VMLRP NIFA-05-10 Contract Form

Contract ID________________
U.S. Department of Agriculture
National Institute of Food and Agriculture (NIFA)

OMB No. 0524-0050
Form Approved For Use Through 9/30/2017

Veterinary Medicine Loan Repayment Program Contract
The National Veterinary Medical Service Act (7 U.S.C. 3151a) authorizes the
Secretary of Agriculture to establish a Veterinary Medicine Loan Repayment
Program (VMLRP) to enter into agreements with veterinarians under which
they agree to provide veterinary services in veterinarian shortage situations.
The Secretary is authorized to enter into contracts with qualified veterinarians
under which such professionals agree to conduct veterinary service in
consideration of the Federal government agreeing to repay, for each year of
such service, not more than $25,000 of the principal and interest of the
educational loans of such professionals. In return for these loan repayments,
applicants must agree to provide veterinary service in qualifying veterinarian
shortage situations for an initial period of obligated service of not less than
three years.
Applicants are required to submit a signed contract which includes the Terms
and Conditions of participation in the VMLRP with their applications.
Applicants also are subject to the VMLRP regulations at 7 CFR Part 3431, which
take precedence over the Terms and Conditions if a conflict exists. The
Secretary/NIFA Director shall execute only those contracts submitted by
applicants who are selected for participation.
The Terms and Conditions for participating in the VMLRP follow:
Section A – Obligations of the Secretary or NIFA Director
Subject to the availability of funds appropriated by the U.S. Congress, the
Secretary/NIFA Director agrees to:
1. Pay, in the amount provided in Paragraph 2 of this section, the
undersigned applicant’s qualifying educational loans. Qualifying veterinarians’
loans consist of the principal, interest, and related expenses (such as the
required interest premium on the unpaid balances of some loans) of qualified
Government (Federal, State, and local) and commercial loans obtained by the
applicant for the following expenses during attendance by the applicant at an
accredited college of veterinary medicine resulting in a degree of Doctor of
Veterinary Medicine or the equivalent:
a. Tuition expenses;
b. Other reasonable educational expenses required by the school(s)
attended, including fees, books, supplies, educational equipment and
materials, and laboratory expenses; and
c. The cost of room and board, and other reasonable living expenses as
determined by the Secretary/NIFA Director.
2. An applicant must have qualifying educational loans equal to or in excess
of $15,000 on his or her program eligibility date. This amount is the “debt
threshold”. The “program eligibility date” is the date on which his or her
contract is executed by the Secretary/NIFA Director and he or she is engaged
in qualifying veterinary service. NIFA will repay the remaining educational
debt (“repayable debt”) as follows:
a. At the rate of one-third of the repayable debt for each year of
qualified service up to a $25,000 annual maximum (excluding tax
payments); and
b. Payments are to be made on a delayed quarterly schedule after
completion of qualified service, unless otherwise agreed to by the
Secretary/NIFA Director and the participant.
3. Payment of qualifying educational loans will be made directly to the
lender(s). If there is more than one outstanding qualifying educational loan,
the Secretary/NIFA Director will repay the loans in the following order, unless
the Secretary/NIFA Director determines significant savings would result from
paying loans in a different order of priority: (a) Health Education Assistance
Loan; (b) Other loans issued or guaranteed by the Federal Government; and (c)
Other loans. Tax payments equal to 39 percent of the loan repayments will be

credited directly to the participant’s IRS account simultaneously with each
loan repayment.
4. Once a loan repayment contract has been signed by both parties, the
Secretary/NIFA Director shall obligate such funds as will be necessary to
ensure that sufficient funds will be available to make loan repayments and tax
payments to cover the repayable debt, as defined in Paragraph 2 of this
section.
Section B – Obligations of the Participant
The participant agrees to:
1. Provide a description of each of his or her outstanding qualified
educational loans and supporting documents, in a form and manner as defined
by the Secretary/NIFA Director;
2. Serve his or her minimum period of veterinary service based on the
contract period (3 year minimum for new contracts and 1 to 3 years for
renewals), which commences on the program eligibility date, by conducting
qualifying service in the specified shortage situation;
3. Not owe any other obligation for veterinary services to the Federal
government (except NIFA’s VSGP), a State government, or any other entity
and not count the time spent under VMLRP contract towards any other service
program;
4. Maintain a valid, current veterinary license as required by their
employment.
5. Register for electronic funds transfer (EFT) in order to receive funds from
NIFA for taxes or for direct reimbursement for loan payments if NIFA is unable
to pay the loan servicing agent directly;
6. Notify NIFA if seeking a change in employment and submit a new Intent of
Employment form (NIFA-07-10, or any subsequent replacement form);
7. Submit a service verification form (NIFA 09-10, or any subsequent
replacement form) after completing each quarter of service (every 3 months);
8. Repay NIFA for any sums paid erroneously to his or her lender(s) or assist
NIFA in obtaining a refund from his or her lender(s) for such sums;
9. Make payments to lenders on their own behalf for periods of Leave
Without Pay (LWOP); and
10. Comply with the provisions of Title 7, U.S. Code of Federal Regulations,
Part 3431 and other policies or regulations governing the VMLRP, as
applicable.
Section C – Breach of Written Loan Repayment Contract
1. Any participant who fails to complete their veterinary service obligation
required under this contract will be considered to have breached the contract
and will be subject to assessment of breach remedies as specified in Paragraph
3 below.
a. VMLRP participants who are serving as practicing veterinarians and
are terminated for cause or for the convenience of the Government,
including reasons that are beyond the control of the participant, a
transfer of service initiated by NIFA from one shortage situation to
another (approved by the Secretary), or a call or order to active duty in
the U.S. Armed Forces, will not be considered to have committed a
breach of contract, and breach remedies will not be assessed.

