ND Federal Loan Repayment Program

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Frequently Asked Questions

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Frequently Asked Questions

  • The ND Federal Loan Repayment Program is a state-administered loan repayment initiative using federal funds to increase the number of eligible health care providers practicing in federally designated Health Professional Shortage Areas (HPSAs) in ND.
  • Participants commit to at least 2 years of service in exchange for loan repayment, with opportunities for continuation awards.
  • See more details on this webpage. 
     

Health care provider eligibility requirements include:

  • U.S. citizen or U.S. national
  • Not currently under another service obligation from a loan repayment program
  • Have unpaid government or commercial educational loans for tuition, reasonable educational expenses, and living expense
  • Be in an eligible discipline as listed on the program page 

Eligible health care provider disciplines include:

  • Primary Care Physician (MD/DO)
  • Advanced Practice (NP, CNM, PA)
  • Dentist (DDS, DMD)
  • Dental Hygienist (RDH)
  • Registered Dietitian (LRD)
  • Registered Nurse (RN)
  • Pharmacist (PharmD)
  • Clinical Psychologist (PsyD or PhD)
  • Licensed Professional Counselor (LPC)
  • Licensed Clinical Social Worker (LCSW)
  • Marriage and Family Therapist (MFT)
  • Licensed Addiction Counselors (LAC) 

View more eligibility details

Qualifying educational loans include government (federal/state/local) or commercial loans obtained for educational purposes (tuition, reasonable educational expenses and living expenses). Consolidated and refinanced loans may be eligible with documentation of original disbursement details. 

View this Qualifying Educational Loans FAQ document to learn more.

  • Participants must provide services at an ND Federal Loan Repayment Program approved site located in a Health Professional Shortage Area (HPSA). Approved sites must meet specific criteria, such as being nonprofit and offering outpatient primary medical, dental, or behavioral health services.

The program provides financial support toward student loan repayment tied to service obligation and discipline. 

Awards can be:

  • Up to $50,000 for a 2-year obligation (amount may vary by discipline).
  • Part-time obligations (e.g., half-time) are eligible for proportionately lower amounts. Health and Human Services North Dakota+1

View this Prospective Participant Fact Sheet

 

A Health Professional Shortage Area is defined by the Health Resources and Services Administration (HRSA) as a geographic area, population group, or facility with a shortage of health professionals. Providers must serve in designated HPSAs to qualify. 

Learn more about shortage designations.

Service obligations are a minimum of 2 years at an approved site. There are opportunities to renew or continue contracts for years 3, 4, and 5 in some cases.

Details about service obligation.

Applications are reviewed by the North Dakota Primary Care Office and recommendations are made by the ND Primary Care Office Advisory Council based on criteria such as discipline, need, and completeness of application documentation. 

Funds paid under the ND Federal Loan Repayment Program are tax-free under IRS rules for certain state loan repayment programs designed to increase care in underserved areas, and participants cannot deduct interest paid on loans to the extent the program pays it. 

Brief Summary of IRS Publication 970

  • Full-time service: Typically defined as a minimum number of direct patient care hours with allowances for limited administrative duties.
  • Part-time service: Requires fewer hours but must meet minimum direct care standards.
  • Contract details are included in award documentation.
  • More information on contract obligations.

No — participants cannot hold simultaneous service obligations under multiple loan repayment programs (e.g., ND Federal Loan Repayment and NHSC) as this would constitute a breach of contract. 

See ND Federal Loan Repayment FAQ.

Payments are generally made directly to your lending institution once the contract is fully executed and service obligations are verified.

See Provider Awarding and Withdrawal Process 

If an awardee fails to complete their service commitment, they must repay a calculated amount based on funds received, months not served, and interest per federal rules. 

See breach penalties information in the ND Federal Loan Repayment FAQ. 

Application checklists and guidance for providers and sites are linked on this webpage. 
 

