These frequently asked questions
(FAQ's) are divided into three categories: General Application Questions, Repayment of Loan Questions, and Default or Termination of Loan
Questions.
General Application
Questions:
What exactly is the loan and what does it cover?
The Board of Medical Scholarship Awards under Senate Bill 67
passed in February 1994 offers loans for 20% of students enrolled in
medical schools in the State of Alabama. The loans are in an amount
up to the average cost of tuition, fees, and living expenses as set
forth in the current catalogs of the University of Alabama School of
Medicine or the University of South Alabama College of Medicine for
the year of each enrollment.
What is the eligibility for the loans and is there any
preferences given to financial need?
Loans shall be available to any resident of Alabama of good
character who has been accepted for matriculation by one of the
medical schools of Alabama preference being given to those applicants
who can show an economic need and who commit in writing to practice
in a rural area in a generalist specialty as determined by the Board
(This currently includes only: family practice, internal medicine and
pediatrics).
When can I apply, and if I apply latter in medical school?
Applications can be submitted at any time during the year and at
any point in one's medical school training.
Can I get financial support for the years that I have already
completed in medical school?
Yes. The Board may, at its discretion, permit students to apply
for a loan under this subdivision in any scholastic year and for any
previously completed scholastic year and for any previously completed
scholastic year of medical education.
What does the application for the loan require?
The application is a simple two page information sheet.
Applicants are asked to write an essay on: "What you feel this loan
program and your career goals have in common." Also, all applicants
will have a personal interview with representatives from the Board.
Where can I get an application?
Ms. Kelly Parker
Board of Medical Scholarship Awards
P.O. Box 115
Montgomery, Alabama 36101
(334) 353-4800
kelly.parker@bmsa.alabama.gov
Repayment of Loan
Questions:
How do I repay the loan?
These loans shall be repaid following specialty training under
the terms of a contract to practice clinical medicine in an area of
Alabama identified by the board as medically underserved for a term
of years.
What are these terms? (i.e., How long do I have to work in a
rural community?)
The loan or any part thereof shall be repaid by engaging in
full-time clinical practice, exclusively in the area as defined in
the regulations of the board, in one of the following ways, in
accordance with a contract approved by the Board of Medical
Scholarship Awards:
- Practice for a period equal to one year of practice for
each year the individual received a loan in a community of
less than 5,000 population which is in an area within Alabama
identified by the board as medically underserved.
- Practice for a period equal to one and one-fourth years of
practice for each year the individual received the loan in a
community of more than 5,000 population and less than 15,000
population which is in an area within Alabama identified by the
board as medically underserved.
- Practice for a period equal to one and one-half years of
practice for each year the individual received a loan in a
community of more than 15,000 but less than 50,000 population
which is in an area within Alabama identified by the board as
medically underserved.
Default or Termination of Loan
Questions:
What happens if I back out of my agreement and decide not to
work in an underserved community?
In the event of a default or other breach of contract by the
recipient of loans provided under this act, or other termination of
contract prior to the completion of the period of medical education
and training, the individual shall be liable for immediate repayment
of the total principal loan amount plus interest at the rate of
eight percent accruing from the date of default or termination and an
additional penalty.
What are the terms of the additional penalty?
- For default or termination of a loan for one scholastic year,
a penalty equal to 20% of the total principal amount of the loan.
- For default or termination of a loan for two scholastic years,
a penalty equal to 30% of the total principal amount of the loan.
- For default or termination of a loan for three scholastic
years, a penalty equal to 40% of the total principal amount of the
loan.
- For default or termination of a loan for four scholastic
years, a penalty equal to 50% of the total principal amount of
the loan.
- If default or termination occurs after the fourth year but
prior to the completion of a residency training program accredited
by the Accreditation Council on Graduate Medical in a generalists
specialty as determined by the Board, a penalty equal to 100% of
the total principal amount of the loan.
- If default or termination occurs after completion of a
residency training program but prior to completion of the
repayment obligation as set forth above, a penalty equal to 200%
of the total principal amount of the loan.
What if I terminate my loan and fail to repay the loan and
penalty?
The failure of a recipient of a loan to perform his or her
agreement with the Board of Medical Scholarship Awards or to pay the
amount he or she is liable for under this program shall constitute a
ground for the revocation of his or her license to practice medicine.
What happens if I am unable to fulfill my loan obligations due
to death or a permanent diability?
In the event of death or a recipient or upon the recipients'
becoming permanently disabled to an extent that he or she is no
longer able to engage in the practice of medicine, the Board may
excuse repayment of the loan.
