Section 590.300  Limitations on Use of Loan Repayment Funds

a)         Funds shall be used for the repayment of the educational loans of primary care physicians who agree to serve in designated shortage areas for a specified period of time, no less than 2 years.

b)         Payments may be used for the principle, interest and related expenses of government and commercial loans received by the individual and used for tuition expenses, and all other reasonable educational expenses incurred by the individual.

c)         The maximum annual payment which may be made to an individual under this law is $20,000 or 25 percent of the total covered educational indebtedness, whichever is less.

d)         Payments made shall be exempt from Illinois State income tax. (Payments are not exempt from federal income tax.)

e)         Funds may not be used to monetarily repay a practice obligation resulting from educational loans or scholarships, whether from Illinois based institutions or governments, or those in other states (Section 4.10 of the Act).