18A:71C-37 Redemption limits; service.
18A:71C-37. a. Maximum redemption of loans under the loan redemption program shall amount to 18 percent of principal and interest of eligible qualifying loan expenses in return for one full year of service at an approved site, an additional 26 percent for a second full year of service, an additional 28 percent for a third full year of service, and an additional 28 percent for a fourth full year of service for a total redemption of eligible qualifying loan expenses of up to, but not to exceed, $200,000 for service at an approved site, or the maximum amount authorized by the federal government, whichever is greater, either (1) in State funds or (2) the sum of federal, State, and other non-federal funds pursuant to section 338I of the Public Health Service Act (42 U.S.C.s.254q-1), whichever is applicable. No amount of eligible qualifying loan expenses shall be redeemed for services performed for less than a full year. b. A participant who enters an agreement to fulfill service in a State-designated underserved area that is also a HPSA shall be permitted a total redemption of eligible qualifying loan expenses for four years of service up to, but not to exceed, the sum of federal, State and other non-federal matching funds provided pursuant to section 338I of the Public Health Service Act (42 U.S.C.s.254q-1). c. A program participant who enters an agreement to fulfill service in a State-designated underserved area that is not also a HPSA shall be permitted a total redemption of eligible qualifying loan expenses for four years of service up to, but not to exceed, $200,000, or the maximum amount authorized by the federal government, whichever is greater, in State funds. d. A program participant who has engaged in full-time clinical practice during the participant's initial two years of participation in the program shall be permitted to fulfill the program participant's subsequent service obligations on a part-time basis with the approval of the authority or its designee and the program participant's employer in a State-designated underserved area, with the program participant's redemption credit accruing on a pro rata basis. The program participant may be permitted a total redemption of eligible qualifying loan expenses for the equivalent of four years of full-time service. Amended 2009, c.145, s.6; 2025, c.345, s.8.