Nurse Faculty Loan Program

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Nurse Faculty Loan Program

• September 2006
• Division of Nursing
• Technical Assistance Workshop
• September 6 -7, 2006 (Washington, DC)
• September 19-20, 2006 (San Diego, CA)
• Irene Sandvold DrPH, CNM
• 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 offer advanced
  degree nursing programs 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 recognized body deemed 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 (continued)

• New programs that are not yet accredited must
  provide
• documentation 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.
• Documentation of the assurance must be submitted
  at
• time of 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
• Good Academic Standing
• Not in Default on Other Federal Loans
• NOTE NFLP loan recipients must enroll for a
  minimum of
• two consecutive terms/semesters and must complete
  the
• specified education component to prepare
  qualified nurse
• faculty prior to graduating from the 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 and the costs of fees, books and other
  reasonable education expenses (personal living
  expenses/stipends are not supported).
• Following completion of the education program,
  NFLP loan recipients may cancel up to 85 over a
  consecutive four-year period when they serve as
  full-time faculty at a school of nursing.

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Nurse Faculty Loan Program Provisions (cont.)

• 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 at the prevailing
  market rate over the period of the loan if the
  Borrower
• ceases to be enrolled full-time
• does not establish employment following
  completion or
• ceases to be employed as full-time faculty at a
  school of nursing

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Nurse Faculty Loan Program Administration

• ROLE OF THE SCHOOL OFFICIALS
• The school of nursing is the eligible applicant
  therefore, the school of nursing must submit the
  NFLP application. The school of nursing
  generally works with the financial aid office on
  activities such as identifying potential loan
  NFLP recipients.
• The financial aid office generally administers
  the NFLP fund and conducts activities such as
  issuing the Promissory Note, employment
  verification, managing loan cancellation,
  establishing repayment schedules, and
  collections.
• The School of Nursing coordinator and Financial
  Aid Office
• coordinator are encouraged to discuss their roles
  in administering the
• NFLP prior to submitting the application.

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Nurse Faculty Loan ProgramFrequently Asked
Questions Answers

• Maximum amount of FCC Request? Schools may
  request the
• amount needed to support the number of students
  expected to
• request NFLP support.
• Method for determining the FCC Request? Schools
  can
• determine the FCC request by calculating the
  tuition/fee schedule
• for eligible programs multiplied by the number of
  continuing and
• new students expected to request NFLP support.
• Does the school apply annually or for a period of
  support?
• Schools must apply each year for additional NFLP
  funds.

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Nurse Faculty Loan ProgramFrequently Asked
Questions Answers (cont.)

• 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 nurse faculty.
• Does full support include living expenses?
  Full support to
• students includes tuition, fees, books,
  laboratory and reasonable
• education expenses. Stipend support (room/board,
  travel,
• personal expenses) is not included as part of
  full support.
• Does the NFLP support part-time students? No. The
  NFLP
• provides support for advanced education nursing
  students enrolled
• full-time.

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Nurse Faculty Loan ProgramFrequently Asked
Questions Answers (cont.)

• 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.
• Does the NFLP provide repayment of existing
  nursing school
• loans? No. The NFLP does not repay existing
  loans. NFLP loan
• recipients who complete the nursing education
  program and serve as
• full-time faculty at a school of nursing over a
  consecutive 4-year
• period may cancel up to 85 of the NFLP loan by
  requesting partial
• loan cancellation at the end of each complete
  year of employment.

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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 Ms. Denise Thompson
dthompson_at_hrsa.gov Ms. Nancy Douglas-Kersellius
ndouglas_at_hrsa.gov Telephone [phone] Website
http//www.bhpr.hrsa.gov/nursing