Oct. 25 -- Practicing physicians in New Mexico can get their student loans repaid by state and federal programs.

It's an effort to address the health care worker shortage in New Mexico and incentivize physicians to stay in the state.

New Mexico's Health Professional Loan Repayment Act, funded with state and federal dollars, allows health care workers to get their outstanding student loans repaid on a case-by-case basis. The most recently approved state budget allocated $15 million for the program.

And, a 2023 bipartisan bill allowed more physicians to apply for the loan repayment. Previously, only primary care health care workers were eligible, but now, physicians in allied health, dental, nursing and mental health fields can apply.

The 2023 legislation also extended health care workers' service obligation for loan repayment from two years to three years, meaning anyone awarded loan repayments must commit to a three-year service obligation in their current position, facility and county.

If the three-year obligation isn't met, the state will penalize the awardee with three times the amount of the award disbursed, plus 18% interest.

"(The Health Professional Loan Repayment Act) is a serious commitment to the underserved citizens of New Mexico," the New Mexico Higher Education Department's website reads.

A New Mexico Health Advisory Committee reviews every application, scoring based on service areas, particularly areas lacking health care.

Professionals practicing in federal Health Professional Shortage Areas, or HPSAs, are prioritized and will be offered federal funding first, according to HED. New Mexico has about 170 HPSAs, the most located in Santa Fe, Sandoval and McKinley Counties, according to data from the U.S. Health Resources and Services Administration.

Applicants must be a U.S. citizen and New Mexico resident, licensed in New Mexico, employed full-time and currently provide clinical care.

The next application cycle will be in 2025, opening March 15 and closing May 1.

Health care providers awarded the loan repayment will get loan payments on a quarterly basis directly to their loan service providers.

The online application in mid-March will be available at the HED website at https://hed.nm.gov/financial-aid/loan-repayment-programs/health-professional.

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