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Nursing Education Loan Repayment Program

 

Applicant Information Bulletin: Definition of Terms

Amendment Contract
An amendment contract is an optional 1-year extension of a 2-year NELRP contract. There is no guarantee that RNs selcted to participate in the NELRP will receive an amendment contract. Funding for optional 1-year amendment contracts is subject to the availability of future appropriations.

Basic Registered Nurse (RN) Education
Basic RN Education is nursing education that qualifies the individual to take the RN licensing examination (NCLEX-RN).

Commercial Loans
Commercial loans are defined as loans made by banks, credit unions, savings and loan associations, insurance companies, schools and other financial or credit institutions which are subject to examination and supervision in their capacity as lenders by an agency of the United States or of the State in which the lender has its principal place of business.

Contract
A written contract pursuant to Section 846(a) of the Public Health Service Act, as amended, under which (1) the participant agrees to engage in a period of continuous full-time service as an RN at a CSF and (2) the Secretary agrees to repay, in consideration of such service, a percentage of the amount which is outstanding on the participant's qualifying educational loans on the effective date of the initial 2-year contract. 

Critical Shortage Facility (CSF)
A CSF is a health care facility which the Secretary has determined has a critical shortage of nurses.  See Section C of this Bulletin for information on different types of CSFs.

Existing Service Obligation
An obligation to work as an RN which is owed to and provided for under an agreement with a CSF, Federal, State, or local government or any other entity, (e.g., an active duty military obligation or existing commitment to an institution for educational pay back service or a sign-on bonus). 

Full-Time
Full-time is defined as the provision of nursing services for a minimum of 32 hours per week.  No more than 7 weeks per service year can be spent away from the CSF for vacation, holidays, continuing education, illness, maternity/paternity, or any other reason.  (Approved absences totaling greater than 7 weeks in a 52-week service year require an extension of the contract end date.)  

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. See Section E of this Bulletin.

Government Loans
Government loans are loans that are made by Federal, State, county or city agencies which are authorized by law to make such loans.

Greatest Financial Need
The greatest financial need funding preference is met by applicants whose total qualifying educational loans are 40% or greater than their gross annual salary.

Gross Annual Salary
Gross annual salary is the amount of an individual’s annual salary or wages before taking any payroll deductions or taxes into account.

Holder
The commercial or government institution that currently holds the promissory note for the qualifying educational loan (e.g., SallieMae, PHEAA, etc.).

Lender
The commercial or government institution that initially made the qualifying educational loan (e.g., Department of Education).

Nurse Licensure Compact
The mutual recognition model of nurse licensure that allows an RN to have a license in one State and to practice in other States subject to each State's practice law and regulation.  Under mutual recognition, an RN may practice in several States unless otherwise restricted.

Nursing Education Loan Repayment Program (NELRP)
The NELRP is authorized by Section 846(a) of the Public Health Service Act, as amended.  Under the NELRP, the U.S. Department of Health and Human Services provides financial assistance to qualified applicants to repay a portion of their qualifying educational loans, in exchange for their full-time service as an RN at a CSF.

Post-Master’s Nursing Certificate Program
A formal, post-graduate program that admits RNs with a master’s degree in nursing and, at completion, awards a certificate and academic credit.

Qualified Applicant
A person who meets all of the eligibility requirements set forth in this Bulletin.

Qualifying Educational Loans
Qualifying educational loans are government and commercial loans for actual costs paid for tuition and  reasonable educational and living expenses incurred (1) while attending a school of nursing where the applicant obtained his/her qualifying nursing education, and (2) while taking only nursing prerequisite courses at schools other than the school(s) of nursing where the applicant obtained his/her qualifying nursing education, provided that the applicant received academic credit for those courses from the school of nursing where the applicant obtained his/her qualifying nursing education.  Participants will receive funds for repayment of qualifying educational loans that are still owed.  If the applicant has consolidated otherwise qualifying educational loans with any other debt or consolidated his/her loans with loans of another individual, the consolidated loan is ineligible.  See Section H of this Bulletin for additional information on which loans qualify for the NELRP.

Qualifying Nursing Education
Qualifying nursing education includes completed undergraduate basic RN education and completed graduate nursing education (including post-master’s nursing certificate programs) resulting in a baccalaureate or associate degree in nursing (or an equivalent degree), a diploma in nursing or a graduate degree in nursing from an accredited school of nursing.

Reasonable Educational Expenses
Reasonable educational expenses are books, supplies, laboratory expenses, educational equipment and materials for qualifying nursing education which do not exceed the school’s estimated standard student budget for educational expenses for the participant’s degree program and for the year(s) of that participant’s enrollment.

Reasonable Living Expenses
Reasonable living expenses are the costs of room and board, transportation and commuting costs, and other costs which do not exceed the school’s estimated standard student budget for living expenses at that school for the participant’s degree program or nursing prerequisite courses and for the year(s) of that participant’s enrollment.

School of Nursing
An accredited collegiate, associate degree, or diploma school of nursing in a State.

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 NELRP has been delegated.

State
Includes the 50 States, the District of Columbia, Puerto Rico, the Commonwealth of the Northern Mariana Islands, the U.S. Virgin Islands, Guam, American Samoa, Palau, the Marshall Islands, and the Federated States of Micronesia.