Nurse Faculty Loan Program
VIII. Other Information
ROLE OF SCHOOL OFFICIALS
We encourage the school of nursing coordinator, financial
aid office coordinator, and the authorized official
at the school 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 Coordinator
– The school of nursing is the eligible applicant.
Therefore, the school of nursing, not the financial
aid office or other administrative unit, must prepare
and 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
- Role of the Financial Aid Office Coordinator
– 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 may be responsible for
completion and submission of the NFLP Annual Operating
Report or may work with a designated office within
the school. 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.
- Role of the Authorized Official
– The authorized official of the applicant
school is the person legally and financially responsible
for the use and disposition of any HHS funds awarded
on the basis of this NFLP application; and certifies
that the information in the application is correct
and the school agrees to comply with the applicable
terms and conditions placed on the award.
The school must notify HRSA’s Division of
Nursing of any change in school officials cited
in the application. Schools should use the “Notification
of Change in Contact Personnel” form (EXHIBIT
A) included in this application.
OVERVIEW OF INSTITUTIONAL MANAGEMENT OF NFLP FUNDS
The NFLP agreement requires the school to establish
and operate the NFLP fund. This section offers a brief
introduction to the management of the NFLP fund. For
additional information, visit the HRSA
Fiscal Management web site.
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 VII of this
1. Cash Balances
The unused accumulation (cash balance) in the NFLP
fund must be reported annually on the AOR for the
specified reporting period. The unused accumulation
will be monitored yearly. If a school is determined
to have an excessive unused accumulation, future awards
will be affected.
HRSA reserves the right to terminate participating
NFLP schools that do not use awarded NFLP funds over
a 2-year period. HRSA will notify the school in writing
that their program will be terminated following consultation
with the school.
NOTE: For existing NFLP schools,
the unused accumulated amount (NFLP loan fund cash
balance) is determined by the cumulative FCC awarded
to the school plus the cumulative
cash receipts total reported (including the cumulative
ICC deposited) minus the cumulative
cash disbursements total reported. The award balance
in PMS (if applicable) will be added to the cash balance
reported to assess the “actual” unused
Schools should review the balance in the NFLP fund
on a semi-annual basis to determine whether the fund
balance exceeds its needs. Refer to Collections
under the Fiscal Management web site for information
about cash balances.
2. Carryover of Unused NFLP Funds
Schools may request approval to retain (carryover)
the unused accumulation of NFLP funds for a 1-year
period. The unused accumulation should be allocated
during the academic year approved for carryover.
3. Reporting of NFLP Loan Disbursements
PMS requires the school to complete and submit the
quarterly PMS Form 272 to report NFLP loan disbursements.
4. 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.
5. 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.
6. 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.
The exhibit forms listed below are provided for institutional
use in administration of the NFLP. The Exhibt
Forms are available for downloading in MS Word
format.. Please contact the Division of Nursing if
you are unable to access these forms.
With the exception of the Annual Operating Report
(EXHIBIT B1-B2) and the Promissory
Note (EXHIBIT C), schools may modify
the sample forms listed below.
- EXHIBIT A Notification of Change in Contact Personnel
- EXHIBIT B-1 NFLP Annual Operating Report (OMB
- EXHIBIT B-2 Instructions for Completing the Annual
- EXHIBIT C NFLP Promissory Note
- EXHIBIT D Statement of 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
- EXHIBIT J NFLP Deferment Form
- EXHIBIT K Exit Interview – Questionnaire
- EXHIBIT L Forbearance Request Form
Schools must ensure that students meet the eligibility
criteria to receive NFLP loans. Schools must verify
the accuracy of the student applicant’s information
to determine eligibility.
1. 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 a NFLP loan.
2. Enrollment Status
Students who receive a NFLP loan must be enrolled
full-time or part-time in an eligible master’s
or doctoral program that offers an education component(s)
to prepare qualified nurse faculty. The school will
define “full-time or part-time” status
for the program as recorded by the Registrar’s
Students must maintain enrollment for a minimum
of 2 consecutive terms/semesters (either full-time
or part-time) during an academic year while receiving
the NFLP loan support.
- Enrollment Beyond 2 Semesters/Terms
– Students may receive NFLP support for enrollment
beyond 2 terms/semesters during the academic year
if required by the program (i.e. summer session).
