Government Education Loan Repayment Programs for Primary-Care Health-Care Professionals

Many health care professionals are burdened with substantial educational loans when they complete their formal schooling. Physicians and other health care professionals providing care in communities that have shortages of primary-care practitioners, however, are eligible for government loan forgiveness and repayment programs.This article discusses whether such awards are tax-exempt and summarizes the terms of the three major government loan repayment and loan forgiveness programs available to New York healthcare providers: (1) the National Health Service Corps Loan Repayment Program; (2) the National Nurse Corps Loan Repayment Program; and (3) the New York State Regents Physician Loan Forgiveness Award Program. This article describes how the terms and administration of each of these programs may be revised, so they may more effectively reduce shortages of primary-care practitioners. These suggestions, include, but are not limited to how the loan repayments and loan forgiveness awards should be taxed and reported to the IRS