Nurse
Faculty Loan Program Guidance
FY 2006
HRSA-06-NFLP
CFDA 93.264
Application Due Date: April 28, 2006, 5 pm ET
Projected Award Date: August 1, 2006
Contact: Denise Thompson, Program Analyst, BHPr,
Division of Nursing
Telephone: 301-443-6333
Fax: 301-443-0791
Authority: Public Health Service (PHS) Act,
Title VIII, Section 846A, as amended by the
Nurse Reinvestment Act of 2002, Public Law 107-205.
PUBLIC BURDEN STATEMENT: According
to the Paperwork Reduction Act of 1995, an agency
may not conduct or sponsor, and a person is
not required to respond to a collection of information
unless it displays a currently valid OMB control
number. The OMB control number for this project
is 0915-0060. The time required to complete
this information collection is estimated to
average 56.25 hours per response, including
the time for reviewing instructions, searching
existing data sources, gathering and maintaining
the data needed, and completing and reviewing
the collection of information. Send comments
regarding this burden estimate or any other
aspect of this collection of information, including
suggestions for reducing this burden to HRSA
Reports Clearance Officer, 5600 Fishers Lane,
14A-11, Rockville, Maryland, 20857.
I. EXECUTIVE SUMMARY
Legislative Authority
The Nurse Faculty Loan Program (NFLP) is authorized
under Title VIII, Section 846A of the Public
Health Service Act, as amended by the Nurse
Reinvestment Act of 2002, to increase the number
of qualified nursing faculty. The institution
must enter into an agreement with the Department
of Health and Human Services (HHS), Health Resources
and Services Administration (HRSA) to establish
and operate the NFLP fund.
Purpose
HHS makes an award to the institution (hereafter
referred to as “the School”) in
the form of a Federal Capital Contribution (FCC).
The School uses the FCC to establish a distinct
account called the NFLP fund. The NFLP fund
must provide for loans made to students enrolled
full-time in an eligible advanced degree program
in nursing (master’s or doctoral) at the
School. Loan recipients must complete the education
program, and following graduation, may cancel
up to 85% of the NFLP loan while serving as
full-time nurse faculty at a school of nursing
(i.e. baccalaureate or higher degree, associate
degree or diploma schools of nursing).
General Information
This application guidance is an overview of
the criteria for the School’s participation,
the mechanisms that HHS uses to award Federal
dollars for the NFLP, general administration
instruction, and the NFLP fund management requirements
for participating Schools.
This application guidance has been revised
for fiscal year (FY) 2006. Continuing NFLP participants
should reference this guidance for current/updated
program guidelines to assist with program administration.
II. AWARD INFORMATION
Type of Award
Funding will be provided in the form of a Federal
Capital Contribution (FCC) award to establish
an NFLP fund or to deposit an award into an
existing NFLP fund. The NFLP is awarded annually.
The award covers the period specified in the
Notice of Award (NOA) to the School.
Cost Sharing
In addition to the FCC award, Schools must
contribute an Institutional Capital Contribution
(ICC) amount equal to at least one-ninth of
the total FCC award. The ICC must be deposited
and used as part of the NFLP fund.
Award Determination
The award amount to each school is determined
by calculating the tuition plus a base amount
for books/fees that is multiplied by the number
of continuing NFLP students and a set number
of new students requesting NFLP support. This
calculation is used to expend the total program
funds among the eligible applicants.
The projected date for award determinations
will be August 1, 2006.
III. ELIGIBILITY CRITERIA FOR APPLICANT
SCHOOLS
Only accredited collegiate schools of nursing
are eligible to apply for NFLP awards. Another
department within the institution, such as a
Graduate School of Arts and Sciences that offers
an eligible advanced nursing education program,
may submit an NFLP application; however, the
graduate degree must be in nursing.
The school of nursing must offer a master’s
and/or doctoral degree program(s) in nursing
for full-time students. The advanced education
nursing program(s) must include an education
component to prepare graduates to serve as faculty
in a school of nursing. The education component
may consist of education courses, preceptor
and/or supervised teaching practica identified
within the curriculum.
IMPORTANT NOTE: Post-Nursing Master’s
Certificate programs are NOT eligible.
Location of the School of Nursing
The nursing school must be located in a State,
the District of Columbia, the Commonwealth of
Puerto Rico, the Northern Mariana Islands, the
Virgin Islands, Guam, American Samoa or the
Trust Territory of the Pacific.
Accreditation
The applicant school of nursing must provide
documentation of the accreditation status (Accrediting
Body, Accreditation Status/Date) when the application
is submitted. A new graduate program of nursing
that is not accredited at the time of submission
of a grant application, by reason of an insufficient
period of operation, but eligible for accreditation
by a recognized body or bodies or State agency,
is eligible to apply for funding if the Secretary
of Education finds, after consultation with
the appropriate accrediting body or bodies,
that there is reasonable assurance that the
program will meet the accreditation standards
of such body or bodies prior to the beginning
of the academic year following the normal graduation
date of students of the first entering class.
IV. APPLICATION SUBMISSION
Application Deadline
The NFLP application must be submitted by the
School of Nursing to HRSA’s Division of
Nursing on or before the deadline date of April
28, 2006. Applicants should keep a copy of the
submitted application for their records.
Applications MUST BE POSTMARKED by April 28,
2006 by 5:00 P.M. E.T. Applications will be
considered as meeting the deadline if they are
either (1) received on or before the deadline
date; or (2) postmarked on or before the deadline
date and received in time for orderly processing.
A legibly dated receipt from a commercial carrier
or U.S. Postal Service will be accepted in lieu
of a postmark. Private metered postmarks shall
not be accepted as proof of timely mailing.
Late Applications
Applications that do not meet the criteria
above are considered late applications. HRSA
shall notify each late applicant that its application
will not be considered in the current application
cycle.
