Applicant Information Bulletin, 2008-2009 Academic Year

• printer-friendly Applicant Information Bulletin (PDF, 146 KB)

DISCRIMINATION PROHIBITED

Title VI of the Civil Rights Act of 1964 provides that no person in the United States shall, on the ground of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination, under any program or activity receiving Federal financial assistance.

Title IX of the Education Amendments of 1972 and its implementing regulations (45 Code of Federal Regulations Part 86) provide that no person in the United States shall, based on his/her sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under, any educational program or activity receiving Federal financial assistance.

Section 504 of the Rehabilitation Act of 1973, as amended, provides that no otherwise qualified handicapped individual in the United States shall, solely by reason of his/her handicap, be excluded from participation in, be denied the benefits of, or be subject to discrimination under any program or activity receiving Federal financial assistance.

Title III of the Age Discrimination Act of 1975, as amended, provides the general rule that no person in the United States shall, on the basis of age, be excluded from participation in, be denied benefits of, or be subject to discrimination under, any program or activity receiving Federal financial assistance.

Introduction

The Nursing Scholarship Program (NSP or "Nursing Scholarship") is a competitive Federal program, which awards scholarships to individuals for attendance at schools of nursing.   The scholarship consists of payment for tuition, fees, other reasonable educational costs, and a monthly support stipend. In return, the students agree to provide a minimum of 2 years of full-time clinical service (or an equivalent part-time commitment, as approved by the NSP) at a health care facility with a critical shortage of nurses.

Nursing Scholarship recipients MUST be willing and are required to fulfill their NSP service commitment at a health care facility with a critical shortage of nurses in the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Territory of Guam, the Commonwealth of the Northern Mariana's, the U.S. Virgin Islands, the Territory of American Samoa, the Republic of Palau, the Republic of the Marshall Islands, or the Federated States of Micronesia. 

Students who are uncertain of a commitment to provide nursing in a health care facility with a critical shortage of nurses in the United States are advised not to participate in this program.

Program Administration

The Bureau of Clinician Recruitment and Service (BCRS), Health Resources and Services Administration (HRSA), administers the Scholarship Program. The Division of Applications and Awards (DAA) awards the scholarships. The Division of Scholar and Clinician Support (DSCS) monitors scholars while in school and in deferment for advanced training, reviews and approves requests for initial service site, service transfers, and monitors scholars’ service until they have completed their service commitment. The Legal and Compliance Office (LCO) reviews scholar and clinician compliance referrals, handles default determinations, and reviews requests for suspensions and waivers.

Applicant Eligibility

Applicants must meet the following requirements in order to be eligible for scholarship awards.

U.S. Citizenship
Scholarship applicants must be citizens or nationals of the United States to receive Nursing Scholarship awards.  Nationals are individuals who owe permanent allegiance to the U.S. and were born in certain outlying possessions of the U.S. (e.g., American Samoa and Swains Island) on or after the date of formal acquisition of such possession by the U.S.  Lawful Permanent Residents of the U.S. are not eligible to apply for the scholarship.

Enrollment in Fully Accredited Nursing Schools and Programs
Program must be accredited by an accrediting body or state agency recognized by the Department of Education (e.g., the National League for Nurses Accrediting Commission, the Commission on Collegiate Nursing Education) before the application deadline.

To be considered for a scholarship award for the 2008-2009 academic year, applicants must be enrolled or accepted for enrollment in a nursing degree program and must begin classes for the Fall term on or after July 1, 2008, and no later than September 30, 2008, in one of the following:

1. AN ASSOCIATE DEGREE SCHOOL OF NURSING - A department, division, or other administrative unit in a junior college, community college, college, or university which provides primarily or exclusively a two-year program of education in professional nursing and allied subjects leading to an associate degree in nursing or to an equivalent degree, but only if such program, or such unit, college, or university is accredited;
   
   
2. A COLLEGIATE SCHOOL OF NURSING - A department, division, or other administrative unit in a college or university which provides primarily or exclusively a program of education in professional nursing and related subjects leading to a degree of bachelor of arts, bachelor of science, bachelor of nursing, graduate degree in nursing, or to an equivalent degree, and including advanced training related to such program of education provided by such school, but only if such program, or such unit, college of university is accredited; or
   
   
3. A DIPLOMA SCHOOL OF NURSING - A school affiliated with a hospital or university, or an independent school, which provides primarily or exclusively a program of education in professional nursing and allied subjects leading to a diploma or to equivalent that such program has been satisfactorily completed, but only if such program, or such affiliated school or such hospital or university or such independent school is accredited.

