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H H S Department of Health and Human Services
U.S. Department of Health and Human Services
Health Resources and Services Administration

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Nursing Scholarship Program

The Nursing Scholarship Program application cycle for the 2012-2013 school year is closed. 

  • Applicants selected to receive funding will be notified by August 31, 2012.
  • Applicants who submitted complete application packages, but are not selected to receive funding, will be notified by September 30, 2012.
  • Sign up to receive an e-mail when the 2013 Nursing Scholarship Program application cycle opens.

Tuition, Required Fees, Other Reasonable Costs and Stipend

All NSP payments made to NSP participants, including those made to schools on their behalf, are taxable (see Program Requirements). The first payment for new NSP awardees will be made no later than November 2012 and will include stipend payments retroactive to July 1st and the annual payment for other reasonable costs.

What costs does the NSP cover?

  1. Tuition and Required Fees
    1. Tuition and required fees will be paid directly to the nursing school. The nursing school is required to submit an invoice to the NSP for payment of tuition and fees for each term. Any fees on the invoice that are included in the Other Reasonable Costs (discussed below) will not be approved for payment to the nursing school.
    2. Summer sessions. NSP will only pay tuition and fees for required courses in summer school sessions when
      1. summer session is an academic term normally required by the school for all students in the same program and 
      2. the summer session is in progress during the participant’s contract period.
    3. Repeated coursework. The NSP does not pay tuition and fees for repeated coursework for which the NSP has previously made a payment. If (1) the repeated course work does not delay the participant’s graduation date or (2) cause the participant to drop below full-time student status (or below part-time student status if the participant signed a “Part-Time Student” contract) when the repeated coursework is deducted from the credit hours attempted, the scholarship payments will continue except for any additional costs relating to the repeated course work (e.g. overload fees).
    4. Increases in tuition or required fees. Payment for any increases in tuition or required fees that are reported by the school after the award has been made is not guaranteed and will be subject to the availability of funds.
    5. Attending more than one school. For participants enrolled in programs which require taking classes at more than one school/campus, please be advised that the NSP can only make payments to one school/campus, which will be the initial school of record on the application.
    6. The NSP will pay for ONLY the courses that are required for graduation. The NSP will not pay for additional courses beyond those required for graduation. Also, the NSP will not pay for tuition costs unrelated to the degree/program, such as membership dues for student societies/association, loan processing fees, penalty or late fees, and other similar expenses.
    7. Transfers to other academic institutions are strongly discouraged. Transfers in academic institutions are strongly discouraged once the applicant has been accepted into the NSP. Transfers must be approved by the NSP in advance to ensure continued eligibility for funding and will be considered only for exceptional circumstances. Scholarship awards are based on the cost of attendance at the initial school of record for all school year contracts executed during the FY 2012 application cycle. If a transfer is approved, the NSP will not cover any increase in tuition and/or fees for the new institution; the participant will be responsible for the difference.
  1. Other Reasonable Costs (ORC)
    1. The ORC is an additional, annual payment provided directly to each NSP participant to assist in the payment of books, clinical supplies/instruments, and uniforms. This information is obtained directly from the nursing program. ORC payments will vary from student to student depending on the student’s program and graduation date.
    2. The ORC payment will be reduced proportionately for students who plan to attend less than a full school year (e.g., December graduates) and for part-time students.
  1. Stipend Amount
    1. During the 2012-2013 school year, the NSP will pay each full-time student a monthly amount of $1,289.00 (before Federal taxes). A part-time student will receive a proportionately reduced stipend amount.
    2. The stipend payments may be delayed or placed on hold if requested NSP documents are not received. Stipend payments may also be stopped if a student is repeating coursework that has already been paid for by the NSP.
    3. Stipend payments will stop the month the nursing course work is completed or when the contract ends, whichever comes first.

Receipt of the stipend payment does not mean that the NSP participant is employed by the Federal Government or participates in any of the benefits available to Federal employees.

NSP TAX INFORMATION

The entire NSP award is taxable. While NSP does not withhold Federal, State or local income taxes from an NSP participant’s tuition and fees, the participant is responsible for taxes owed on the value of the entire award including tuition and fees. It is the participant’s responsibility to ensure that federal income tax is paid on the remainder of the award.

NSP withholds Federal income taxes owed on the stipend payments and ORC based on information provided on the W-4, Employee’s Withholding Allowance Certificate by the participant. Any participant who wants additional funds withheld from the stipend amount to cover the income tax on his or her tuition and fees should indicate the additional amount to be deducted on the appropriate line on the W-4. State and/or local taxes are not withheld from stipend and ORC payments.

Each year, participants will receive a 1099-Miscellaneous Income form for amounts paid for tuition and fees and a W-2-Wage and Tax Statement form for amounts paid for stipends and ORC.
NSP participants should consult their local tax authority regarding applicable federal, state or local taxes for which they may be liable.

What if I have additional funding provided by an alternative source?

  1. Financial Aid Received Before Notice of Award.  
    Grants and Scholarships.  If tuition and fees for the school year have been paid by another source of financial aid (e.g. Pell Grant, state grants or other scholarships) before the student received notice of the NSP award, then the school may return payments to the funding source and submit an invoice to the NSP for payment.
  2. Loans.  If a new NSP participant has taken out a student loan to cover the cost of tuition and fees for their summer and/or fall 2012 semester(s) while waiting for notice of an NSP award, the student should supply an itemized invoice to the NSP showing the amount of tuition and fees paid for with that student loan. The NSP will pay that amount to the academic institution to cover the tuition costs covered by the loan. After the fall 2012 semester, the NSP will not pay tuition costs covered by any student loans.
  3. Financial Aid Received After Notice of Award.  If a student receives financial aid to pay tuition and fees from sources other than NSP after he or she has received notice of the NSP award, the school will be instructed not to submit an invoice to the NSP for costs that have already been covered by the other source of financial aid.   If the other source of financial aid covers the full cost of tuition and fees, the school should 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.

next > Changes in Scholarship Payments

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