Submission of Application Material
Applicants should mail or deliver the completed
and signed original of the application material
and one legible/readable/reproducible copy,
in one package, to the address below.
Send the original and one copy of the
application to:
Division of Nursing (NFLP)
Bureau of Health Professions
Health Resources and Services Administration
Parklawn Building, Room 9-36
5600 Fishers Lane
Rockville, MD 20857
Data Universal Numbering System (DUNS)
All applicant organizations are required to
have a Data Universal Numbering System (DUNS)
numbering system in order to apply for funding
from the Federal Government. The DUNS number
is a unique nine-character identification number
provided by the commercial company, Dun and
Bradstreet. There is no charge to obtain a DUNS
number. Information about obtaining a DUNS number
can be found at http://www.hrsa.gov/grants/preview/dunsccr.htm
or call 1-866-705-5711. Please include the DUNS
number on the application face page. Applications
will not be reviewed without a DUNS number.
Additionally, the applicant organization will
be required to register with the Federal Government’s
Central Contractor Registry (CCR) in order to
do business with the Federal Government, including
electronic. Information about registering with
the CCR can be found at http://www.hrsa.gov/grants/preview/dunsccr.htm.
Application Format Guidelines
Compliance with the following instructions
supports consistent formatting from all applicants.
An applicant’s failure to comply with
these instructions may jeopardize the review
of their application.
- Applications must be submitted in English
and typed on 8 ½ x 11-inch plain white
paper.
- Applications must not exceed 20 pages including
program summary, agreement and appendices.
Applications that exceed the page limit will
be rejected.
- Margins must be at least one (1) inch at
the top, bottom, right and left of the paper.
- The text portion of the application must
be submitted in 12 point Arial or 12 point
Times New Roman font, and single line spacing.
- Size and type standards apply only to the
sections of the application normally prepared
by applicants. Applicants will not be held
responsible for items prepared by entities
over which it has no control (e.g., letters
of recommendation and support, biographical
sketches, and appendices).
- The application must be numbered sequentially
from page 1 (face page) to the end of the
application, including the appendices. Pages
must be numbered using whole numbers only;
use of alphas or decimals such as 3A or 3.1,
etc are not acceptable.
- Pages must be one-sided.
- All application materials should be prepared
in black and white.
V. TECHNICAL ASSISTANCE
The following Division of Nursing staff can
provide general program information and technical
assistance on the Nurse Faculty Loan Program
and may be reached at 301-443-6333 or by e-mail:
* Primary contacts for the Nurse Faculty Loan
Program
Potential applicants are encouraged to contact
the Division of Nursing staff prior to the deadline
date for submission of the application.
VI. PROGRAM SUMMARY
All applicants must submit the following Program
Summary information in the format provided in
the NFLP
Guidance in Word and the NFLP
Guidance in pdf. Incomplete information
may jeopardize the application review and award
decision.
VII. 2006 AGREEMENT WITH HHS FOR PARTICIPATION
IN THE NFLP
Establishment of Agreement
The School must enter into a yearly agreement
with HHS to establish and operate a NFLP fund
according to the terms and conditions for participating
in the NFLP. The applicant school of nursing
must submit a signed copy of this agreement
with the signed Application Face Page (Form
HRSA-6025-1). See ATTACHMENT 1 for a copy of
the agreement. When HHS makes an award to the
School, the agreement will be signed and returned
to the School. When the HHS and the School both
sign the agreement, it will be binding on both
parties.
Federal Non-Discrimination, Assurances,
Certifications and Other Requirements
In return for the award of Federal funds, the
School accepts the obligation to comply with
applicable Federal nondiscrimination, assurances,
certifications and other requirements cited
in Section J of the attached agreement.
VIII. AWARD NOTIFICATION
HHS will send a Notice of Award (NOA) to the
School indicating the amount of the FCC award
and a copy of the agreement that bears both
signatures of HHS and the authorized official
at the School to the Financial Aid Office Coordinator
and the School of Nursing Coordinator.
Drawing Down the FCC
The School will receive the FCC award via electronic
funds transfer. The HHS Payment Management System
(PMS) will establish an account for the new
Schools awarded. For general information on
how to access funds through the drawdown process,
please contact the PMS Application Support Group
at (877) 614-5533 or (301) 443-1660; or http://www.dpm.psc.gov/.
Schools are requested to draw down the full
amount of the FY 2006 award (in whole dollars)
from the PMS to be deposited into NFLP loan
fund established at the School. Schools are
encouraged to draw down the entire award by
March 31, 2007. Schools are expected to expend
the full amount of the 2006 award during the
current academic year (2006-2007).
Expected ICC
The School must contribute an ICC in the NFLP
fund equal to at least one-ninth (minimum) of
the FCC award. The School has the option of
contributing a larger share to the NFLP fund.
IX. ROLE OF SCHOOL OFFICIALS
We encourage the School of Nursing Coordinator
and Financial Aid Office Coordinator at the
institution to discuss and decide their roles
in administering the NFLP prior to submitting
the application. Communication between the coordinators
must be maintained to properly monitor the status
of NFLP recipients.
Role of the School of Nursing
The school of nursing is the eligible applicant.
Therefore, the school of nursing, not the financial
aid office or other administrative unit, must
submit the NFLP application. The school of nursing
should notify the financial aid office of its
intent to apply for an NFLP award and work with
the financial aid office on activities such
as, but not limited to, advising potential NFLP
recipients and submitting required reports.
Role of the Financial Aid Office
The financial aid office generally administers
the NFLP fund (i.e., issuing the Promissory
Note and verifying employment status, repayment/cancellation
schedules and collections following graduation).
The financial aid office should work with the
school of nursing on activities such as, but
not limited to, advising potential NFLP recipients
and submitting required reports.
