Montana State Loan Repayment Program (SLRP)

Eligible providers must meet all of the following requirements:

• Must be a US citizen or national; and
• Hold an unrestricted license to practice in the State of Montana; and
• Complete all medical education and required training hours; and
• Provide primary care services; and
• Work at an approved site in a HPSA; and
• Be free of judgments arising from federal debt without defaulting on payments; and
• Have no debt written off as uncollectible or received a waiver of federal service; and
• Not have breached a prior service obligation to any entity; and
• Not have any other current service obligations or commitments; and
• Must agree to use the Montana SLRP funds to repay qualifying educational loans.

The NHSC requires two years of service, with a minimum of 45 weeks worked each service year.

• Full-time awardees must work 40 hours per week, of which 36 hours must be direct patient care. Direct patient hours may include up to eight (8) hours of teaching activities. Administrative duties must not exceed more than four (4) hours per week.
• Part-time awardees must work at least 20 hours per week, with a minimum of 18 hours of direct patient care. Direct patient hours may include up to four (4) hours of teaching activities. Administrative duties must not exceed more than two (2) hours per week.
• Telehealth services can be no more than 75 percent of the minimum weekly hours required to provide direct clinical care. Both the originating site (location of the patient) and the distant site (location of the clinician) must be in a HPSA.

Sites must be an NHSC Active site or an approved Montana SLRP site.

• Located in a Health Professional Shortage Area (HPSA); and
• Provide primary medical care, dental health, or mental health services; and
• See patients regardless of their ability to pay; and
• Be a public or non-profit site.
• Federally Qualified Health Centers (FQHCs), Indian Health Service Facilities, Tribally Operated 638 Health Programs, Urban Indian Health Programs, and most correctional facilities qualify.
• Certified Rural Health Clinics (RHC), Critical Access Hospitals (CAH), Community Mental Health Centers (CMHC), State or Local Health Departments, Community Outpatient Facilities, Private Practices, School-based Clinics, Mobile Units, and Free Clinics are eligible site types.

The HRSA Health Workforce Connector website can be used to verify if your site is an NHSC Active site.

If your site is not an NHSC Active site, your site administrator may complete a Montana SLRP Site Application.

Montana SLRP awards can only be used to repay eligible government (federal, state, or local) or commercial (i.e. private student) loans directly related to pursuing an education in a health profession.

Consolidated/refinanced loans:

• If an eligible educational loan is consolidated/refinanced with ineligible (non-qualifying) debt, no portion of the consolidated/refinanced loan will be eligible for loan repayment.
• If an eligible educational loan is consolidated/refinanced with loans owed by any other person, such as a spouse or child, no portion of the consolidated/refinanced loan will be eligible for loan repayment.

Some types of ineligible loans:

• Loans for which the applicant incurred a service obligation, which they will not complete before the SLRP application cycle closes
• Loans for which the associated documentation cannot identify that the loan was solely applicable to the clinician’s undergraduate or graduate education
• Loans not obtained from a government entity or private student loan lending institution
• Most loans made by private foundations to individuals
• Loans already repaid in full
• Primary Care Loans (PCLs)
• Parent PLUS loans
• Personal lines of credit
• Loans subject to cancellation
• Residency loans
• Credit card debt

Loans in forbearance or default:

• A loan in forbearance may be eligible if it is expected to be in active status prior to the SLRP application cycle closing. The clinician must comply with requests to supply updated lender statements.
• Loans that are currently in default are not eligible for the Montana SLRP.

Receiving a Montana SLRP award creates a service obligation with the clinician in exchange for an agreement to work. A clinician cannot be in an existing service obligation and receive a SLRP award at the same time. The clinician must complete an existing service obligation before they can receive a Montana SLRP award. The NHSC does not consider the Public Loan Forgiveness Program a service obligation.

Some Types of Service Obligations:

• Certain provisions in employment contracts (i.e. recruitment bonuses) that offer an incentive in return for an agreement to work for a certain amount of time or repay the bonus if the clinician departs early.
• NHSC Scholarship, Students to Service, or Loan Repayment Program awards
• Montana Rural Physician’s Incentive Program (MRPIP) awards
• Primary Care Loans

Award Payment:

Payment is issued to the clinician directly by check. Documentation to confirm payment is made to the loan servicer and applied to the approved educational loans is required within thirty (30) days of the payment being issued.

Employment Verification:

The NHSC and Montana SLRP require employment verification every six (6) months to ensure the service obligation is being met.

Site Changes:

The NHSC expects Montana SLRP recipients to fulfill their service obligation at their original practice site for the duration of their agreement.

There are some unique exceptions that may arise. Recipients must contact the Montana Primary Care Office to discuss these situations case-by-case. 

Extended Leave:

Participants are allowed seven (7) weeks of leave per service year. The NHSC expects Montana SLRP recipients to fulfill their two-year service obligation. Any period of extended leave beyond the allowable time should be discussed with the Montana Primary Care Office. 

• Maternity/Paternity/Adoption- HRSA will approve requests for maternity/paternity/ adoption leave of twelve (12) weeks or less. Participants must discuss leave with the Montana Primary Care Office. If more than twelve (12) weeks of leave are required, the recipient may be required to request a medical suspension and extension of their service obligation.
• Call to Active Duty- Participants who are military reservists and called to activity duty must submit a request for suspension, which may be granted for up to one year, and an extension of the service obligation.
• Unemployment- Participants who are unemployed from their approved site must discuss their situation with the Montana Primary Care Office. A temporary suspension and/or extension of the service obligation may be required.

Failure to Complete Obligation:

The Montana SLRP expects all program participants to be in communication with the Montana Primary Care Office regarding any situation that may interfere with the ability to complete the service obligation.

HRSA and the NHSC take violations of breach of the service obligation very seriously. If a participant is found to be in default, they will be subject to federal penalties equal to the sum of the following (see 42 U.S.C. § 254o(c)(1)):

• The amounts paid to the participant for any period not completed; and
• $7,500 multiplied by the number of months not completed; and
• Interest on the above amounts; and
• The penalty amount shall be no less than $31,000.