New
Mexico Register / Volume XXXVII, Issue 12 / June 23, 2026
TITLE 5 POST-SECONDARY
EDUCATION
CHAPTER 7 TUITION
AND FINANCIAL AID
PART 3 NEW
MEXICO HEALTH PROFESSIONAL LOAN REPAYMENT PROGRAM (HPLRP)
5.7.3.1 ISSUING
AGENCY: State of New Mexico Higher Education
Department
[5.7.3.1 NMAC –
Rp., 5.7.3.1 NMAC, 6/23/2026]
5.7.3.2 SCOPE:
Provisions for 5.7.3 NMAC apply to certain practicing health
professionals and licensed physicians in New Mexico.
[5.7.3.2 NMAC –
Rp., 5.7.3.2 NMAC, 6/23/2026]
5.7.3.3 STATUTORY
AUTHORITY: Sections 21-1-26 and 21-22D et seq. NMSA
1978.
[5.7.3.3 NMAC – Rp., 5.7.3.3 NMAC, 6/23/2026]
5.7.3.4 DURATION: Permanent.
[5.7.3.4 NMAC –
Rp., 5.7.3.4 NMAC, 6/23/2026]
5.7.3.5 EFFECTIVE
DATE: June 23, 2026, unless a later date is cited at
the end of a section.
[5.7.3.5 NMAC –
Rp., 5.7.3.5 NMAC, 6/23/2026]
5.7.3.6 OBJECTIVE: The
objective and purpose of 5.7.3 NMAC is to increase the number of health
professionals and licensed physicians in the state through a program of loan
repayment of eligible educational loans. The program will provide loan repayment
assistance towards the principal and
reasonable interest accrued on eligible educational loans. The program requires each participant practice
their profession within one of the areas of the state designated by the
committee as a health professional shortage area for a minimum period of three years
for health professionals and four years for licensed physicians.
[5.7.3.6 NMAC –
Rp., 5.7.3.6 NMAC, 6/23/2026]
A. "Committee"
means the health profession advisory committee of the department organized
pursuant to 5.7.3.8 NMAC.
B. "Department" means the New Mexico higher education
department.
C. "Eligible
educational loan" means a grant of money to defray the costs
incidental to a health education, under a contract between the federal
government or a commercial lender and a health professional or licensed physician,
requiring either repayment of principal and interest or repayment in services.
D. "Extenuating
circumstances" means circumstances not within the control of the
participant.
E. "Health professional"
means a professional licensed in New Mexico pursuant to the: Acupuncture and
Oriental Medicine Practice Act; Anesthesiologist Assistants Act; Chiropractic
Physician Practice Act; Counseling and Therapy Practice Act; Dental Amalgam
Waste Reduction Act; Dental Health Care Act; Emergency Medical Services Act;
Genetic Counseling Act; Massage Therapy Practice Act; Medical Imaging and
Radiation Therapy Health and Safety Act; Medical Practice Act; Nursing Practice
Act and includes a nurse in advanced practice; Nutrition and Dietetics Practice
Act; Occupational Therapy Act; Optometry Act; Pharmacist Prescriptive Authority
Act; Pharmacy Act; Physical Therapy Act; Physician Assistant Act; Podiatry
Act; Polysomnography Practice Act;
Professional Psychologist Act; Respiratory Care Act; Social Work Practice Act;
Speech-Language Pathology, Audiology and Hearing Aid Dispensing Practices Act;
and other health professional licensing acts as determined by the department.
F. "Health
professional shortage area" means an area of the state or a facility
which has been determined by the committee as an acceptable practice site in
which program participants may fulfill their commitment.
G. "Licensed physician" means a medical or osteopathic physician licensed under the Medical
Practice Act to practice medicine in New Mexico.
H. "Nurse in advanced
practice" means a registered nurse, including a:
(1) certified nurse practitioner, certified registered nurse anesthetist or clinical nurse specialist, authorized pursuant to the Nursing Practice Act to function beyond the scope of practice of professional registered nursing; or
(2) certified nurse-midwife licensed by the New Mexico department of health.
I. "Participant"
means a health professional or licensed physician who has been accepted
into the program and has signed a contract pursuant to 5.7.3.12 NMAC.
[5.7.3.7 NMAC – Rp., 5.7.3.7 NMAC, 6/23/2026]
5.7.3.8 HEALTH
PROFESSION ADVISORY COMMITTEE: The health profession advisory committee is
created to advise the department on matters relating to the administration of
the Health Professions Student Loan-for-Service Acts and the Health
Professional Loan Repayment Act.
A. The committee
shall be appointed by the department pursuant to policies and procedures of the
department and may be composed of:
(1) a
representative of the department of health;
(2) a
representative of the New Mexico health policy commission;
(3) representatives
of public post-secondary health and medical training programs;
(4) representatives
of recruiting and placement organizations;
(5) representatives
of professional health and medical associations; and
(6) other
representatives as appointed by the department.
