Loan Repayment from Federal Government
for practicing in designated underserved areas
The National Health Service Corps (NHSC) offers this to health service psychologists.
Go to http://nhsc.bhpr.hrsa.gov/
One example listserv post: I'm in the National Health Service Corps Loan Repayment Program. I have nothing but positive things to say about it. They paid off all my loans (35K) that I accumulated during grad school. They would pay 50K for 2 years, and then can be renewed for two years at 35K per year. Once I received the contract, the actual burden on me has been very minor (paperwork required every 6 months). It was a bit of effort gathering all the paperwork required to apply, particularly if your site does not already have a HPSA score. But 30-50 hours work for all my loans paid off is well worth it! I've never made that much money per hour of work...
I have heard that more recently they have been getting more applicants than funding spots, so it is getting more difficult to get funded. However, if you're in a community mental health center with a high HPSA score, you've got a very good chance of getting funded. The NHSC Loan Repayment Program is a great way to work in the public sector (which often does not pay as well as other locations) and get your loans paid off!
To qualify, you must be licensed to practice psychology independently at the time that you apply and you will need to submit a copy of your license with your application.
The APA early career page has links and descriptions of different loan repayment programs at http://www.apa.org/careers/early-career/funding/index.aspx.
And explore: http://www.apa.org/about/awards/index.aspx
Loan Consolidation
- Consolidated loans need to be
in the psychologist's name only. loan
repayment plans cannot be obtained for loans in the name of two people.
- Loan repayment plans are available
for those who have already consolidated their
loans. However, the paperwork is more extensive
and requires original documentation.
FSA
Direct Loan Servicing Center, US Department of Education -- http://loanconsolidation.ed.gov/.
The rate depends on the year you consolidate, but it
can be lowered by doing direct deposit.
The APA website provides further information on education financing and loan consolidation at:
http://www.apa.org/membership/student-loans.aspx
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