General Questions
What is the Nursing Education Loan Repayment Program (NELRP)?
The goals of the NELRP are to assist in the recruitment and retention of professional registered nurses dedicated to providing health care in facilities with a critical shortage of nurses and to provide an opportunity for nurses to pursue a career in such facilities. The program offers Registered Nurses (RNs) substantial economic assistance to repay a portion of their qualifying educational loans in exchange for a minimum of 2-years of full-time service at a health care facility with a critical shortage of nurses.
In return, the NELRP will pay 30 percent of the participant’s total qualifying loan balance each year for the first 2 years of service (total of 60 percent). A participant may be eligible to amend his/her two-year NELRP Contract to serve for a third (optional) consecutive year at a Critical Shortage Facility (CSF). If a participant works full-time for a third year at a CSF, the NELRP will pay an additional 25 percent of the participant’s original qualifying loan balance. By statute NELRP payments cannot exceed 85% of participant’s original qualifying loan balance.
Should I read and retain the entire Applicant Information Bulletin and Frequently Asked Questions (FAQs)?
The NELRP recommends that you read the entire Applicant Information Bulletin and FAQs before you submit an application and that you retain these materials for future reference. (Please Note: You should print these materials in their entirety prior to completing the electronic application.) These documents will assist you with applying to the NELRP and provide information that is useful during your participation in the program should you receive an award. For example, they provide instructions on what to do if you need to transfer to another service site, and contain information regarding how to request a suspension of your obligation if you have problems of a personal nature that require you to be away from your service site for more than 7 weeks per service year. They also contain instructions on what to do if you have a change in banking information. Following proper procedures in dealing with a given situation during participation in the program may help prevent a delay or temporary stop in payments, or a default action being taken.
How can I apply to the Nursing Education Loan Repayment Program?
The Nursing Education Loan Repayment Program 2009 application will open February 2, 2009 and will close at 5 p.m. ET on March 2, 2009.
The application is submitted in two parts:
- Applications and banking information must be submitted electronically by 5 pm ET on March 2, 2009.
- Supplemental forms (including “BCRSIS Receipt of Submission” of banking information), available for download when you submit the electronic application, must be completed and printed by 5 p.m. ET on March 2, 2009. The “BCRSIS Receipt of Submission” must be received or postmarked no later than March 2, 2009. If you are unable to print a copy of the “BCRSIS Receipt of Submission”, please complete the following 2 steps:
- Contact the HRSA Call Center to log a help-ticket toll-free at 1-800-221-9393. TTY line for hearing impaired: 1-877-897-9910, Monday – Friday (except Federal Holidays), 9 a.m. to 5:30 p.m. ET.
- Complete the Banking Update Form (by 5 p.m. ET on March 2, 2009) which may be found at https://www.fms.treas.gov/eft/1199a.pdf. The completed form must be received or postmarked by March 2, 2009. Please mail the completed form to: Division of Applications and Awards, 5600 Fishers Lane, Room 8-37, Rockville, MD 20857.
- Before you begin your application, read the Applicant Information Bulletin, which contains detailed information on eligibility, benefits, service obligation, and application process. Please note that applicants must be employed at a public or private nonprofit critical shortage facility to be eligible.
Should I review the supplemental forms before I mail them to the NELRP?
Yes. It is important to review supplemental forms for completeness and accuracy before you submit them to the NELRP. Forms must be clearly printed in their entirety on separate sheets of white 8 ½” x 11” paper. Incomplete forms and inaccurate information on forms will result in the applicant being deemed ineligible to participate in the NELRP.
Should I make a copy of supplemental materials before I mail them to the NELRP?
Yes. A copy of the application documents that you mail to the NELRP should be maintained for your records and for future reference if needed.
Will application materials submitted after the deadline be considered?
No. All required forms and supplemental documentation must be postmarked by March 2, 2009. The electronically submitted application and banking information must be transmitted by 5:00 pm ET on March 2, 2009.
Can I apply to this program more than once?
Yes. If you applied in a previous year and were declared ineligible or approved but unfunded and you meet the current eligibility requirements, you may apply again. Or, if you received a nursing education loan repayment award in the past, but have received an additional and/or higher level nursing degree and have qualifying nursing student loans incurred for obtaining that degree, you may apply again. Each year an applicant wishes to apply to the NELRP, he/she must submit a new application, supplemental forms, and supporting documentation.
