Loan Changes

Loans Paid-in-Full

When a loan is paid in full, subsequent quarterly payments will be directed to the remaining loan(s) with the next highest priority in the awardee's LRP portal. See the full list of the loan priority order.

If all loans in the LRP portal are paid in full, the remaining scheduled LRP payments will be sent directly to an awardee's bank account. Awardees must provide documentation that shows loans are paid in full before any funds can be directed to a bank account. However, if all loans are paid in full as a result of an individual receiving loan forgiveness under a program such as the Public Service Loan Forgiveness Program, then the remaining scheduled LRP payments will be canceled and no payments will be sent to the awardee's bank account.

In the event an LRP loan repayment results in an overpayment on a loan, such as when a loan is forgiven retroactively, DLR will request the lender to return the overpaid amount directly to NIH. Awardees are expected to assist DLR in this process, if needed.

If the lender sends the overpaid amount to the awardee instead, it is the awardee's responsibility to remit the funds to DLR.

Awardees who do not provide the requested banking documentation within 30 days of DLR's initial request may have their remaining payments returned to the U.S. Treasury. If there are any concerns about the authenticity of any request, please email the LRP Information Center at [email protected].

Consolidation

Prior to loan consolidation, an awardee should follow the below guidance and understand how consolidation may impact LRP eligibility.

Only loans listed in the LRP portal may be included in the consolidation for the loan to remain eligible for loan repayment. The following cannot be consolidated with an awardee's qualified educational debt and remain eligible for repayment:

• Non-educational loans (e.g., home equity loan);
• Loans belonging to another individual (e.g., spouse or child);
• Loans disbursed after the start date of an awardee's first LRP award.

If an awardee wishes to consolidate loans, please email DLR at [email protected] as soon as they submit their loan consolidation application form to their lender.

See additional information on how to handle the consolidation process as a LRP awardee.

Sale/Transfer of Loans

If loans are sold or transferred, awardees must inform DLR immediately. DLR requires documentation from both the prior and new lenders with the following information:

• Prior lender statement and/or a transfer notice reflecting a $0 balance and the amount transferred to the new lender;
• New lender statement detailing lender information, LRP awardee's name, account number, and new/current balance;