Applicant Information Bulletin, 2008-2009 Academic Year

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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 acceptance of such offer of employment may be recommended for default of their service obligation. Recipients who default on their NSP service obligation, incur the damages described below in the "Defaulting on the Scholarship Commitment – Breach of Contract" section.

Licensure/Certification Required
Prior to commencing service, a scholarship recipient must be permanently licensed to practice as a registered nurse (or if appropriate, as an advanced practice nurse) in the State where he/she will be serving. Credit towards fulfillment of the scholarship commitment will not be given in the absence of a current, unencumbered permanent license in the State of service. In addition, advanced practice nurses are expected to pass a national certification examination for their specialty (that is administered by a nationally recognized certifying body) prior to commencing service.  No service credit will be given until the Division of Scholar and Clinician Support at 5600 Fishers Lane, 8-15, Rockville, Maryland 20857 has received documentation that all licensure and certification requirements have been met.

Responsibility for obtaining the required State license (and national certification exam, if applicable) prior to the service start date rests with the scholarship recipient. Scholars are expected to take the appropriate licensure/certification exams at the earliest possible date. If the recipient is unsuccessful in obtaining a license or passing the certification exams within 6 months of his or her graduation date, the recipient should immediately contact the Scholar Support Branch of the Division of Scholar and Clinician Support, in writing, at 5600 Fishers Lane, 8-15, Rockville, Maryland 20857 to request a suspension. See "Waiver, Suspension or Cancellation of the Commitment" section in this Bulletin.

Beginning Date of Service Commitment
Nurses must begin their service at an NSP-approved eligible facility within 3 months of the date of their acceptance of employment at that facility. The recipient and an authorized representative of the NSP-approved facility should negotiate a start date within this timeframe.

Credit for service toward the nursing scholarship commitment does not begin until:

(1) the scholar has submitted documentation demonstrating that the scholar has met the license/certification requirements and
(2) the NSP receives documentation that the scholar begins to provide full-time (or part-time, if approved) clinical services at a NSP-approved eligible facility/position.

Delaying Start of Service
Recipients with documented, extreme circumstances which jeopardize the start of service may request to suspend their service commitments for up to 1 year. Such requests must be sent in writing to the Scholar Support Branch of the Division of Scholar and Clinician Support address at 5600 Fishers Lane 8-15, Rockville, Maryland 20857  See "Waiver, Suspension or Cancellation of the Commitment" section in this Bulletin.

Ending Date of Obligated Service
For scholars serving on a full-time basis, the last day of the service commitment is calculated by counting the number of days of full-time service owed from the service start date. For example, the last day of service for a recipient with a 3-year service commitment who began service on July 15, 2008, would be July 14, 2011.

Scholars serving on a part-time basis must agree to extend their service obligations so that the aggregate amount of the part-time service performed will equal the amount of their full-time service obligation. For scholars serving on a part-time basis, the length of their service commitment will be determined by dividing 100 by the minimum percentage of the full-time obligation being served and then multiplying that amount by the number of days of full-time service owed. For example, a nursing student owes 2 years (730 days) of full-time service and has signed an employment contract to work a minimum of 20 hours per week. Twenty hours per week represents 62.5% of the full-time service obligation (20/32 = .625 or 62.5 percent). Dividing 100 by 62.5 equals 1.6, and 1.6 multiplied by 730 equals 1,168. Thus, this scholar would owe 1,168 days of part-time service, and the service end date would be 1,168 days from the service start date.

Adjustments to the ending date may be made by the Division of Scholar and Clinician Support if the scholar takes more than the allowable time away from the site (see "Full-Time or Part-Time Clinical Service" section) and if the service is suspended, interrupted, or otherwise delayed.

Leaving the Service Site (Changing Jobs)
Participants are expected to complete their full service obligation at their initial service site.  Should participants be unable to complete their obligation at their initial NSP service site, they must continue their service at another NSP-approved service site.  When a break in service occurs, the participant’s service end date will be extended. 