I applied, (submitted an application and forms) to the NELRP in FY 2008, but did not receive funding, must I complete an application and resubmit all the required supplemental forms and supporting documentation again for FY 2009?
Yes.
Will the NELRP conduct a credit check?
As part of the loan verification process, we obtain a credit report on the applicant to verify the existence of judgment liens against the applicant’s property for a debt owed to the United States and to verify the existence of the loan(s) reported by the applicant in his/her NELRP application.
How can I obtain additional information about the NELRP and other nursing scholarship and loan repayment programs?
For help with your NELRP application, e-mail CallCenter@hrsa.gov or phone toll-free (1-800) 221-9393. For information on other programs, see HRSA financial aid programs for nurses and nursing students.
Eligibility: Degrees & Licensure
What type of nursing degree must I have to be eligible?
A person who has received a baccalaureate or associate degree in nursing (or an equivalent degree), a diploma in nursing, or a graduate degree in nursing, from an accredited school of nursing in a State is eligible.
Does this program apply to non-nursing but nursing-related degrees such as Master of Public Health (MPH) or Master of Health Administration (MHA)?
No. This program applies only to an individual who has received a qualifying degree in nursing as indicated above.
Are Licensed Practical Nurses (LPNs) eligible for this program?
No. The NELRP is limited to Registered Nurses.
Are nurse educators eligible for this program?
Yes, if the nurse educator is working full-time as a registered nurse in a critical shortage facility. Educational institutions are not critical shortage facilities.
Is there a date by which I must graduate and pass my NCLEX?
Your license information must be included on the NELRP application and employment verification form. So, you must have received your nursing degree and have a permanent unrestricted RN license in the State in which you intend to serve, or in a State that participates in a Nurse Licensure Compact with the State in which you intend to serve, by the application deadline date of March 2, 2009.
What do I need to do to prepare for applying to this program?
To be considered for the FY 2009 NELRP application cycle you must meet the following eligibility requirements by the application deadline date of March 2, 2009.
- Has received a baccalaureate or associate degree in nursing (or an equivalent degree), a diploma in nursing, or a graduate degree in nursing from an accredited school of nursing in a State;
- Has outstanding qualifying educational loans obtained for qualifying nursing education leading to a degree or diploma in nursing as specified above;
- Has completed the nursing education program(s) for which the loan balance applies;
- Is a U. S. citizen, U. S. national, or a lawful permanent resident of the United States;
- Is employed full-time (32 hours or more per week) at a CSF;
- Has a current permanent unrestricted license as an RN in the State in which you intend to practice or is authorized to practice in the State pursuant to the Nurse License Compact (Please refer to the Nurse Licensure Compact State listing at https://www.ncsbn.org/158.htm);
 and retains the permanent unrestricted license as an RN during the 2-year service obligation; and
- Has submitted a complete electronic application and banking information through BCRSIS, all required supplemental forms (including the “BCRSIS Receipt of Submission”), and all required supporting documentation must be received or postmarked by March 2, 2009. If you are unable to print a copy of the “BCRSIS Receipt of Submission”, please complete the following 2 steps:
- Contact the HRSA Call Center to log a help-ticket toll-free at 1-800-221-9393. TTY line for hearing impaired: 1-877-897-9910, Monday-Friday (except Federal Holidays), 9:00 a.m. to 5:30 p.m. ET.
- Complete the Banking Update Form (by 5 p.m. ET on March 2, 2009) which may be found at https://www.fms.treas.gov/eft/1199a.pdf. The completed form must be received or postmarked by March 2, 2009. Please mail the completed form to: Division of Applications and Awards, 5600 Fishers Lane, Room 8-37, Rockville, MD 20857.
Eligibility: Educational Loans
What types of loans are considered to be eligible?
Government and commercial loans obtained by the participant, contemporaneous with the participant’s undergraduate basic RN education and graduate nursing education, to pay for:
- school tuition and required fees;
- other reasonable educational expenses (see definition of terms in the Applicant Information Bulletin); and
- reasonable living expenses (see definition of terms in the Applicant Information Bulletin).
What are some examples of eligible loans?
- Nursing Student Loans
- Stafford Loans
- Supplemental Loans for Students (SLS)
What are some examples of loans that are not eligible for repayment?