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Providers are considered eligible if they:

  • Are a United States citizen or U.S. Natural.
  • Are not under a current service obligation (currently part of a loan repayment program).
  • Have unpaid government or commercial loans for school tuition, reasonable educational expenses and reasonable living expenses, and are segregated from all other debts.
  • Are within an eligible discipline.

Provider Disciplines Eligible:

  • Primary Care Physicians (MD, DO)
  • Advanced Practice (NP, CNM, PA)
  • Dentists (DDS, DMD)
  • Dental Hygienist (RDH)
  • Registered Nurses (RN)
  • Registered Dietitians
  • Pharmacists (PharmD)
  • Clinical Psychologist (PsyD or PhD)
  • Licensed Professional Counselor (LPC)
  • Licensed Clinical Social Worker (LCSW)
  • Marriage and Family Therapist (MFT)
  • Licensed Addiction Counselor (LAC)

To be eligible, sites must:

  • Be a non-profit (public or private)
  • Be located in a Health Professional Shortage Area (HPSA)
  • Provide outpatient, ambulatory, primary medical, mental and behavioral, and/or dental services
  • Provide services on a free or reduced fee schedule basis to individuals at or below 200% of the federal poverty level
  • Accept patients covered by Medicare, Medicaid, and the Children’s Health Insurance Program (CHIP);
  • Agree to not discriminate in the provision of services to individuals based on their ability to pay, race, color, sex, national origin, disability, religion, or sexual orientation
  • Use a clinician credentialing process including reference review, licensure verification, and a query of the National Practitioner Data Bank (NPDB); 
  • Agree to not reduce a clinician’s salary due to SLRP support

*Sites must meet all of these eligibility requirements

Up to $50,000 for a two-year service obligation. Funding amount is based on discipline.

The funds paid by the North Dakota Department of Health and Human Services (federal funds) are all tax free.

IRS Publication 970 states the following regarding student loan repayment assistance programs "Student loan repayments made to you are tax free if you received them for any of the following:

  1. The National Health Service Corps Loan Repayment Program.
    1. A state education loan repayment program eligible for funds under the Public Health Service Act. 
    2. Any other state loan repayment or loan forgiveness program that is intended to provide for the increased availability of health services in underserved or health professional shortage areas (as determined by such state).
    3. You cannot deduct the interest you paid on a student loan to the extent payments were made through your participation in the above programs." 
  2. Payments under certain state loan repayment programs.
    1. In the case of an individual, gross income shall not include any amount received under section 338B(g) of the Public Health Service Act, under a state program described in section 338I of such Act, or under any other state loan repayment or loan forgiveness program that is intended to provide for the increased availability of health care services in underserved or health professional shortage areas (as determined by such state).
    2. Under 26 U.S.C. § 3401(a) (19), state loan repayment program payments are also not considered to be "wages" and are therefore exempt from federal employment tax (FICA).
  3. Wages
    1. For purposes of this chapter, the term "wages" means all remuneration (other than fees paid to a public official) for services performed by an employee for his/her employer, including the cash value of all remuneration (including benefits) paid in any medium other than cash; except that such term shall not include remuneration paid.
    2. For any benefit provided to or on behalf of an employee, if at the time such benefit is provided, it is reasonable to believe that the employee will be able to exclude such benefit from income under section 74(c), 108(f)(4), 117, or 132.

Applications will be reviewed by the North Dakota Primary Care Office and given to the ND Primary Care Office Advisory Council for recommendations and selection.

Contracts are a minimum of 2 years, with opportunities for continuation for years 3, 4, and 5.

Full time is a minimum of 32 hours of direct patient care with 8 hours of administrative time allowed.

Part time is a minimum of 16 hours per week of direct patient care with 4 hours of administrative time allowed.

*Requirements are different for those serving at critical access hospitals

Employer match is required up to 50% of the grant award. This requirement is new for the 2026-2029 grant cycle. 

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