SEC. 340I. LOAN REPAYMENTS - who knows the details?

[tony montana]

‘‘SEC. 340I. LOAN REPAYMENTS.


``(a) Loan repayments.—The Secretary, acting through the Administrator of the Health Resources and Services Administration, shall enter into contracts with individuals under which—
``(1) the individual agrees—
``(A) to serve as a full-time primary health services provider or as a full-time or part-time provider of other health services for a period of time equal to 2 years or such longer period as the individual may agree to;
``(B) to serve in a health professional needs area in a health discipline, specialty, or a subspecialty for which the area, population, or facility is designated as a health professional needs area under section 340H; and
``(C) in the case of an individual described in subsection 340H(c)(3) who is in the final year of study and who has accepted employment as primary health services provider or provider of other health services in accordance with subparagraphs (A) and (B), to complete the education or training and maintain an acceptable level of academic standing (as determined by the educational institution offering the course of study or training); and
``(2) the Secretary agrees to pay, for each year of such service, an amount on the principal and interest of the undergraduate or graduate educational loans (or both) of the individual that is not more than 50 percent of the average award made under the National Health Service Corps Loan Repayment Program under subpart III in that year.
``(b) Practice setting.—A contract entered into under this section shall allow the individual receiving the loan repayment to satisfy the service requirement described in subsection (a)(1) through employment in a solo or group practice, a clinic, an accredited public or private nonprofit hospital, or any other health care entity, as deemed appropriate by the Secretary.
``(c) Application of certain provisions.—The provisions of subpart III of part D shall, except as inconsistent with this section, apply to the loan repayment program under this subpart in the same manner and to the same extent as such provisions apply to the National Health Service Corps Loan Repayment Program established under section 338B.
``(d) Insufficient number of applicants.—If there are an insufficient number of applicants for loan repayments under this section to obligate all appropriated funds, the Secretary shall transfer the unobligated funds to the National Health Service Corps for the purpose of—
``(1) recruitment of sufficient applicants for the National Health Service Corps for the following year; or
``(2) making additional loan repayments under section 338B if there is an excess number of qualified applicants for loan repayments under such section.

Who knows the details of this section?
When does it go into effect?
What is the award made under the National Health Service Corps Loan Repayment Program under subpart III ?
I recently matched FP and was wondering if this would only apply to those who graduate after a specific date?

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[deleted87716]

I don't know the details. It appears to go into effect in 2011, however. See attached.

 

[civic4982]

Yeah i'm interested too. Trying to find a source at the AAFP site.

 

[tony montana]

Hey BD

Thanks for that attachment.

I think the section of interest reads like this:

Strengthening the Primary Care Workforce. Expands funding for scholarships and loan repayments for primary care practitioners working in underserved areas participating in the National Health Service Corps. Effective Fiscal Year 2011.

So what the new law does is "EXPAND" the loand repayment of the NHSC?

So, if I'm reading this right, what the new law is add up to $25,000 to the already $50,000 of the NHSC for those who qualify?

 

[deleted87716]

I'm not sure anyone really knows. The bill is very vague. Frankly, that's the big problem I have with it. Smoke and mirrors.

 

[civic4982]

http://www.smartmoney.com/personal-.../the-health-care-bill-and-your-student-loans/

IBR may be of interest to many resident physicians I think.

 

[digitlnoize]

http://www.smartmoney.com/personal-.../the-health-care-bill-and-your-student-loans/

IBR may be of interest to many resident physicians I think.

Lame. So, because I graduate in 2012, I'm stuck with the 15% repayment plan and the 25 year max term, not the new revisions? LAME.

My real worry with this plan is that I would do it, pay the minimums, then on year 24, they'll erase the law and I'll owe my outstanding balance...nothing stopping them from doing that, I assume. Better to get rid of the debt as fast as possible I think.

It's this kind of crap that keeps us med students from going into FM, too. The amount added to the NHSC program is a pittance, and isn't going to sway hardly anyone, either. I made a big fuss with my reps about this for the last year, for all the good it did. If they really want to increase interest in primary care, they need to pay off at least 50% of our loans, if not all of them. Then we'd start to see some numbers jump. I'd sign on the dotted line today if it erased my debt.

 

[JackADeli]

....Better to get rid of the debt as fast as possible I think...

I think, IMHO, that's true about all debt in all circumstances. Yes, keeping a debt and investing what you don't pay on an outstanding debt, may earn you some interest/returns.... but, it is a gamble. You can die, market can go south, you can be fired, etc....

So, it is a matter of philosophy. I believe eliminating and/or having as little debt as possible as soon in your career as possible is best. Debt is restrictive and limits choices and mobility. Jobs/employers, even outside of medicine, are always pleased to have employees with a house payment, car payment, etc..., it usually means the employee is more likely to stay.

If you are holding large debt, you are more dependent on the job you have and less likely to risk loosing the job by demanding more pay. You pay down debt and accrue savings... you can withstand a rainy day, you can die and not screw your family, you can tell your employer to shove it, etc, etc, etc.....

Thus, my philosophy, limit your debt and increase freedom, choices, mobility.....

 

[mx_599]

I think, IMHO, that's true about all debt in all circumstances. Yes, keeping a debt and investing what you don't pay on an outstanding debt, may earn you some interest/returns.... but, it is a gamble. You can die, market can go south, you can be fired, etc....

So, it is a matter of philosophy. I believe eliminating and/or having as little debt as possible as soon in your career as possible is best. Debt is restrictive and limits choices and mobility. Jobs/employers, even outside of medicine, are always pleased to have employees with a house payment, car payment, etc..., it usually means the employee is more likely to stay.

If you are holding large debt, you are more dependent on the job you have and less likely to risk loosing the job by demanding more pay. You pay down debt and accrue savings... you can withstand a rainy day, you can die and not screw your family, you can tell your employer to shove it, etc, etc, etc.....

Thus, my philosophy, limit your debt and increase freedom, choices, mobility.....

well said I think