SubPart 47-4 - Resident Loan Repayment Program.

Effective Date: 
Wednesday, October 22, 1997
Doc Status: 
Complete
Statutory Authority: 
Public Health Law, Sections 901 and 903

Section 47-4.1 - Definitions

Section 47-4.1 Definitions.

(a) "Council" shall mean the New York State Council on Graduate Medical Education.

(b) "Primary Care Medical Training Program" or "Primary Care Residency Program" shall mean a residency program approved by the Council for up weighting of 1.5 under Section 2807-c of the Public Health Law.

(c) "Resident Loan Repayment Recipient" and "Recipient" shall mean an individual who has signed a service agreement to receive a loan repayment award under this Subpart.

(d) "Service Agreement" shall mean the written agreement prepared by the Department of Health and signed by the Resident Loan Repayment Recipient prior to the issuance of an award specifying the terms of the award and the service obligation required.

(e) "Award" shall mean the funds provided under this Subpart during one residency year, for the purpose of repaying some or all of the qualifying debt of the Resident Loan Repayment Recipient.

(f) "Qualifying debt" shall mean any outstanding, unpaid debt incurred by the recipient from loans to cover tuition and other related educational expenses made by, or guaranteed by, the federal or state government, or made by a lending or educational institution approved under Title IV of the Federal Higher Education Act.

(g) "Underserved Area" shall mean a site, area, or facility designated pursuant to section 47-3.1 of this Part.

(h) "License" shall mean a license to practice medicine in New York State issued by the State Education Department.

(i) "Residency year" shall mean the period between July 1 and June 30 of the following year.

(j) "Service Obligation" shall mean the period of time a Resident Loan Repayment Recipient must practice primary care in an underserved area after completion of his/her residency training.

(k) "Service Obligation Start Date" shall mean the date upon which a Resident Loan Repayment Recipient is required to begin practicing primary care in fulfillment of his/her service obligation.

(l) "Rescission" shall mean the withdrawal, cancellation or revocation of an award in accordance with the provisions of section 47-4.4 of this Subpart, after the signing of the service agreement.

(m) "Waiver" shall mean full or partial release by the commissioner of the service obligation and/or financial obligation for repayment of an award incurred or owed by a recipient.

(n) "Deferral" shall mean a delay or temporary suspension of an award payment, service obligation, or any financial obligation for repayment of an award by the recipient, which is granted by the commissioner with no resulting reduction in service or financial obligation.

(o) "Default" shall occur if a recipient has not obtained an approved waiver or deferral and the recipient fails to complete the primary care residency program on which the award is based, or the recipient fails to begin or complete the service obligation within the timeframes prescribed by this Subpart, or an award is rescinded after payment of award monies to the recipient.

(p) "Program Default Rate" shall be equal to the number of residents that have completed residency training in a specific program and have defaulted on their service obligation divided by the total number of recipients that completed training in that program.

(q) "President" shall mean the president of the New York State Higher Education Services Corporation.
 

Effective Date: 
Wednesday, October 22, 1997
Doc Status: 
Complete

Section 47-4.2 - Eligibility for an award

47-4.2 Eligibility for an award.

(a) To be eligible to receive a Resident Loan Repayment Program award, an individual must:

(1) be a resident in good standing in the second or third year of residency training in a program that is designated as a Primary Care Residency Program by the Council and which was so designated prior to July 1 of the year in which the individual began such residency training;

(2) have begun his/her Primary Care Residency Program as a first or second year student after January 1, 1994;

(3) be eligible to apply for licensure upon satisfactory completion of his/her residency training, and meet the character and moral standards required for licensure as a physician;

(4) agree to seek licensure in New York State at least four months prior to the anticipated completion of his/her Primary Care Residency Program;

(5) agree to practice primary care in an underserved area for one year for each annual award received;

(6) agree to apply award monies toward repaying all or part of a recipient's qualifying debt; and,

(7) complete, sign, and file an application with the Department of Health on forms specified by the department at least six months prior to the beginning of the residency year for which an award is requested or by a later date specified by the commissioner. All required supplementary documentation shall be filed as directed. Incomplete or illegible applications may be rejected.

(b) An individual will be ineligible to become a Resident Loan Repayment Recipient if:

(1) the individual has received a scholarship or loan for his/her medical education which includes a service obligation that may require service outside of New York State;

(2) the individual is identified by the New York State Higher Education Services Corporation as being in default on the repayment of a guaranteed student loan or as being in default under the terms of any other governmentally administered scholarship or financial aid program and the individual refuses to allow the New York State Higher Education Services Corporation to directly apply the award to the defaulted account(s); or

(3) the individual is in a residency program with a program default rate higher than five percent. However, the Commissioner may waive this provision if less than 30 recipients have completed their training in the program.

(c) To maintain eligibility for an award, the Resident Loan Repayment Recipient must:

(1) be a participant in good standing in the Primary Care Residency Program;

(2) report to the Department of Health and the Higher Education Services Corporation annually and as may be necessary to implement the program on such forms and at such times as required by the Commissioner and the President; and,

(3) provide required documentation regarding qualifying debt.
 

Effective Date: 
Wednesday, October 22, 1997
Doc Status: 
Complete

Section 47-4.3 - Awards

47-4.3 Awards.

