New Jersey Administrative Code
Title 9A - HIGHER EDUCATION
Chapter 16 - PRIMARY CARE PRACTITIONER LOAN REDEMPTION PROGRAM
Subchapter 2 - PROGRAM REQUIREMENTS
Section 9A:16-2.3 - Terms of contract and loan redemption

Universal Citation: NJ Admin Code 9A:16-2.3

Current through Register Vol. 56, No. 18, September 16, 2024

(a) An applicant, who has met the eligibility requirements for participation in the program, shall enter into a written contract with the Authority. The contract shall specify the dates of required service and the total amount of eligible qualifying loan expenses to be redeemed in return for service. The contract shall further stipulate that the applicant has knowledge of and agrees to the six-month probationary period required prior to final acceptance into the program. Additionally, the contract shall require a program participant to:

1. Serve at least an initial two-year period at an approved site in the full-time clinical practice of that person's primary care profession;

2. Charge for professional services at the usual and customary rate prevailing in the area in which the approved site is located, but allow a patient who is unable to pay that charge to pay at a reduced rate or receive care at no charge;

3. Not discriminate against any patient in the provision of health care services on the basis of that person's ability to pay or source of payment; and

4. Agree not to impose any charge in excess of the limiting fee for a service, as determined by the United State Secretary of Health and Human Services, to a recipient of benefits under the Federal Medicare program established pursuant to 42 U.S.C. §§ 1395 et seq.

(b) Total maximum loan redemption under the program shall be the amount of each participant's eligible qualifying loan expenses up to, but in no event exceeding, $ 120,000, or the maximum amount authorized by the Federal government, whichever is greater either in State funds or the sum of Federal, State, and other non-Federal funds pursuant to section 338I of the Public Health Service Act (42 U.S.C. § 254q-1), whichever is applicable. A participant who enters a contract to fulfill service in a State designated underserved area that is also a Federal Health Professional Shortage Area shall be permitted a total redemption of eligible qualifying loan expenses for four years of service up to, but not to exceed, the sum of Federal, State and other non-Federal matching funds provided pursuant to section 338I of the Public Health Service Act (42 U.S.C. § 254q-1). A participant who enters a contract to fulfill service in a State designated underserved area that is not also a Federal Health Professional Shortage Area shall be permitted a total redemption of eligible qualifying loan expenses for four years of service up to, but not to exceed, $ 120,000, or the maximum amount authorized by the Federal government, whichever is greater, in State funds.

(c) For participants who have successfully completed an initial six-month probationary period for which there are no redemption benefits, each participant's redemption credit shall be:

1. Eighteen percent of eligible qualifying loan expenses for one full year of service, which shall include the probationary period;

2. An additional 26 percent for a second full year of service;

3. An additional 28 percent for a third full year of service; and

4. An additional 28 percent for a fourth full year of service.

(d) A program participant who has engaged in full-time clinical practice during the participant's initial two years of participation in the program shall be permitted to fulfill the program participant's subsequent service obligations on a part-time basis with the approval of the authority and the program participant's employer in a State designated underserved area, with the program participant's redemption credit accruing on a pro rata basis. The program participant may be permitted a total redemption of eligible qualifying loan expenses for the equivalent of four years of full-time service.

(e) In no event shall service for less than the full calendar year of each period of service entitle the participant to any redemption benefits for such period.

(f) If the program participant's total loan amounts equal less than $ 120,000, or the maximum amount authorized by the Federal government, whichever is greater, a prorated amount of interest costs for the loan will be added to each annual payment. Other than the prorated interest costs, loan repayments cannot exceed the outstanding balance on qualifying educational loans at the time of payment.

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