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Service Contracts
Initial contracts for the CIR-LRP are executed to cover a consecutive two-year period. Participants agree to conduct contraception and/or infertility research at an NICHD
intramural laboratory or in a qualified domestic non-profit institution
(tax-exempt under 26 USC 501), for a period not less than two years from the effective date of the NIH Loan Repayment Program Contract. Neither the applicant nor the Federal Government is bound by this contract until:
- the applicant has submitted and had approved by the Director, NICHD, a complete, accurate application as required by this Program,
- the NIH Loan Repayment Program Contract is signed by the Director, NICHD, and
- authorized funds are available to the NICHD to fund the contract.
Extending Participation
Participants may apply to continue their CIR-LRP participation if their total repayable
debt has not been repaid during their initial two-year contract. Renewal NIH Loan Repayment Program Contracts are issued for one-year
or two-year periods and based upon the same criteria as the initial contract. Additionally, a demonstration of research accomplishments during the previous contract is required.
Loan Repayment
Participants who enter into a NIH Loan Repayment Program
Contract after December 27, 2001, must have total eligible
educational loans that equal or exceed 20 percent of their annual
salary ("debt
threshold"). Participants are required to pay 50 percent of their debt
threshold ("participant
obligation"). Annual income or compensation
refers to "institutional
base salary," which
is the annual amount that the organization pays for the applicant's
appointment, whether the time is spent on research, teaching, patient
care, or other activities. Base salary excludes any income that an applicant
may earn outside the duties of the organization (Click
here for more detailed information on salary and compensation).
However, you are always responsible for keeping your loan accounts in
good standing. If you do make payments to your lenders, they will be
credited toward your participant
obligation. To have these payments
credited toward your participant
obligation, you must provide us with
documentation of the payments. This includes a statement or
print-out from your lender's website, and must show the date of receipt
and amount of each payment, as well as the current balance of your account.
This information should be faxed to 301-480-0756.
NIH will repay the remaining educational
debt ("repayable debt") as follows (also see Appendix III):
- at the rate of one-fourth of the repayable
debt for each year of qualified service, up to a $35,000 annual maximum;
- one-year or two-year continuation renewal contracts beyond the
second year may be entered into;
- if the applicant's contract is renewed, the NIH will repay at the rate of one-half of the remaining repayable
debt up to a $35,000 annual maximum; or 100 percent of the repayable
debt if it is $5,000 or less.
Payments are to be made on a quarterly schedule after completion of qualified research, unless otherwise agreed to by the Secretary and the participant. After a loan repayment is sent to a lender, a subsequent repayment is released contingent upon lender confirmation of the prior payment's receipt and the account balance. Participants are responsible for obtaining verification from their lenders of payment crediting and account balances. Accounts are monitored to ensure accurate crediting of Extramural Loan Repayment Program repayments, to avoid lost or misapplied payments, and to prevent repayment of the participant's obligation. Click here for examples of benefits payments.
Partial Payment For Increased Income Tax Liability
The CIR-LRP's repayments to lenders on behalf of the participants represent taxable income to program participants. This income is reported annually to the Internal Revenue Service (IRS), and may result in an increase in participants' Federal, State and local tax liabilities. Participants should consult their income tax preparers for guidance on the implications of CIR-LRP repayments and tax reimbursements.
To partially offset Federal tax liability increases, tax reimbursement payments, equal to 39 percent of the total repayment amount, will be credited directly to the participants's IRS (Federal tax) account simultaneously with each repayment. Dependent upon the availability of funds, the Secretary may make additional tax reimbursement payments to participants who document State and/or local tax liability increases, or additional Federal tax liability beyond the 39% payment (also see Taxes). As verification of increased tax liability for requests in excess of $1,000, certified copies of the participant's tax returns for the year(s) in which loan repayments and tax liability reimbursements have been made must be submitted to the NIH Division of Loan Repayment .
Participants should note that this payment is also considered taxable income by the IRS and many State and local taxing authorities.
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