may be reased by a discharge in bankruptcy nder title 11 of the United States Code nly if such discharge is granted after ne expiration of the five-year period eginning on the first date that paylent was required, and only if the ankruptcy court finds that ondischarge of the obligation would e unconscionable.

862.51 What is the scope and purpose

of the State Loan Repayment Pro

gram? The regulations of this subpart apply to the award of grants authorized by section 338H of the Public Health Seryice Act (42 U.S.C. 254q-1) to support the establishment of State programs similar to the National Health Service Corps Loan Repayment Program authorized by section 338B of the Public Health Service Act (42 U.S.C. 2541-1). The purpose of this program is to improve the delivery of health services in medically underserved areas. 8 62.52 Definitions.

In addition to the definitions in 862.2 of this part, the following definitions will apply for purposes of this subpart:

The definitions of Qualifying loans, Commercial loans, Government loans, Educational expenses, and Living expenses as contained in $62.22 of this part will apply for purposes of this subpart.

Medically underserved area means health manpower shortage area or an area which has been designated by a State pursuant to standards described in $62.54(b)(1) of this subpart which the Secretary has deemed acceptable.

State Loan Repayment Program or program means a State loan repayment program authorized under section 338H (42 U.S.C. 254,-1) of the Act.

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8 62.53 Who is eligible for this pro

gram? Any State is eligible to apply for a grant under this subpart.

862.34 What must applications for the

State Loan Repayment Program

contain? (a) An application for a grant under this subpart shall be submitted to the Secretary at such time and in such form and manner as the Secretary requires.

(b) The application shall contain a budget and narrative statement describing the manner in which the applicant intends to conduct the project and carry out the requirements of this subpart. In addition, applications must include:

(1) A description of the State's standards for the designation of medically underserved areas, except that no description of designation standards will be required if the State elects to use health manpower shortage areas designated by the Secretary;

(2) An assessment of the need and demand in medically underserved areas within the State for health professions manpower with special emphasis on individuals whose training is in a health profession or specialty identified by the Secretary pursuant to $62.23(b) of this part. This assessment should include such demographic indicators of the need as the economic accessibility of health care services in the State as measured by poverty levels, the percentage of the service area population without health insurance, and the health status of the population as measured by the rates of infant mortality, low birth weight, geographic barriers and other indicators;

(3) A proposal for the placement of the health profession providers in medically underserved areas with the

greatest need and demand in accordance with the need/demand assessment completed in compliance with parar graph (b)(2) of this section;

(4) Adequate assurances that sufflcient current year State funds are available to cover the non-Federal share of State Loan Repayment Program costs;

(5) A description of how the program would meet the requirements of 462.66 to demonstrate its similarity to the NHSC Loan Repayment program;

(6) A description of the source of, and plans for the use of, State matching funds;

(7) A description of how the program would be coordinated with Federal State and other organized activities within the State which relate to health manpower services and resources;

(8) Identification of the State entity and key personnel who would admin ister the grant and a description of the qualifications and experience of that entity and its personnel concerning the State's health service delivery syren and health manpower needs;

(9) A description of the State's plan for administration of the State's Loan Repayment Program which may in clude such provisions as annual level of loan repayment to be made unde the program, the number of health pro fessionals to be funded, the frequeno and timing of the loan repayment program incentives for longer period of service, procedures for monitoring the service of program participants placing professionals in default for fal ure to complete their service oblig tion, penalties for default, provision for waivers and suspensions, and a scription of the contract/obligatia process to be used by the State to obil gate individuals receiving State love repayments;

(10) A description of the State's Deo for Federal assistance in obtainio health professions resources and dem onstrated inability to obtain such me sources without Federal assistance;

(11) A description of how the State will accord special consideration to medically underserved areas with large minority populations; and

(12) The signature of an individual authorized to act for the State and assume on behalf of the State the obli

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Public Health Service, HHS

Act for all services for which payment Eigations imposed by the statute, the ap

may be made under part B of title aplicable regulations of this subpart and

XVIII of such Act and enter into an ap iny additional conditions of the grant.

propriate agreement with the State Approved by the Office of Management and

agency which administers the State Judget under control number 0915-0131)

plan for medical assistance under title

XIX of such Act to provide service to 23 62.56 What State Program Elements

are required to ensure similarity individuals entitled to medical assist-
with the NHSC Loan Repayment ance under the plan;

(d) Repay qualifying loans for par-
EIKEA State Loan Repayment Program ticipating health professionals;
7 cupported under this subpart must: (e) Provide that the loans of health

(a) Establish priorities for loan re- professionals will be repaid on a perivyment applicants consistent with

odic basis after the receipt of obligated che le provisions of $62.23 of this part; services by such participant for such (b) Contract only with a person who

period; and o ba (1) enrolled as a full-time student in 3d e final year of a course of study or $62.56 How are the Federal grant

ogram in an accredited school in a funds and State matching funds to is state leading to a degree in allopathic

be used under this program? Mosteopathic medicine, dentistry or

The Federal share of any program to her health profession, or (2) enrolled shall not exceed 75 percent of the cost an accredited graduate training pro- of the approved state program. The

am in a state in allopathic or osteo- Federal share must be used to repay

ithic medicine or dentistry or other the qualifying loans of health profesealth profession, or (3) a practitioner sionals. No portion of the Federal share

censed by a State who has completed shall be used to pay for administrative aining in an accredited graduate

costs of any State Loan Repayment the raining program in allopathic or os

Program. The State's share of the proteopathic medicine, dentistry or other

gram may be used to repay qualifying alth profession;

loans of health professionals or adminSUC) Provide that health professionals istrative costs of the State's Loan Rerticipating in a State Loan Repay.