Examples of financial obligations that do not qualify for repayment by the NELRP include:
- loans for which the applicant incurred a service obligation to serve as a nurse, which will not be fulfilled by the application deadline;
- loans obtained for training in vocational or practical nursing (LVN/LPN);
- loans obtained from family members, or private institutions not subject to Federal or State examination and supervision as lenders;
- loans made prior to or after the applicant’s qualifying nursing education;
- loans that have been paid in full;
- any portion of a consolidated/refinanced educational loan that is not clearly identified as being for reasonable educational expenses and reasonable living expenses incurred for qualifying nursing education by the applicant, or any consolidated/refinanced loan that includes debt other than eligible educational loans of the applicant;
- credit card payments or personal lines of credit;
- Parent PLUS Loans;
- Federal Perkins Loans (unless the applicant can provide documentation from the school or lender that the loan is not subject to cancellation);
- loans not obtained from a government loan program, as well as commercial loans obtained from entities that are not subject to Federal or State examination and supervision as lenders; or
- loans obtained for non-nursing education.
Why is a Parent Plus Loan ineligible for repayment under NELRP?
Parent Plus Loans are ineligible because the parent is liable for repayment of the loan.
I consolidated my nursing loans. Are they still eligible for repayment?
Yes, under certain circumstances. See Section H.3 and Section L.3 of the Applicant Information Bulletin.
What is a promissory note?
A promissory note is a legally binding contract between a lender and a borrower. The promissory note generally contains the loan amount, type, terms, and conditions of the loan, including repayment and default provisions. Copies of this document can be obtained from your lending institution or loan servicing agent. (Master Promissory Notes are not considered to be sufficient documentation because they do not provide the required information, i.e., original loan dates and amounts).
Eligibility : Employment
Can you provide a list of CSFs where I could fulfill the service obligation?
Any health care facility in a State meeting the definition of a CSF as described in Section C of the Applicant Information Bulletin is eligible under the NELRP. However, a funding preference is given to applicants with greatest financial need who will serve at one of the types of CSFs that have the most severe nursing shortage, as specified in Section E of the Applicant Information Bulletin.
I work as an RN for a private for-profit facility, is my facility eligible?
No, effective October 1, 2007 only nonprofit CSF’s are statutorily eligible service sites for the NELRP applicants.
Will I be paid for my work in addition to the loan repayment?
Yes. The Contract for loan repayment is between the applicant and the NELRP. An employer will know that the nurse is participating in the NELRP; however, the employer will not be informed of the specific payments the NELRP is making to the participant. Therefore, when future compensation packages are negotiated between the nurse and the facility, loan repayments should not be part of the salary negotiations.
How many hours must I work at the CSF to be considered full-time?
Full-time service requires no less than 32 hours of nursing service per week (for a minimum of 45 weeks per service year) at a single CSF.
If I receive a NELRP award, how do I deal with extended time away from my service site during my service period for medical or other personal reasons?
Notify the Division of Scholar and Clinician Support (DSCS) in advance of your expected departure from work date and return to work date. The time away from your service site will be combined with your other absences during the service year. If your cumulative time away from your service site will exceed 7 weeks per service year, your NELRP payments will be stopped, and you must submit a written request for a suspension of your service obligation. See Section K of the Applicant Information Bulletin. Upon receipt of documentation of your return to full-time service, your NELRP payments will be resumed and your service end date will be extended to compensate for the break in “full-time” service.
If I am working part-time, am I eligible for the program?
No. All applicants must work a minimum of 32 hours per week at a single CSF to be eligible for the NELRP.
Does my employer have any role in my applying for this program?
Yes, only to the extent of completing an employment verification form (see Section L.3), and providing documentation regarding the facility’s status as indicated in Section L.4 of the Applicant Information Bulletin. If you are employed by a group practice, the practice must provide a written statement indicating that you will be working exclusively at one designated CSF for a least 32 hours per week for the 2-year duration of your NELRP contract (if you receive an award), and the CSF where you are working must provide documentation regarding the facility’s status. See Section L.4 of the Applicant Information Bulletin.
Do the years that I have already worked at my facility count toward my service requirement?
No, the NELRP service obligation begins on the effective date of the Contract.
If I decide to work at a CSF several years after graduation, am I eligible to apply?
Yes. If you are willing to agree to a 2-year service obligation at a CSF and still have outstanding, qualifying student loans for your nursing education, you may apply as long as you meet the other NELRP eligibility criteria.
I am an advanced practice RN (Certified Registered Nurse Anesthetist (CRNA), Certified Nurse-Midwife (CNM) or Nurse Practitioner (NP)) employed by a professional group that practices exclusively at a CSF (I am not directly employed by the CSF, but by the professional group), am I eligible for the NELRP?