(NOTE:  STUDENTS ENROLLED IN LPN PROGRAMS, SELF-PACED STUDY PROGRAMS, BRIDGE PROGRAMS AND DUAL DEGREE PROGRAMS ARE NOT ELIGIBLE FOR A SCHOLARSHIP AWARD.)

Full-Time or Part-time Enrollment
Applicants may be enrolled as full-time or part-time students; however, a funding preference will be given to full-time students.  See “Funding Preferences and Awards” section below.

A student will be considered full-time if the student meets the nursing school program's definition of a full-time student. A less than full-time student will be considered part-time if the student is enrolled on at least a half-time basis (i.e., the student is taking a sufficient number of credit hours to meet or exceed 50% of the credit hours required by the nursing school program to be a full-time student). For example, if a nursing school program defines a full-time student as a student enrolled for a minimum of 9 credit hours per semester, a student would need to take at least 5 credit hours per semester to be considered a part-time student under the NSP. Students who are enrolled on a less than half-time basis are ineligible to participate in the NSP.  

Only courses that are required for graduation and for which the student is attending classes are counted towards a student’s full-time or part-time status.  Elective courses not required for graduation are not counted for the purposes of determining a student’s full-time status.  Courses in which the student is enrolled, but not attending classes, are not counted for the purposes of determining a student’s full-time or part-time status.

Schools and Programs Must be Located in a State
The schools and educational programs for which scholarship support is requested must be in a State. Students attending schools outside of these geographic areas are not eligible for Nursing Scholarships, even though they may be citizens of the United States.

Submission of Signed Contract
The applicant must sign and submit a contract with the application.  The contract is for the 2008-2009 school academic year with contracts for up to 3 optional subsequent school academic years, not to exceed a total of 4 school years of scholarship support.  The 2008-2009 contract, if countersigned by the Secretary or designee, obligates the applicant to the minimum 2-year service commitment.  Therefore, applicants are strongly encouraged to sign the 2008-2009 contract and a Contract Extension for the 2009-2010 academic year, if the applicant will need additional support for all or part of the subsequent academic year (2009-2010).  The contract(s) must be signed through the student’s date of graduation in order for the student to receive support through the date of graduation.  Before an applicant decides not to request scholarship support through his/her graduation date, the applicant should read the "Continuing Support after the 2008-2009 Academic Year" section of this Bulletin.

Free of Federal Judgment Liens
Applicants who have a court judgment entered against them for a debt owed to the United States which creates a lien against their property are precluded from receiving Federal funds (including an NSP award) until the judgment lien has been paid in full or otherwise satisfied. A State court judgment relating to a Federal debt will also disqualify an applicant. The NSP application includes a certification that the applicant is free of such a judgment lien against his/her property.

Delinquency on a Federal Debt
The application also includes a certification that the applicant has not been delinquent on the payment of any Federal debt. A Federal debt includes debts arising from Federal taxes, Federal loans, federally guaranteed or insured loans such as student or home mortgage loans, an overpayment of Federal benefits and any other debt owed to the Federal Government. An applicant is considered to be delinquent of a Federal debt if he or she has ever been more than 31 days past due on a scheduled payment. In addition, applicants that are delinquent on a service obligation and/or Federal debt will not be selected for scholarships regardless of circumstances.

No Exclusion or Disqualification from Covered Transactions
The receipt of funding under the NSP is a “covered transaction” pursuant to Title 2 of the Code of Federal Regulations (CFR) Part 180, as adopted by HHS pursuant to 2 CFR Part 376. Before entering into a scholarship (loan repayment) contract, the applicant is required, under Subpart C of Part 180, to report certain information, which is described in the “Certification Regarding Debarment, Suspension, Disqualification and Related Matters. ” The applicant should sign the Certification that is applicable to his/her situation.

Individuals who are currently excluded (suspended or debarred) or disqualified by any Federal agency from participating in covered transactions are ineligible to receive an award under the NSP. Individuals with reportable problems other than exclusion or disqualification may, or may not, be selected to participate in the NSP, based on the Program's consideration and evaluation of the applicant's circumstances.

As a condition of participating in the NSP, a participant must agree to comply with the requirements of Subpart C of Part 180, which include providing immediate written notice to DAA if the applicant learns that he/she failed to make a required disclosure or that a disclosure is now required due to changed circumstances.

No Conflicting Service Commitments
Applicants who are already obligated to a Federal, State, or other entity for professional practice or service after academic training (except for military reservists, see below) are not eligible for Nursing Scholarship awards, unless the obligated service will be completed by no later than the graduation date from the scholarship funded nursing program. An exception may be made if the obligating entity provides documentation that there is no potential conflict in fulfilling the service commitment to the Nursing Scholarship Program and that the Nursing Scholarship Program service commitment will be served first.