payment Program, or a combination of ent Program shall:

both. All program administrative costs Led 24) Serve for at least 2 years in a

edically underserved area identified are to be borne by the state. No por
ursuant to $62.54(b)(3) of this subpart tiom of the State's share of the pro-
the full-time clinical practice of gram shall consist of Federal funds.
eir profession,
2) Charge for his or her professional $62.67_How will States be selected to
rvices at the usual and customary

participate in this program? ste prevailing in the area in which

Within the limits of funds available ich services are provided, except that under section 338H of the Act, the Sec

a person is unable to pay such retary may award grants to state ap ve sange, such person shall be charged at plicants whose proposed Loan Repay

(3) In providing health services, not ment, best promote the purposes of secreduced rate or not charged any fee, ment Programs will, in his or her judgscriminate against any person on the tion 338H of the Act, taking into acisis of such person's ability to pay for count, among other pertinent factors: ch services or because payment for

e health services provided to such professions manpower; rson will be made under the insurice program established under part A the State proposes to support through B of title XVIII of the Social Secu- this program; ty Act or under a State plan for medal assistance approved under title standards for the designation of medi

X of such Act, and ader section 1842(b)(3)(B)(ii) of such of obligated providers;

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(a) The need of the State for health

(b) The number and type of providers

(c) The acceptableness of the State's

cally underserved areas and the appro


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tion 338E(b) of the Act, as if no payments had been made on the debt.

35(1)(1) of the Act (as in effect on Sepmber 30, 1977); and (2) Not already serving their obligaons on December 1, 1987, under a judgent, forbearance agreement, or other itten agreement to serve. UPOL means the Health Manpower

ortage Area Placement Opportunity ist described in section 204(b) of Pub.

datch means that the Secretary has
eived documentation of:
1) An offer of employment from a

OL or SHPOL site which specifies at est the agreed upon salary and start se; and

:) The Program participant's accepte of that offer. Provided, however,

t if the Program participant would -Belf-employed, a match means that

Secretary has approved a program ticipant's private practice option lication under section 338D(a) of the

nor approved service means service : formed prior to a Program partici

t's service start date under the Spe1 Repayment Program: .:) As a member of the National Ith Service Corps pursuant to an gament by the Secretary under sec7333 of the Act;

Under a written private practice on agreement signed by the Secry pursuant to section 338D of the

8 62.73 What are the procedures for

participation in the Special Repay

ment Program? (a) Notice of eligibility for participation in the program. On or before February 29, 1988, the Secretary will, subject to paragraph (h) of this section, send written notice to each eligible defaulter of the opportunity provided under this Program. The notice will be sent to the last known address of each eligible defaulter and will describe the special repayment options available under the Program.

(b) Selection of repayment method. On or before May 29, 1988, eligible defaulters who wish to participate in this Program must sign and submit to the Secretary a written contract to provide service in accordance with either section 204(b) or section 204(c) of Pub. L. 100–177. The election between section 204(b) and section 204(c) of Pub. L. 100177 is binding on the eligible defaulters.

(c) Service sites. Program participants will receive a listing of approved sites appropriate to the service option they have selected. Program participants electing service under section 204(b) of Pub. L. 100–177 will receive a HPOL. Program participants electing service under section 204(c) of Pub. L. 100-177 will receive a SHPOL. The HPOL or SHPOL sent to the Program participant will be specific to the Program participant's profession and his or her specialty training which is most needed by the National Health Service Corps. The Secretary is not required to identify placements for Program participants in a medical specialty for which the National Health service Corps has no need.

(d) Time frames for matching and commencing service. If a program participant electing to serve under section 204(b) of Pub. L. 100–177 chooses to serve at a remaining site on the 1988 HPOL, such participant must match to a site and must begin serving at the site by October 1, 1988. If a Program participant electing to serve under section 204(b) of Pub. L. 100–177 chooses to serve at a site on the 1989 HPOL, such participant must match to a HPOL site by February 15, 1989, and must begin


1 In compliance with section 338C(e) 1e Act. ogram participant means an eligit ulter whose contract under section If Pub. L. 100-177 has been accepted signed by the Secretary. holarship amount means the sum of amounts paid to, or on the behalf & scholarship recipient under the NHSC Scholarship Training Pron and/or the Scholarship Program. IPOL means the Supplemental Ith Manpower Shortage Area Placet Opportunity List described in ion 204(d) of Pub. L. 100_177. ecial Repayment Program or Program ns the program authorized by sec

204 of Pub. L. 100-177. ital debt means the debt that would owed by a Program participant er section 225(1)(1) of the Act, as in et on September 30, 1977, and/or sec

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