Nursing Education Loan Repayment Program for Registered Nurses Entering Employment at Eligible Health Facilities (93.908)
Program
93.908 Nursing Education Loan Repayment Program for Registered Nurses Entering Employment at Eligible Health Facilities
Federal Agency
HEALTH RESOURCES AND SERVICES ADMINISTRATION, DEPARTMENT OF HEALTH AND HUMAN SERVICES
Authorization
Public Health Service Act, Section 846, as amended, Public Law 105-392.
Program Number
93.908
Last Known Status
Active
Objectives
To address the serious shortage of nurses at health facilities in certain areas of the United States. As an incentive for registered nurses to enter into full-time employment at these health facilities, the program will assist in the repayment of their nursing education loans. The intent of this program is to increase the number of registered nurses serving designated nurse shortage areas.
Types of Assistance
Project Grants.
Uses and Use Restrictions
Agreements are made for not less than 2 consecutive years of service and will provide: (1) Upon completion by the nurse of the first year of service at an eligible health facility, an amount to be paid which will bring the total payments for the first year to 30 percent of the principal and interest which was unpaid for each qualified loan at the beginning of the period of agreed service; (2) upon completion by the nurse of a second consecutive year of service, an amount to be paid which will bring the total payments for the second year to 30 percent of the principal and interest which was unpaid for each loan at the beginning of the period of agreed service; (3) if the term of service is extended to a third year of service, an amount to be paid at the end of the third year of service which will bring the total payments for the third year of service to 25 percent of the principal and interest which was unpaid for each loan at the beginning of the original period of service. At the end of a two-year service obligation, the total payments will amount to 60 percent of the principal and interest which was unpaid for each loan at the beginning of the period of agreed service (85 percent at the end of the 3-year service obligation). Eligible health facilities are Indian Health Service health centers, Native Hawaiian health centers, public hospitals, migrant health centers, community health centers, health care for the homeless health centers, public housing primary care health centers, and rural health clinics, or public or nonprofit private health facilities determined by the Secretary of Health and Human Services to have a critical shortage of nurses.
Eligibility Requirements
Applicant Eligibility
Individuals who satisfy all of the following criteria are eligible to apply: (1) Have received a baccalaureate or associate degree in nursing (or an equivalent degree), a diploma in nursing or a graduate degree in nursing; (2) have unpaid qualifying loans obtained for nursing education; (3) be a U.S. citizen, national or a permanent legal resident of the United States; (4) be employed full-time (32 hours or more per week) at an eligible health facility; (5) have a current unrestricted license in the State in which they intend to practice under the NELRP; and (6) submit a complete application, including a signed Contract to work full-time as a registered or advanced practice nurse for 2 or 3 years at an eligible health facility.
Beneficiary Eligibility
Beneficiaries include registered nurses who have received initial nursing preparation from a diploma, an associate degree, a baccalaureate degree or a graduate degree in a collegiate school of nursing as defined in Section 846 of the Public Health Service Act.
Credentials/Documentation
Applicants must submit: (1) Complete NELRP application; (2) Complete Loan Information and Verification form (part A is to completed by the applicant, part B is to be completed by the lending institution) for each nursing education loan to be considered; (3) Complete Employment Verificant form; (4) Signed NELRP Contract; (5) Complete Payment Information form; (6) Complete Authorization for Release of Employment Information.
Application and Award Process
Preapplication Coordination
None. This program is excluded from coverage under E.O. 12372.
Application Procedure
Applications may be submitted online: http://bhpr.hrsa.gov/nursing/loanrepay; or obtained by calling, 1-866-813-3753; or by writing to: Nursing Education Loan Repayment Program, Division of Nursing, Bureau of Health Professions, Health Resources and Services Administration, Department of Health and Human Services, 5600 Fishers Lane, Room 9-36, Rockville, MD 20857.
Award Procedure
Once a determination has been made as to who will receive an award, that individual will be accepted into the program. The individual will be notified in writing of his/her acceptance.
Deadlines
Applications for fiscal year 2002 must be postmarked by June 14, 2002.
Range of Approval/Disapproval Time
Appeals
None.
Renewals
Renewals for the third year of service will be considered according to the availability of funds.
Assistance Considerations
Formula and Matching Requirements
This program has no statutory formula or matching requirements.
Length and Time Phasing of Assistance
Loan repayments for 1 year of obligated service will be made no later than the end of the fiscal year in which the individual completes such year of service. The program will repay each of the participant's loans on a monthly basis directly to the participant, the percentage of their total verified loans as described above, divided into 12 equal monthly payments.
Post Assistance Requirements
Reports
Eligible health facilities must complete and send to the Program an annual certification that the participating nurse has engaged in a year of full-time continuous service as a registered nurse. This certification includes an endorsement by an appropriate official of this eligible health facility.
Audits
In accordance with the provisions of OMB Circular No. A- 133, (Revised, June 24, 1997), "Audits of States, Local Governments, and Nonprofit Organizations," nonfederal entities that expend financial assistance of $300,000 or more in Federal Awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $300,000 a year in Federal awards are exempt from Federal audit requirements for the year, except as noted in Circular No. A-133.
Records
Financial records must be kept available for 3 years after the end of the service obligation.
Program Accomplishments
In fiscal year 2001, 434 contracts were awarded. In fiscal years 2002, it is estimated that 600 contracts will be awarded. It is estimated that 675 contracts will be awarded in fiscal year 2003.
Financial Information
Account Identification
75-0350-0-1-550.
Obligations
(Grants) FY 02 $15,000,000; FY 03 est $15,000,000 and FY 04 est $20,000,000.
Range and Average of Financial Assistance
From $337 to $81,467. Average: $18,000.
Regulations, Guidelines and Literature
"Application Kit for Registered Nurses" is available from the Chief, Diversity and Basic Nurse Education Branch, Division of Nursing, Bureau of Health Professions, Health Resources and Services Administration, 5600 Fishers Lane, Room 9-36, Rockville, MD 20857. Telephone: (301) 443-3232 or 1-866-813-3753 or online, http://bhpr.hrsa.gov/nursing.
Related Programs
93.162, National Health Service Corps Loan Repayment Program; 93.164, Indian Health Service Educational Loan Repayment; 93.364, Nursing Student Loans.
Information Contacts
Regional or Local Office
Not applicable.
Headquarters Office
Program Contact: Chief, Diversity and Basic Nurse Education Branch, Division of Nursing, Bureau of Health Professions, Health Resources and Services Administration, 5600 Fishers Lane, Room 9-36, Rockville, MD 20857. Telephone: (301) 443-3232.
Web Site Address
Examples of Funded Projects
Loan Repayments for education costs made to registered nurses in designated health facilities.
Criteria for Selecting Proposals
First preference will be given to qualified applicants with the greatest financial need who agree to service in eligible health facilities located in a county on the NELRP's fiscal year 2002 list of counties with a shortage of nurses. Based on the availability of funds following award of the first preference, awards will be made in the following order: (1) to qualified applicants who are employed at an eligible health facility in a nursing shortage county regardless of the applicants' financial need; (2) to qualified applicants employed at an eligible health facility not located in a nursing shortage county, but who demonstrate greatest financial need; and (3) to other qualified applicants who are serving in States with few or no new NELRP participants.