The School must notify HRSA, Division of Nursing
of any change in the Financial Aid Office Coordinator
or School of Nursing Coordinator using EXHIBIT
A in the Word
NFLP Guidance and PDF
NFLP Guidance.
X. OVERVIEW OF INSTITUTIONAL MANAGEMENT
OF FUNDS
The NFLP agreement requires the school of nursing
to establish and operate the NFLP fund. This
section offers a brief introduction to the management
of the NFLP fund. For additional information,
see the HRSA Fiscal Management web site at http://bhpr.hrsa.gov/dsa/sfag/Financial_Management/financial_management.html.
IMPORTANT NOTE: Please be
aware that the HRSA Fiscal Management web site
provides general guidance and procedures for
other HHS programs that are similar to the NFLP.
The specific requirements for the NFLP may differ
(i.e. repayment periods, cancellation provisions,
service obligation requirements, exhibits).
Applicant Schools should contact the Division
of Nursing staff for any clarification (See
Section V of this guidance).
Annual Operating Report
The Annual Operating Report (AOR) is used to
monitor and evaluate institutional performance.
The AOR is the official reporting tool and is
required by NFLP schools. The School must complete
and submit the NFLP AOR (EXHIBIT B-1) annually.
Instructions for completing the AOR are provided
in EXHIBIT B-2. Both Exhibits are included in
the Word
NFLP Guidance and the PDF
NFLP Guidance.
The AOR is used to report expenditures for
the NFLP fund annually, which covers the period
from
July 1st through June 30th each year. The AOR
must be completed and submitted to the Division
of Nursing by July 31st each year. The AOR should
be mailed to the address under Section
IV of this guidance.
Cash Balances and Excess Cash
The balance in the NFLP fund must be reported
annually on the AOR for the specified reporting
period. Schools are permitted to retain unused
funds in the NFLP fund for future use. Unused
funds must be recorded each year as excess cash
on the Annual Operating Report. The excess cash
will be monitored yearly. If a school is determined
to have significant excess cash by the third
year of the program, the award may be adjusted
to reflect an offset.
Schools should review the balance in the NFLP
fund on at least a semi-annual basis to determine
whether the fund balance, compared with projected
levels of expenditures and collections, exceeds
its needs. Refer to Collections under the Fiscal
Management web site for information about cash
balances and excess cash.
Reporting of NFLP Loan Disbursements
The PMS is administered by the Division of Payment
Management, Financial Management Services, Program
Support Center. PMS requires schools to complete
and submit the quarterly PMS Form 272 to report
NFLP loan disbursements.
Cancellation Payments by HHS
When a School cancels all or any part of a
loan or interest, the Secretary of HHS will
pay to the School an amount equal to the School's
proportionate share of the cancelled portion,
as determined by the Secretary.
Write-Off Procedures
Schools must adhere to the policies and procedures
for write off review of uncollectible loans.
If a School writes off a loan, it retains the
authority to collect the loan if collection
is possible at a later time. The School must
notify the Division of Nursing through the reporting
process of subsequent collections on loans approved
for write off. For more guidance on write-off
procedures, see Collections under the Fiscal
Management web site.
Institutional Termination and Withdrawal
Upon withdrawal or termination of institutional
participation in the program, the balance in
the NFLP fund will be distributed between the
HHS and the School in proportion to the amounts
contributed by each. Schools must remit the
Federal Government's proportionate share of
amounts received thereafter in payment of loan
collections and any other earnings on a quarterly
basis. At the time of each quarterly remittance,
the School should withdraw its proportionate
share of the quarterly cash accumulation from
the fund. See Collections under the Fiscal Management
web site for a description of procedures for
remittance of collections. Remittance checks
must:
- be made payable to the HHS;
- include the CAN# 3760333, the School’s
entity identification number, the assigned
OPSID Number, and the PMS Payee Account Number;
and
- be mailed to:
Department of Health and Human Services
Division of Payment Management
P.O. Box 6021
Rockville, Maryland 20852
Schools must forward a copy of the remittance
documentation to the NFLP Project Officer in
the Division of Nursing.
XI. FORMS FOR INSTITUTIONAL USE
With the exception of the Annual Operating
Report (EXHIBIT B) and the Promissory Note (EXHIBIT
C), schools may use the sample documents listed
below (included in the Word
NFLP Guidance and the PDF
NFLP Guidance or create its own forms.
EXHIBIT A Notification of Change in Contact
Personnel
EXHIBIT B-1 NFLP Annual Operating Report (Amended
as of 2/2006)
EXHIBIT B-2 Instructions for Completing the
Annual Operating Report
EXHIBIT C NFLP Promissory Note
EXHIBIT D Statement Rights and Responsibilities
EXHIBIT E NFLP Loan Application
EXHIBIT F Certification of Employment Form
EXHIBIT G NFLP Request for Partial Cancellation
EXHIBIT H Disability Checklist
EXHIBIT I NFLP Request for Postponement of
Installment Payment
EXHIBIT J NFLP Deferment Form
EXHIBIT K Exit Interview – Questionnaire
EXHIBIT L Forbearance Request Form
XII. STUDENT ELIGIBILITY
Schools must ensure that students meet the
eligibility criteria to receive NFLP loans and,
among other responsibilities: verify the accuracy
of applicant information; assess information
to determine individual loans to students; disburse
funds; ensure that students maintain full-time
status while receiving NFLP loan; and maintain
student records.
Citizenship Status
A student applicant must be a citizen or national
of the United States, or a lawful permanent
resident of the United States, the Commonwealth
of Puerto Rico, the Northern Mariana Islands,
the Virgin Islands, Guam, American Samoa or
the Trust Territory of the Pacific. A student
who is in the United States on a student or
visitor's visa is NOT eligible for an NFLP loan.
