VMLRP Loan Repayment Program Guidance

The Veterinary Medicine Loan
Repayment Program
Loan Repayment Program
Guidance
January 2016

TABLE OF CONTENTS

Privacy Act Notification Statement ................................................................................................ 3
INTRODUCTION .......................................................................................................................... 4
General ........................................................................................................................................ 4
Loan Repayment Process ............................................................................................................ 4
PROGRAM REQUIREMENTS ..................................................................................................... 5
Service ......................................................................................................................................... 5
Updating Contact & Lender Information .................................................................................... 5
Changing Supervisors ................................................................................................................. 6
TAXES ............................................................................................................................................ 6
ELECTRONIC FUNDS TRANSFER ............................................................................................ 7
Extended Leave or Absence Policy ................................................................................................ 7
Family Leave ............................................................................................................................... 7
Leave Without Pay ...................................................................................................................... 7
SUSPENSION, WAIVER, AND CANCELLATION .................................................................... 7
TRANSFERS .................................................................................................................................. 8
CONTRACT TERMINATION ...................................................................................................... 9
ACKNOWLEDGEMENTS ............................................................................................................ 9

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PRIVACY ACT NOTIFICATION STATEMENT
General
This information is provided pursuant to the Privacy Act of 1974 (Public Law 93-579), as
amended, for individuals supplying information for inclusion in a system of records.
Statutory Authority Section
National Veterinary Medical Services Act (7 U.S.C. 3151a) and as amended in Section 7105 of
Food Conservation, and Energy Act of 2008.
Purposes and Uses
The purpose of the Veterinary Medical Loan Repayment Program is to attract, via educational
loan repayment, veterinarians to provide food supply veterinary medical services in areas
designated as veterinarian shortage situations. The information that applicants supply will be
used to evaluate their eligibility, qualifications and suitability for participating in the VMLRP. In
addition, information from other sources will be considered (e.g., letters of recommendations and
state licensing boards). An individual’s contract, application, supporting documentation, related
correspondence, and data are maintained in a system of records to be used within the U.S.
Department of Agriculture to monitor VMLRP-related activities. The information may also be
disclosed outside the Department, as permitted by the Privacy Act and Freedom of Information
Act, to the Congress, National Archives, Government Accountability Office, and pursuant to
court order and various routine uses described here: http://www.gpo.gov/fdsys/pkg/FR-2010-1213/pdf/2010-31205.pdf.
Effects of Nondisclosure
Disclosure of the information sought is voluntary; however, if not submitted, except for the
replies to questions related to Demographics (Section 6 of the VMLRP Application Form NIFA
01-10), an application may be considered incomplete and therefore may not be considered for an
award. Information not provided for award monitoring could result in delay or suspension of
payments.
Paperwork Reduction Act Public Burden Statement
An agency may not conduct or sponsor, and a person is not required to respond to, a collection of
information unless it displays a current OMB control number. The current OMB control number
for information collected in association with the VMLRP application and award monitoring
processes is 0524-0047.
Non-Discrimination Policy Statement
The U.S. Department of Agriculture does not discriminate on the basis of any non-merit factor,
including race, color, national origin, religion, sex, sexual orientation, gender identity, disability
(physical or mental), age, status as a parent, or genetic information.
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INTRODUCTION
General
The Veterinary Medicine Loan Repayment Program (VMLRP) is administered by the U.S.
Department of Agriculture, National Institute of Food and Agriculture (NIFA). The program’s
goal is to improve access to food supply veterinary medical services by providing qualified
veterinarians repayment of loans—up to $25,000 per year—they incurred to finance their
veterinary medical education. In exchange for loan repayment, participants enter into a contract
with NIFA to provide veterinary services in a designated veterinarian shortage situation. Loan
repayment schedules are based on the amount of eligible debt on the day the contract begins. All
payments are made directly to the loan servicing agent.
Loan Repayment Process
1. End of
Quarter
2. Service
Verification
Form Sent