When a participant desires a transfer, a written request must be submitted to the Division of Scholar and Clinician Support (DSCS) at 5600 Fishers Lane 8-15, Rockville, Maryland  20857 for approval.  A transfer request should be submitted before the participant leaves his or her current service site.  All transfer sites must be approved by the NSP.   Leaving the assigned site without prior written approval by the DSCS may result in a default recommendation.

If a participant:  

1. fails to maintain an acceptable level of academic standing in the nursing program;
2. is dismissed from the nursing program for disciplinary reasons;
3. voluntarily terminates the nursing program; or
4. fails to provide health services in an NSP service site for the applicable period of time as specified in his or her NSP contract;

then the participant will be liable to the Federal Government:

1. to repay all funds paid to the participant, or on the participant’s behalf, under the NSP and;
2. to pay interest on such amounts at the maximum legal prevailing rate from the date of default.

The amount owed, including interest, must be paid within 3 years of the date of the participant's default.

Delinquent Debt
Failure to repay the NSP debt within 3 years has the following consequences:

1. The debt will be reported to credit reporting agencies. — During the three-year repayment period, the debt will be reported to credit reporting agencies as “current.”  If the debt becomes past due, it will be reported as “delinquent.”
2. The debt will be referred to a debt collection agency and the Department of Justice—Any NSP debt past due for  45 days may be referred to a debt collection agency.  If the debt collection agency is unsuccessful in receiving payment in full, the debt will be referred to the Department of Justice for enforced collection.
3. Administrative offset—Federal and/or State payments due to the participant (e.g., an IRS income tax refund) may be offset by the Department of Treasury to repay a delinquent NSP debt.  Also, recovery through Administrative Wage Garnishment may be enforced to repay a delinquent NSP debt.
4. Medicare/Medicaid Exclusion—Delinquent defaulters who are unwilling to enter into, or stay in compliance with, an agreement to repay their scholarship debt can be excluded from participation in Medicare, Medicaid and other Federal health care programs. See section 1128 of the Social Security Act.

Waiver, Suspension or Cancellation of the Commitment

Scholarship recipients seeking a waiver (for a permanent situation) or suspension (for a temporary situation) of the service  obligation must submit a written request to the Scholar Support Branch of the Division of Scholar and Clinician Support (DSCS)at 5600 Fishers Lane, Room 8-15, Rockville, Maryland 20857. The request must state the underlying circumstances and be supported by documentation.  Requests for waivers and suspensions are processed and reviewed by the Legal and Compliance Office (LCO). Waivers (or suspensions) of the service obligation may be granted by the LCO, whenever compliance by the individual would be impossible (or temporarily impossible), or would involve extreme hardship (or temporary extreme hardship) to the individual and would be against equity and good conscience to enforce.

Compliance would be considered impossible if the  LCO, determines that the participant suffers from a physical or mental disability resulting in his/her inability to perform the commitment incurred.

To determine whether performance of the obligation would impose an extreme hardship and be against equity and good conscience, the  LCO, will consider:

(1) the recipient's present financial resources and obligations;
(2) the recipient's estimated future financial resources and obligations; and
(3) the extent to which the recipient has problems of a personal nature, such as physical or mental disability, or terminal illness in the immediate family, which so intrude on the recipient's present and future ability to perform as to raise a presumption that the individual would be unable to perform the obligation incurred.

In the unfortunate event of a scholarship recipient's death, any commitment to the NSP is canceled upon submission of documentation to the Division of Scholar and Clinician Support.

Deadline

All online applications, regardless of funding preference, and all required supporting documentation for first preference applicants must be received by June 6, 2008.

Supporting documentation should be mailed to:

HRSA Call Center – NSP
12530 Parklawn Drive, Suite 350
Rockville, MD 20857

Meeting the announced deadline dates is the responsibility of the applicant.

PRIVACY ACT NOTIFICATION STATEMENT

General

This information is provided pursuant to the Privacy Act of 1974 (Public Law 94-579) of December 31, 1974, as amended, for individuals supplying in­formation for inclusion in a system of records.