Enrollment Status
Students who receive a NFLP loan must be enrolled
full-time in an eligible program at the time
the NFLP loan is established and must complete
the education component(s) to prepare qualified
nurse faculty. The School will define a full-time
course of study for an academic year as recorded
by the Registrar’s office. Students must
maintain full-time enrollment status for a minimum
of 2 terms/semesters during an academic year
while receiving the NFLP loan. NOTE: Post-Nursing
Master’s Certificate programs are NOT
eligible.
Temporary leave from the advanced nurse education
program that is approved by the school of nursing
is not considered to be a breach of the NFLP
Promissory Note by the borrower. Examples of
temporary leave include:
- a period up to 3 years during which the
borrower is ordered to active duty as a member
of a uniformed service of the United States
(Army, Navy, Marine Corps, Air Force, Coast
Guard, the National Oceanic and Atmospheric
Administration Corps, or the U.S. Public Health
Service Corps). This does NOT include a borrower
who either voluntarily joins a uniformed service
or is employed by one of the uniformed services
in a civilian capacity; and
- family and medical leave as described in
the Family and Medical Leave Act of 1993 (FMLA)
(5 U.S.C. 6381-6387; 5 CFR part 630, subpart
L). See http://www.opm.gov/index.asp
for additional information.
Academic Status
The student must be in good academic standing,
as defined by the School, and capable, in the
opinion of the School, of maintaining good academic
standing in the course of study. Schools may
choose to apply the satisfactory academic progress
guidelines for programs under Title IV of the
Higher Education Act. If an NFLP borrower ceases
to be a student in good academic standing, the
School must stop disbursement of the NFLP loan.
Default on Other Federal Loans
According to Federal law, a student is ineligible
to receive a NFLP loan if a judgment lien has
been entered against him/her based on the default
on a Federal debt, 28 U.S.C. 3201(e).
XIII. NFLP SUPPORT TO STUDENTS
Full Support to Students
The School should offer full support or the
amount requested by the student to cover the
full or partial tuition/fees for the academic
year. NLFP loans should be made on a first-come-first-serve
basis for an academic year until funds are expended.
Full support includes the cost of tuition, fees,
books, laboratory expenses and other reasonable
education expenses. IMPORTANT NOTE:
NFLP loans do NOT include stipend support (i.e.,
living expenses, student transportation cost,
room/board, personal expenses).
Prior to making a loan, the School should determine
whether the student will enroll full-time for
a minimum of 2 terms/semesters (i.e. Fall, Spring)
during the academic year. Students are permitted
to complete a second term/semester during the
summer session, as allowed by the School to
meet the 2-term requirement.
Maximum Amount of NFLP Loan(s) to Students
NFLP loans to a student may not exceed $30,000
for an academic year. Schools should inform
a loan recipient that, subject to the availability
of funds and the recipient maintaining good
academic standing, the NFLP loan will be made
annually for the period required to complete
the course of study, not to exceed 5 years.
Students who remain enrolled beyond 5 years
may not receive additional NFLP support.
The NFLP is not a need-based program. IMPORTANT
NOTE: FAFSA data and other financial records
are not required to determine eligibility for
the NFLP. Although the FAFSA form is not a NFLP
requirement, schools can use the form to confirm
U.S. citizenship and non-defaulting status on
federal loans.
The NFLP loan(s) made to a recipient is not
transferable to another School. The student
may transfer to another participating NFLP school
and request NFLP loan support; however, the
cumulative total should not exceed the maximum
of $30,000 per academic year, not to exceed
5 years support.
Multiple Program Support to Students
Students may receive support under both the
NFLP and the Advanced Education Nurse Traineeship
program, or any other Federal program, provided
that the funds are not used to cover the same
costs during the academic year. For example,
tuition support can be provided under the NFLP,
while stipend support (which is not covered
under NFLP) can be provided under the Advanced
Education Nursing Traineeship Program.
XIV. DISBURSEMENT OF NFLP LOANS TO
STUDENTS
A. ENTRANCE INTERVIEW
The School must conduct and document an entrance
interview for each academic year during which
the student receives the NFLP loan. The School
is not required to conduct an entrance interview
each time a student receives a disbursement
within a single academic year; however, many
schools have found requiring a borrower to complete
a new "borrower information" form
at the time of each disbursement to be useful
in the collections process.
Documentation
Schools are responsible for distributing NFLP
applications to students. EXHIBIT E (in the
Word
NFLP Guidance and PDF
NFLP Guidance) is the NFLP Loan Application
that is completed during the entrance interview.
The NFLP loan application must contain sufficient
information for the School to determine if the
student meets the eligibility criteria for the
program and to assist the School in the loan
collection process, if necessary, after the
student leaves the School.
The School must document that the student is
informed of the service obligation associated
with the cancellation of the loan. See Collections
under the Fiscal Management web site for entrance
interview requirements.
No matter what format or method the School
uses to conduct an entrance interview, it must
document that the borrower is aware of the rights
and responsibilities associated with the NFLP
loan. The School may use a:
- Separate statement listing the borrower's
rights and responsibilities (EXHIBIT D in
the Word
NFLP Guidance and PDF
NFLP Guidance) which the borrower must
sign and date to acknowledge that he or she
has been provided the information; or
- Statement of the borrower's rights and responsibilities
that is incorporated into a disclosure document.
The School must document entrance interviews
by maintaining the papers signed by the borrower
in his/her file. Documentation consists of evidence
that the borrower:
- is aware of his /her rights and responsibilities;
and
- has provided information to aid in skip
tracing, if needed
The School has discretion in deciding which
office (e.g., financial aid, fiscal, loan collection,
Dean's) will be responsible for entrance interviews.
Student Records
The School must maintain an individual file
for each NFLP loan recipient and maintain these
records for at least three years after the loan
is retired. This file should contain clear evidence
of how the School evaluated each application
for financial assistance. Even if no funds were
awarded, the School must retain evidence of
rejection, cancellation, or declination for
the same period of time.
The student file should contain documents relating
to each academic year application so that each
application cycle is complete and auditable.
