NURSE FACULTY LOAN PROGRAM NFLP

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NURSE FACULTY LOAN PROGRAM (NFLP)

• Technical Assistance Workshop
• October 11-12, 2007 (Dallas, TX)
• October 17-18, 2007 (Washington, DC)
• Irene Sandvold, DrPH, CNM, FACNM
• Denise Thompson
• U.S. Department of Health and Human Services
• Health Resources and Services Administration
• Bureau of Health Professions
• Division of Nursing

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Nurse Faculty Loan ProgramPurpose

• The Nurse Faculty Loan Program (NFLP) is
• authorized under
• Title VIII, Section 846A of the Public Health
  Service
• Act, as amended by the Nurse Reinvestment Act of
• 2002 to increase the number of qualified nursing
• faculty.

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Nurse Faculty Loan ProgramStrategic Goals

• Promote recruitment of nursing students to become
  nurse faculty
• Provide financial support for students enrolled
  in an advanced education nursing program to
  prepare qualified nurse faculty
• Retain loan recipients as nurse faculty by
  providing loan cancellation over a consecutive
  four-year period

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Nurse Faculty Loan Program Eligibility

• Collegiate schools of nursing or another entity
  within the college/university that offers
  advanced degree nursing program can apply for
  NFLP funds.
• Schools must offer an advanced education nursing
  degree program(s) that is fully accredited and
  prepares qualified nurse faculty.
• Schools must be located in the U.S., District of
  Columbia, or U.S. territories.

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Accreditation

• A collegiate school of nursing must be accredited
  by a body recognized by the Secretary of
  Education, i.e.
• National League for Nursing Accreditation
  Commission (NLNAC) or
• Commission on Collegiate Nursing Education
  (CCNE).
• Both institutional and graduate nursing program
  accreditation are required before the application
  can be considered for funding.

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Accreditation of New Programs

• New programs that are not yet accredited must
  provide documentation from the Department of
  Education that indicates reasonable assurance
  that the program will meet the accreditation
  standards of NLNAC or CCNE prior to the beginning
  of the academic year following the normal
  graduation date of students of the first entering
  class.

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Accreditation of New Programs

• Documentation of the assurance from the
  Department of Education must be submitted at time
  of application.
• New Programs should contact the Department of
  Education, Accreditation and State Liaison Unit
  at [phone] and follow instructions in
  application guidance.

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Approvals

• New programs must identify all steps in the
  approval process and provide documentation of
  approval, i.e. letter or meeting minutes from
• Nursing Faculty Committee
• Institutional Committees/Boards
• State bodies (State Boards of Nursing, Higher
  Education Boards)
• National Professional Associations (CCNE, NLNAC)
• Schools must submit documentation of all
  approvals with the application.

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Nurse Faculty Loan Program Establishment

• HHS enters into an agreement with a school of
  nursing and makes an award, the Federal Capital
  Contribution (FCC), to establish and operate a
  distinct account for the NFLP fund.
• The school must contribute an Institutional
  Capital Contribution (ICC) amount equal to at
  least 1/9 of the FCC award. The ICC must be
  deposited and used as part of the NFLP fund.

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Nurse Faculty Loan Program Establishment (cont.)

• The NFLP fund may only be used for the deposit
• of the FCC and ICC
• to make loans to students enrolled full-time in a
  masters or doctoral nursing degree program with
  an education component that will prepare them to
  teach
• for the deposit of collections of principal
  interest on loans made from the NFLP fund and
• for the cost of collection of NFLP loans.

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Nurse Faculty Loan Program Beneficiary
Eligibility

• Student Eligibility
• U.S. Citizenship or Permanent Resident
• Full-time Enrollment in the eligible nursing
  program
• Good Academic Standing
• Not in Default on Other Federal Loans

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Nurse Faculty Loan Program Beneficiary
Eligibility

• Other Requirements
• NFLP loan recipients must enroll for a minimum of
  two consecutive terms/semesters during the
  academic year.
• NFLP loan recipients must complete the specified
  education component to prepare qualified nurse
  faculty prior to graduating from the nursing
  program.