- Enrollment During Dissertation
– Students must have prior participation in
the NFLP to receive support during the dissertation
phase and must complete the specified education
component(s) before graduation from the program
- Enrollment During Last Year of Program
– NFLP students enrolled in the last year
of the program are not required to enroll for 2
terms if the program requirements are met (i.e.
the NFLP recipient may receive support in the Fall
(or one semester) to complete the degree.
Leave of Absence from Program
Temporary leave of absence from the nurse education
program that is 1) approved by the school, and 2)
in accordance with the institution’s student
enrollment and leave policy, is not considered to
be a breach of the NFLP Promissory Note by the borrower.
The NFLP encourages the school to make a determination
that there is a reasonable expectation that the student
will return to the school.
The NFLP encourages the school to require students
to provide a written, signed, and dated request that
includes the reason for the request prior to the leave
of absence. However, if unforeseen circumstances prevent
a student from providing a prior written request,
the school may grant the student's request for a leave
of absence, if the school documents its decision and
collects the written request at a later date.
Active Military Duty
Temporary leave under the NFLP includes 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
3. 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.
4. 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).
NFLP SUPPORT TO STUDENTS
Under the NFLP, continuing students committed for
support must be given the opportunity for loan support
ahead of new students requesting NFLP loans. Students
who receive a NFLP loan must be enrolled full-time
or part-time in an eligible master’s or doctoral
nursing program at the time the NFLP loan is established.
Prior to making a loan, the school should determine
whether the student will enroll for a minimum of 2
consecutive terms/semesters (i.e. Fall-Spring, Spring-Summer,
Summer-Fall or Spring-Fall) 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.
IMPORTANT NOTE: The NFLP loan recipient
must complete the education component(s) required
to prepare qualified nurse faculty prior to
completing the program of study.
- NFLP loan recipients who wish to remain enrolled
after completing a master’s degree program
must enroll in an advanced level, i.e. doctoral
nursing degree program. Students that pursue the
doctoral degree should not duplicate education courses
that were already completed.
- The NFLP does not support post-doctoral nursing
programs (i.e. fellowships). NFLP recipients who
graduate and participate in post-doctoral programs
may request deferment of payment.
1. 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).
2. 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. FAFSA data
and other financial records are not required to determine
eligibility for the NFLP. FAFSA data may be used 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, and not to exceed
5 years of support.
3. Multiple Program Support to Students
In addition to NFLP support, students may receive
support from other Federal programs, provided that
the funds are not used to cover the same costs during
the academic year. The student may already receive
other Federal support that does not cover all costs
(tuition, fees and other expenses) for the academic
period; in this case, the student may receive NFLP
support to cover the remaining costs, excluding
Example: A school that
administers both the Advanced Education Nursing Traineeship
Program (AENT) and the Nurse Faculty Loan Program
(NFLP) may offer support under the AENT program to
cover stipends and room/board costs since these costs
are not allowed under the NFLP. The tuition costs
and other fees for the academic year may be covered
with NFLP funds.
MAKING NFLP LOANS TO STUDENTS
1. 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.
Schools are responsible for distributing NFLP applications
to students. EXHIBIT E 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
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)
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;
- has provided information to aid in skip tracing,
The school has discretion in deciding which office
(e.g., financial aid, fiscal, loan collection, Dean's)
will be responsible for entrance interviews.
3. 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 enrollment status for each academic
year of NFLP support
- records of payments and cancellation; and
- records of approved leave of absence, 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:
- microfiche/microfilm; or
For information on maintenance of records, see Accounting
under the Fiscal Management web site.
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).
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 Promissory Note. Schools may
establish an “electronic” Promissory Note
for the NFLP at their school.
IMPORTANT NOTE: Modification of
the Promissory Note requires prior approval by HRSA.
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. 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 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.
1. 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:
- withdraws from the institution;
- fails to meet the academic standards of the institution;
- requests to terminate NFLP participation
2. 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
TERMS AND CONDITIONS OF NFLP LOANS TO STUDENTS
1. 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 enroll full-time
or part-time for 2 consecutive terms/semesters during
the academic year and complete the nursing education
program that prepares students to become nurse faculty.
IMPORTANT NOTE: The education course/component(s)
offered must be completed while receiving NFLP support
and prior to graduating from the program.
Schools are strongly encouraged to inform the student
of the employment and repayment guidelines for NFLP
2. Employment Status
The NFLP borrower must submit certification of employment
to the lending school within a reasonable timeframe
as determined by the lending school, but no later
than 12 months following graduation. A sample certification
of employment form is provided as EXHIBIT
F. 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.
- Leave During Employment – 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.
