GOVERNMENT RELATIONS continued
Health Practitioner Student Loan Forgiveness
Governor Corbett ’ s budget proposal includes expanding access to primary care services in underserved areas by increasing by $ 4 million funding for the state ’ s health practitioner loan forgiveness program . The funding would be used to offer loan repayment to an additional 70 physicians , dentists and other primary care practitioners who agree to serve a certain number of years in designated health professional shortage areas .
In addition , Rep . William Kortz ( D- Allegheny ) introduced HB 542 , legislation to increase the funding available for dentists enrolled in the state ’ s health practitioner loan forgiveness program .
Currently , the Pennsylvania Department of Health pays up to $ 64,000 toward the cost of a dentist ’ s student loans in exchange for the dentist serving in a designated health professional shortage area for four years . HB 542 would establish the Loan Forgiveness for Dentists Program , to be administered by the Pennsylvania Higher Education Assistance Agency ( PHEAA ). PHEAA may forgive 50 percent of the loan , not to exceed $ 100,000 , if the dentist enters into a contract that requires him or her to practice full-time in an underserved are for four consecutive years .
PDA actively lobbied the Administration and General Assembly for more funding in the loan forgiveness program . We know that indebtedness is a primary concern for recent dental school graduates . More than 90 percent of dental students graduate with debt . The debt amount varies greatly depending on whether students attend a public or private school . According to the American Dental Education Association ( ADEA ), the cost of student loan debt has grown 66 percent in the last 10 years and the average debt for 2012 dental school graduates was almost $ 241,000 .
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