A scholarship recipient who meets the above exception should not expect to serve in a State, community, or medical facility to which the recipient already owes a commitment for service. The NSP cannot make any such advance placement commitments to NSP recipients.

Scholarship recipients, except military reservists, who subsequently enter other service commitments, or who otherwise are not immediately available after completion of their degrees to fulfill their NSP service commitments, will be subject to the breach-of-contract provisions described later in this Bulletin.

Members of a Reserve Component of the Armed Forces
Individuals in the Reserve component of the Armed Forces or National Guard are eligible to participate in the NSP. However, reservists should understand the following:

• First, military training or service performed by reservists will not satisfy the NSP service commitment. If a participant's military training and/or service, in combination with the participant's other absences from the service site, exceed 7 weeks (49 calendar days) per service year, the NSP service commitment end date will be extended to compensate for the break in NSP service.
• Second, if the critical shortage facility where the reservist was serving at the time of his/her deployment is unable to reemploy that reservist, the participant must transfer to another critical shortage facility to complete his/her remaining NSP service commitment. Any expenses associated with the participant’s transfer are wholly the responsibility of said participant.  In some cases, a participant may be asked to sign an employment contract with the facility, which extends beyond the completion date of his/her NSP service commitment.

Funding Preferences and Awards

The Nursing Scholarship Program for the 2008-2009 academic year is expected to be very competitive.  The Program anticipates more applicants for scholarship awards than there are funds available. Students may want to apply for other funding sources also, due to the expected competitiveness of the Nursing Scholarship Program.

Funding Preferences for the 2008-2009 Academic Year
The following funding preferences will be used to make NSP awards:

• First funding preference will be given to qualified applicants who have a zero expected family contribution (EFC) and are enrolled or accepted for enrollment in an undergraduate nursing program as full-time students. See the “Student Aid Report” section of “Submitting the Application” below.
• Second funding preference will be given to qualified applicants who have a zero EFC and are enrolled or accepted for enrollment in a graduate nursing program as full-time students.
• Third funding preference will be given to qualified applicants who have a zero EFC and are enrolled or accepted for enrollment in an undergraduate or graduate nursing program as part-time students.

If funds remain available, qualified applicants who have an EFC that exceeds zero will be grouped according to their EFC in increments of $500 from highest to lowest need (i.e., applicants with EFC of $1-$500, applicants with EFC of $501-$1,000, etc.).  These groups will be funded, to the extent monies remain available, in order of decreasing need.  Within each group, applicants who are enrolled or accepted for enrollment in an undergraduate nursing program as full-time students will be funded first, applicants who are enrolled or accepted for enrollment in a graduate nursing program as full-time students will be funded second, and the remaining qualified applicants within that group will be funded third.

If there are insufficient funds to award a contract to all qualified applicants who meet a given funding preference, applicants will be selected randomly within that preference level until all funds are expended.

Notification of Selection
Individuals selected for awards will be notified by letter, as early as July 1, 2008, and no later than September 30, 2008.  

Individuals selected for an award must attend classes during the 2008-2009 academic year and class attendance must begin on or before September 30, 2008.  Individuals whose class attendance during the 2008-2009 academic year will begin after September 30, 2008, MUST decline the award.  Please note that the ranking of selectees will not be disclosed.

Notification of Alternate Status
Individuals selected as alternates will be notified by e-mail no later than September 30, 2008.  Alternates will be notified of selection for an award as selectees decline their awards.  Please note that the ranking of alternates will not be disclosed.

Notification of Non-Selection
Individuals not selected for an NSP award will be notified via e-mail by no later than October 2008.  Applicants should keep their email addresses up-to-date during the application process. Applicants must log in to their accounts on the NSP website to update this information.

Declining Scholarship Support
Selectees may decline awards without penalty (permitting the promotion of alternates to selectee status) by:

1. failing to submit all direct deposit information to the NSP by the deadline date specified in the notice of award letter; or
2. mailing or faxing to the NSP a signed letter declining the award offer by the deadline date specified in the notice of award letter.

Once a selectee declines the offer of award, the award will be offered to an alternate.  There will be no opportunity to reclaim the award.  A decision to decline the scholarship award is final and cannot be changed under any circumstances.

Submitting the Application

In order to be eligible for a Nursing Scholarship award, all applicants (regardless of funding preference) must submit an electronic application no later than June 6, 2008. No extensions on the deadline will be granted.