Yes. Advanced practice RNs employed by a professional group are eligible for the NELRP provided that they meet all other eligibility requirements as set forth in Section D of the Applicant Information Bulletin.
I am employed by a professional group. Who should complete the Employment Verification Form and do I need to provide additional employment documentation?
The professional group must complete the Employment Verification Form. The professional group also must provide a written statement on company letterhead stating that the applicant will be working at the designated CSF for at least 32 hours per week (for a minimum of 45 weeks per service year) for the 2-year duration of the applicant’s NELRP contract if the applicant receives an award. In addition, you must obtain documentation from the CSF regarding the facility’s status as set forth in Section L.4 of the Applicant Information Bulletin.
After Submitting Your Application
How is it determined who will receive an award?
Determination of which qualified applicants will receive an award is based on the financial need of the applicant and the type of CSF where the applicant would be serving. See the Funding Preferences in Section E of the Applicant Information Bulletin.
Will the NELRP keep me apprised of my application status as it is being processed?
No. However, all applicants who have completed an on-line application will be advised in writing of our decision at the conclusion of the evaluation and award process by October 30, 2009.
Can I make changes to my web application after it is submitted?
Yes, but only the NELRP staff can enter the changes on an electronic application after its submission and a “Confirmation of Application Receipt” is received by the applicant. Requests for changes are accepted until 5:00 pm ET on March 2, 2009. To request a change, submit an email to CallCenter@hrsa.gov and include the following: full name used on application, last four digits of Social Security Number, State of employment, how the information currently appears on the application and how it should appear when corrected. Please note that changes will be made at the close of the application cycle and will not be visible to applicants.
Can I withdraw my application? If so, what is the process?
An applicant may withdraw his/her application by June 15, 2009 and still be eligible to apply to the NELRP in the future. If the applicant’s contract is signed by the Secretary prior to NELRP’s receipt of the applicant’s request for withdrawal, the application can no longer be withdrawn. If such applicant fails to commence service on the effective date of the contract at the CSF identified in his/her application, the applicant will be in breach of the contract and will be permanently disqualified from receiving future awards under the NELRP and some other Federal programs. Applicants who decide to withdraw from competition for an award must notify the NELRP in writing at:
Division of Applications and Awards
Nursing Education Loan Repayment Branch
5600 Fishers Lane, Room 8-37
Rockville, MD 20857
Or by email at CallCenter@hrsa.gov or by fax at 301-443-0791
How is the first funding preference applied?
The NELRP first funding preference applies to qualified applicants who meet two criteria: greatest financial need and employment at a first funding preference critical shortage facility.
The greatest financial need funding preference applies to individuals whose qualifying loan balance at the time the loans are verified by the NELRP is equal to or greater than 40 percent of the individual’s gross annual salary. You can estimate whether you may meet the greatest financial need funding preference by dividing your total qualifying loan balance by your gross annual salary to see if the result is 40 percent or greater.
To receive the first funding preference, you must also be employed full-time as a Registered Nurse at one of the following types of nonprofit critical shortage facilities:
- Disproportionate Share Hospital (DSH)
- Nursing Home
- State or Local Public Health Department
- Federally Designated Health Center
- Native Hawaiian Health Center
- Federally Designated Health Center Look-Alike
- Indian Health Service Health Center
- Rural Health Clinic
After Receiving an Award
When does the 2-year service obligation begin?
On the date the Secretary or his/her designee signs the NELRP 2-year contract, your service obligation begins. No service credit will be given for employment at a eligible approved CSF before the effective date of a NELRP contract. The effective date of a contract is the date the contract is countersigned by the Secretary of Health and Human Services or his/her Designee. Service credit will commence upon the effective date of the contract. The applicant's signature alone on the contract does not constitute a contractual agreement.
Am I still eligible for the award if the status of my license changes during the 2-year service obligation?
In order to continue to be eligible for the award, you must have a current permanent unrestricted license as an RN in the State in which you intend to practice or are authorized to practice in the state pursuant to the Nurse Licensure Compact. (Please refer to the Nurse Licensure Compact State listing at https://www.ncsbn.org/158.htm) and retain the permanent unrestricted license as an RN during the 2-year service obligation.
How do I receive my loan repayments?