Student files must, at a minimum, include the
types of documents that support this information,
which include:
- approved student applications;
- loan notification letter--institutional
copy;
- copy of signed Promissory Note(s);
- signed disclosure (i.e., Statement of Borrower's
Rights and Responsibilities);
- records of payments and cancellation; and
- records of deferment, forbearance, or default.
HHS permits the School to maintain their records
in a variety of formats at the option of the
School. Record keeping formats include:
- computer;
- electronic;
- microfiche;
- microfilm; or
- paper.
For information on maintenance of records,
see Accounting under the Fiscal Management web
site at http://bhpr.hrsa.gov/dsa/sfag/financial_management/bk3prt1.htm.
B. NFLP PROMISSORY NOTE
Each NFLP loan made to the student must be
documented by a Promissory Note which describes
the terms and conditions of the loan (EXHIBIT
C in the Word
NFLP Guidance and PDF
NFLP Guidance). The borrower must sign the
Promissory Note prior to disbursement of loan
funds for the academic year. EXHIBIT C is a
sample copy of the open-end Promissory Note
for Schools to maintain a “single”
Note signed each time a student receives a loan
advance. However, Schools are permitted to use
a closed-end Promissory Note to maintain a “separate”
Note for a specific period each time a student
receives a loan advance. The loan amounts advanced
to the students for the combined academic period(s)
of NFLP support should be combined for repayment
of the total of loans made to a student. The
School must give the borrower an updated copy
of the Note.
IMPORTANT NOTE: Modification of the
Promissory Note requires prior approval by HRSA.
Any change in the statute that affects the
terms of the Promissory Note requires that a
new Promissory Note be signed for future loans.
The Promissory Note is the legal document that
binds the student to his/her repayment obligations.
The School must ensure that the Promissory Note
is complete, legible and signed. The Promissory
Note is a major asset and the School must adequately
safeguard it against fire, theft, and tampering.
The particular method of insuring this protection
is the School's responsibility.
Payments to Students
The School determines the number and the amount
of loans disbursed to the student. However,
NFLP loans may not exceed what the School determines
is necessary for the student to pay for any
academic year (e.g., semesters, terms, or quarters).
The School may advance payments directly to
the student or it may credit the disbursement
to the student's tuition account. In either
case, payments must be clearly documented. The
School must stop disbursement to the NFLP recipient
if the borrower:
- changes their enrollment status to less
than full-time;
- withdraws from the institution;
- fails to meet the academic standards of
the institution; or
- requests to terminate NFLP participation
Loan Notification Letter to Students
After the School has determined individual
NFLP loans, it must send a loan notification
letter to each student. The letter should provide
a space for the student to accept or reject
the NFLP loan. Duplicate copies of the letter
should be provided so that the student can retain
one copy and return the original copy to the
School.
C. TERMS AND CONDITIONS OF NFLP LOANS
TO STUDENTS
Completion of Nursing Education Program
The NFLP recipient must agree to the terms
and conditions of the NFLP loan as specified
in the Promissory Note signed by the student.
The student must be enrolled full-time for a
minimum of 2 terms/semesters per academic year
and complete the nursing education program.
Employment Status
The NFLP borrower must submit certification
of employment to the lending School within a
reasonable timeframe as determined by the School,
but no later than 12 months following graduation.
A sample certification of employment form is
provided as EXHIBIT F in the Word
NFLP Guidance and PDF
NFLP Guidance. At a minimum, the certification
of employment must state the date the NFLP recipient
began full-time employment as nurse faculty
in accordance with the terms of the NFLP Promissory
Note and must be signed and dated by the recipient.
The recipient is responsible for submitting
certification of employment to the lending School
in order to determine the interest rate applicable
to the unpaid loan balance.
NFLP borrowers are limited to a 12-month timeframe
to establish employment as full time nurse faculty
at a school of nursing following graduation
from the program. If employment verification
is not submitted within the 12-month period,
the borrower will NOT be eligible for the NFLP
loan cancellation provision.
XV. CANCELLATION PROVISION
The NFLP is a direct loan program with a cancellation
provision for recipients of the loan. Section
846A of the Public Health Service Act authorizes
the lending School to cancel up to 85% of the
NFLP loan. The borrower must serve as full-time
nurse faculty for a consecutive four-year period
at a school of nursing following graduation
from the program to cancel the maximum amount
of the loan.
The borrower may cancel:
- 20% of the principal and the interest on
the amount of the unpaid loan balance upon
completion of each of the first, second, and
third year of full-time employment; and
- 25% the principal of and the interest on
the amount of the unpaid loan balance upon
completion of the fourth year of full-time
employment.
Example 1:
If the borrower is employed as full-time nurse
faculty for 4 consecutive years following graduation
from the program, the principal and interest
on the unpaid balance of the loan will be cancelled
at the end of each year; 20% for the first,
second and third year and 25% for the fourth.
The lending School must establish a repayment
schedule for the borrower to begin repayment
of remaining unpaid principal and interest.
Example 2:
If a borrower is employed full-time as nurse
faculty for 2 consecutive years following graduation
and ceases employment in the third year, 20%
of the unpaid principal and interest will be
cancelled at the end of the first and second
year; however, the borrower may NOT request
cancellation of unpaid principal and interest
in the third year. The lending School must establish
a repayment schedule and the borrower must begin
repayment of the remaining unpaid principal
and interest on the first day after the last
date of employment at the prevailing market
rate.
The Promissory Note, which specifies the terms
and conditions of the NFLP loan, binds the student
to his/her repayment obligation and states the
provisions for loan cancellation.
The borrower is responsible for requesting
cancellation. After the end of each complete
year of employment, the borrower must submit
a NFLP Request for Partial Cancellation Form
(See below).