If you meet the NSP first funding preference, all supporting documentation described below must be received by June 6, 2008.

If you do not meet the NSP first funding preference, do not submit the supporting documentation described below.  Should sufficient funds be available to make awards beyond the first funding preference, you will be notified and given an opportunity to provide the supporting documentation.

Required supporting documentation is available within the online application and includes:

• A Verification of Acceptance/Good Standing Report and Data Collection for Tuition and Fees (discussed below);
• An Authorization to Release Information (discussed below);
• A Student Aid Report (discussed below);
• Form W-4;
• Standard Form 1199A (EG) Direct Deposit Sign Up Form; and
• A Signed Contract (see sample contract)

Verification of Acceptance/Good Standing Report and Data Collection for Tuition and Fees
No applicant will receive an award until he or she is enrolled or accepted for enrollment in an accredited nursing program during the 2008-2009 academic year (applicant must begin the Fall term on or after July 1, 2008, and no later than September 30, 2008).  Applicants are required to use the Verification of Acceptance/Good Standing Report and Data Collection for Tuition and Fees form (Verification Report / Data Collection Form), which is available from the online application. The Verification Report/Data Collection Form must be completed and signed by the applicant’s nursing program and bear the nursing school’s raised seal.   FAXES OR PHOTOCOPIES ARE NOT ACCEPTABLE. Please note:  If there are discrepancies between the information on the on-line application and the Verification of Acceptance/Good Standing Report, that application will not be considered for an NSP award.

Applicants who have not been accepted for enrollment in a nursing degree program and are therefore unable to provide  the Verification Report/Data Collection Form by June 6, 2008, are not eligible.  ONCE THE APPLICATION DEADLINE HAS PASSED, NO CHANGES WILL BE ACCEPTED IN THE APPLICANT’S CHOICE OF SCHOOL OR DISCIPLINE PRIOR TO AWARD.

The school identified in the Verification Report/Data Collection Form, submitted by June 6, 2008, will be the applicant’s “initial school of record.”

If the Verification Report/Data Collection Form states that there are conditions (not yet fulfilled) for acceptance into the school and/or program, other than standard contingencies that apply to all admitted applicants, applicants will not be eligible for consideration for an award for the 2008-2009 academic year.  All contingencies or conditions, other than standard contingencies, for acceptance must be met and reported to the NSP in writing by no later than June 6, 2008.

The Verification Report/Data Collection Form also collects tuition and fees data for the applicant’s initial school of record, for each academic year of the applicant’s nursing program.  This data will be used to determine the  dollar value of the scholarship award for each academic year contract the applicant has requested and is eligible to receive. The data is to be filled out by the academic institution.  

Authorization to Release Information Letter
The Authorization to Release Information Letter is required in order for the Nursing Scholarship Program to obtain information about the applicant’s/participant’s school enrollment from his/her nursing school.

Student Aid Report
As explained above, a funding preference is given to students of greatest financial need. To evaluate financial need, the NSP will use the Department of Education's Expected Family Contribution (EFC) determination. To receive an EFC determination, applicants must submit a Free Application for Federal Student Aid (FAFSA) to the Department of Education. In response to the FAFSA, the Department of Education will provide the applicant with a Student Aid Report (SAR), which will contain the EFC determination.

Signed Contract
When signing the contract, applicants are encouraged to sign contracts for all years required to complete the nursing program in which the participant is enrolled or accepted for enrollment when applying for the scholarship.  See “Continuing Support After the 2008-2009 Academic Year.”

Scholarship Benefits

Limitations on Academic Years of Support
For applicants signing "Full-Time Student" Contracts, scholarship support will be limited to no more than 4 academic years, which includes any partial academic year of funding received during the academic year. 

For applicants signing “Part-Time Student” Contracts, no  participant will receive scholarship benefits that total, in the aggregate, more than 4 years of full-time scholarship support.

Defining a Participant's Academic Year
All awards to students are based on a 12-month academic year. Upon entry into the NSP, the participant's academic year will be established. The academic year will begin in the first month of the Fall term that the participant spends 15 or more days in the program, attending classes (on or after July 1, 2008, and no later than September 30, 2008). The academic year will continue for 12 uninterrupted months or until the participant has completed the required classes for graduation, whichever comes first. Each subsequent academic year will begin on the anniversary date of the first academic year and continue for another 12 months (or until completion of the required classes for graduation, whichever comes first). For example, if a student receives an NSP scholarship on September 30, 2008, and first began course work on August 10, that student's first academic year would run from August 2008, through July 2009. The second academic year would run from August 2009, through July 2010.  If a student’s course work began on August 17, the student’s academic year would run from September through August.