Monthly payments are disbursed through an electronic funds transfer to the participant's checking or savings account as indicated on the Banking Information you submitted through BCRSIS. The first direct deposit is made approximately 30 days after the effective date of the contract.
What time of the month are payments deposited?
Payments usually are deposited into bank accounts around the middle of the month. However, payments can be delayed due to holidays, network difficulties, heavy workload volume, etc.
I am planning to set up an electronic draft of NELRP payments to my lender(s). What time of the month should I do that?
Because there is no guarantee that payments will be deposited at the same time each month, it is recommended that electronic drafts be scheduled as late in the month as possible.
What should I do if I have not received my NELRP deposit by the end of the month?
Contact the DSCS office as soon as possible at 1-800-221-9393. TTY line for hearing impaired: 1-877-897-9910 or email: CallCenter@hrsa.gov.
My checking and/or savings account has changed, what do I need to do?
To receive instructions for making changes and/or updates to your banking information contact the DSCS office at 1-800-221-9393. TTY line for hearing impaired: 1-877-897-9910. It is imperative that you notify the DSCS promptly of all changes to your banking information, since all NELRP payments are credited to your account electronically. Without a correct account number we are unable to make the payment correctly.
Do I have to use these monthly payments to repay my educational loans?
Yes. You MUST use all loan repayments provided to repay qualifying educational loan balances, as noted on the Payment Authorization Worksheet that will be included with the award letter. Periodically the NELRP may contact your lenders to verify that payments have been made.
In order to be considered for an amendment contract, for a third year of service, the participant will be asked to provide a payment history showing how the original funds received under the initial 2-year contract were applied. These funds may not be used to pay Federal, State, or local tax liabilities.
Do I have to pay taxes on the NELRP payments?
Yes. The NELRP payments made to participants are regarded as income by the U.S. Internal Revenue Service and are subject to Federal taxes. The NELRP will withhold Federal income tax and Social Security and Medicare (FICA) taxes from your NELRP award and pay those taxes directly to the IRS on your behalf. The NELRP will send an annual statement of these payments (Form W-2) to all participants and to the IRS. These loan payments may also be subject to State and local income tax. Participants should check with their State or local tax authority concerning their tax liability for these payments.
What role does my employer have during my participation in the program?
To assure performance of the required service obligation under the NELRP, we require your employer to complete an employment verification form every 6 months during your participation in the program. Completing the form requires minimal effort by your employer.
If your employer does not cooperate in completing the employment verification form in its entirety as instructed, your NELRP payments will be immediately stopped. If the problem is not resolved and we cannot verify your compliance with the NELRP’s full-time service requirement, you will be placed in default of your NELRP contract and will be liable to repay all NELRP funds received plus interest.
I want to transfer to another facility, what do I need to do?
NELRP participants are expected to complete their full service obligation at their initial service site. However, if a participant is unable to complete service at the initial site, he/she may request a transfer to another CSF.
You must submit a written request to the DSCS for approval before leaving your existing service site, and transfer to one of the types of CSFs that is included in the first funding preference category at the time you make your request, or you may be recommended for default. See Section I of the Applicant Information Bulletin.
Who do I contact if I want to submit a request to have my contract waived or suspended?
A request for waiver or suspension must be submitted in writing setting forth the basis, circumstances, and causes which support the requested action. See Section K of the Application Information Bulletin. Submit your request to:
Division of Scholar and Clinician Support
5600 Fishers Lane; Room 8-15
Rockville, MD 20857
Or by e-mail to: CallCenter@hrsa.gov or fax to 301-594-4077
I am moving to a new address, how do I update my mailing address?
Send a written request for the change to:
Division of Scholar and Clinician Support
5600 Fishers Lane; Room 8-15
Rockville, MD 20857
Or by e-mail to: CallCenter@hrsa.gov or fax to 301-594-4077
I was recently married, how do I change my name?
Forward a written request with a copy of your marriage license to:
Division of Scholar and Clinician Support
5600 Fishers Lane; Room 8-15
Rockville, MD 20857
Or fax to 301-594-4077
I changed my email address, how do I update my information?
Send a written request for the change to:
Division of Scholar and Clinician Support
5600 Fishers Lane; Room 8-15
Rockville, MD 20857
Or fax to 301-594-4077
I changed my telephone number, how do I update my information?
Send a written request for the change to:
Division of Scholar and Clinician Support
5600 Fishers Lane, Room 8-15
Rockville, MD 20857
Or fax to 301-594-4077
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