A. NFLP REQUEST FOR POSTPONEMENT OF
INSTALLMENT PAYMENTS FORM
When a borrower is employed full-time as a
faculty at a school of nursing and will request
partial cancellation of the loan at the end
of each complete year of employment, the borrower
may obtain a postponement of installment payments
on the loan. The borrower may submit the Request
for Postponement of Installment Payment Form
(EXHIBIT I in the Word
NFLP Guidance and PDF
NFLP Guidance) 30 days before the 9-month
grace period ends. The borrower must submit
the Request for Postponement of Installment
Payment form for each period of cancellation
and submit each subsequent form 30 days before
the expiration date of the previous request
for postponement. The form requires the borrower
to:
a) complete Part I;
b) obtain certification by the employing school
of nursing, Part II; and
c) forward the original and one copy to the
lending School.
The School must notify the borrower of the
approval of the Request for Postponement of
Installment Payment and retain the form in the
borrower's file. The lending School must maintain
current loan accounts for the borrower documenting
any periods of postponement of payments.
The borrower must notify the lending School
of termination of full-time employment as faculty
prior to completion of a year within 30 days
after the last day of such employment, and the
lending School must then place the borrower
back into repayment with installment payment(s)
payable to the lending School according to the
borrower's repayment schedule.
B. NFLP REQUEST FOR PARTIAL LOAN CANCELLATION
FORM
Borrowers may request PARTIAL loan cancellation
each year while employed as full-time nurse
faculty at a school of nursing over a consecutive
4-year period. If the Borrower takes a break
from
full-time employment during the year, the borrower
is not eligible for loan cancellation and must
begin repayment of the NFLP loan immediately.
To receive loan cancellation, the Borrower must
submit the Request for Partial Cancellation
of Loan Form (EXHIBIT G in the Word
NFLP Guidance and PDF
NFLP Guidance) to the lending School at
the end of each complete year of full-time employment
as faculty at a school of nursing. This form
requires the borrower to:
a) complete Part I;
b) obtain certification by the employing school
of nursing to complete Part II; and
c) forward the original and one copy to the
lending School for cancellation of loan at
the appropriate rate in lieu of payment.
The lending School will complete Part III indicating
the amount of cancellation (and interest) and
return a copy to the borrower as the receipt
that it approved the loan cancellation.
Leave During Employment
Paid or unpaid leave, such as under the Family
Leave Act, is not considered a "break in
employment". This includes paid and unpaid
leave for pregnancy and childbirth or for care
of an adopted child. Paid or unpaid leave needs
to be consistent with the institution's policy
and is subject to supervisory approval.
Changing Employment
A reasonable period of time to change from
one place of employment to another does not
constitute a break in employment. A reasonable
period of time is not more than 15 working days
or 21 consecutive calendar days from the date
the borrower’s resignation is effective.
Change of Name or Address
The borrower is required to inform the lending
School of any change of name or address after
ceasing to be a student at the school or nursing.
The borrower must also inform the lending School
of any change of name or address during the
repayment period.
Refunds
Refunds to borrowers for errors made by lending
School must come from institutional funds, not
the NFLP fund.
XVI. REPAYMENT PROVISION
Grace Period
The grace period for NFLP loan repayment is
9 months. Neither interest nor is payable during
the 9-month grace period.
Repayment Period
The “initial” repayment period
for an NFLP loan begins following a 9-month
grace period after the borrower ceases to be
a full-time student in the advanced nurse education
program.
NFLP borrowers who cease to pursue the advanced
education nursing program full-time or choose
to voluntarily terminate from the program must
begin repayment of the NFLP loan following the
9-month grace period.
Following graduation from the program, NFLP
borrowers who fail to establish employment as
full-time nurse faculty at a school of nursing
must begin repayment of the NFLP loan following
the 9-month grace period.
The unpaid loan balance is repayable in equal
or graduated periodic installments over a 10-year
repayment period. Installment payments must
be made no less often than quarterly, in equal
or graduated installments, in accordance with
the terms of the schedule provided by the lending
School and agreed to by the borrower. Refer
to Collections under the Fiscal Management web
site as a resource for establishing repayment
schedules.
Repayment Schedule
If the borrower ceases to pursue the advanced
education nursing program full-time or chooses
to voluntarily terminate from the program, a
loan is repayable in equal or graduated periodic
installments over a 10-year period that begins
9 months after the individual ceases to pursue
a course of study at the school of nursing.
If the borrower is not employed full-time as
nurse faculty at a school of nursing following
graduation, a loan is repayable in equal or
graduated periodic installments over a 10-year
period that begins 9 months after the individual
completes the course of study at the school
of nursing.
If the borrower’s NFLP loan has been
cancelled for the maximum portion (up to 85%)
of the principal amount of the loan and interest,
the remaining amount (15% or more depending
upon years of employment) of the unpaid loan
balance is repayable in equal or graduated periodic
installments over the remaining six years of
the repayment period.
Refer to Collections under the Fiscal Management
web site as a resource for institutional responsibility
in establishing repayment schedules.
Combining NFLP Loans
When a borrower has more than one NFLP loan
outstanding, the sum of the amounts loaned must
be combined for repayment purposes.
Prepayment
The borrower may, at his or her option and
without penalty, prepay all or any part of the
principal and accrued interest at any time.
If an accelerated payment is made, that prepayment
must first be applied to any accrued interest
and then to the principal balance.
XVII. INTEREST
The NFLP loan bears interest on the unpaid
balance at the rate of 3% per annum beginning
3 months after the borrower ceases to be a full-time
student in the advanced nurse education program.
Borrowers employed as full-time nurse faculty
at a school of nursing for a consecutive four-year
period will bear interest at the rate of 3%
for the four-year period and the remaining six
years of the repayment period.
If the lending School determines that the borrower
will either fail to complete the course of study
or fail to establish full-time employment as
faculty following graduation from the program,
the loan will bear interest on the unpaid balance
at the prevailing market rate.
