Written By Kevin Payne
The federal government offers several loan forgiveness plans in exchange for fulfilling service obligations in designated areas and professions. A notable example is the Substance Use Disorder Treatment and Recovery Loan Repayment Program (STAR LRP).
This program offers up to $250,000 in loan repayment to qualified individuals working within the area of substance abuse treatment. Keep reading to learn more about this loan repayment program and see if you qualify.
What is STAR LRP?
The Substance Use Disorder Treatment and Recovery Loan Repayment Program is offered and administered by the Health Resources and Services Administration (HRSA), an agency of the U.S. Department of Health and Human Services. It’s a federal program that provides loan repayment for individuals who work full-time at a qualifying substance use disorder (SUD) treatment center.
STAR LRP eligibility
Applicants must meet the following program requirements to be eligible to receive repayment assistance through the Substance Use Disorder Treatment and Recovery Loan Repayment Program:
- Be a U.S. citizen, national or permanent resident.
- Work as a full-time employee at a STAR-LRP approved treatment facility.
- Be fully licensed and credentialed in an eligible discipline or a registered SUD professional.
Below are the eligible STAR LRP disciplines and specialties for healthcare providers, clinical support staff and behavioral health paraprofessionals.
- Allopathic (MD) or Osteopathic (DO) Physician: Addiction Medicine, Family Medicine, General Internal Medicine, General Pediatrics, Obstetrics/Gynecology, Geriatrics, Psychiatry
- Physician Assistant (PA), Nurse Practitioner (NP) or Registered Nurse (RN): Adult, Family, Pediatric, Women’s Health, Geriatrics, Mental Health & Psychiatry
- Certified Nurse Midwife (CNM)
- Certified Registered Nurse Anesthetist (CRNA)
- Pharmacists (PHARM)
- Health Service Psychologist (HSP)
- Licensed Clinical Social Worker (LCSW)
- Licensed or certified master's level social workers
- Psychiatric Nurse Specialist (PNS)
- Marriage and Family Therapist (MFT)
- Licensed Professional Counselor (LPC)
- Substance Use Disorder (SUD) Counselors
- Psychology Doctoral Interns
- Clinical Nurse Specialist (CNS)
- Certified Nursing Assistant (CNA)
- Licensed Practical Nurse (LPN)
- Licensed Occupational Therapists
- Medical Assistants
- Community Health Workers
- Peer Recovery Specialists
- Case Managers
- Health Navigators
Not all loans are eligible for repayment through the Substance Use Disorder Treatment and Recovery Loan Repayment Program. Eligible loans include Federal Direct Stafford Loans, Direct PLUS Loans, Direct Unsubsidized Stafford Loans, Direct Consolidation Loans and select Perkins Loans.
Other eligible loans include loans for education or training, specifically for substance use disorder treatment employment, and other select loans. Consolidated or refinance student loans might also be eligible for repayment if they only include eligible education loans for the applicant.
Requirements to qualify for HRSA loan assistance
To earn HRSA loan forgiveness, you must commit to six years of full-time employment at a STAR LRP-approved facility, either providing direct treatment or recovery support for substance abuse disorder patients. Psychology doctoral interns must commit to full-time employment as a psychologist for six years, including completing an internship program.
Related: Best Loan Forgiveness Programs for Doctors and Nurses in Rural Areas
Other details for the Substance Use Disorder Treatment and Recovery Loan Repayment Program
STAR LRP funding is based on tiered priority. Below are the two tiers that affect funding:
- Tier 1 includes individuals who are working at a STAR LRP-approved facility in a county where the drug overdose death rate has been higher than the national average for the past three years.
- Tier 2 is for individuals working at a STAR LRP-approved facility that’s located in a Mental Health Professional Shortage Area (MHPSA).
The HRSA considers other factors, like your employment start date and outstanding debt-to-income (DTI) ratio.
STAR LRP funds aren't exempt from federal income and employment taxes. Instead of participants paying any associated taxes, the HRSA automatically withholds the required taxes from the awarded funds. Loan repayment funds might also be subject to state and local taxes, depending on where you reside.
Applicants might be eligible to participate in more than one loan repayment or forgiveness program. However, you could be ineligible for STAR LRP funds if you take part in another loan forgiveness or repayment program with service obligations that occur simultaneously with the STAR LRP.
Contact program administrators for more detailed information if you plan to pursue more than one loan repayment program.
How to use STAR LRP for loan forgiveness
To apply for this program, start by creating an account with the Bureau of Health Workforce Customer Service Portal. Then, look for an “Applying for the STAR Loan Repayment Program” link.
Note the application deadline for this year is July 23, 2023. Completing an application includes:
- An online application
- Supporting documentation (e.g., proof of residency, copy of license and professional degree, loan information, etc.)
- Additional supplementation documentation if applicable (e.g., substance use disorder certification, proof of name change, etc.)
Use the STAR LRP Application and Program Guidance and the FAQ page for detailed program information.
Alternatives to the Substance Use Disorder Treatment and Recovery Loan Repayment Program
Depending on your career field, you might qualify for one of the HRSA's other loan repayment programs:
Each program has its own eligibility and service requirements. But all three NHSC loan repayment programs are exempt from federal income taxes.
You might also qualify for Public Service Loan Forgiveness (PSLF). You must work full-time at a qualifying non-profit or government organization while making 120 qualifying loan payments loan forgiveness. Forgiven amounts under PSLF are tax-free.
Take time to research STAR LRP and other loan repayment programs to see if you qualify for any assistance to pay off your student loan debt. If you need help figuring out how to pay off your loans, our student loan consultants can create a customized loan repayment plan that works for you.
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Take our 11 question quiz to get a personalized recommendation for 2024 on whether you should pursue PSLF, Biden’s New IDR plan, or refinancing (including the one lender we think could give you the best rate).