Payment of Tuition & Required Fees
Tuition and fees will be paid directly to the educational institution that the awardee is attending. The NSP will pay tuition and fees for each academic term that will be completed within the academic year.

If tuition and fees for the initial Fall term of the 2008-2009 academic year have been paid from another source of financial aid (e.g. Pell Grant, state grants or other scholarships), pending notice of an NSP award, the school may return payments to the source of funding and then submit an invoice to the NSP for payment.  After the initial Fall term, if sources of financial aid, other than NSP, have been used to pay for tuition and fees, the school will be instructed not to submit an invoice to the NSP for these costs, but to submit documentation stating that it will not be seeking payment for the term. However, if a balance remains, then the school may submit an invoice for the balance remaining.  Although payments of tuition and fees are made directly to the nursing school, the student is liable for paying taxes on these amounts.  See “Taxation of the Nursing Scholarship” Section below.

Eligible fees include:

• Academic Support Services Fee
• Administrative Fee
• Building Use or Facility Fee
• Campus Life Fee
• Computer Lab Fee
• Curriculum Fee
• Disability Insurance (Must be required of all students regardless of source of funding)
• Education Fee
• Health Insurance (for students only) (Must be required of all students regardless of source of funding) Health Services Fee and Immunizations
• Graduation Fee in last year of program
• Laboratory Fees
• Library Fee
• Malpractice Insurance if it is mandatory that it be purchased through the school by all nursing students
• Matriculation Fee
• Processing Fee
• Recreation Fee
• Student Activities Fee
• Student Services Fee
• Technology Fee
• University Fee

Ineligible Fees include:

• Accident Insurance
• Attorney Fee
• Automobiles and Automobile Maintenance Expenses and Accident Insurance
• Books (as they are covered by the Other Reasonable Cost payment)
• Certification Boards
• Class Dues
• Counseling Fees
• Dental Insurance
• Educational Associations
• Financial Aid Trust Funds
• ID Maintenance
• Late Charges
• Life Insurance
• NCLEX Review
• Parking Fee
• Penalty Fee
• Post Office Box Rental
• Personal Laundry
• Room and Board Expenses
• Refundable Property Deposit
• Study Abroad Fees
• Student Association and Union Fee
• Testing Fee
• Transportation Fee
• Yearbook

The Nursing Scholarship Program will not pay for tuition costs unrelated to the degree program, penalty fees for over extension of a distance learning program, or for membership dues for student societies, associations, loan processing fees, and similar expenses. Also, the Nursing Scholarship Program will pay ONLY for courses that are required for graduation. Elective courses not required for graduation are not eligible for payment. If an applicant is unsure of what is covered by the Nursing Scholarship, please contact the Nursing Scholarship Program in writing for further clarification to HRSA Call Center – Nursing Scholarship Program, 12530 Parklawn Drive, Suite 350, Rockville, Maryland  20852.

Please be advised that under the Debt Collection Improvement Act of 1996, all Federal payments must be processed through Electronic Funds Transfer/ Direct Deposit. Therefore, all educational institutions must have an electronic funds transfer account which will allow the Division of Financial Operations (DFO) to make electronic payments for tuition and fees in a timely manner.

Receipt of a Nursing Scholarship award does not automatically preclude a participant from receiving funds from other programs, as long as no service commitment is involved. However, many student assistance programs are based on the student's financial need, or may be limited to the payment of expenses already paid by the Nursing Scholarship Program. The list of Nursing Scholarship Program recipients supplied to the schools will enable the school officials to reevaluate the financial need or eligibility of these individuals for funds under other aid programs. When continuation of financial assistance under other programs is not warranted, the school is required to reduce or terminate payments. Applicants should contact their financial aid officers to determine how the receipt of a Nursing Scholarship may affect them.

Other Reasonable Costs (ORC)
Financial support will be provided to each participant of the NSP for other reasonable educational expenses or costs (ORC) incurred by the student.  A standardized ORC payment is established for a full academic year, for a full-time student.  For students who plan to attend less than a full academic year (e.g., December graduates), the ORC payment will be reduced proportionately.  For part-time students, if funded, the ORC payment will be proportionally reduced. The ORC payment is provided to assist in the payment of the following types of expense:

• Books
• Clinical supplies
• Insurance (Life or Health Insurance)
• Instruments
• School ID Cards/ID Fees
• Travel
• Uniforms

The ORC payment will be included in the October stipend payment, which should be received by November 7.  