Authority

Section 846(d) of the Public Health Service Act.

Purposes and Uses

The purpose of the Nursing Scholarship Program is to provide scholarships to nursing students in exchange for a service commitment at an eligible health facility with a critical shortage of nurses. The information you provide will be used to evaluate your qualifications and suitability for participating in the Nursing Scholarship Program.

Selections are made on a competitive basis. The Nursing Scholarship recipient’s application and related data are made part of the file to be used within the U.S. Department of Health and Human Services for record­keeping and management during the recipient’s participation in the Nursing Scholarship Program. The information may also be disclosed outside the Department, as permitted by the Privacy Act and Freedom of Information Act (e.g., to the Congress, the National Archives, the General Accounting Office, and pursuant to court order).

The name of a scholarship recipient, the professional school he or she is attending, and the date of graduation may be made available to health professions associations, to groups which have responsibility for coordinating funds paid to students from Federal and other sources, and to individuals and organizations deemed qualified by the Secretary, Department of Health and Human Services to carry out specific research, solely for the purpose of carrying out such research. In addition, name, business address, business telephone number, and completion date of commitment may be provided to professional placement firms in response to requests made under the Freedom of Information Act.

Effects of Non-disclosure
Disclosure of the information sought in this application is voluntary; however, if not provided, except for the race or ethnic identity of the applicant, an application will be considered incomplete and chances for selection diminished.

Power-of-Attorney
If you are submitting and executing an application on behalf of another person, it is mandatory that a copy of the agreement granting you Power-of-Attorney to act for the applicant be submitted with the application materials.

Section II. Glossary of Terms

ACADEMIC YEAR – 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 coursework 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 coursework for graduation, whichever comes first).

CONTRACT - A written contract under Section 846(d) of the Public Health Service Act, as amended, for an academic year pursuant to which (1) the individual agrees to serve as a nurse for a period of not less than 2 years at a health care facility with a critical shortage of nurses and (2) the Federal government agrees to provide the individual with a scholarship, for attendance at a school of nursing during that academic year.

FULL-TIME CLINICAL PRACTICE - 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. 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. Absences of greater than 7 weeks in a 52-week service year will extend the service obligation end date.

FULL-TIME STUDENT - A student will be considered full-time if the student meets the nursing school program's definition of a full-time student.

FUNDING PREFERENCE - Funding preference is defined as the funding of a specific category or group of approved applicants ahead of other categories or groups of approved applicants.

HEALTH CARE FACILITY - A health care facility is one of the following:

