September 23, 2004

Students who are enrolled in the Rural Medical Scholars Program (RMSP) and demonstrate financial need are eligible to apply to the Alfa Rural Medical Scholars Program Endowed Loan Fund. The loan is forgiven for students who, upon finishing their training, serve five years in a rural setting.

“One of our state’s critical health care needs is more physicians in rural areas,” said Carol Z. Garrison, president of UAB. “Alfa Companies have recognized this need and provided a most generous gift so that we can begin to address this problem.”

“Almost 60 years ago, the Alabama Farmers Federation founded Alfa Insurance to help better serve rural communities. By helping educate rural physicians, our company is continuing its legacy of service to farmers and rural Alabamians,” said Jerry A. Newby, president of Alfa Insurance and Alabama Farmers Federation. “The bright young men and women who participate in the Rural Medical Scholars Program will help improve the health of rural people, and by establishing practices in small towns, they will contribute to the economic health of the entire state.”

In addition to being enrolled in the RMSP, students must earn at least a 3.3 grade point average in undergraduate or post-baccalaureate course work and be residents of Alabama.

Loans will be awarded annually. Recipients, to be known as the Alabama Farmers Federation Rural Medical Scholars, must maintain a 3.0 GPA as medical students. A committee appointed by the dean of the medical school will determine the recipients, as well as the number of recipients per year.

“We are delighted to have this strong, tangible support for this program which is designed to greatly assist in providing our rural areas with medical care,” said Dr. William B. Deal, vice president and dean of the school of medicine.

Once recipients finish their training, those who spend five years in a rural community as determined by the state department of public health will have their loans forgiven. Recipients who do not fulfill this requirement will be required to repay their loans, plus an appropriate finance charge, at a graduated rate depending on the number of years served in a rural setting. For example, a student who spends only a year in a rural community would have to pay 80 percent of their loan, whereas a student spending three years in a rural community would repay 40 percent. Students will have five years to repay their loans.