Minnesota Dentist Loan Forgiveness Guidelines

The purpose of Minnesota’s Health Care Loan Forgiveness program is to recruit and retain health care professionals to needed areas and facilities in Minnesota. Loan forgiveness is an important benefit for health care professionals as well as health care facilities and communities experiencing a shortage of access to primary care services.

The Office of Rural Health and Primary Care (ORHPC), Minnesota Department of Health administers this program. It is funded by the State of Minnesota. Program eligibility requirements and benefits are established by state statute, 144.1501 authorizing the health professional education loan forgiveness program.

This program is offered to dental students, residents or licensed dentists, who plan to serve/are serving at least 25 percent of their annual patient encounters to state public program enrollees or patients receiving a sliding fee schedule in Minnesota. A prospective participant must submit an application to the ORHPC during the open application cycle as a practicing dentist or while completing dental school or residency training. Must be fully licensed by March 31 following selection to be eligible. 

The Dentist Loan Forgiveness Program provides funds for repayment of Qualified Educational Loans. Qualified Educational Loans include government, commercial, and foundation loans for actual costs paid for tuition, reasonable education and living expenses related to the past graduate or undergraduate education of the Dentist. Credit card debt or loans from family members do not qualify. Parent PLUS loans do not qualify.

Loans in current or active default are NOT eligible for forgiveness in this program, even if considered in good standing with the collections agency. Previously defaulted loans that have since been completely rehabilitated and are not currently in active default status are eligible.

This is a competitive selection process. Selections are made based on suitability for practice as indicated by experience or training as noted on an application, as well as preference given to those closest to completing their training. Preference will be given to applicants who document diverse cultural competencies. The number of applicants ORHPC may select for participation per year varies and is contingent upon state funding.

Participants are required to practice for at least 30 hours per week, for at least 45 weeks per year, for a minimum of three years as a dentist serving at least 25 percent of their annual patient encounters to state public program enrollees or patients receiving a sliding fee schedule.

Participants must begin their service obligation under this program no later than March 31 following selection. Participants must complete their dental program as originally stated in their application.

Participants are eligible to participate for up to four years in the program during which they practice as a dentist serving at least 25 percent of their annual patient encounters to state public program enrollees or patients receiving a sliding fee schedule. The ORHPC will make an annual payment to the participant in the amount of $41,000, not to exceed $164,000 total for the maximum four-year period or the balance of the designated loan(s), whichever is less subject to the availability of funds appropriated by the Minnesota State Legislature for the program.

Annually, ORHPC requires participants to verify their continued employment and submit documentation that they have applied the loan forgiveness funds to their designated educational loan(s). This information will be verified prior to each annual disbursement. It is at the discretion of the participant to pay their loan servicer(s) with an annual lump sum payment, or make monthly payments that total the annual disbursement from ORHPC.

Loan forgiveness payments made to participants under the program are considered exempt from federal income taxes. The State of Minnesota will not issue a 1099 form.

Service obligations may be suspended as a result of an illness, disability or temporary job transfer lasting less than a total of 12 months during the four-year commitment. All requests for temporary suspension of service must be in writing and substantiated by documentation acceptable by the state on a case by case basis. The agreement end date will be extended by the amount of time a participant is in suspension status.

If a participant does not fulfill the minimum obligation of three years serving at least 25 percent of their annual patient encounters to state public program enrollees or patients receiving a sliding fee schedule in Minnesota, or if the participant cannot verify that program funds were spent towards approved student loans, the participant will be required to repay the total amount ORHPC paid plus interest, at a rate established according to Minnesota Statutes 270C.40.