Stipend Amount
During the 2008-2009 academic year, the Nursing Scholarship Program will pay a full-time student a stipend based on a monthly stipend amount of $1,233 (before Federal taxes).  If funded, a part-time student would receive a proportional stipend amount.  The stipend is to pay for cost of living expenses such as food, transportation, and housing expenses. The first payment for new awardees should be received by November 7 and will include the stipends retroactive to the beginning of the 2008-2009 academic year, and a payment for Other Reasonable Costs.  See “Defining a Participant’s Academic Year” above. The first stipend payment will be for the first month (not before July or after October) the student has spent 15 days or more attending classes in the scholarship supported nursing program during the Fall 2008 academic term.  The last stipend will be paid to the student for the month that he/she completes the nursing program coursework (or when his/her contract ends), and he/she must attend classes for 15 days or more in the month to be eligible to receive a stipend for that month.  Receipt of the stipend payment does not mean that the student is employed by the Federal Government or participates in any of the benefits available to Federal employees.

Changes In Schools/Programs
Changes in schools or nursing programs are strongly discouraged once the applicant has been accepted into the Nursing Scholarship Program.  Changes in schools/programs must be approved, in advance, to ensure continued eligibility for funding.  Funding will be based on the initial school of record for all academic year contracts executed during Fiscal Year 2008.  For example, if the 2008-2009 tuition of the initial school of record is $10,000 and the tuition of the proposed transfer school is $15,000, then the Nursing Scholarship Program may not have the additional funding of $5,000. to pay the scholar’s full tuition at the proposed transfer school.  Therefore, students should carefully consider the financial implications of school/program transfers.

Method of Payment
DIRECT DEPOSIT IS MANDATORY. Please download and print the Standard Form 1199A (EG) Direct Deposit Sign Up Form from the online application under the Required Supplemental Forms Page. All stipend and Other Reasonable Cost payments are paid directly to the student's checking or savings account through direct deposit. 

Taxation of the Nursing Scholarship
All NSP payments made to scholars, or on their behalf to nursing schools, are taxable (26 USC 117(c)).  Although payments of tuition and fees are made directly to the nursing school, the student is liable for taxes  owed on these amounts.  The NSP withholds Federal income taxes from the stipend payments based on the entire amount of the NSP award (tuition, fees, ORC and stipends) and information provided on the W-4 by the scholar. Students who want additional funds deducted from the stipend amount should indicate the additional amount to be deducted on the appropriate line on the W-4 form and please include the W-4 form with the supplemental documentation.  We advise students to consult their local tax authority regarding State or local taxes for which they may be liable, as State and local income taxes will not be withheld. It is the responsibility of the scholarship recipient to arrange for the payment of any additional Federal, State, and local taxes that may be owed. Each year, students will receive a 1099 tax form for amounts paid for tuition and fees and a W-2 tax form for amounts paid for stipend and ORC.

Treasury Offset Program
Under the Treasury Offset Program, the Treasury Department is authorized to offset a student's Nursing Scholarship payments, if the student is delinquent on a Federal debt. In addition, the Treasury Department is authorized to offset Nursing Scholarship payments for application to the student's State debts, including delinquent child support payments.

Child Support Obligation
In keeping with the President's Executive Orders concerning compliance with child support orders, the Nursing Scholarship Program is stressing the importance of honoring any child support obligation an applicant may have.

Termination of Contract
The Secretary of Health and Human Services may terminate a Nursing Scholarship Program Contract for an academic year if the recipient, no later than 30 days before the end of the academic year: 1) submits a written request to terminate his or her contract for that academic year and 2) repays all amounts paid to, or made on behalf of, that recipient for that academic year. If a scholarship recipient does not meet these requirements, he or she will incur a service commitment for the full or partial year of support received, as set forth in the "Fulfilling the Service Commitment" Section of this Bulletin. 

Discontinuation of Benefits
The Nursing Scholarship Program will discontinue the payment of all benefits under the following circumstances:

1. while the recipient is on a leave of absence (for personal, medical or other reasons) which has been approved by the school;
2. while the recipient is repeating course work for which the NSP has already paid  [Exception: If the student's repeat course work is in addition to new course work and the new course work (excluding the repeated courses) is of sufficient credit hours to meet the definition of full-time student (for participants who signed "Full-Time Student" Contracts) (or the definition of part-time student for participants who sign “Part-Time Student” Contracts), then payment of the monthly stipend will continue, but the Nursing Scholarship Program will not pay for the course work being repeated;
3. if the recipient withdraws or is dismissed from school. Moreover, the recipient's withdrawal or dismissal from school is also a breach of the scholarship contract, and the recipient will be liable to repay the amount described in the "Defaulting on the Scholarship Commitment – Breach of Contract" section of this Bulletin;
4. if the recipient is enrolled as a less than full-time student (for participants who signed "Full-Time Student" Contracts) or as a less than part-time student (for students who sign “Part-time Student” Contracts).  This includes participants who voluntarily withdraw from courses during a semester/quarter  and no longer meet the definition of a full-time or part-time student under their applicable Contract; and
5. if the recipient transfers to an ineligible school or program.  Prior to any transfer, it is the recipient’s responsibility to contact the NSP in writing at the Division of Scholar and Clinician Support, 5600 Fishers Lane, 8-15, Rockville, Maryland 20857 to determine his or her eligibility to continue to receive benefits at the new school/program.

