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Program Participation

Home > About the Programs > AIB Extramural > Eligibility Requirement > CIR > Program Participation

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Program Participation

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"). 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.

NIH will repay the remaining educational debt (" repayable debt ") as follows (also see Appendix III):
  1. at the rate of one-fourth of the repayable debt for each year of qualified service, up to a $35,000 annual maximum;

  2. one-year or two-year continuation renewal contracts beyond the second year may be entered into;

  3. 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 $10,000 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 and to avoid lost or misapplied payments. 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.

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.

Date Last Updated: June 18, 2014

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