Loan Repayment Process

  • The Primary Care Practitioner Loan Redemption Program of New Jersey (NJLRP), provides loan repayment to program participants for outstanding qualifying educational loans incurred while in medical, dental or professional graduate school. Qualifying educational loans are government and commercial loans for actual costs paid for tuition and eligible expenses towards a graduate health profession program.
  • Undergraduate education loans are not eligible for loan redemption.
  • At the end of each full year of service, approved NJLRP participants are eligible for loan repayment as follows:
    • 18% of the outstanding loan balance up to $21, 600 for the first full year of service
    • 26% of the outstanding loan balance up to $31,200 for the second full year of service
    • 28% of the outstanding loan balance up to $33,600 for the third full year of service
    • 28% of the outstanding loan balance up to $33,600 for the fourth full year of service

    For a total of $120,000, the maximum loan repayment over a four year period of service

  • All loan repayments must be used to repay the approved qualifying educational loans while enrolled in the program.
  • Loan repayments will not be made on a pro rata basis for completion of less than a full year of service.
  • Loan repayments made under the NJLRP are tax free for Federal taxes for health professionals working in underserved areas based on the Expanded Tax Benefit for Health Professionals Working in Underserved Areas created by the Affordable Care Act of 2010.
  • Loan repayments made under the NJLRP remain as State taxable income.
  • The NJLRP strongly recommends that participants seek the assistance of a tax professional regarding tax laws as it relates to loan repayments.