Are the loan repayment benefits taxable?
Loan repayment benefits represent taxable income for LRP participants. Concurrent with each loan repayment, the LRP makes payments for direct credit to the participants’ IRS tax account (Federal tax) at the rate of 39 percent of the loan repayments. For more information on tax reimbursements, see Extramural Appendix II of the LRP Web site. • How can I apply for the LRP? How is the application processed? How will selections be made? Applications are submitted electronically via the LRP Website and must be submitted to the LRP prior to the next deadline date. Applications for the NIH Extramural Loan Repayment Programs are located at the LRP Web site . Applications that satisfy the basic eligibility criteria are forwarded to NIH Center for Scientific Review for a determination on which NIH Institute or Center (IC) will review, score and rank the application. This is a competitive review – there is no guarantee of funding for individuals who submit an application. Assurances of funding can