The prevailing market rate is determined by
the Treasury Department and is published quarterly
in the Federal Register. The rates are fixed.
Refer to the HHS, Office of Finance web site
at http://www.hhs.gov/of/library/policy/debt/ratememo/memorates.html
for information on the "consumer interest”
rates.
IMPORTANT NOTE: The borrower is responsible
for submitting verification of employment to
the lending School in order to determine the
interest rate applicable to the unpaid loan
balance.
XVIII. DEATH AND DISABILITY
Death
Upon the death of a borrower, the School must
submit documentation to the Division of Nursing
(NFLP), Parklawn Building, Room 9-36, 5600 Fishers
Lane, Rockville, Maryland 20857. The School
retains the documentation in the borrower's
file for audit purposes. The School must report
the amount of the loan cancelled on its Annual
Operating Report. HHS will cancel the unpaid
balance of the NFLP loan and accrued interest
of a loan upon submission to the School of a
death certificate or other official proof of
death of the borrower. The School will be formally
notified of the Secretary's decision and must
retain the written notification of the decision
on file for audit and other review purposes.
Permanent and Total Disability
A borrower may be entitled to cancellation
of any remaining payment of the NFLP loan in
the event of permanent and total disability.
Permanent and total disability is defined as
unable to engage in gainful employment of any
kind because of a medically determined impairment
that is expected to continue for a long and
indefinite period of time or to result in death.
The Secretary of HHS or his designee will make
this determination based on medical certification
submitted by the borrower supporting the borrower's
disability and will cancel the NFLP loan upon
approval.
To claim cancellation for disability, a borrower
must submit a formal request to the lending
School that awarded the loan along with the
following documentation:
- date entered and date graduated or date
studies terminated;
- total amount of loans obtained;
- amount of unpaid balance;
- nature and date of onset of the disability;
- employment history prior to disability;
- statement of financial support; and
- current medical examination and/or treatment.
The medical report must be sufficiently detailed
to provide for a comprehensive review to determine
the nature, duration, and extent of the impairment
and prognosis. Supporting documentation must
include history of illness, medical examination(s),
inpatient and outpatient treatments, current
medications, and copies of all pertinent past
medical records and a prognosis and rehabilitation
plan. A signed and dated statement must accompany
the medical documentation from the borrower's
physician documenting permanent and total disability
according to the definition above. The lending
School must obtain from the borrower consent
for release of information allowing the release
of any required information on the disability
to the HHS. The School will be formally notified
of the Secretary's decision and must retain
the written notification of the decision on
file for audit and other review purposes. The
School must report the amount of the loan cancelled
on its Annual Operating Report.
IMPORTANT NOTE: The lending School
does not have the authority to cancel loans
based on permanent and total disability. This
authority remains with HHS.
The School must submit documentation of disability
to the Division of Nursing (NFLP), Parklawn
Building, Room 9-36, 5600 Fishers Lane, Rockville,
Maryland 20857. A disability checklist is provided
as EXHIBIT H in the Word
NFLP Guidance and PDF
NFLP Guidancefor the School in obtaining
the required documentation to submit claims
for permanent and total disability. This checklist
should not be used in lieu of obtaining the
required documentation described above.
XIX. DEFERMENT OF LOAN REPAYMENT
Deferment options under the Nurse Faculty Loan
Program are limited.
Borrowers who are ordered to active duty as
a member of a uniformed service of the United
States (Army, Navy, Marine Corps, Air Force,
Coast Guard, the National Oceanic and Atmospheric
Administration Corps, or the U.S. Public Health
Service Commissioned Corps) are eligible for
deferment for up to 3 years.
A borrower who voluntarily joins a uniformed
service is not eligible for deferment, nor is
a borrower who is employed by one of the uniformed
services in a civilian capacity.
The School may not put a borrower into deferment
status unless the borrower submits a deferment
request form (EXHIBIT J in the Word
NFLP Guidance and PDF
NFLP Guidance). Deferments are not automatic.
Borrowers must file deferment forms for each
period of deferment and request deferments at
least 30 days before the beginning of:
- the activity that makes the borrower eligible
for deferment; or
- the repayment period (i.e., the due date
of the first payment) if the borrower is beginning
the activity during the grace period.
Deferment periods are excluded from the 10-year
repayment period. For example, a borrower who
has used three years of deferments still has
a total of 10 years not 7 years to repay the
NFLP loan.
The borrower is responsible for informing the
lending School of the end of the deferment period,
and the School is responsible for placing the
borrower back in repayment following the end
of the deferment.
IMPORTANT NOTE: NFLP borrowers accepting
a fellowship after graduation are NOT eligible
for loan cancellation or deferment.
XX. FORBEARANCE
A lending School may, based on its discretion,
place a borrower’s NFLP loan in forbearance
when extraordinary circumstances such as poor
health or hardships temporarily affect the borrower's
ability to make scheduled loan repayments. Forbearance
is limited to situations in which the borrower
clearly intends to repay the NFLP loan obligation
but is temporarily unable to comply with the
existing repayment schedule. See Collections
under the Fiscal Management web site for additional
information on forbearance.
During periods of forbearance, the borrower's
obligation to make payments on interest and
principal may be either reduced or eliminated.
Interest on the loan continues to accrue but
is not payable during this period.
A borrower must request forbearance by submitting
a completed Request for Forbearance form (EXHIBIT
L in the Word
NFLP Guidance and PDF
NFLP Guidance) to the School. The School
must notify the borrower in writing of its approval
or denial of the forbearance request and document
that decision in the borrower's file.
Forbearance periods may be up to 6 months each.
A School may grant a borrower no more than 2
forbearance periods without seeking the prior
approval of HHS. Periods of forbearance are
not excluded from the borrower's 10-year repayment
period.
