Minnesota Urban Physician Loan Forgiveness Guidelines
Current cycle: The Minnesota Health Care Loan Forgiveness program cycle is OPEN November 1, 2021. Download the Loan Forgiveness PIN
This program is offered to primary care medical professions, which include Family Practice, Obstetrics and Gynecology, Pediatrics, Internal Medicine and Psychiatry, who plan to practice in an underserved urban community. A prospective participant must submit an application to ORHPC during the open application cycle, as a practicing physician or while completing their final year of medical residency training.
The Urban Physician Loan Forgiveness Program provides funds for repayment of Qualified Educational Loans. Qualified Educational Loans include government, commercial, and foundation loans for actual costs paid for tuition, reasonable education and living expenses related to the past graduate or undergraduate education of the Physician. Credit card debt or loans from family members do not qualify. Parent PLUS loans do not qualify.
Loans in current or active default are NOT eligible for forgiveness in this program, even if considered in good standing with the collections agency. Previously defaulted loans that have since been completely rehabilitated and are not currently in active default status are eligible.
This program gives preference to participants providing at least 25 percent of annual patient encounters to state public program enrollees or patients receiving a sliding fee schedule discounts through a formal sliding fee schedule meeting the standards established by United States Department of Health and Human Services under Code of Federal Regulations, title 42, section 51, chapter 303.
Selected participants shall provide direct patient care hours/client–centered services. Hours cannot be fulfilled meeting with providers, process improvement, policy development, supervising, or administering programs.
Participants must begin their service obligation under this program no later than March 31 following completion of their licensure or residency. Participants must complete their residency program as originally stated in their application.
Participants are eligible to participate for up to four years of loan forgiveness during which they serve as a physician in an underserved urban community. ORHPC will make an annual payment to the participant in the amount of $29,000, not to exceed $116,000 total for the maximum four-year period or the balance of the designated loan(s), whichever is less subject to the availability of funds appropriated by the Minnesota State Legislature for the loan forgiveness program.