B. The
responsibilities of the committee shall include:
(1) designate
health professional shortage areas;
(2) make
recommendations to the department on applicants to the programs created by the Medical,
Osteopathic, Nursing and Allied Health Loan-For-Service Acts and the Health
Professional Loan Repayment Act; and
(3) give
advice or other assistance to the department as requested.
[5.7.3.8 NMAC –
Rp., 5.7.3.8 NMAC, 6/23/2026]
5.7.3.9 APPLICANT
ELIGIBILITY: A program applicant must be a health
professional or licensed physician and submit an application
with supporting documentation that provides:
A. biographical
information, educational history, and eligible educational loan information
including lender name, address, telephone number, loan numbers, loan balances,
interest rates and remaining payments; applicants with consolidated loans will
be asked to detail the consolidation in writing and segregate eligible
educational loans;
B. proof of
licensure or certification in the state of New Mexico to practice their profession
or for a relocating physician a formal declaration of intent to secure
licensure or certification in the state of New Mexico;
C. a certification
that the applicant is a bonafide citizen of the
United States;
D. a formal
declaration of intent to provide service in a health professional shortage area
full time, the committee may consider part-time service, with prorated awards based
on the percentage of hours worked relative to full-time employment, on a case-by-case basis;
E. a formal
declaration of intent to practice in a health professional shortage area for a
minimum period of three years for health professionals and four years for licensed
physicians;
F. certification of New Mexico residency or a formal
declaration of intent to establish New Mexico residency; and
G. information regarding the intended health professional
shortage area practice site.
[5.7.3.9 NMAC –
Rp., 5.7.3.9 NMAC, 6/23/2026]
5.7.3.10 SELECTION
OF LOAN REPAYMENT PARTICIPANTS:
A. Upon receipt of
application forms and supporting documentation from eligible applicants, the
committee will be convened by the department staff person charged with the
administration of this program to make award recommendations.
B. Highest priority
shall be given to licensed physicians.
C. Recruitment
awards may be made to eligible applicants who agree to relocate to New Mexico
and commence practice in a health professional shortage area within ninety days
of the grant of an award. The department
shall, within its capacity, assist applicants in locating practice positions in
designated health professional shortage areas. Nothing in this section shall be
construed to require the department to secure or guarantee employment or
placement for applicants.
D. Retention awards
may be made to eligible applicants who agree to remain in an approved health
professional shortage area.
E. The committee may consider:
(1) characteristics of the health
professional shortage area; and
(2) the applicant’s total eligible
educational loan debt.
[5.7.3.10 NMAC –
Rp., 5.7.3.10 NMAC, 6/23/2026]
5.7.3.11 AWARD AMOUNTS: Award amounts shall be determined by the
department in accordance with the following:
A. An award for a licensed physician shall be a minimum of
seventy-five thousand dollars ($75,000) per year for four consecutive years,
with the exception that:
(1) the total award amount shall not
exceed the licensed physician's total eligible educational debt;
(2) the award amount shall be prorated
based on a four-year award period; and
(3) part-time employment as a licensed physician
shall be prorated based on the percentage of hours worked relative to full-time
employment.
B. An award for a health professional other than a licensed physician
shall:
(1) not exceed the health professional's
total eligible educational debt;
(2) be prorated based on a three-year award
period; and
(3) be prorated based on the percentage of
hours relative to full-time employment if the health professional maintains
part-time employment.
C. Payments will be made on an annual basis upon receipt of a certified
employment verification of service which confirms the participant has
satisfactorily provided clinical health care services in a health professional
shortage area for that year.
D. Payments
will not be made until a participant has provided employment verification and
no payments will be made prior to execution of a contract.
E. The department may modify award amounts based
upon available funding or other special circumstances.
[5.7.3.11 NMAC – N, 6/23/2026]
5.7.3.12 CONTRACT: Upon
approval, a contract shall be drawn between each participant receiving loan
repayment and the department on behalf of the state of New Mexico. The contract shall state both the
participant's obligation under the program as well as the department’s responsibility.
No payment will be made until a duly
signed document is on file at the department offices. The contract shall include, but not be limited
to, the following stipulations:
A. provide for the
repayment of a specified sum as determined in Section 11; the department will
pay the amount awarded on an annual basis upon completion of one full year of
completed service, directly to the participant’s lender(s) for payment of their
eligible educational loans; the contract shall specify the:
(1) annual disbursement amount;
(2) total disbursement amount; and
(3) dates of the full contract term;
B. state that participants
are required to complete quarterly employment verification;
C. state that
payment of the award is conditioned upon the participant submitting timely employment
verifications to the department;
D. state the
participant's obligations including a minimum period
of service in a health professional shortage area practice
providing continuous clinical services in the field of their profession as
follows:
(1) a minimum period of three years for
health professionals; and
(2) a minimum period of four years for licensed
physicians;
E. state that the
participant is responsible for payment(s) of their eligible loans. Repayment by the department will begin
following the first certified year of completed clinical service in a health
professional shortage area;
F. the award will
be terminated if any of the following should occur:
(1) the
participant fails to perform continuous clinical service at the approved health
professional shortage area, unless a change of the health professional shortage
area or an interruption in service is approved in advance and in writing by the
department; no interruption in service exceeding six months will be approved;
(2) the
employment of the participant at an approved location is terminated;
(3) the
participant loses their professional license, or board certification; or
(4) the
department deems termination is warranted for any other reasonable cause.
