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LRP recipients receive loan repayment for qualified student loans in addition to their salary. New LRP recipients who are current Indian health system
employees will begin receiving LRP payments within 120 days from the date the Secretary's delegate signs their contract. New LRP recipients who are not current
employees at an Indian health system facility will begin receiving their payments 120 days from their first day of work at their assigned site.
The following charts show examples of LRP payments for three different qualified loan scenarios. Each example shows how annual payments are made.
Recipient with a two-year service contract and $90,000 in qualified educational loans
| LRP Award (per year) |
Amount Recipient Receives |
Amount Withheld by IHS for Recipient's Portion of FICA |
Additional Payments Made by IHS |
Total Payments Made by IHS |
| $20,000 |
$18,164 |
$1,836 |
- $4,000 Income tax liability on the part of the recipient
- $1,836 Employer's portion of FICA
|
$25,836 |
Recipient with a two-year service contract and $30,000 in qualified educational loans
| LRP Award (per year) |
Amount Recipient Receives |
Amount Withheld by IHS for Recipient's Portion of FICA |
Additional Payments Made by IHS |
Total Payments Made by IHS |
| $15,000 |
$13,623 |
$1,377 |
- $3,000 Income tax liability on the part of the recipient
- $1,377 Employer's portion of FICA
|
$19,377 |
Recipient with a consolidated education loan — In this example, a recipient has obtained professional degrees in nursing and nutrition and is employed by IHS as a registered nurse. Only the loans obtained for nursing education ($36,000) are eligible for repayment, while those obtained for nutrition training are not.
| LRP Award (per year) |
Amount Recipient Receives |
Amount Withheld by IHS for Recipient's Portion of FICA |
Additional Payments Made by IHS |
Total Payments Made by IHS |
| $18,000 |
$16,348 |
$1,652 |
- $3,600 Income tax liability on the part of the recipient
- $1,652 Employer's portion of FICA
|
$23,252 |
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