Physician Education Loan Repayment Program Fact Sheet

Program Purpose

The purpose of the Physician Education Loan Repayment Program is to encourage qualified physicians to practice medicine in a health professional shortage area designated by the U.S. Department of Health and Human Services.

Eligibility Requirements

To be eligible for the Board to reserve loan repayment funds, a physician must:

1. ensure that the Board or its designee has received the completed application by the stated deadline;
2. be a U.S. citizen or a Legal Permanent Resident and, at the time of application, hold a Full Physician License from the Texas Medical Board, with no restrictions;
3. not be currently fulfilling another obligation to provide medical services as part of a scholarship agreement, a student loan agreement, or another student loan repayment agreement;
4. during the first, second, and third service period, if the physician has not earned and maintained board certification, be eligible to take the exam for board certification from:
   • A. an American Specialty Board that is a member of the American Board of Medical Specialties or the Bureau of Osteopathic Specialists in a primary care specialty, or
   • B. an American Specialty Board that is a member of the American Board of Medical Specialties or the Bureau of Osteopathic Specialists in a specialty other than primary care if the DSHS determines there is a critical need for the applicant’s specialty in the HPSA where the practice is located; and
5. agree to provide four consecutive service periods in a HPSA.

To be eligible to receive loan repayment assistance, a physician must:

1. have completed one, two, three, or four consecutive service periods in a HPSA;
2. during the service period, have provided direct patient care to:
   • A. Medicaid enrollees and
   • B. CHIP enrollees.
3. for loan repayment based on the fourth service period, have earned certification from an American Specialty Board that is a member of the American Board of Medical Specialties or the Bureau of Osteopathic Specialists in a primary care specialty, or in a specialty other than primary care if the DSHS has determined that there is a critical need for the applicant’s specialty in the HPSA where the practice is located.

Application Ranking Criteria

If there are not sufficient funds to award loan repayment assistance for all eligible physicians whose applications are received by the stated deadline, applications shall be ranked according to the following criteria, in priority order:

1. Renewal applications, with first priority assigned to those for primary care;
2. Applications from primary care physicians practicing in rural geographic whole-county HPSAs and applications from physicians practicing in Federally Qualified Health Centers or practice sites that accept payments on a sliding fee scale and follow a policy of providing health care to all who present for care;
3. HPSA score for applicant practice location

Award Amount

Repayment amounts are based on total eligible student loan debt at the time of acceptance into the program: 

1st Year of Service - Repayment amount equals 16% of total eligible debt with a maximum award of $25,000

2nd Year of Service - Repayment amount equals 22% of total eligible debt with a maximum award of $35,000

3rd Year of Service - Repayment amount equals 28% of total eligible debt with a maximum award of $45,000

4th Year of Service - Repayment amount equals 34% of total eligible debt with a maximum award of $55,000

Participation is limited to 4 years. Annual loan repayments are disbursed after verification of eligible service, made co-payable to the participant and the holder of the loan, and dependent upon the availability of funds.

Application Process

New participant applications will be accepted and approved by the Texas Primary Care Office of the Department of State Health Services (DSHS). The online application will be available on the Texas Primary Care Office website at: http://www.dshs.state.tx.us/chpr/default.shtm. Renewal applications for individuals who applied prior to September 1, 2009, may be obtained by contacting the Texas Higher Education Coordinating Board (THECB).

Additional Information

For more information, please contact the DSHS Texas Primary Care Office at Texas PCO@dshs.state.tx.us or 512-458-7518. You may also contact the THECB by email or at 1-800-242-3062 (outside Austin), or 512-427-6340 (Austin area).

A person submitting misleading or fraudulent information to the Texas Higher Education Coordinating Board in an attempt to obtain financial aid is subject to criminal prosecution. Please contact the Fraud Hotline to report suspected fraud.