Health Profession Primary Care Loans (HPLC)

A Department of Health and Human Services Health Professions Primary Care Loan is a low-interest loan that can be given to students showing exceptional financial need. The student must be enrolled full time and must be pursuing a degree in allopathic or osteopathic medicine. In addition, students receiving a Primary Care Loan must enter into a written contract agreeing to: 1) enter and complete residency training in primary care within 4 years of graduation and 2) practice in primary care until the loan is paid in full.

Acceptable residency training activities for a Primary Care Loan borrower are:
family medicine
internal medicine
pediatrics, combined medicine/pediatrics
preventive medicine
general practice

Acceptable practice activities for a Primary Care Loan borrower are: primary care clinical practice
clinical preventive medicine
occupational medicine
public health
senior/chief resident in primary care residency program
faculty administrators, or policy makers certified in one of the primary health care disciplines; geriatrics; adolescent medicine; adolescent pediatrics; sports medicine; masters in public health; public policy fellowship; and primary care fellowship.

Unacceptable practice activities include:
cardiology
gastroenterology
obstetrics/gynecolog
surgery
dermatology
radiology
rehab medicine
psychiatry
emergency medicine
any subspecialty training or certification.

To find out if you might qualify for a Primary Care Loan please contact the MU Student Financial Aid Office.


Repayment Information

Once you graduate, or if you cease to be enrolled on a full time basis pursuing a degree as listed above, your HPLC Loan will go into a 12 month grace period. For example, if you graduate in May 2006, your grace period would start May 2006 and end in May 2007 (interest would begin accruing in May 2007). Your first payment would be due 6/1/2007. Your minimum monthly payment is $40 or the amount that will payoff your loan in 10 years. HPLC loans have an annual interest rate of 5% and interest is computed daily on the outstanding principal balance.

The status of each HPLC loan is reported monthly to a national credit bureau. If you are current on your loan payments you will establish a good credit history. If you become past due on your loan payments, the delinquency will be reported, which will damage your credit history.


Deferments

To qualify for a deferment you must be performing an activity that qualifies for deferment and your loan must be in current status (meaning no payments are past due). Please see our deferment webpage to find out how to apply for deferments.

Deferments available:
Residency/Internship; Advanced Professional Training.
Full time Study at Health Profession school with Health Profession program.
Leave of absence with intent to return full time to Health Profession school - 2 year limit.
Fellowship engaged in by the borrower within 12 months after completion of borrower's participation in advanced professional training - 2 year. limit
Active duty in uniformed service of the United States - 3 year limit.
Peace Corp - 3 year limit.


Certification of Primary Care Practice

Once you have entered and completed your residency training in an acceptable primary care area then you must practice in an acceptable primary health care area until your loan is paid in full. Our office will send you a form entitled "Certification of Primary Care Practice". The first form will be sent to you upon completion of your residency training program when your Primary Care Loan goes into repayment. Succeeding forms will be sent to you annually based on the month that you originally entered repayment. You must certify that you are practicing in a primary care area and return the form to our office by the due date written on the form. (You will generally have 3 weeks to complete the form and return it to our office).


Compliance regulations and the consequences of non-compliance:

HPLC34 and HPLC40 - Borrower must enter and complete a residency training program in primary health care no later than 4 years after the date on which the borrower graduates from the institution. Applicable deferments DO NOTextend the 4 year time limit.

Consequences of non-compliance on the HPLC34- The balance due on the loan is re-computed from the date the loan was issued, using the original principal borrowed and applying a 12% annual interest rate. Total loan must be repaid within 10 years of the date the borrower was in non-compliance. Interest shall accrue during all periods of deferment.

Consequences of non-compliance on the HPLC40- The loan will accrue interest at a rate of 18% per year beginning on the date of non-compliance and using the original principal borrowed. Length of repayment time does not change due to non-compliance. Borrower is not eligible for deferments.


Cancellations

If the borrower dies, 100% of the borrower's loan will be cancelled - a certified copy of the death certificate is required.