3. 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 of nursing. The borrower
must also inform the lending school of any change
of name or address during the repayment period.
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.
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.
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).
NFLP REQUEST FOR POSTPONEMENT OF INSTALLMENT PAYMENTS
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) for each period of cancellation. This
form is intended to notify the lending school that
repayment is not expected from borrower.
The form requires the borrower to:
- complete Part I;
- obtain certification by the employing school
of nursing, Part II; and
- forward the original and one copy to the lending
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
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.
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.
To receive loan cancellation, the Borrower must submit
the Request for Partial Cancellation of
Loan Form (EXHIBIT G) 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:
- complete Part I;
- obtain certification by the employing school
of nursing to complete Part II; and
- 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.
If the borrower takes a break from full-time employment
as nurse faculty during the year, the borrower is
not eligible for loan cancellation
and must begin repayment of the NFLP loan immediately.
1. Grace Period
The grace period for NFLP loan repayment is 9 months.
Neither interest nor principal is payable during the
9-month grace period.
2. Repayment Period
The repayment period for an NFLP loan begins following
a 9-month grace period after the borrower ceases to
be enrolled as a student in the advanced nurse education
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.
3. Repayment Schedule
If the borrower ceases to pursue the advanced
education nursing program, the NFLP 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.
The NFLP borrower is allowed 3 additional
months beyond the 9-month grace period to
establish employment as full-time employment as nurse
If the borrower is not employed full-time
as nurse faculty at a school of nursing within 12
months following graduation from the program, the
NFLP loan is repayable in equal or graduated periodic
installments over a 10-year period. The loan is repayable
following the 9-month grace period. However, if the
borrower becomes employed between the 10th through
12th month following graduation, the borrower may
stop the repayment schedule.
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
4. Combining NFLP Loans
When a borrower has more than one NFLP loan outstanding,
the sum of the amounts loaned should be combined for
repayment purposes (i.e. multiple loans disbursed
to a recipient during the academic year or years of
NFLP loan disbursements from more than one NFLP school
can not be combined for repayment purposes.
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.
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 enrolled
as a 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
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
The prevailing market rate is determined by the
Treasury Department and is published quarterly in
the Federal Register. The rates are fixed. Refer to
Office of Finance web site 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.
DEATH AND DISABILITY
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. The Secretary of HHS or a
designee 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.
2. 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 a 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
- 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 school does
not have the authority to cancel loans based on permanent
and total disability. This authority remains with
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 for 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
DEFERMENT OF LOAN REPAYMENT
Deferment options under the NFLP are limited.
- NFLP 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, Peace 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.
- NFLP borrowers that graduate and are employed,
and decide to return to a graduate nursing education
program to pursue a doctoral degree to further their
preparation as nurse faculty may request deferment
of payment for up to 3 years.
- NFLP borrowers that graduate and participate in
post-doctoral programs may request deferment of
payment for up to 3 years.
The school may not put a borrower into deferment
status unless the borrower submits a deferment request
form (EXHIBIT J). 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.
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) 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.
INSTITUTIONAL RESPONSIBILITY IN REPAYMENT PROCESS
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.
1. 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)
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.
“Accreditation” is a
nongovernmental process conducted by representatives
of postsecondary institutions and professional groups.
A program may be accredited by a recognized body or
bodies, or by a State agency, approved for such purpose
by the Secretary of Education and when applied to
a hospital, school, college or university (or unit
thereof) means a hospital, school, college or university
(or unit thereof) which is accredited by a recognized
body or bodies, or by a State agency, approved for
such purpose by the Secretary of Education, as defined
in section 801(6) of the Public Health Service (PHS)
Two forms of accreditation are recognized: one is
institutional accreditation and the other is professional
or specialized accreditation. A collegiate school
of nursing must be accredited by a recognized body
or bodies (i.e. Commission on Collegiate Nursing Education
and/or National League of Nursing) or State agency,
approved by the Secretary of Education for the purpose
of conducting nursing education.
The Secretary of Education publishes a list of recognized
accrediting bodies, and of State agencies, which the
Secretary of Education determines to be a reliable
authority as to the quality of education offered at
Department of Education Web site.
“Advanced Education Nursing Program”
means a program of study in a collegiate school of
nursing or other eligible entity which leads to a
master's and/or doctoral degree and which prepares
nurses to serve as nurse practitioners, clinical nurse
specialists, nurse-midwives, nurse anesthetists, nurse
educators, nurse administrators, or public health
nurses, or in other nurse specialties determined by
the Secretary to require advanced education.
a process by which an agency or organization validates,
based upon predetermined standards, an individual
nurse’s qualifications and knowledge for practice
in a defined functional or clinical area of nursing.