A recipient is required to notify the Division of Scholar and Clinician Support promptly, by phone and in writing, as soon as one of the following events is anticipated:

1) repeat course work;
2) a change in the applicant's graduation date;
3) a leave of absence approved by the school;
4) withdrawal or dismissal from school;
5) a change from full-time student status to a less than full-time student status for participants who sign “Full-Time Student” Contracts (a change from part-time student status to less than part-time student status for participants who sign “Part-time Student” Contracts);
6) voluntary withdrawal from courses during an academic term; or
7) a transfer to another school or program. The Nursing Scholarship Program needs to know in advance that the above events may occur, so that timely action can be taken to discontinue or decrease payments (and avoid overpayments), where applicable.

The recipient must also submit a letter to the Division of Scholar and Clinician Support, 5600 Fishers Lane, 8-15, Rockville, Maryland 20857 from the school verifying that one of these events has occurred. Please be advised that if the Nursing Scholarship Program has any questions concerning a participant's eligibility for continued support, the Nursing Scholarship Program may delay the payment of all benefits to that participant pending clarification of the participant's eligibility status.

Collection of Benefit Overpayments
Scholarship Program payment(s) received by a recipient, including payment(s) made to a school on the recipient's behalf, which the recipient was ineligible to receive, are overpayments.  A participant receiving an overpayment should immediately telephone the Nursing Scholarship Program at (301) 594-4400  and follow-up in writing to make arrangements to promptly return all overpayment(s) to avoid interest accrual and debt collection procedures.

Debt collection procedures include sending delinquent overpayments to a debt collection agency, reporting the overpayments to credit reporting agencies, offsetting Federal and/or State payments due to the participant )e.g., and IRS income tax refund) to collect the overpayments, recovery through Administrative Wage Garnishment, and referral of the overpayments to the Department of Justice for enforced collection. For scholars who receive subsequent funding under the Nursing Scholarship Program and who previously received any overpayments which have not been repaid, the overpayments will be collected through administrative offset. The Nursing Scholarship Program will withhold scholarship funds payable to, or on behalf of, the recipient (including stipends, ORC, and, if necessary, tuition payments) until the overpayment owed is paid in full. Administrative offset is not a repayment option for scholars who wish to terminate a contract. 

Resumption of Benefits
To resume benefits under existing scholarship contracts, the recipient must submit documentation from a school official confirming that he/she is now eligible to receive scholarship support (e.g., is no longer repeating course work, has returned from a leave of absence, has resumed full-time student status, etc.). Requests for the resumption of scholarship benefits will be considered on a case-by-case basis by the designee of the Secretary of the U.S. Department of Health and Human Services, to determine the recipient's eligibility to receive continuing funds. For recipients who have not repaid overpayments previously received, the resumption of scholarship benefits will be subject to the administrative offset described in the "Collection of Benefit Overpayments" section of this Bulletin. For recipients whose benefits were discontinued due to their withdrawal or dismissal from school or due to their transfer to an ineligible program or school, benefits will not be resumed.

Effect on Veterans Benefits
Educational benefits from the Department of Veterans Affairs (G.I. Bill) continue along with NSP funds, since these benefits were earned by prior active duty in a uniformed service.

Continuing Support After the 2008-2009 Academic Year
The Nursing Scholarship Program award and contract will be for the 2008-2009 academic year and additional academic years (Contract Extensions) requested by the applicant and agreed to by the Secretary as indicated on the signed contracts.  Support will be paid for the years agreed to in the contracts, based on the costs of the initial school of record, provided the student remains eligible to receive NSP support.