G. in the event the
contract is terminated by the department, the department shall have no
obligation to make any further payments on behalf of the participant;
H. penalties as
outlined in Section 13; and
I. shall state that
the participant further promises to complete any other documents the department
may require to facilitate the award payment or other terms of the contract and
submit them to the department on a timely basis.
[5.7.3.12 NMAC – Rp,
5.7.3.11 NMAC, 6/23/2026]
5.7.3.13 PENALTIES:
A. If a participant
does not comply with the terms of the contract, the department shall assess the
full amount of award disbursed and may assess a fee of no more than eighteen
percent interest of the amount of the award disbursed, unless the department
finds acceptable extenuating circumstances for why the participant could not
serve and comply with the terms of the contract. If the department does not find acceptable
extenuating circumstances for the participant's failure to comply, the department
shall require immediate repayment.
(1) The
full penalty shall apply unless the circumstances reflect that the penalty
should be reduced on a prorata basis reasonably
reached based upon the degree of control which the participant has over the
decision not to serve. The participant shall have the burden of proof.
(2) If
the department does not find acceptable extenuating circumstances for the participant’s
failure to carry out their declared intent to serve in a health professional shortage
area in the state, the department shall require immediate repayment of the
award granted to the participant plus the amount of any penalty assessed
pursuant to this section.
B. Participants who
have signed a contract and fail to complete a quarter of service will not
receive a prorated award amount.
[5.7.3.13 NMAC – Rp,
5.7.3.12 NMAC, 6/23/2026]
5.7.3.14 INELIGIBLE
DEBTS: The following educational debts are not
eligible for repayment under this program:
A. amounts incurred
as a result of participation in any department administered loan-for-service
program or other state programs whose purpose states that service be provided
in exchange for financial assistance, such as the New Mexico health service
corps;
B. scholarships
which have a service component/obligation such as the national health service
corps scholarship;
C. personal loans;
D. loans which
exceed individual standard school expense levels; and
E. fines, penalties
or other financial damages assessed as a result of delinquent payments on
eligible educational loans, a breach of contract for any program that provides
educational loan repayment, or as a result of other legal action taken against
participants.
[5.7.3.14 NMAC – Rp,
5.7.3.13 NMAC, 6/23/2026]
5.7.3.15 HEALTH PROFESSIONAL LOAN REPAYMENT FUND: The health loan repayment fund is created as a nonreverting fund in the state treasury. The fund consists of appropriations, distributions, gifts and grants. The department shall administer the fund, and money in the fund is appropriated to the department to provide awards pursuant to the Health Professional Loan Act; provided that:
A. no less than fifty percent of the available funds in the health professional loan repayment fund as of the beginning of each fiscal year shall be encumbered for licensed physicians who receive an award;
B. funds that are encumbered but unexpended shall be used for award in the next fiscal year; and
C. the department shall apply funds appropriated to the department from the nursing excellence program license renewal surcharge established pursuant to Subsection B of Section 61-3-10.5 NMSA 1978 exclusively for loan repayment assistance for nurses in advanced practice who practice in health professional shortage areas designated by the committee. Eligibility for loan repayment assistance pursuant to Subsection B of Section 61-3-10.5 NMSA 1978 shall not render nurses in advanced practice ineligible for loan repayment assistance pursuant to the Health Professional Loan Repayment Act that derives from any other source of funding; and
D. the department shall apply funds appropriated to the department from the osteopathic physician excellence fund established pursuant to Section 21-22D-13 NMSA 1978 exclusively for loan repayment assistance for osteopathic primary care physicians who are licensed pursuant to the Medical Practice Act and who practice in health professional shortage areas designated by the committee.
[5.7.3.15 NMAC – N, 6/23/2026]
5.7.3.16 REPORTS: By
December 31 of each year, the department shall submit an annual report to the
governor and the legislature. The report shall include the amount of
each award granted, the cumulative total award amount, the number of awards
made by profession type and county and municipality where each health
professional or licensed physician that received an award practices in the state.
[5.7.3.16 NMAC – Rp,
5.7.3.14 NMAC, 6/23/2026]
HISTORY OF 5.7.3 NMAC:
Pre-NMAC History: The material in this part was derived from
that previously filed with the State Records Center and Archives under:
CHE Rule 805, New
Mexico Health Professional Loan Repayment Program (HPLRP), 12/21/1994.
History of Repealed Material:
5.7.3 NMAC - New Mexico
Health Professional Loan Repayment Program (HPLRP), filed 7/15/1998, was
repealed and replaced by New Mexico Health Professional Loan Repayment Program
(HPLRP), effective 6/23/2026.