California State Loan Repayment Program (SLRP): Eligibility And Application Process
The California State Loan Repayment Program helps increase the number of healthcare practitioners and primary care physicians in the federally designated California Health Professional Shortage Areas.
In exchange for their service, the state government assists primary healthcare professionals with the repayment of their student debts.
Applicant Requirements
According to the Healthcare Workforce Development Division (HWDD), applicants must:
- Be a US citizen or national (born or naturalized)
- Be free from any judgments due to ongoing federal debts
- Not have service obligations elsewhere
- Not be in breach of any service-related obligation
- Be current on child support payments
- Be employed at an approved site
- Agree to work 40 hours per week (full-time) for two consecutive years or 20 hours per week (part-time) for four consecutive years
Eligibility Criteria
The applicant must have a current and unrestricted California license to practice as one of the following:
- Certified Nurse Midwife
- Dentist
- Osteopathic Medicine Doctor
- Health Service Psychologist
- Licensed Clinical Social Worker
- Professional Counselor
- Marriage and Family Therapist
- Medical Doctor
- Mental Health Counselor
- Mental Health Providers
- Nurse Practitioners
- Pharmacists
- Physician Assistant
Site eligibility requirements for the California Loan Repayment program include:
- The student should be located in a designated Health Professional Shortage Area
- Able to pay the provider the standard wage as per current rates
- Students should be in a public or private not-for-profit out-patient facility
- Should have completed a practice site profile
Which Loans Qualify For This Program?
Only government and commercial loans obtained from a qualifying lender to pursue graduate and undergraduate health professional degrees are eligible for SLRP. Debts that aren’t covered under this program include:
- Credit card
- Personal lines of credit
- Interest accrued on educational debts
- Any debt in default or repaid in full
- Primary care loans
- Residency loans
Moreover, the applicant must have taken out the financing in their name. Any eligible lending product that’s otherwise been consolidated with debt owed by someone else, such as a spouse, is ineligible for this program. For loans to be categorized as eligible, applicants must keep their educational debts separate from all other arrears.
Award: Evaluation, Process, And Limits
OSHPD has issued at least $2,458,420 in SLRP funding. Another round of $2,458,420 will be awarded since the participating practice sites match the award for each provider. $1 million is designated for mental health provider loan repayment.
Award amounts can change based upon federal requirements. In general, the funds are disbursed in the following ratio:
Full-Time Maximum Award:
- Initial Obligation: $50,000
- Extension Year 1: $20,000
- Extension Year 2: $20,000
- Extension Year 3: $10,000
- Extension Year 4: $10,000
Half-Time Maximum Award:
- Initial Obligation: $50,000
- Extension Year 1: $10,000
- Extension Year 2: $10,000
- Extension Year 3: $5,000
- Extension Year 4: $5,000
Every site is required to match the awarded grant up to $25,000 per provider. The total amount of funds may vary because of the provider’s debt. Providers will be required to consult with the practice site to see if the site will provide a matching award.
Applicant’s Service Obligations
Applicant’s service obligations are based on the requirements for full-time or half-time clinical practice.
Full-time service:
- Includes providers of primary medical health care services, nurse practitioners, dentists, pharmacists, registered dental hygienists, and physician assistants. Clinicians should work for a minimum of 45 weeks per service year. They should work 40 hours per week with no more than 12 hours of work performed in 24-hours. In addition, they shouldn’t spend more than eight hours per week in an administrative capacity
- Includes providers of obstetrics, gynecology, pediatric and geriatric services, as well as mental and behavioral healthcare
Half-time service:
Includes providers of primary medical health care services, dentists, nurse practitioners, and registered dental hygienists. The clinician should be able to work 20 hours per week for a minimum of 45 weeks per service year. Additionally, they shouldn’t have worked more than 12 hours in any 24-hour period.
Other obligations include options like:
- Switching from full-time to half-time or vice-versa: This depends on the approval of the OSHPD. In any case, half-time grantees can’t switch to full-time while completing their initial obligation
- Absence from the designated worksite: A total of 35 workdays are allocated to grantees per service year. For each additional day, OSHPD reserves the right to extend the service contract end date
Award Disbursal Provisions
OSHPD will notify selected applicants once the award decisions are finalized. The award process time can vary since it completely depends upon the number of applications received. OSHPD uses DocuSign to send the grant documents to the awardees as well as to the site administrators for their review and signatures.
Following this, the designated provider must submit documentation of payments for the SLRP award amount within 30 days of the agreement end date.
The site administrator will then submit an Employment Verification form through the eApp every six months to verify the provider’s working hours. OSHPD reserves the right to increase or decrease the number of Employment Verification forms during this obligation period.
The site administrator will also submit the Site Payment Certifications through the eApp after the site makes the same payment to the provider.
The Bottom Line
If you’re working in any of the fields listed above in California, you may be eligible for the State Loan Repayment Program. To lower your financial burden, make sure to review the requirements and apply for this beneficial repayment initiative.