If a student signs a contract for only 1 year of support (2008-2009 academic year), his/her scholarship support will be terminated at the end of the 2008-2009 academic year. Should the student decide that he/she would like additional scholarship support for the next academic year (2009-2010) and any subsequent academic years through graduation, the student must submit a new Verification Report/Data Collection Form and a signed contract for that academic year and, if desired, Contract Extensions for subsequent academic years through graduation subject to "Limitations on Academic Years of Support" in this Bulletin. Please be advised that since a recipient will incur a 2-year service commitment for 1 academic year of support, it may be in the best interest of the student to sign contracts for 2 years of support, if the student will need scholarship support for all or part of the 2009-2010 academic year. The Verification Report/Data Collection Form and the signed contract(s) must be received by no later than June 6 of the year in which support would be continued.

The granting of continuation awards depends upon:

1) the availability of funds for the Nursing Scholarship Program;
2) the current or former participant's continued eligibility to participate in the Nursing Scholarship Program (good academic standing, not repeating coursework, etc.);
3) the limitations set forth in "Limitations on Academic Years of Support" in this Bulletin;
4) the current or former participant's compliance with procedures established by the Nursing Scholarship Program for requesting continued support; and
5) the participant’s past compliance with program policies and requirements.

Participants who are requesting continued support must be able to financially support themselves until the scholarship benefits payment schedule can be reinstated.

Fulfilling the Service Commitment

Years of Service Owed

Participants who sign "Full-Time Student" Contracts incur 1 year of full-time obligated service for each full or partial academic year of support received, with a minimum 2-year full-time service obligation. For example, a student who receives a full year of support (12 months) the first academic year, a partial year of support (6 months) the second academic year, and a full year of support the third academic year will owe the equivalent of 3 years of full-time clinical service. 

Participants who sign “Part-Time Student” Contracts incur a 2-year service obligation or the part-time equivalent of one year for each academic year the participant received a scholarship, whichever is greater.

Full-Time or Part-Time Clinical Service
Participants may satisfy their service obligations on either a full-time or part-time basis:

• Full-time clinical practice is defined as a minimum of 32 hours per week for a minimum of 45 weeks per year. At least 26 hours per week must be spent providing clinical services to patients.
• Part-time clinical practice is defined as a minimum of 16 hours per week and up to a maximum of 31 hours per week, for a minimum of 45 weeks per year. At least 80% of the hours each week must be spent providing clinical services to patients. (For example, a nurse scheduled to work 20 hours per week must spend 16 hours per week providing clinical services).

No more than 7 weeks (28 work days) per service year can be spent away from the approved practice site for vacation, holidays, continuing education, illness, maternity, or any other reason. For absences of greater than 7 weeks in a 52-week service year, the participant should request a suspension.  See “Waiver, Suspension, or Cancellation of the Commitment.”   A break in service will extend the service obligation end date.

Participants wishing to serve part-time must obtain approval from the NSP and must agree to extend their service obligation so that the aggregate amount of service performed will equal the amount of a full-time service obligation. See “Ending Date of Obligated Service" below for an explanation of how the length of the part-time service obligation is determined. Requests to pursue part-time service at less than 16 hours per week will not be approved.

NSP Service Sites
NSP participants must provide full-time or part-time clinical service in a health care facility with a critical shortage of nurses located in a State. Eligible health care facilities include:

1. Indian Health Service Health Centers;
2. Native Hawaiian Health Centers;
3. Hospitals;
4. Federally Qualified Health Centers (including Look Alike Health Centers);
5. Rural Health Clinics;
6. Nursing Homes;
7. Home Health Agencies;
8. Hospice Programs;
9. State or local Public Health Departments including Public Health Clinics within the Departments;
10. Skilled Nursing Facilities; and
11. Ambulatory Surgical Centers.

NOTE: See glossary for definitions of  State and health care facility types set forth above.

Ineligible sites include but are not limited to:

1. Free Standing Clinics that do not qualify as one of the above critical shortage facilities;
2. Renal Dialysis Centers;
3. Private Practice Offices; and
4. Assisted Living Facilities.

Service Placement Process
Recipients will have up to 6 months from their date of graduation to

1) obtain a nursing license (see below) and
2) accept an offer of employment from an NSP approved facility. 

Recipients will have up to 3 months following the date of the acceptance of such job offer to commence full-time (or if approved, part-time) clinical services at the facility. Recipients should contact the Scholar Support Branch of the Division of Scholar and Clinician Support at 1-800-221-9393 prior to accepting employment to assure facility/position eligibility. The NSP reserves the right to grant final approval of all service locations, in order to insure a scholar's compliance with statutory requirements related to the service obligation. Once employment begins, scholars are required to submit an initial Employment Certification Form and submit a 6-month verification form every 6 months thereafter until the service obligation is completed. 

Recipients who fail to accept an offer of  employment from an  NSP-approved eligible facility within 6 months of their date of graduation or who fail to start service  within 3 months of the date of their