Physician Education Loan Repayment Program

Physician Education Loan Repayment Program is targeted towards creating affordable monthly payments for physicians and it helps in the easy payments of the educational loan taken up by the physician

Updated by Annany Sah on 28th January 2020

A student loan is a type of loan designed to help students pay for post-secondary education and the associated fees, such as tuition, books and supplies, and living expenses.

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The purpose of the Physician Education Loan Repayment Program (PELRP) is to encourage qualified physicians to practice medicine in a Health Professional Shortage Area (HPSA) as designated by the US Department of Health and Human Services, and to provide health care services to recipients under the medical assistance program authorized by the Texas Human Resources Code, Chapter 32.

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What is Physician Education Loan Repayment Program

Physician Education Loan Repayment Program (PELRP) offers loan repayment to physicians who practice in Texas, with priority given to primary care physicians who practice in Health Professional Shortage Areas of the state for 4 years.It is designated in the US Department of Health And Human Service to provide any kind of health care services to a person falling under this medical program which is also stated in the Texas Human Resources Code.It is always to be well aware of all your student loan repayment options so that you can take control of your repayment phase

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Approved primary care specialties

Applicants must hold a full physician license from the Texas Medical Board and provide direct patient care to Medicaid enrollees and CHIP enrollees if the practice includes children.

  • Family medicine/family practice
  • General practice
  • Obstetrics/gynecology
  • General internal medicine
  • Pediatrics
  • Psychiatry
  • Geriatrics

Eligibility Criteria for Physician Education Loan Program

The eligibility criteria for this program are as follows:

  • Be a US citizen or Legal Permanent Resident and hold a full physician license from the Texas Medical Board, with no restrictions;
  • Be eligible to take the exam for board certification from the specialty board established by THECB administrative rules during the first, second, or third service period, if the physician has not earned and maintained board certification.
  • Agree to provide four consecutive years of service in a Federally designated HPSA.
  • Secure correctional facility operated by or under contract with the Texas Juvenile Justice Department limited to 10 recipients at a secure correctional facility per year.
  • Provide direct patient care to Medicaid enrollees and/or the Texas Children’s Health Insurance Program (CHIP) enrollees. 
  • Not be currently fulfilling another obligation to provide medical services as part of a scholarship agreement, a student loan agreement, or another student loan repayment program.

Eligible Loans

  • Must be evidenced by a promissory note which required the loan proceeds to be used to pay for the cost of attendance for undergraduate, graduate, or medical education;
  • Must not have been made during residency or to cover costs incurred after completion of medical school;
  • Must not be in default at the time of the physician’s application;
  • Must not have an existing service obligation for forgiveness through another program; and
  • Must not be subject to repayment through another student loan repayment or loan forgiveness program or repayment assistance provided by the physician's employer while the physician is participating in the program.

Loan Forgiveness Programs

Loan forgiveness and/or repayment programs are sponsored by national, state, and local governments, as well as some private organizations. Typically, after completing a residency, physicians who enter these programs are recruited to practice in designated health professional shortage areas . Benefits vary, but on average, participants provide service for two to four years depending on the number of years they received support in exchange for living stipends and repayment of educational loans.

National Loan Forgiveness Program 

The programs and resources listed here are a sample of available loan forgiveness programs. Association of American Medical Colleges (AAMC)  The AAMC provides a directory of state loan repayment programs with service commitments. The programs listed are only a sampling of those available. See your financial aid advisor for more information.

Government Loan Forgiveness Programs

  1. The National Institute on Minority Health and Health Disparities  Participants are offered loan repayment to develop research programs that reflect an understanding of the variety of issues and problems associated with disparities in health status.
  2. The National Health Service Corps (NHSC) Loan Repayment Program The NHSC offers up to $50,000 toward loan repayment for licensed health care providers in exchange for two years of service at an approved site.
  3. NHSC Students to Service Loan Repayment Program Medical students may earn up to $120,000 in their final year of school in exchange for a commitment to serve at least three years at an approved NHSC site.
  4. NHSC Scholarships are offered to students dedicated to a career in primary care. After residency completion, you will serve at a practice site that is in a HPSA of greatest need. The period of service is one year for each year of scholarship support, with a two-year minimum commitment.
  5. Public Service Loan Forgiveness Program forgives the remaining balance on an individual's Direct Loans after he or she has made 120 qualifying monthly payments under a qualifying repayment plan while working full time for a government.If you plan to enter this program, be sure that you have accurately researched requirements and eligibility for PSLF. There are strict guidelines regarding which payments qualify for forgiveness, and proper documentation is essential.


Physician Education Loan Repayment Program is targeted towards creating affordable monthly payments for physicians. There are several loan repayment programs for physician Education loans so that the physician can easily take up a loan for educational purposes with low interest rates.