(a) Award Schedule. Awards shall be made during the second and third year of residency training in a Primary Care Residency Program.

(b) Award. The award shall be up to $15,000 per residency year.

(c) Award payments. Awards shall be paid directly to the recipients who will be required to apply the funding to reduce their qualifying debt.

(d) Payment of awards. Payment of awards shall be subject to the availability of funds.
 

Effective Date: 
Wednesday, October 22, 1997
Doc Status: 
Complete

Section 47-4.4 - Award rescissions and deferrals

47-4.4 Award rescissions and deferrals.

(a) An award may be rescinded by the commissioner if:

(1) prior to the full payment of an award, the recipient withdraws from or fails to continue in his/her primary care residency program;

(2) the recipient is convicted of a felony or a lesser offense related to professional activity;

(3) the recipient is found to have provided fraudulent or willfully misrepresented information in the application or supporting documents; or

(4) the recipient fails to apply award monies received toward repayment of all or part of a recipient's qualifying debt.

(b) An award may be postponed or deferred temporarily by the commissioner because of one or more of the conditions described in subdivision (a) of this section if the commissioner determines that the condition will be corrected within a reasonable time or that the circumstances warrant a deferral rather than a rescission.

(c) The commissioner will notify the President of any award rescissions or deferrals.
 

Effective Date: 
Wednesday, October 22, 1997
Doc Status: 
Complete

Section 47-4.5 - Service obligation

47-4.5 Service obligation.

(a) Service obligation start date. A recipient is required to begin providing primary care in an underserved area in New York State no later than 60 days after completion of his/her Primary Care Residency Program or obtaining his/her medical license, which ever is later, except that such date shall not exceed four months from completion of residency training.

(b) Practice requirements. A recipient must provide at least 35 hours per week of primary care services for at least 48 weeks per year for each annual award received. If the recipient receives two awards under this Subpart, the service obligations shall run consecutively.

(c) Alternate service. If a recipient fails to satisfactory complete the Primary Care Residency Program or fails to obtain a New York State license to practice medicine, the commissioner may permit the recipient to provide alternate service which involves the provision of health or human services in an underserved area and which is consistent with the intent of the Resident Loan Repayment Program.
 

Effective Date: 
Wednesday, October 22, 1997
Doc Status: 
Complete

Section 47-4.6 - Deferral and waiver

47-4.6 Deferral and waiver.

(a) Deferrals. The commissioner may delay or defer the service obligation start date, the service obligation and/or the repayment obligation of a recipient due to extreme hardship, or to permit the recipient to continue training in primary care specifically approved by the commissioner. Extreme hardship includes, but is not limited to, serious illness or injury of the recipient or a member of the recipient s immediate family or other circumstances beyond the control of the recipient that would make it extremely difficult or impossible for the recipient to fulfill the service obligation or repayment requirements.

(b) Waiver. The commissioner may waive all or part of the service obligation and/or any repayment obligation incurred by a recipient due to extreme hardship.

(c) Evidence of hardship. A request for a deferral or waiver of a service or repayment obligation must be submitted in writing on forms prescribed by the Commissioner. The commissioner may request sworn statements and appropriate documentation to support the recipient's request.

(d) Notice. The commissioner will notify the President of any service or repayment obligation deferrals or waivers.
 

Effective Date: 
Wednesday, October 22, 1997
Doc Status: 
Complete

Section 47-4.7 - Default

47-4.7 Default.

(a) A recipient shall be placed in default if he/she has not been granted a deferral or waiver by the Commissioner, and:

(1) the recipient fails to complete the primary care residency program, or

(2) the recipient is not available to fulfill his or her service obligation on the service obligation start date; or

(3) the recipient resigns, is dismissed from employment, or otherwise fails, refuses, or is unable to fulfill the service obligation; or

(4) an award is rescinded after dispersal of monies to a recipient.

(b) Calculation of financial obligation. A recipient found to be in default will be required to pay the President, within five years from the date of default, all monies received, plus interest, plus liquidated damages, as determined by the following formula:

A = 2B (T-S) _______ T

where "A" is the amount the President is entitled to receive; "B" is the sum of all payments made to the recipient and the interest on such amount which would be payable if, at the time such awards were paid, they were loans bearing interest at the maximum prevailing rate determined by the Higher Education Services Corporation; "T" is the total number of months in the recipient's period of obligated service; and "S" is the number of months of service actually rendered by the recipient. The total number of months in the recipient's period of obligated service is calculated by multiplying by twelve the number of annual awards received by the recipient.

(c) The Department of Health shall advise the Higher Education Services Corporation of any default, and the Higher Education Services Corporation shall collect repayments and, where indicated, initiate action for prosecution to recover monies owed the State.
 

Effective Date: 
Wednesday, October 22, 1997
Doc Status: 
Complete

Section 47-4.8 - Administration

47-4.8 Administration.

(a) Acceptance and service agreement. Prior to being certified for payment, a recipient must sign a written acceptance of the award and a service agreement describing the conditions of the award, the service obligation, and the terms of repayment in the event of rescission or default.

(b) A recipient is required to comply with all administrative and reporting requirements of the Department of Health and the Higher Education Services Corporation.
 

Effective Date: 
Wednesday, October 22, 1997
Doc Status: 
Complete