1. Indian Health Service Health Center - A health care facility (whether operated directly by the Indian Health Service or operated by a tribe or tribal organization, contractor or grantee under the Indian Self-Determination Act, as described in 42 Code of Federal Regulations (CFR) Part 136, Subparts C and H, or by an urban Indian organization receiving funds under title V of the Indian Health Care Improvement Act), which is physically separated from a hospital, and which provides clinical treatment services on an outpatient basis to persons of Indian or Alaskan Native descent as described in 42 CFR Section 136.12.
2. Native Hawaiian Health Center - An entity (a) which is organized under the laws of the State of Hawaii; (b) which provides or arranges for health care services through practitioners licensed by the State of Hawaii, where licensure requirements are applicable; (c) which is a public or nonprofit private entity; and (d) in which Native Hawaiian health practitioners significantly participate in the planning, management, monitoring, and evaluation of health services. See the Native Hawaiian Health Care Act of 1988 (P.L. 100-579), as amended by P.L. 102-396.
3. Hospital - Any public or nonprofit private or for profit private entity in a State that is primarily engaged in providing, by or under the supervision of physicians, to inpatients (a) diagnostic services and therapeutic services for medical diagnosis, treatment, and care of injured, disabled, or sick persons, or (b) rehabilitation of injured, disabled, or sick persons.  Hospital-based outpatient services are included under this definition.
4. Federally Qualified Health Center - An entity described under section 1861(aa)(4) of the Social Security Act which includes Migrant Health Centers receiving a grant under section 330(g) of the Public Health Service (PHS) Act, Community Health Centers receiving a grant under section 330(e) of the PHS Act, Homeless Health Centers receiving a grant under section 330(h) of the PHS Act, and Look-Alike Health Centers which are certified by the Secretary as meeting the requirements for receiving a grant under section 330(e), 330(g), or 330 (h) of the PHS Act, but are not grantees.
5. Rural Health Clinic - An entity which the Centers for Medicare and Medicaid Services has certified as a rural health clinic under section 1861(aa)(2) of the Social Security Act. A rural health clinic provides outpatient services to a non-urban area with an insufficient number of health care practitioners.
6. Nursing Home - An institution (or a distinct part of an institution),certified under section 1919(a) of the Social Security Act, which is primarily engaged in providing, on a regular basis, health-related care and service to individuals who because of their mental or physical condition require care and service (above the level of room and board) which can be made available to them only through institutional facilities, and is not primarily for the care and treatment of mental diseases.
7. Home Health Agency - A public agency or private organization, certified under section 1861(o) of the Social Security Act, which is primarily engaged in providing skilled nursing care and other therapeutic services.
8. Hospice Program - A public agency or private organization, certified under section 1861(dd)(2) of the Social Security Act, which provides 24 hour care and treatment services (as needed) to terminally ill individuals and their families. This care is provided in individuals' homes, on an outpatient basis, and on a short-term inpatient basis, directly or under arrangements made by the agency or organization.
9. State or Local Public Health Department including a Public Health Clinic within the Departments - The State, county, parish or district entity in a State that is responsible for providing population focused health services which include health promotion, disease prevention and intervention services provided in clinics that are operated by the health department.
10. Skilled Nursing Facility - An institution (or a distinct part of an institution), certified under section 1819(a) of the Social Security Act, which is primarily engaged in providing skilled nursing care and related services to residents requiring medical, rehabilitation or nursing care and is not primary for the care and treatment of mental diseases.
11. Ambulatory Surgical Center - An entity in a State that provides surgical services to individuals on an outpatient basis and is not owned or operated by a hospital.

LEAVE OF ABSENCE - A period of approved absence from a course of study granted to a student by his or her nursing school for medical, personal, and other reasons. The leave of absence is usually granted for a period of 1 year or less. When a leave of absence is expected, a scholar is required to notify the Division of Scholar and Clinician Support, Scholar Support Branch immediately, in writing, and submit a letter from the school approving the leave of absence and indicating the start and end dates for the period of the absence. Payment of all benefits are discontinued when a scholar is on an approved leave of absence, and may be resumed when the student returns to the course of study for which the scholarship was awarded.

PART-TIME CLINICAL PRACTICE - 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. 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. Absences of greater than 7 weeks in a 52-week service year will extend the service obligation end date.

PART-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).

QUALIFIED APPLICANT - A person who meets all of the eligibility requirements set forth in this Application.

SCHOOL OF NURSING - The term "school of nursing" means an accredited collegiate, associate degree, or diploma school of nursing in a State.

STATE - Includes the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana's, the U.S. Virgin Islands, the Territory of Guam, the Territory of American Samoa, the Republic of Palau, the Republic of the Marshall Islands, and the Federated States of Micronesia.

SUSPENSION - Is a temporary status. The bases for a suspension would be a medical condition or a personal situation that: 1) would make it temporarily impossible to continue the service commitment or payment of the monetary debt, or 2) would temporarily involve an extreme hardship to the individual and enforcement of the service or payment commitment would be against equity and good conscience. All requests for a suspension must be submitted in writing to the Division of Scholar and Clinician Support and be supported by full medical and/or financial documentation.

THE SECRETARY - The Secretary of Health and Human Services, and any other officer or employee of the U.S. Department of Health and Human Services to whom the authority to administer the NSP has been delegated.

