National Institutes of Health Clinical Research Loan Repayment Program for Individuals From Disadvantaged Backgrounds; Notice DEPARTMENT OF HEALTH AND HUMAN SERVICES

SUMMARY: Pending approval by the Office of Management and Budget (OMB)

under the requirements of the Paperwork Reduction Act of 1980, the

National Institutes of Health (NIH) announces the availability of

educational loan repayment under the NIH Clinical Research Loan

Repayment Program for Individuals from Disadvantaged Backgrounds (the

Program). The Program, which is authorized by Section 487E of the

Public Health Service (PHS) Act (42 U.S.C. 288-5), as added by the

National Institutes of Health Revitalization Act of 1993 (Pub. L. 103-

43), provides for the repayment of the educational loan debt of health

professionals who are from disadvantaged backgrounds, who have

substantial debt relative to income, and who agree to conduct clinical

research as employees of the NIH. The Program provides for the

repayment of up to $20,000 of the principal and interest of the

educational loans of such health professionals for each year of

obligated service. The purpose of the Program is the recruitment and

retention of highly qualified health professionals, who are from

disadvantaged backgrounds, to clinical research careers at the NIH.

Through this notice, the NIH invites health professionals, who are from

disadvantaged backgrounds and interested in engaging in clinical

research as NIH employees for at least two years, to apply for

participation in the NIH Clinical Research Loan Repayment Program for

Individuals from Disadvantaged Backgrounds.

DATES: Interested persons may request information about the Program

beginning on October 19, 1994.

ADDRESSES: Information regarding the requirements and application

procedures for the Program may be obtained by calling or writing: Mr.

Marc Horowitz, Director, NIH Loan Repayment Programs, National

Institutes of Health, Federal Building, Room 102, 7550 Wisconsin

Avenue, Bethesda, Maryland 20892-9905 (800-528-7689).

SUPPLEMENTARY INFORMATION: The National Institutes of Health

Revitalization Act of 1993 (Pub. L. 103-43) was enacted on June 10,

1993, adding section 487E of the Public Health Service (PHS) Act (42

U.S.C. 288-5). Section 487E authorizes the Secretary to carry out a

program of entering into contracts with appropriately qualified health

professionals who are from disadvantaged backgrounds with substantial

educational loan debt relative to income. Under such contracts,

qualified health professionals agree to conduct clinical research as

employees of the NIH for at least two years in consideration of the

Federal Government agreeing to repay, for each year of service, not

more than $20,000 of the principal and interest of the educational

loans of such health professionals. This program is known as the NIH

Clinical Research Loan Repayment Program for Individuals from

Disadvantaged Backgrounds (Clinical Research LRP).

Eligibility Criteria

Specific eligibility criteria with regard to participation in the

Clinical Research LRP include the following:

(1) Participants must be United States citizens, nationals, or

permanent residents;

(2) Participants must have a M.D., Ph.D., D.O., D.D.S., D.M.D.,

A.D.N./B.S.N., or equivalent degree;

(3) Participants must come from a disadvantaged background. An

individual from a disadvantaged background is one who (a) comes from an

environment that inhibited the individual from obtaining the knowledge,

skill, and ability required to enroll in and graduate from a health

professions school or (b) comes from a family with an annual income

below a level based on low-income thresholds according to family size

published by the U.S. Bureau of the Census, adjusted annually for

changes in the Consumer Price Index, and adjusted by the Secretary for

use in all health professions programs. The Secretary periodically

publishes these income levels in the Federal Register;

(4) Participants must have qualifying educational debt in excess of

20 percent of their annual NIH salary at their expected date of program

eligibility. In the case of U.S. Commissioned Corps officers, their NIH

salary includes base pay plus quarters, subsistence, and variable

housing allowances. Special and bonus pays, such as board certified,

contract, and variable incentive pays, are not considered in the

Clinical Research LRP's calculation of salary. For these employed under

the Civil Service, salary does not include Physicians Comparability

Allowances (PCAs). However, PCA recipients who are accepted into the

Clinical Research LRP will have their PCAs reduced by the amount of

loan repayments to be received. The expected date of program

eligibility is the date by which the following conditions will be met:

(a) An applicant agrees to begin clinical research as a NIH employee,

and (b) the Secretary is expected to execute the Clinical Research LRP

contract;

(5) Participants must be employees of the NIH. The following are

NOT considered NIH employees: (a) Intramural Research Training Award

(IRTA) recipients, (b) Visiting Fellows, (c) National Research Service

Award (NRSA) recipients, (d) Guest Researchers or Special Volunteers,

(e) NIH-National Research Council (NRC) Biotechnology Research

Associates Program participants, and (f) Intergovernmental Personnel

Act (IPA) participants;

(6) Participants may be appointed under a temporary or permanent

employment mechanism, so long as their employment in a clinical

research assignment has the potential to last a minimum of 2 years;

(7) Individuals with existing service obligations to Federal,

State, or other entities will not be considered for the Program unless

and until the existing service obligation is discharged or deferred for

the length of Program participation;

(8) Applicants will not be excluded from consideration under the

Program on the basis of age, race, culture, religion, gender,

disability, or other non-merit factors.

Selection Process

Since program participation is contingent upon employment with the

NIH, an individual who wishes to apply must obtain a written commitment

from an Institute or Center (IC) Personnel Office of the NIH to be

employed in a clinical research position. The Director, LRP, provides

current deadlines, sources for assistance, and additional details

regarding application procedures in an annual Applicant Information

Bulletin.

Individuals submit their applications to the Director, LRP, who

forwards those qualified to the Clinical Research Loan Repayment

Committee (CR-LRC). The CR-LRC reviews, ranks, and approves or

disapproves Clinical Research LRP applications. The LRC membership is

made up of NIH scientific staff who are nominated by the Deputy

Director, Intramural Research, NIH, and appointed by the Director, NIH.