XXI. INSTITUTIONAL RESPONSIBILITY IN
REPAYMENT PROCESS
See Collection under the Fiscal Management
web site for information on accounting requirements,
debt collection requirements (e.g., due diligence),
cash management requirements, program monitoring
and audits.
Exit Interview
The School must conduct and document an exit
interview with its borrowers (individually or
in groups). The School has the discretion in
deciding which office (e.g., financial aid,
fiscal, loan collection, or dean's) will be
responsible for the exit interview, and for
determining the specific format of the exit
interview as long it obtains the following documentation:
- Evidence that the borrower was reminded
of his or her rights and responsibilities
concerning the terms and conditions of the
loan, and
- the borrower's current address, telephone
number, and other information needed for loan
collection. (See EXHIBIT K in the Word
NFLP Guidance and PDF
NFLP Guidance)
If a borrower fails to appear for an exit interview,
the School must attempt to conduct the exit
interview by mailing the exit interview information
to the borrower and requesting that a copy of
the repayment terms and the rights and responsibilities
form or statement be signed and dated, the personal
information form be completed and dated, and
these items be returned to the School. If the
borrower returns the information as requested,
this will document that the exit interview was
conducted. See Collections under the Fiscal
Management web site for more information on
exit interviews.
XXII. INSTRUCTIONS FOR COMPLETING
APPLICATION FACE PAGE
Below is an explanation of the items found
in the NFLP Application Face Page. If any
item is not applicable, please insert "NA"
in that space.
1. Entity Identification Number (EIN) and
DUNS Number -- Enter the School's IRS employer
identification number and the DUNS number.
See Page 3 of this Guidance for additional
information about the DUNS number.
2a. Institution From Which the Application
is Made – Enter the name of the institution,
the street address, city, state and zip code.
3a. School of Nursing Coordinator –
Enter the full name, credentials, position
title and full address of the Coordinator
in the School/College of Nursing.
3b. Telephone and Fax Number of School of
Nursing Coordinator – Self Explanatory.
3c. Email of School of Nursing Coordinator
– Self Explanatory.
4a. Financial Aid Office Coordinator –
Enter the full name, position title and full
address of the Coordinator in the Financial
Aid.
4b. Telephone and Fax Number of Financial
Aid Office Coordinator – Self Explanatory.
4c. Email of Financial Aid Office Coordinator
– Self Explanatory.
5a. Authorized Official – Enter the
full name and position title of the official
legally and financially responsible and accountable
for the use and disposition of any HHS funds
awarded on the basis of this NFLP application.
5b. Telephone and Fax Number of Authorized
Official – Self Explanatory.
5c. Email of Authorized Official – Self
Explanatory.
6. Congressional District of Applicant and
Other Districts that Benefit Financially &
Type of Institution – Self Explanatory.
7. School of Nursing Coordinator and Financial
Aid Office Coordinator Assurance
8. Signature of Person Named in 3a –
Self Explanatory.
9. Signature of Person Named in 4a. –
Self Explanatory.
10. Certification and Acceptance -The signature
of an Authorized Official of the applicant
school of nursing certifies that: the information
in the application is correct and the institution
agrees to comply with the applicable statutes
and conditions placed on the award. If the
official named in Item 5a is not available
to sign for the applicant organization, an
official authorized may sign as "acting"
for this official.
11. Signature of Person Named in 5a –
Self Explanatory.
XXIII. RELEASE OF INFORMATION
A. General Public Information:
HHS makes available routinely to interested
persons a report listing programs awarded. Information
made available includes the title of the project,
school of nursing, project director, and the
amount of the award.
The Freedom of Information Act (5 USC 552)
and the associated Freedom of Information Regulations
of HHS (45 CFR Part 5) require the release of
certain information about programs upon request.
Release does not depend upon the intended use
of the information.
Generally available for release upon request
are all funded applications; annual operating
report of program; and final reports of any
review or evaluation of program performance
conducted or caused to be conducted by the Department.
Release is subject to deletion of material that
would affect patent or other valuable rights.
B. The Privacy Act: The Privacy
Act of 1974 (5 USC 552a) and the associated
Privacy Act Regulations (45 CFR part 5b) give
individuals the right of access, upon request,
to information in the records concerning themselves.
The Act provides a mechanism for correction
or amendment of such information. It also provides
for the protection of information pertaining
to an individual, but it does not prevent disclosure
if release of such information is required under
the Freedom of Information Act. If a Privacy
Act system of records applies, the name and
number of the system will be identified.
If applicable, the Privacy Act requires that
a Federal agency requesting information from
an individual advise the individual of the agency’s
authority to make the request; whether compliance
with the request is voluntary or mandatory;
how and why the information will be used both
inside and outside the agency; and what the
consequences are for the individual of failing
to provide all or any part of the requested
information.
HHS requests the information described in these
instructions under authority of the PHS Act
as amended (42 USC 289a-1). Although provision
of the information requested is entirely voluntary,
it is necessary for making award decisions.
A lack of sufficient information may hinder
HHS’s ability to review applications.
HHS will use this information and may disclose
it outside the Department, as permitted by the
Privacy Act under the applicable system of records.
C. Government Use of Information:
In addition to being used in evaluating applications,
other routine uses of information include disclosure
to: the public as required by the Freedom of
Information Act; the Congress; the National
Archives and Records Service; the Bureau of
the Census; law enforcement agencies upon their
request; the General Accounting Office; and
courts by order. It may also be disclosed outside
of the Department if necessary to:
(1) a cognizant audit agency for auditing;
(2) the Department of Justice as required
for litigation;
(3) respond to an inquiry from a Congressional
office about the record of an individual made
at the request of that individual;
(4) qualified experts not within the definition
of Department employees as prescribed in Department
regulations (45 CFR Part 5b.2, Purpose and
Scope) for opinion as a part of the application
review process;
(5) a Federal agency, in response to its request,
in connection with | 
