As amended by ACTS 1114 and 1257 of 1995 and ACT 676 of 2003
What is the goal of the Program?
To increase the number of physicians practicing
primary care medicine in rural communities 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?
ACT 676 of 2003 defines primary care as 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 apply for a loan?
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
four 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 23
cities in Arkansas meet the "new" definition of "rural community". This
certainly broadens your opportunity to have your medical education financed
with scholarship/grants. If you should have any questions concerning the
Arkansas Rural Medical Practice Student Loan and Scholarship program, please
contact:
