Kentucky State Loan Repayment Program

The State Loan Repayment Program goal is to attract medical professionals to rural health care organizations. This is accomplished by the medical professional entering into an agreement with the health care organization to work there for a defined period of time in return for up to $35,000 maximum per year being paid on the individual's student loan. Third party contributions are paid to match the grant payment on a 1 to 1 basis for student loan repayment. The student loan repayment grantee (employee) enters into an employment agreement with a loan payment provider (employer) (i.e. hospital, primary care facility, etc). The loan payment provider agreees to match this grant on a 1 to 1 basis for this loan repayment program. The match consists of the loan payment provider submitting the loan repayment funds. Once the loan payment provider submits their match for the employee, then this grant will submit their match for the employee's loan payment. (The loan repayment limit is $35,000 per year - $17,500 from the loan repayment provider and $17,500 from this grant.) The Department will need to forward to SPA for the 3rd party cost sharing documentation copies of the loan repayment provider's documentation for payment of the grantees loans.