SPARC Act

This bill creates a federal student loan repayment program to bring more specialty doctors to rural areas that don’t have enough of them. The government would sign agreements with specialty physicians—and may do so with certain non-physician specialists—to repay eligible student loans if they work full time in these rural communities for six years. Each year, the program pays toward their loans, and after year six it covers any remaining balance, up to a total of $250,000 .

Eligible loans include federal student loans such as Direct Stafford, PLUS, Consolidation, and Perkins loans, as well as other approved federal loans and loans for specialty medical or health care education. You can’t “double dip” by using this service time for other federal loan forgiveness programs, and only up to 15% of funds can go to non-physician specialists in this program. If someone leaves early, penalties may apply, but not finishing all six years by itself doesn’t count as a breach if they completed the years they were paid for. The health agency must also report on results and update workforce data. Funding is authorized through fiscal year 2034 .

• Who is affected: Specialty physicians and some non-physician specialists; rural communities with shortages of these providers .
• What changes: Six years of full-time service in a rural shortage area in exchange for federal student loan repayment each year, with any remaining balance covered after year six, up to $250,000; limits on combining with other federal forgiveness; caps and special rules for non-physicians; reporting and data updates .
• When: Agency reports start within five years of enactment and continue every other year through fiscal year 2033; funding authorized for fiscal years 2025–2034.