The HPSP/FAP stipend and bonus/grant are entitlements of the HPSP/FAP program. Stipend is intended for the purchase of items not included by the scholarship. Each year the stipend and grant amount is determined and is published by a Health Affairs Memorandum. For the year 12 July 2018 through 30 June 2019, the stipend amount is $2,330.78 per month and the FAP grant is $45,000 per year. Stipend and bonus/grants are taxable by both the federal and state government. The HPSP/FAP student stipend begins accruing on the benefit start date and ends on graduation day, or on the date all academic requirements for receipt of the professional degree, if that date precedes the date of graduation by more than 45 days.
HPSP participants are eligible for 12 months of financial assistance each year: 10 ½ months of stipend and 1½ months of active duty pay and allowances as an Ensign while on annual training (AT). Stipend payments are suspended while a student is on AT or if placed in a Leave Without Pay (LWOP) status.
A scholarship participant is not eligible for stipend or bonus payments until the Benefit Start Date occurs. Additionally, the Accessions Department must receive all scholarship documents from Navy Recruiting Command and “gain” the student into the official Navy databases before a stipend or bonus payment can be made. In some cases, this could be up to 30 days after receipt of the document or longer if there are issues with the documents. Once a pay record is established, the Defense Finance and Accounting Service, Cleveland (DFAS-CL) initiates stipend and bonus/grant payments via direct deposit. The monthly stipend is split into two payments, stipend for days 1-15 of the month are paid on the 15th of the month, and stipend for days 16 – 31 are paid on the 1st of the next month.
Determination of the Benefit Start Date (BSD): The
benefit start date is the date that benefits begin for participants. The benefit
start date is the latter of three dates listed below:
date the Acceptance of Office/Oath of Office was signed.
date the HPSP Service Agreement was signed.
first day of the academic year (not including orientation).
Termination of Benefits:
Scholarship benefits are terminated:
the date a participant graduates from school
date program requirements are completed if that date precedes the graduation
date by 45 days or more.
the participant is separated from the program.
HPSP Accession Bonus: The Navy offers a
$20,000.00, taxable, one time, incentive bonus to medical and dental HPSP
signees. It is paid as 2 payments of $9000, and one of $2000. Each payment has
taxes withheld prior to deposit in the student’s direct deposit
account. Deposit of the signing bonus is generally made over the course of a
week or two. On a leave and earnings statement, the signing bonus will be seen
in the field labeled “FLPP,” which stands for the Foreign Language Proficiency
Pay. Defense Finance Accounting System (DFAS) did not have another field that
could be used for this bonus payment. The bonus is paid AFTER the benefit start
date and after a pay record is established for the participant.
stipends, grants, bonuses and active duty pays are subject to State and Federal
Withholding Tax. The amount of state and federal tax withheld is based on the
exemptions claimed on the participant’s Withholding Certificate (form W-4)
submitted at the time of entry into the program and kept in the service record,
and the state of legal residence (as denoted on DD 2058, State of Legal
Residence). If no Form W-4 was received with the record, the stipend is taxed at
the rate of “single with no dependents.” To initiate a change in Federal
Withholding Tax, complete and submit a new Form W-4. click here for a 2018 W-4 Form.
will send a Federal Wage and Earnings Statement (Form W-2) for all pays received
during each tax year. Participants can obtain their W-2 from the DFAS MyPay
website. Failure to receive a W-2 is generally a result of failure
to provide Accessions Department with a current address.
on active duty get their HPSP W-2 as a separate mailing from DFAS, which goes to
the address that was on file while in the HPSP program. The active duty W-2 can
be obtained from the MyPay Website. If prior HPSP/FAP participants (now on
active duty) need a W-2 issued for their time in the HPSP/FAP program, they
should call the DFAS Call Center at 1-888-332-7411, and specifically request
their "Reserve W2."
HPSP/FAP students requiring a new W-2 should call the DFAS Help Line at
1-888-332-7411. Go through ALL the options one time and then punch in "O" to get
a live voice Customer Service Representative (CSR) and explain that you are
INACTIVE READY RESERVE (IRR). This is because you may reach a customer service
representative who is a temporary employee hired during tax-season only and not
familiar with the difference between active duty and reservist status. If that
service rep is not familiar with the IRR/Reserves, please ask for a regular CSR
who will know what to do. If all else fails, contact Accessions for
Accepting Pay or Scholarships from Other Sources: Members
of the HPSP/FAP are prohibited from accepting other scholarship support in any
form from the Federal Government (Dual Compensation), other than the pay
associated with Annual Training. No restrictions apply to accepting pay or other
remuneration from private or state sources, if doing so does not interfere with
the participant’s HPSP status, requirements for graduation, Annual Training
assignments or active duty service obligation.
