Applicant Information Bulletin: Service Requirements

1) 2-Year Service Requirement

All NELRP participants must enter into a contract agreeing to work full-time (at least 32 hours per week) as an RN at an approved CSF for 2 consecutive years. In exchange, the NELRP will pay 30 percent of the participant's total qualifying educational loan balance for each service year (total of 60 percent). Participants must retain a current permanent unrestricted license as an RN during the 2-year service obligation to continue to be eligible for the NELRP award.

A 2-year contract must be signed by the applicant and returned to the NELRP along with all required supplemental forms and all required supporting documentation (see Section L of this Bulletin).

If an applicant is selected for a NELRP award, the individual’s contract is signed by the Secretary or his/her designee. An award letter, a copy of the individual’s signed contract and a payment authorization worksheet will be sent no later than September 30, 2009 to those applicants who receive an award.

No service credit will be given for employment at an eligible CSF before the effective date of the NELRP contract. The effective date of a contract award is the date the contract is countersigned by the Secretary or his/her designee.  If an applicant fails to commence full-time service on the effective date of the contract at the CSF identified in the application, or fails to keep a current permanent unrestricted license, he/she may be placed in default.

2) Optional Service Obligation (1-year Contract Amendment)

A participant may be eligible to amend his/her 2-year NELRP contract to serve for a third (optional) consecutive year at a CSF. If a participant enters into an optional amendment contract and works full-time for a third year in a CSF, the NELRP will pay an additional 25 percent of the participant's original qualifying nursing education loan balance. 

Participants may be eligible to amend their NELRP contract to serve for a third consecutive year under the following conditions:

• A participant must notify the NELRP in writing, at least 6 months (180 days) prior to the end of the second service year, that the participant wishes to amend the NELRP contract for a third year.
• A participant must continue to serve at an eligible approved CSF. If the participant's current site is no longer a nonprofit CSF, an amendment contract will not be awarded. If such a participant wishes to continue in the NELRP, he/she must request and receive written prior approval to transfer to another eligible approved CSF prior to submitting his/her amendment contract (see Section I of this Bulletin). Transfer may take up to 180 days to approve. If a participant transfers to a new location, moving expenses will not be paid.
• A participant must have a current permanent unrestricted license as an RN and retain it during the 1-year service obligation.
• The NELRP payments received under the NELRP 2-year contract must have been applied to reduce the original qualifying nursing education loan balances, as indicated on the payment authorization worksheet that participants will receive with their award letter. A participant's loan balances will be verified and a payment history from his/her lender(s)/holder(s) will be required to show that all NELRP funds received previously were applied toward the approved qualifying loans during the contract period. Failure to apply the NELRP payments to reduce the original qualifying nursing education loans will result in the denial of a request for an amendment contract.
• A participant must not have an existing service obligation to the CSF or any entity other than the NELRP.

Participants who meet the above requirements and are approved to receive an amendment contract will receive payments equal to an additional 25 percent of their original qualifying nursing education loan balance. The amendment contract will not be effective until the participant has completed his/her 2-year service period under the initial contract. The amendment contract service period must begin immediately following the completion of the initial service commitment.

There is no guarantee that a 2-year service commitment contract will be amended beyond the initial 2 years. Applicants for contract amendments must continue to meet the program eligibility criteria, must be in full compliance with their existing NELRP service obligation, must be planning to work for the duration of the contract amendment at the same approved CSF, and must have applied all NELRP payments previously received to reduce their qualifying loans. Award of amendment contracts is also subject to the availability of funds.

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