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Nurse Faculty Loan Program Provisions

• Students may borrow a maximum of 30,000/year for
  no more than 5 years of support.
• NFLP loans may be used to cover full/partial
  tuition, the costs of fees, books and other
  reasonable education expenses. Personal living
  expenses or stipends are not supported.
• NOTE NFLP is not a need-based program.

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Nurse Faculty Loan Program Provisions

• Following completion of the program, NFLP loan
  recipients may cancel up to 85 of the NFLP loan
  over a consecutive four-year period when they
  serve as full-time faculty at a school of
  nursing.
• NFLP loan recipients receive cancellation of the
  loan principal and interest
• 20 cancellation upon completion of each 1st ,
  2nd and 3rd year of employment as full-time
  faculty and
• 25 cancellation upon completion of the 4th year
  of employment as full-time faculty.

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Nurse Faculty Loan Program Interest Rate

• NFLP loans bear interest on the unpaid balance at
• a rate of 3 per year
• beginning three months after completion of the
  program
• NFLP loans bear interest on the unpaid balance at
• the prevailing market rate over the period of the
• loan
• beginning three months after the borrower drops
  from the program

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Nurse Faculty Loan Program Interest Rate

• NFLP loans bear interest on the unpaid balance at
• the prevailing market rate over the period of the
• loan
• if, following graduation from the program, the
  borrower does not establish employment following
  the 9 month grace period or
• when the borrower ceases to be employed as
  full-time faculty at a school of nursing within
  the 4-year NFLP loan cancellation period allowed.

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Nurse Faculty Loan Program Administration

• The school of nursing is the eligible applicant
  therefore the school of nursing must submit the
  NFLP application.
• The financial aid office generally administers
  the NFLP fund and conducts activities, i.e.
• Issuing the Promissory Note
• Loan Disbursement
• Employment Verification
• Loan Cancellation
• Establishing Repayment Schedules

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Nurse Faculty Loan Program Administration

• The NFLP Annual Operating Report (AOR) is used to
  monitor and evaluate institutional performance.
• Schools must complete and submit the AOR
  annually. The AOR is used to report expenditures
  for the NFLP fund annually and covers the period
  from July 1 through June 30 each year.

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Nurse Faculty Loan ProgramFrequently Asked
Questions Answers

• Method for determining the FCC Request?
• Schools determine the FCC request by calculating
  the
• tuition/fee schedule for eligible programs
  multiplied by the
• number of continuing NFLP students and new
  students
• expected to request NFLP support.
• Maximum amount of FCC Request?
• Schools may request the amount needed to support
  the total
• number of student expected to request NFLP
  support.

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Nurse Faculty Loan ProgramFrequently Asked
Questions Answers

• Does the school apply annually or for a period
  of support?
• Schools must apply each year for additional NFLP
  funds.
• How does the school describe the education
  component?
• Schools should identify the title of the
  program(s) and describe
• the education component that addresses the
  preparation of
• qualified nurse faculty.

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Nurse Faculty Loan ProgramFrequently Asked
Questions Answers (cont.)

• Does the NFLP support part-time students?
• No. The NFLP provides support for advanced
  education nursing
• students enrolled full-time.
• Does the NFLP provide support for existing nurse
  faculty?
• Yes. Existing nurse faculty who require
  additional nursing
• education to advance or retain their nurse
  faculty position must
• enroll full-time in an eligible nursing education
  program
• and
• complete the specified education component.

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Nurse Faculty Loan ProgramContact Information
Technical assistance is available from the
Division of Nursing staff at [phone] or by
e-mail at Denise Thompson dthompson_at_hrsa.gov
Nancy Douglas-Kersellius ndouglas_at_hrsa.gov Irene
Sandvold isandvold_at_hrsa.gov