Form (SF1199A) Direct
Use this form to change bank account information for direct deposit. When
filling out this form, Section I, Item C should be your Social Security Number,
and Section 2 should list Navy
Bureau Of Medicine And Surgery, NM Accessions Department.” The
address is 8955 Wood Road Suite 13132, Bethesda, MD 20889-5628.” When
submitting new bank information, please allow payment to post to the new account
BEFORE you close your old bank account in order to avoid delay in
myPay, Web Access to your Military Leave and Earnings Statement (LES) and your W2: myPay is a password protected website that displays your current pay account information and allows selected pay changes directly to your DFAS pay record. Except for short periods of system maintenance, myPay is available to you seven days a week, 24 hours a day. You should get your temporary password in the mail about 30 days after your DFAS account is set up. It will stay active for only 7 days, so please initiate your account immediately upon receipt. After you access myPay, menus will guide you through the applications available. The myPay home page is located at: https://mypay.dfas.mil/mypay.aspx . When accessing myPay for the first time using the temporary password, it will be necessary for you to customize your password. If you have any problems accessing myPay or need further password assistance, call toll free 1-888-DFAS411 or 1-888-332-7411, commercial (216) 522-5096, or DSN 580-5096 from 7:00 a.m. to 6:30 p.m. EST. Please note that access to your W2 form for completion of your income tax will soon be available ONLY via myPay.
VIII. FAP Annual Training Active Duty
of the FAP are eligible for 12 months of financial assistance each year:
11 1/2 months of stipend and 14 days of full pay and allowances while on Annual
Training (AT). FAP participants also receive a 14 day prorated Medical Officer
Pay while on active duty. Stipend payments are suspended while participants are
FAP Grant :
FAP participants receive an annual grant of $45,000. The initial
FAP grant is received upon entry into FAP. Subsequent grant payments are paid
after the entry anniversary date, until the participant graduates.
The last grant payment is prorated from the anniversary date to the
graduation date. An example of a FAP Grant payment schedule for a participant
starting in January 2012 and graduating in July 2014:
grant payment (full) is in January 2012
payment (full) is in January 2013
payment (half) is in January 2014
Annual Training Pay:
with Prior Military Service:
During Annual Training, prior service members will be paid based
on their prior PEBD years of pay longevity. Members with at least
four years and one day of prior active enlisted service are entitled to "O-1 E"
pay. If you have prior service, please send a copy of your DD 214,
(Report of Separation from Active Duty), and any documentation of Reserve drill
time and/or National Guard duty to the Personnel Section of the Accessions
Department. These documents will be forwarded to the Bureau of Naval Personnel
for computation of creditable prior service for pay purposes.
The National Defense Authorization Act of 2008 (NDAA 08) authorized HPSP
medical students who fall within the provisions of sections 2004a, 2114, or
2121, to receive an increased rate of basic pay if they have prior
active service in the military and the basic pay for their former grade would
exceed the basic pay for an O-1 (the pay grade at which they serve on active
duty while attending professional school). The higher rate does not apply to
Basic Allowance for Housing (BAH) or Basic Allowance for Subsistence (BAS). HPSP
students with prior service will receive the established stipend when not on
annual training (AT). When on their 45 days of annual training, Defense Finance
and Accounting Service (DFAS) will automatically pay them the higher of base
pays – from their prior service or the 0-1E or 0-1 with years of service. They
will receive that base pay in addition to BAH and BAS at the 0-1 rate and any
per diem if on travel. When the annual training is completed, these students
revert to their stipend.
GI Bill: The Department of Veterans’ Affairs
considers the HPSP/FAP/NCP stipend a scholarship. This enables participants with
GI bill benefits to collect the stipend plus the GI Bill education benefits
earned while on active duty. To qualify, you must have served on continuous
active duty for more than 180 days, attend an approved institution, and pursue
an approved program of education. For more information, application forms, etc.
see the VA officer at your school or contact the local Veteran's Affairs office
in your area. As with the stipend, you are not entitled to receive GI Bill
benefits while you are on Annual Training.
Thrift Savings Program (TSP): The
TSP is a retirement savings plan for civilians employed by the United States
Government and members of the uniformed services. Only active duty pay and
bonuses are eligible for the TSP. HPSP/FAP stipend is not eligible for deposit
into a TSP account. The Federal Retirement Thrift Investment Board administers
the Thrift Savings Plan (TSP). The Web site http://www.tsp.gov has extensive
information about this program. All military active duty are eligible to
participate in the TSP, which allows active duty members to contribute up to a
yearly specific limit of "pre-tax" dollars into the managed funds. HPSP
and FAP participants can only open a TSP account when on Active Duty for
Training (ADT) orders. To establish an account, during an ADT period email the
signed TSP-U-1 form to
Include a cover sheet with a short explanation. DFAS will enter the data.