8. Payment
Verification
Processed

3. Service
Verification
Completed

7. Payment
Verification
Submitted

4. Payment
Issued to Lender

6. Program
Email
5. Payment Posted
to Loan Account

1. The loan repayment process begins at the end of each quarter of contractual service
(March 31, June 30, September 30 and December 31).
2. VMLRP emails the participant’s employer (participant if self-employed) the VMLRP
Service Verification form (NIFA-09-01). By completing and signing this form the
employer certifies the participant is still employed by them and that the services the
participant provided for the quarter are consistent with those described in the Veterinarian
Shortage Situation Nomination Form (NIFA 2009-0001).
3. The completed Service Verification Form is returned to VMLRP by email (preferred) at
[email protected] or faxed to 202-720-6486.
4. VMLRP authorizes payment to lender. A delay in receipt of the Verification form may
result in a delayed payment.
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5. VMLRP payment posts to participant’s account. This typically occurs by the end of the
month.
6. Program emails participant confirming receipt of prior quarter’s payment verification,
current quarter service verification and authorization of payment. Upon receipt of the
email payment should be posted in the participant’s account.
7. Participant checks with loan servicer to ensure payment has posted correctly and provides
written verification of the lender’s crediting of all VMLRP payments and resulting
account balance. A delay in payment verification receipt may delay future payments.
8. VMLRP processes the payment verification and the repayment cycle begins again.
PROGRAM REQUIREMENTS
Service
The VMLRP participant is expected to have all licenses and employment in place by the start of
the contract. All new contracts require 3 years of service. Renewal contracts may be 1 to 3 years
based on remaining eligible debt. The contract number includes the VMLRP Shortage ID for the
veterinarian shortage situation awarded.
The services to be provided and the location of the veterinarian shortage situation are described
on the Veterinarian Shortage Situation Nomination Form (NIFA 2009-0001). This form can be
found on the VMLRP website and is provided by the program each quarter when requesting
service verification reports. All services must be provided within the geographical location
described and to the animal commodity or species listed as “MUST cover” or to veterinary
discipline described on the form. Services can be provided to any animal commodity or species
listed as “MAY cover” when a participant is unable to fulfill their time commitment with the
“MUST cover” species.
The time required is based on a 40-hour work week (FTE), not the participant’s work hours. At
a minimum this is 32 hours/week for Type I shortage situations, 12 hours/week for Type II
shortage situations and 19 hours/week for Type III shortage situations. If more hours are
expected the percent FTE is listed in a separate box on the form. If needed, up to 25% of the FTE
commitment for Type I and II shortages can be attributed to windshield time (the time it takes to
travel to a client’s home or farm to provide services).
Updating Contact & Lender Information
Participants and participant’s employers must provide VMLRP with notification of any changes
to their contact information (e.g., name, email, mailing address, telephone number) prior to the
change occurring, if possible, or immediately after the change occurs. VMLRP frequently
corresponds with participants and their employers regarding service and payment verification.
Failure to maintain updated contact information could result in a delayed payment.
Additionally, it is the participant’s responsibility to notify VMLRP as soon as they are made
aware of a change in their lender. It is common for lenders to sell loans and for participants to
experience at least one change in their lender during the service period. VMLRP must be notified
of this change as soon as possible to avoid distribution of payments to lenders no longer holding
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the participants’ accounts. All contact and lender information updates should be sent to
[email protected].
Changing Supervisors
All changes in supervisors must be requested in writing by sending an email to
[email protected]. If the supervisory change includes a new in employer (e.g., practice) or
employment type (i.e., becoming self-employed), the request must include the reason(s) for the
change and explain how services provided will either remain the same or be improved (i.e., can
offer more services or dedicate more time to the shortage situation) with the change.
Requests involving a new employer or employment type will be reviewed by VMLRP staff to
ensure that the proposed change will not negatively affect the services provided for the shortage
situation. A participant should not change employers until approved as this could result in a
breach of service. Upon approval of a supervisory change, the Intent of Employment form
(NIFA-07-10) must be filled out and submitted to [email protected]. This is to ensure the
new supervisor is aware of the requirements of the program.
TAXES
The money provided through VMLRP for loan repayment is considered taxable income. NIFA
pays participants 39% of the amount of loan repayments to help compensate for the additional
tax liability associated with participation in the program. An example of how this tax liability is
calculated is shown in the table below.
Payments are made at the end of each service quarter. Contracts start on January 1 and the first
payment is in April, resulting in only 3 payments in the first calendar year. The next 2 years 4
payments are made. The final payment for service conducted during the last year of the contract
is made in January after the last contract service year. Each calendar year a Form 1099-G
showing the total amount of loan repayment is mailed by the National Finance Center (NFC) to
participants no later than January 31. Participants will receive a total of four 1099-G forms over
the course of a 3-year contract.
Example Tax Liability
Total Loan Loan
Repayment Repayment
Amount
Amount
Per Year
(3 year
contract)

$45,000

$15,000

Tax Liability
Total Tax liability
NIFA Pays Per per year plus
Year
award amount
($15,000*0.39)# ($15,000 +
$5,850)#

Total Tax
Liability
NIFA pays
(3 year
contract)

Total
Award
Amount
plus Tax
Liability (3
year
contract)

$5,850

$17,550

$62,550

$20,850

#

Assumes a payment for all 4 quarters, expect for the first year during which only 3 payments
are made and one additional payment made the year after the contract ends.