UNDERGRADUATE NURSING PROGRAM – Any school of nursing program in which the student will receive a Diploma, Associate, or Baccalaureate degree (see a description of these programs in Section 1, “Applicant Eligibility”).

GRADUATE NURSING PROGRAM – Any 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 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.

UNENCUMBERED LICENSE – A license is unencumbered if it is not revoked, suspended, or made probationary or conditional by a licensing or registering authority in the applicable jurisdiction as the result of disciplinary action. 

WAIVER - Is a permanent status. The bases for a waiver would be a permanent medical condition or personal situation that:

1) would make it impossible for the individual to serve the commitment or pay the debt, or
2) would involve an extreme hardship to the individual and enforcement of the service of payment commitment would be against equity and good conscience.

All requests for a waiver must be submitted in writing to the Division of Scholar and Clinician Support and be supported by full medical and financial documentation.

Section III. Sample Nursing Scholarship Program Contract

HRSA-123 (4/07) (FRONT)

NURSING SCHOLARSHIP PROGRAM CONTRACT

FOR FULL-TIME STUDENT
ACADEMIC YEAR 2008-2009

U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
HEALTH RESOURCES AND SERVICES ADMINISTRATION
BUREAU OF CLINICIAN RECRUITMENT AND SERVICE

Section  846(d) of the Public Health Service Act ("Act"), as amended by Public Law 107- 205 on  August 1, 2002, authorizes the Secretary of Health and Human Services ("Secretary") to provide applicants selected to be participants in the Nursing Scholarship Program (“Scholarship Program”) with scholarship awards. In return for the awards, applicants must agree to serve for a period of not less than 2 years as nurses in a health care facility with a critical shortage of nurses.

Pursuant to section 846(d)(4) of the Act, applicants are required to submit with their application a signed contract stating the terms and conditions of participation in the Scholarship Program. The Secretary shall sign only those contracts submitted by applicants who are selected for participation.

The terms and conditions of participating in the Scholarship Program for the 2008-2009 academic year are set forth below.

Section A - Obligations of the Secretary

Subject to the availability of funds appropriated by the Congress of the United States for the Nursing Scholarship Program, the Secretary agrees to:

1. Provide the undersigned applicant ("applicant") with a scholarship award for the academic year 2008-2009 during which the applicant:
   1. is enrolled, or is accepted for enrollment, as a full-time student in an accredited (as determined by the Secretary) school of nursing in one of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana's, the U.S. Virgin Islands, the Territory of Guam, the Territory of American Samoa, the Republic of Palau, the Republic of the Marshall Islands or the Federated States of Micronesia, and
   2. is pursuing a course of study in a collegiate, associate degree, or diploma school of nursing. 

The scholarship award shall consist of payments, in full or in part, for tuition, an amount for all other reasonable educational expenses incurred by the student, and  stipend support for the 12-month period beginning with the first month of each academic year in which the applicant is a participant in the Scholarship Program. The disbursement of these scholarship payments may be delayed by the Secretary pending receipt of verification, satisfactory to the Secretary, of the applicant's continued eligibility for scholarship support. Scholarship support will not extend beyond the applicant’s completion of the required classes for graduation, or four academic years, whichever is less.

2. Annually determine the most needy health care facilities with a critical shortage of nurses.

Section B - Obligations of the Applicant

The applicant agrees to:

