ARKANSAS RURAL MEDICAL PRACTICE
STUDENT LOAN AND SCHOLARSHIP PROGRAM
As amended by ACTS 1114 and 1257 of 1995

FACT SHEET

WHAT IS THE GOAL OF THE PROGRAM? To increase the number of physicians practicing medicine in rural communities in Arkansas; by allowing students who receive rural practice loans during medical school to have these loans converted to scholarship grants by practicing full-time primary care medicine in a rural community in Arkansas.

WHO IS ELIGIBLE TO APPLY? Any bona fide resident of Arkansas who is enrolled or accepted for enrollment (including Alternates) to the University of Arkansas College of Medicine. Each applicant must be interviewed and approved by the Rural Practice Student Loan and Scholarship Board.

CAN ALTERNATES APPLY? Alternates on the waiting list for acceptance to the College of Medicine may apply. The Rural Practice Board must interview each applicant to determine if he/she meets the eligibility requirements mandated in Acts 1114 and 1257 of 1995. If the Board approves the application and the Alternate signs a Rural Practice Loan Contract, he/she will be elevated to the top of the Alternate waiting list. This does not guarantee admission to medical school. However, if sufficient funds are available and an opening for admission to medical school occurs, Alternates signing Rural Practice Loan contracts will be considered for admission in the order in which their applications were approved by the Board.

WHAT FUNCTION DOES THE RURAL PRACTICE BOARD PERFORM? The Board is responsible for (1) determining eligibility of applicants for loans, (2) naming recipients of such assistance, (3) setting the amounts of loans,(4) all disbursements and collections, (5) granting special provisions, and (6) making compliance and non-compliance determinations.

WHAT OTHER QUALIFICATIONS MUST APPLICANTS MEET? An applicant must be a person of good moral character, of good academic standing, in need of financial assistance to complete medical studies, participating in a "medically underserved and rural practice curriculum", and who clearly demonstrates a desire to practice full-time primary care medicine in a rural community.

WHAT IS A RURAL COMMUNITY? "Rural" is defined as a community in Arkansas having a population of no more than 15,000 persons according to the most recent federal census; or a community within a health professions shortage area, as determined by the Board.

HOW IS 'PRIMARY CARE' DEFINED? Family Medicine, general Internal Medicine, general Pediatrics, general Internal Medicine/Pediatrics, general Obstetrics/Gynecology, and general Surgery.

DO I HAVE TO NAME THE COMMUNITY IN WHICH I WILL PRACTICE AT THE TIME I APPLY FOR A LOAN? NO. Unlike the new Community Match Loan and Scholarship Program in which you must contract with a specific community prior to receiving assistance, you do not have to name a specific community at this time. You are simply making a promise to practice full-time primary care medicine in a rural community in Arkansas. You do not have to decide on a rural community until you complete residency training.

HOW MUCH MAY I BORROW? Depending upon the availability of funds, a student could receive up to a maximum of $12,000 per academic year, or the student's financial need, whichever is less.

CAN THESE LOANS BE RENEWED? YES, by making application each year before the Board--provided that funds are available and the student continues to meet all of the eligibility requirements.

HOW ARE RURAL PRACTICE LOANS REPAID? Each applicant approved by the Board for a loan shall practice full-time primary care medicine in a rural community. For each continuous whole calendar year of full-time medical practice, the Board shall cancel, by converting to a scholarship grant, the full amount of one year's loan plus accrued interest. Loans made for subsequent years will be converted in like manner, one year of service for each year of assistance, until the loan obligation is retired.

WHAT PROVISION IS ALLOWED FOR INTERNSHIP AND RESIDENCY TRAINING? Following graduation, a loan recipient is allowed one year of medical internship and no more than three additional years of primary care residency training. The residency training program must include practice experience in a rural community and must be approved in advance by the Board. Requests for deferment of payment must be submitted to the Board on an annual basis. Allowance is made for involuntary military service.

WHAT HAPPENS TO MY LOAN(S) IN THE EVENT OF DEATH? The law stipulates that all loans unpaid shall be due and payable.

WHAT HAPPENS IN THE EVENT A RECIPIENT DEFAULTS ON HIS/HER OBLIGATION? The recipient remains obligated to repay loans received, together with interest at the maximum rate allowed by Arkansas law, or 5% above the federal discount rate, whichever is less. Interest accrues from the date each loan check was received. Repayment shall be due and payable in full when it is determined that the recipient is not in compliance with the provisions of the contractual agreement.

IS IT TRUE THAT NEW LEGISLATION STIPULATES MY LICENSE WILL BE SUSPENDED TO PRACTICE MEDICINE IN THE STATE OF ARKANSAS IF I DEFAULT ON MY RURAL PRACTICE LOAN? YES! Act 1257 of 1995 stipulates that the recipient of a rural medical practice loan or loans shall bindingly contract that not engaging in the practice of medicine in accordance with the loan contract shall result in the suspension of his or her license to practice medicine in Arkansas. The suspension shall be for a period of years equivalent to the number of years that the recipient is obligated to practice medicine in a rural community and the suspension shall continue until the loan, with interest, is paid in full.

PLEASE NOTE: The Arkansas Rural Medical Practice Student Loan / Scholarship Program is an excellent opportunity to help meet the healthcare needs of rural Arkansas while having your loans converted to grants by practicing full-time primary care medicine in a rural community in Arkansas. All but approximately 21 cities in Arkansas meet the "new" definition of "rural community". This certainly broadens your opportunity to have your medical education financed with scholarships. However, because of the stiff penalties required in the law, applicants must be absolutely sure they wish to practice primary care medicine in a qualifying rural community in Arkansas before signing a contract and interviewing with the Rural Practice Board.

If you should have any questions concerning the Arkansas Rural Medical Practice Student Loan and Scholarship program, please contact: Tom South, Director, Student Admissions and Financial Aid, University of Arkansas College of Medicine, 4301 W. Markham, Slot 709, Little Rock, Arkansas 72205 or Elaine Wootten, Rural Health Leaders Development Coordinator, Slot 530.