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ELECTRONIC FUNDS TRANSFER
In accordance with 31 CFR Part 208, all federal payments must be made through electronic
funds transfers (EFT). NIFA works with participant’s lenders to establish this transfer
mechanism. In addition, participants must fill out the Automated Clearing House (ACH) form
with their personal bank account information in order for NIFA to transfer the tax payment
funds. All EFT forms must be completed prior to the start of the contract.
EXTENDED LEAVE OR ABSENCE POLICY
Family Leave
The VMLRP will allow participants to be away from their site for family leave within the
timeframes established by the Family Medical Leave Act (up to 12 weeks) 1, if proper
notification is received. Participants are required to notify the VMLRP of his or her intent to take
family leave not less than 30 days before the leave is to begin or, in emergencies, as soon as is
practicable. The VMLRP may request medical certification or other relevant documentation for
any family leave taken.
Participants who plan to take additional leave or have a medical or personal emergency that will
result in an extended period of absence are required to request a suspension, which may or may
not be approved by VMLRP. If a suspension is approved, the participant’s service commitment
end date will be extended accordingly. See “Suspension” below.
All requests for leave should be emailed to [email protected].
Leave Without Pay
The VMLRP will not make loan repayments for periods of Leave Without Pay (LWOP). LWOP
is defined as a temporary nonpay status and absence from duty that, in most cases, is granted at
the employee's request. If a participant is placed in LWOP status, they must notify the VMLRP
as soon as possible by emailing [email protected]. Participants must make payments to
lenders on their own behalf for periods of LWOP. Any unpaid leave, even if covered under the
FMLA, may result in a reduced quarterly payment.
SUSPENSION, WAIVER, AND CANCELLATION
The VMLRP requires participants to fulfill their contract without excessive absences or
significant interruptions in service. Participants are allowed 12 weeks of extended leave per
service year for family or medical reasons; however, there are some circumstances which will
prevent a participant from adhering to this requirement. In these cases, VMLRP may suspend
(i.e., put “on hold”) the VMLRP service obligation.

1

See https://www.opm.gov/policy-data-oversight/pay-leave/leave-administration/fact-sheets/family-and-medical-leave/ or
http://www.dol.gov/whd/fmla/ for what is covered under FMLA.

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Suspension
A suspension of the VMLRP commitment may be granted if compliance with the commitment:
(i) is temporarily impossible, or (ii) would involve an extreme hardship such that enforcement of
the commitment would be unconscionable. Periods of approved suspension of service will
extend the participant’s service commitment end date by one month of each month or fraction of
month the contract is suspended. The major categories of suspension are set forth below.
Suspension requests must be submitted by email to [email protected].
a. Leave of Absence for Medical or Personal Reasons. A suspension may be granted
for up to one year if the participant provides independent medical documentation of a
physical or mental health disability, or for personal circumstances, including a terminal
illness of an immediate family member (e.g., child or spouse, including same-sex spouse
regardless of where the couple lives), which result in the participant’s temporary inability
to meet the VMLRP service obligation.
b. Maternity/Paternity/Adoption Leave. If the participant’s
maternity/paternity/adoption leave will exceed 12 weeks during any year of obligated
service, a suspension may be granted by the VMLRP based on documented medical need.
c. Call to Active Duty in the Armed Forces. Participants who are military reservists and
are called to active duty must submit a request for a VMLRP service suspension. The
period of active military duty will not be credited towards the VMLRP service obligation.
Suspensions for active duty military assignment are granted for up to one year, beginning
on the activation date described in the reservist’s call to active duty order. A copy of the
order must be provided to the VMLRP with the request for a suspension. In the event that
the VMLRP participant’s period of active duty with the Armed Forces is extended
beyond the approved suspension period, the participant must contact the VMLRP for
guidance on how to request an extension of the suspension period.
Waiver. A waiver permanently relieves the participant of all or part of the VMLRP service
commitment. A waiver may be granted only if the participant demonstrates that compliance with
his/her service commitment is permanently impossible or would involve extreme hardship such
that enforcement of the commitment would be unconscionable. A waiver request must be
submitted via email to [email protected] and include the reason(s) the waiver is being
sought. VMLRP Program staff will review the request and contact the participant if any
additional documentation is needed to complete the waiver e.g., medical documents. Waivers
are not routinely granted, and require clear demonstration of compelling circumstances.
Cancellation. Any service or payment obligation incurred by the participant under this contract
will be canceled upon the participant’s death. No liability will be transferred to the participant’s
heirs or employers.
TRANSFERS
Transfers from one VMLRP designated shortage situation to another are generally not
authorized. Transfers may be granted if the reason for the request is (i) due to a spouse’s military
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deployment, (ii) if compliance with the commitment by the participant is temporarily impossible,
or (iii) would involve extreme hardship such that enforcement of the commitment would be
unconscionable. In addition, the VMLRP shortage situation to which the participant wishes to
transfer must meet the following conditions: (i) the veterinarian shortage situation is unfilled; (ii)
the services of the veterinarian shortage situation transferring do not differ significantly from the
situation currently being filled; and (iii) the timing is such that a non-competitive transfer would
not negatively affect other applicants or s workforce planning by state animal health officials
(charged with identifying and nominating shortage situations). Transfers will only be considered
if proper documentation and a compelling justification are received by VMLRP. Transfer
requests must be submitted by email to [email protected].
Transfers from one VMLRP designated shortage situation to another will not be authorized to
obtain a better job opportunity.
CONTRACT TERMINATION
Once the contract period begins, the VMLRP participant is expected to begin providing services
to the shortage situation awarded. The Secretary may terminate a VMLRP contract if the
participant submits a written request to terminate the contract no more than one hundred twenty
(120) days after initial execution. The participant’s written request should be submitted to
[email protected].
ACKNOWLEDGEMENTS
The development of this document was adapted from other similar documents and polices
associated with Loan Repayment Programs administered by the National Institute of Health
(NIH) and Health Resources and Services Administration (HRSA).

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