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Qualifying Educational Loans

As per the federal regulations governing this program, government and commercial loans incurred to obtain a health profession education qualify for the program. Qualifying commercial lending institutions are those that are subject to examination and supervision, in their capacity as lenders, by an agency of the United States or of the State in which the institutions have their place of business.

All participants' loan balances must be verified as eligible debt prior to approval in the program and before making an initial and/or continuation contract award. There will be absolutely no exceptions regarding eligible loan debt. The following loans do not qualify for the State Loan Repayment Program (SLRP):

  • Eligible education loans consolidated with loans owned by any other person;
  • Education loans that are currently in default;
  • Loans for which the associated documentation does not identify the loan as applicable to undergraduate or graduate education;
  • Loans not obtained from a Government entity of commercial lending institution. Most loans made by private foundations to individuals are not eligible for repayment;
  • Loans that have been repaid in full;
  • Personal lines of credit;
  • PLUS Loans (made to parents);
  • Residency relocation loan; and
  • Credit Cards.

Delaware Health Care Commission will be the final authority in determining qualifying educational loans.