1. Accept the scholarship award provided by the Secretary under Section A.1. of this contract for the academic year 2008-2009.
2. Maintain enrollment as a full-time student until completion of the course of study for which the scholarship award is provided.  
3. Notify the Scholarship Program promptly in writing as soon as one of the following events is anticipated: repeat course work; a delay in the applicant's graduation date; a leave of absence approved by the school; a change from full-time student status to a less than full-time student status; withdrawal from courses; a change in school or program and a withdrawal or dismissal from school.
4. Maintain an acceptable level of academic standing while enrolled in the course of study for which the scholarship award is provided.
5. Serve one year of full-time obligated service for each academic year a scholarship award is provided, with a minimum obligation of 2 years of full-time clinical service.
6. Serve his or her period of obligated service in a health care facility with a critical shortage of nurses identified by the Secretary pursuant to Section A.2. of this contract.  The service obligation may be fulfilled on a full-time or part-time basis.  Full-time service is defined as a minimum of 32 hours per week, for a minimum of 45 weeks per year.  Part-time service is defined as a minimum of 16 hours per week up to a maximum of 31 hours per week, for a minimum of 45 weeks per year.   Part-time service is subject to approval by the Secretary.  The applicant must accept an officer of employment from such health care facility within 6 months of the applicant’s data of graduation from nursing school.
7. If approved by the Secretary to provide part-time service, extend the period of obligated service set forth in paragraph 5 of this Section so that the aggregate amount of service performed will equal the amount of service that would be performed through a period of full-time service.
8. Commence obligated service in accordance with paragraph 6 above,  within 3 months of the date of the applicant’s acceptance of an offer of employment from such health care facility or within 9 months of the applicant’s date of graduation from nursing school, whichever occurs first.
9. Undertake service in accord with policies and procedures in effect at the time the service obligation is required to begin.
10. Permit the U.S. Department of Health and Human Services to collect any debt owed by the applicant, as a result of an overpayment of scholarship award payments, through the administrative offset of subsequent scholarship award payments to the applicant under this Contract, or an Extension Contract, until the debt is paid in full. An overpayment of scholarship award payments occurs when scholarship award payments are made:
    1. for repeat course work,
    2. during any period when the applicant is on an approved leave of absence from the school,
    3. during any period when the applicants enrolled as a less than full-time student, or
    4. due to administrative error.
11. Comply with Title 2, Federal Code of Regulations, Part 180, Subpart C (2006), as supplemented by Subpart C of Title 2, Federal Code of Regulations, Part 376 (2007).

Section C - Breach of Scholarship Contract

1. If the applicant:
   1. fails to maintain an acceptable level of academic standing in the nursing program,
   2. is dismissed from the nursing program for disciplinary reasons,
   3. voluntarily terminates the nursing program before the completion of such training; or
   4. fails to provide health services in accordance with Section B of this contract,
   5. then the applicant shall be liable to the United States to repay all funds paid to the applicant, or on the applicant’s behalf, under this contract, and to pay interest on such amounts at the maximum legal prevailing rate from the date of the applicant’s default. 
2. The amount owed under paragraph 1 of this Section must be paid within 3 years of the date of the applicant’s default.

Section D - Cancellation, Suspension, and Waiver of Obligation

1. Any service or payment obligation incurred by the applicant under this contract will be canceled upon the applicant's death.
2. The Secretary may waive or suspend the applicant's service or payment obligation incurred under this contract if:
   1. compliance by the applicant with the obligation is impossible; or
   2. compliance would involve extreme hardship and enforcement of such obligation would be unconscionable.

Section E - Contract Extension

1. The applicant may annually request extension of this Contract, if the request is submitted in accordance with procedures established by the Secretary.
2. Subject to the availability of funds appropriated by the Congress of the United States for the Nursing Scholarship Program, the Secretary may approve a request for contract extension if:
   1. the request does not extend the total period of scholarship award beyond 4 academic years;
   2. the applicant is otherwise eligible for continued participation in the Scholarship Program;
   3. the applicant has demonstrated past compliance with the requirements, policies and procedures for participating in the Scholarship Program; and
   4. the applicant has complied with the procedures for requesting continued scholarship support.  

Section F - Contract Termination

1. The Secretary may terminate this contract with the applicant if, not later than 30 days before the end of the academic year to which the contract pertains, the applicant:
   1. submits a written request for such termination and
   2. repays all amounts paid to, or on behalf of, the applicant under the contract for that academic year.

The Secretary or his/her authorized representative must sign this contract before it becomes effective.

HRSA-124 (BACK)

(Rev. (1/08)