The CR-LRC is co-chaired by the Associate Director for Clinical

Research, NIH, and the Associate Director for Research on Minority

Health, NIH. The CR-LRC reviews and selects applications for approval

based upon the following:

(1) The merit of the clinical research assignment; and

(2) The credentials of both applicant and supervisor and other

criteria the Secretary deems appropriate.

Clinical research activities are the biomedical and behavioral

studies of etiology, epidemiology, prevention, prevention strategies,

diagnosis, or treatment of diseases, disorders or conditions, including

but not limited to clinical trials.

Funds for repayment will only be awarded to LRC-approved

applications. Priority in funding will be given to qualified health

professionals who are from disadvantaged backgrounds and who are

underrepresented in biomedical/behavioral research including members

from minority groups, disabled individuals, and women.

Program Administration and Details

Under the Clinical Research LRP, the NIH will repay a portion of

the extant qualified educational loan debt incurred by health

professionals to pay for their undergraduate, graduate, and/or health

professional school educational expenses. Upon application, individuals

must have total qualified educational debt which exceeds 20% of their

anticipated annual NIH salary (``debt threshold'') on the date of

program eligibility.

Only qualified loan amounts in excess of 50 percent of the debt

threshold will be considered for repayment (``repayable debt''). The

repayable debt of qualified health professionals will be satisfied at

the rate of one-half per year, subject to a statutory limit of $20,000

per year, for each year of obligated service. Obligated service

requires selected individuals to serve at least 2 years as an NIH

employee engaged in clinical research. Following conclusion of the

initial two-year contract, participants may apply for renewal contracts

to satisfy their remaining repayable debt. These continuation contracts

may be submitted and approved on a year-to-year basis, subject to a

finding by NIH that the applicant's clinical research accomplishments

are acceptable. Funding of contracts is contingent upon appropriation

and/or allocation of funds from the U.S. Congress and/or the NIH.

In return for the repayment of their educational loans,

participants must agree to (1) engage in clinical research as employees

of the NIH for a minimum period of 2 years; (2) make payments to

lenders on their own behalf for periods of Leave Without Pay (LWOP);

(3) pay monetary damages as required for breach of contract; and (4)

satisfy other terms and conditions of the Clinical Research LRP's

contract and application procedures.

Applicants must submit a signed contract, prepared by the NIH,

agreeing to obligated service at the time they apply for consideration

under the Clinical Research LRP. Substantial monetary penalties will be

imposed for breach of contract.

The NIH will repay lenders for the principal, interest, and related

expenses (such as the required insurance premiums on the unpaid

balances of some loans) of qualified Government (Federal, State, local)

and commercial educational loans obtained by participants for the

following:

(1) Undergraduate, graduate, and health professional school tuition

expenses;

(2) Other reasonable educational expenses required by the school(s)

attended, including fees, books, supplies, educational equipment and

materials, and laboratory expenses; and

(3) Reasonable living expenses, including the cost of room and

board, transportation and commuting costs, and other living expenses as

determined by the Secretary.

Repayments will be authorized for direct payment to lenders,

following receipt of (1) the supervisor's verification of completion of

the prior period of obligated service and (2) lender verification of

the crediting of prior loan repayments, including the resulting account

balances and current account status. The NIH will repay loans in the

following order unless significant savings would result from repaying

loans in a different priority order:

(1) Health Education Assistance Loans (HEAL);

(2) other loans guaranteed by the Federal Government; and

(3) other qualifying loans.

The following loans are NOT repayable under the Clinical Research

LRP:

(1) Loans not obtained from a Government entity or commercial or

other chartered lending institution, such as loans from friends and

relatives, or other private individuals;

(2) Loans for which contemporaneous documentation is not available;

and

(3) Loans, or those portions of loans, obtained for educational or

living expenses which exceed a ``reasonable'' level as determined by a

review of the standard school budget or additional contemporaneous

documentation for the year in which the loan was made.

In addition, for other programs which provide loans, scholarships,

loan repayments, or similar awards in exchange for a future service

obligation, the NIH will NOT repay any sums that may result from

failure to serve as required or conversion of the obligation to a loan

under these programs. This includes, but is not limited to the

following:

(1) Physicians Shortage Area Scholarship Program (Federal or

State);

(2) National Research Service Award Program;

(3) Public Health Service and National Health Service Corps

Scholarship Programs;

(4) Armed Forces (Army, Navy, or Air Force) Health Professions

Scholarship Programs; and

(5) Indian Health Service Scholarship Program.

Finally, payments will not be made under the Clinical Research LRP

for loans which participants have already repaid, delinquent loans,

loans in default, loans not current in their payment schedule, or loans

for which promissory notes have been signed after the program

eligibility date. During lapses in loan repayments, due either to

administrative complications or a break in service, Clinical Research

LRP participants are wholly responsible for making payments or other

arrangements which maintain loans in a current payment status such that

increases in either principal or interest do not occur. Penalties

assessed participants as a result of NIH administrative complications

may be considered for reimbursement.

Additional Program Information

This program is not subject to the provisions of Executive Order

12372, Intergovernmental Review of Federal Programs.

This program is subject to OMB clearance under the requirements of

the Paperwork Reduction Act of 1980. A Request for OMB Review and

Approval of information collection associated with the program is being

prepared by the NIH and will be sent to OMB for review and approval

prior to implementation of the Clinical Research LRP.

The Catalog of Federal Domestic Assistance number for the

Clinical Research LRP is 93.220.

Dated: September 7, 1994.

Ruth L. Kirschstein,

Deputy Director, NIH.

[FR Doc. 94-25923 Filed 10-18-94; 8:45 am]

BILLING CODE 4140-01-M