USDA Loan Repayment Awards Help Deliver Veterinarian Services to Underserved Rural Communities

February 1, 2012 — 

The U.S. Department of Agriculture (USDA) announced today 80 awards to American veterinarians to help repay a portion of their veterinary school loans in return for serving areas lacking sufficient veterinary resources. The awards, totaling more than $7.7 million, were made by USDA’s National Institute of Food and Agriculture (NIFA) through the Veterinary Medicine Loan Repayment Program (VMLRP) and will benefit 34 states, Puerto Rico, and other federal lands.

Recipients are required to commit to three years of veterinary service in a designated veterinary shortage area. Loan repayment benefits are limited to payments of the principal and interest on government and commercial loans received for attendance at an American Veterinary Medical Association-accredited college of veterinary medicine resulting in a degree of Doctor of Veterinary Medicine or the equivalent. Loan repayments made by the VMLRP are taxable income to participants. Also included in the award is a federal tax payment equal to 39 percent of the loan payment made directly to the award recipient’s IRS tax account to offset the increase in income tax liability.

In fiscal year 2011, NIFA received 159 applications, a success rate of 50.3 percent. Below is a breakdown of the fiscal year 2011 awards:

• 80 awards totaling $7,707,840 (includes loan and tax payments)
• Average award: $96,348 (includes loan and tax payments)
• Average eligible debt for repayment: $106,742
• 74 percent of recipients received the maximum payment of $25,000 per year (plus taxes)
• 63 percent of awards went to those who obtained their Doctor of Veterinary Medicine within the last three years
• 34 states, Puerto Rico, and other federal lands will fill at least one shortage area through VMLRP
  • Montana will fill six shortage areas
  • Nebraska and Texas will fill five shortage areas
  • Iowa, Kansas, Minnesota, New Mexico and New York will fill four shortage areas
• Shortage type breakdown
  • Type 1 (at least 80 percent private practice): 18 awards
  • Type 2 (at least 30 percent private practice): 51 awards
  • Type 3: (at least 49 percent public practice): 11 awards

Participants are required to serve in one of three types of shortage situations. Type 1 shortage areas are private practices dedicated to food animal medicine at least 80 percent of the award recipient’s time. Type 2 shortages are private practices in rural areas dedicated to food animal medicine up to 30 percent of the time. Type 3 shortage areas are dedicated to public practice up to 49 percent of the time.

Source: USDA, NIFA News Release, February 1, 2012