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Nursing
Workforce Development
Nurse Faculty Loan Program
|
FY
2007
Actual |
FY
2008
Enacted |
FY
2009
Estimate |
FY
2009 +/-
FY 2008 |
BA |
$4,773,000 |
$7,860,000 |
$9,319,000 |
$1,459,000 |
Authorizing Legislation: Title VIII, Section 846A
of the Public Health Act, as amended by the Nurse
Reinvestment Act of 2002.
FY 2009
Authorization |
Expired |
Allocation Method |
Agreement/Contract |
Program Description and Accomplishments
The Nurse Faculty Loan Program (NFLP), implemented
in FY 2003, seeks to increase the number of qualified
nursing faculty. The program supports the establishment
and operation of a loan fund within participating
schools of nursing to assist nurses in completing
their graduate education to become qualified nurse
faculty. Accredited collegiate schools of nursing
are eligible to apply for funding. Eligible schools
must offer an advanced education nursing degree program(s)
that will prepare the graduate student to teach.
The National League for Nursing, the American Association
of Colleges of Nursing (AACN), and the Robert Wood
Johnson Foundation published data that revealed the
shortage of nurse faculty and the implications the
shortage would have on the nursing workforce. According
to AACN preliminary data, more than 30,000 qualified
applicants have been turned away from nursing schools
in 2007. The AACN reported over 42,000 in 2006. The
primary barrier to accepting all qualified students
at nursing colleges and universities continues to
be the insufficient number of qualified nursing faculty.
The organization expects that figure to further rise
when final admissions data becomes available (AACN
release, 12/3/2007). The NFLP serves as an incentive
for nurses to select careers as nurse educators.
The Department of Health and Human Services (HHS),
acting through the Health Resources and Services Administration
(HRSA) makes an award and enters into an agreement
with the school to establish and operate a distinct
account for the NFLP loan fund (a revolving fund).
The award to the school, the Federal Capital Contribution
(FCC), must be deposited into the NFLP loan fund.
The school is required to deposit the Institutional
Capital Contribution (ICC) that is equal to no less
than one-ninth of the FCC. The account may only be
used to make loans to graduate nursing students who
agree to meet the requirements of the NFLP.
Participating schools make NFLP loans to eligible
graduate (master’s and doctoral) nursing students
to complete the nursing education program. Students
may receive NFLP loans up to $30,000 per year for
a maximum of 5 years. Following graduation from the
nursing program, loan recipients may cancel up to
85 percent of the loan principal and interest in exchange
for service as a full-time nursing faculty at a school
of nursing.
The loan cancellation is made over a four-year period,
as follows: 20 percent of the principal and interest
may be canceled for each of the first, second and
third years, totaling up to 60 percent, followed by
25 percent for the fourth year of full-time employment
as a nursing faculty. The NFLP loans accrue interest
at a rate of 3 percent per annum for loan recipients
who establish employment as nurse faculty. Payment
on the remaining 15 percent of the loan balance is
deferred during the cancellation period.
There are currently 119 schools that participate in
the NFLP (this number reflects new awards and awards
based upon participating schools with excess cash).
The participating schools continue to request an increased
level of funding which reflects the true demand among
the student population. Thus far, the NFLP has facilitated
the graduation of 162 students qualified to fill nurse
faculty positions. In FY 2007, approximately 418 continuing
students received NFLP loan support. Each year has
seen an increase in the number of participating schools
coupled with an even greater increase in the number
of new students requesting NFLP support.
In FY 2006:
- 115 schools participated in the NFLP
- 1,000 students were supported (367 continuing
and 633 new full-time students)
In FY 2007:
- 119 schools participated in the NFLP
- 1,151 students were supported (418 continuing
and 733 new full-time students)
The consistent increase in school participation
and supported students, and the steady increase in
graduate program enrollment and graduation demonstrate
NFLP’s success.
According to a Special Survey on Vacant Faculty Positions
released by AACN in July 2007, a total of 767 faculty
vacancies were identified at 344 nursing schools with
baccalaureate and/or graduate programs across the
country. Besides the vacancies, schools cited the
need to create an additional 43 faculty positions
to accommodate student demand. The data show a national
nurse faculty vacancy rate of 8.8 percent which translates
into approximately 2.2 faculty vacancies per school.
Most of the vacancies (86.2 percent) were faculty
positions requiring or preferring a doctoral degree.
While the NFLP has contributed to confronting the
current deficit in nursing faculty, this shortage
is not a stagnant figure due to several factors. One
of these is an imminent wave of nurse faculty retirements
expected over the next decade. According to an article
published in the March/April 2002 issue of Nursing
Outlook titled The Shortage of Doctorally Prepared
Nursing Faculty: A Dire Situation, between 200 and
300 doctorally-prepared faculty will be eligible for
retirement each year from 2003 through 2012, and between
220 and 280 master's-prepared nurse faculty will be
eligible for retirement between 2012 and 2018. By
continuing to make advanced education nursing financially
accessible for more nurse faculty candidates, HHS
believes that it can contribute strongly to confronting
the nursing shortage.
Most of the Health Professions Title VII and Title
VIII, PHS Act programs were reviewed as a unit in
2002 using the Program Assessment Rating Tool (PART).
This program was included in that assessment. See
Summary of the Request.
Funding includes costs associated with grant reviews,
processing of grants through the Grants Administration
Tracking and Evaluation System (GATES) and HRSA’s
electronic handbook, and follow-up performance reviews.
Funding History
FY 2004 |
$4,870,000 |
FY 2005 |
$4,831,000 |
FY 2006 |
$4,770,000 |
FY 2007 |
$4,773,000 |
FY 2008 |
$7,860,000 |
Budget Request
The FY 2009 Request of $9,319,000 is an increase
of $1,459,000 above the FY 2008 Enacted level. The
increase will support 23 additional schools receiving
funds and an estimated 183 additional nurse educator
students. The total request will support 143 schools
receiving funds under the Nurse Faculty Loan Program
which supports student loans of up to $30,000 in participating
institutions. Approximately 757 nurse educator students
will be supported.
# |
Key
Outputs |
FY
2004 Actual |
FY
2005 Actual |
FY
2006 |
FY
2007 |
FY
2008
Enacted |
FY
2009
Est. |
Out-Year
Target |
Target |
Actual |
Target |
Actual |
|
Number of Schools Receiving New
Funds |
61 |
66 |
NA |
67 |
NA |
73 |
120 |
143 |
NA |
|
Appropriated Amount($ Million) |
$4.87 |
$4.83 |
|
$4.77 |
|
$4.77 |
$7.86 |
$9.32 |
|
NA – Not Applicable
|