Contract ID________________
b. Occasionally, a participant’s assignment may evolve and change so
that a determination is reached that he/she is no longer engaged in a
shortage situation. Similarly, the veterinary service needs and priorities
of the NIFA or the sponsoring entity may change, so that a determination
is made that the veterinarian’s skills may be better utilized in a
veterinary assignment which does not qualify for the VMLRP. Under
these circumstances, the following will apply:
i. Since no authority exists for the Secretary/NIFA Director to make
repayments on behalf of veterinary professionals who are not
engaged in qualified service, loan repayments will cease as of the date
such determination is made.
ii. Normally, job changes of this nature will not be considered a breach
of contract on the part of either the Secretary/NIFA Director or the
VMLRP participant. Based upon the recommendation of the
Secretary/NIFA Director, the VMLRP participant will be released from
the remainder of his/her service obligation without assessment of
breach remedies. VMLRP participants will be permitted to retain the
benefit of all loan repayments made or owed by the NIFA on their
behalf up to the date of the contract release, except any payments
advanced beyond the period of service rendered. Any payments
advanced prior to veterinary service must be repaid to the
Government.
2. Government Reimbursement for Failing to Complete the Service
Obligation – In accordance with the statute, the Secretary/NIFA Director will
recover the following from participants who fail to complete the minimum
service obligation:

States Code only if such discharge is granted after the expiration of the 7year period beginning on the first date that reimbursement payment is
required, and only if the bankruptcy court finds that non-discharge of the
obligation would be unconscionable.
d. In addition to the foregoing, breach of the service obligation will be
grounds for suspension or debarment by the Secretary pursuant to
applicable regulations at 2 CFR Part 417 or 2 CFR subtitle B.
Section D – Cancellation, Suspension, and Waiver of Obligation
1. Any service or payment obligation incurred by the participant under this
contract will be canceled upon the participant’s death.
2. The Secretary/NIFA Director may waive or suspend the participant’s
service or payment obligation incurred under this contract if:
a. A request is submitted to NIFA with supporting documentation;
b. Compliance by the participant with the Terms and Conditions of this
contract is impossible or would involve extreme hardship; and
c. Enforcement of such obligation would be unconscionable.
3. If a suspension is granted it will delay the participant’s service
commitment end date. Required documents and a description of the major
categories of suspension can be found in the VMLRP Guidance document.
Section E – Transfers
1. Transfers from one designated veterinarian shortage situation to another
are NOT authorized unless they meet the conditions outlined in the VMLRP
Guidance document.

a. If the applicant, for any reason, fails to complete their period of
obligated service, he or she shall be liable to the United States for an
amount equal to the sum of:
i. The total of the amounts paid by the United States to, or on behalf of,
the applicant under Paragraphs 1 and 2 of Section A of this Contract.

Section F – Contract Termination and Renewal
1. The Secretary/NIFA Director may terminate this Contract not later than
120 days after the execution of this contract if the individual:

ii. Interest on the amounts described in (a) of this paragraph at the
maximum prevailing rate, as determined by the Treasurer of the
United States, from the date of the breach.

a. Submits a written request for such termination; and

b. Any amount the United States is entitled to recover shall be paid
within 1 year of the date the Secretary/NIFA Director determines that
the applicant is in breach of this written Contract. Any amounts not
repaid within 1 year shall be due to the agency and collected pursuant to
7 CFR Part 3 without further notice.

b. Repays all amounts paid on behalf of the individual under Paragraphs
1 and 2 of Section A of this Contract.
2.

Participants who have successfully completed the terms and conditions
of their contract and have remaining eligible loan debt of at least
$15,000, may apply to be considered for a renewal award provided the
other conditions for renewal awards are met (see § 3431.18 (k))

c. Any obligation of the participant for reimbursing the government may
be released by a discharge in bankruptcy under Title 11 of the United

The Secretary/Director or his/her authorized representative must sign this contract before it becomes effective
Applicant’s Name

Applicant’s Signature

Secretary of U.S. Department of Agriculture/NIFA Director or Designee
Contract Period(s)
From:
To:

Date
Date

Shortage Situation ID_____________

% FTE(hrs)________________

Initial Contract _____ Renewal Contract _____
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other aspect of this collection of information, including suggestions for reducing this burden to NIFA, OEP, 800 9th St. SW, Washington, DC 20024, Attention Policy
Section. Do not return the completed form to this address.
NIFA Form 05-10 (Page 2 of 2)
OMB No. 0524-0047