“Clinical Nursing Specialty”
means a specific area of advanced clinical nursing
theory and practice addressed through formal instruction
to prepare advanced education nurses. Clinical nursing
specialties prepare the nurse to provide direct patient/client
nursing care to individuals or to population groups.
A nurse completing a course of study in a clinical
nursing specialty is expected to be eligible for a
national certification(s) or state certification(s),
when available, following graduation or required experience.
“Clinical Nursing Specialty Program”
means a formal graduate level education program that
provides expertise within a specialty area of nursing
practice. In addition to the delivery of direct patient/client
care, the role may include consultative, educational,
research and/or administrative components. A graduate
degree is the minimum requirement for clinical nurse
“Collegiate School of Nursing”
means 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 the degree
of bachelor of arts, bachelor of science, bachelor
of nursing, or to an equivalent degree, or 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 or university
is accredited, as defined in section 801(3) of the
are NFLP loan recipients enrolled the previous academic
year and are continuing enrollment in the education
program offered by the institution.
“Culturally and Linguistically Appropriate
Services” means health care services
that are respectful of and responsive to cultural
and linguistic needs.
means a set of academic and interpersonal skills that
allow an individual to increase their understanding
and appreciation of cultural differences and similarities
within, among and between groups. This requires a
willingness and ability to draw on community-based
values, traditions, and customs and to work with knowledgeable
persons of and from the community in developing targeted
interventions, communications, and other supports.
“Culturally Competent Program”
means a program that demonstrates sensitivity to and
an understanding of cultural differences in program
design, implementation and evaluation.
means differences in race, ethnicity, language, nationality,
or religion among various groups within a community,
an organization, or a nation.
means electronic media are used to deliver education
content when the learner and teacher are separated
by distance. An electronic medium may be a computer,
World Wide Web technologies, teleconferencing, television,
or CD ROM/DVD.
“Doctoral Program in Nursing”
means a program of instruction beyond the baccalaureate
and master’s degrees in nursing (e.g. PhD, DNS,
DSN, DNSc, and DNP). Doctoral programs in nursing
fall into two principal types: research focus and
consists of education courses, preceptor and/or supervised
teaching practica identified within the curriculum
to prepare students to become nurse faculty.
means a student who is enrolled on a full-time basis
as defined by the Registrar’s office at the
“Graduate” means an
individual who has successfully completed all institutional
requirements necessary to be granted a degree.
“Minority” means an
individual whose race or ethnicity is classified as
American Indian or Alaska Native, Asian, Black or
African American, Hispanic or Latino, Native Hawaiian
or Pacific Islander.
Hispanic or Latino: A person of
Cuban, Mexican, Puerto Rican, South or Central American,
or other Spanish culture or origin, regardless of
race. The term, "Spanish origin," can
be used in addition to "Hispanic or Latino."
American Indian or Alaska Native:
A person having origins in any of the original peoples
of North, Central, or South America, and who maintains
tribal affiliation or community attachment.
Asian: A person having origins
in any of the original peoples of the Far East,
Southeast Asia, or the Indian subcontinent including,
for example, Cambodia, China, India, Japan, Korea,
Malaysia, Pakistan, the Philippine Islands, Thailand,
Black or African American: A person
having origins in any of the black racial groups
of Africa. Terms such as "Haitian" or
"Negro" can be used in addition to "Black
or African American."
Native Hawaiian or Other Pacific Islander:
A person having origins in any of the original peoples
of Hawaii, Guam, Samoa, or other Pacific Islands.
White: A person having origins
in any of the original peoples of Europe, the Middle
East, or North Africa.
“New Students” are students
who have never received NFLP support.
“Nurse Administrator” means
a registered nurse who has successfully completed
a master’s and/or doctoral degree program of
study designed to prepare nurses for leadership positions
in administration in a variety of health care systems.
means a registered nurse who has successfully completed
a nurse anesthetist education program.
“Nurse Educator” means
a registered nurse who is prepared through master’s
and/or doctoral education in nursing to transfer knowledge
about the science and art of nursing from the expert
to the novice in a variety of academic, clinical and
lay educational settings with attention to life long
learning needs of professional nursing students and
advanced practice nurses and students.
a registered nurse educated in the two disciplines
of nursing and midwifery that successfully complete
a nurse-midwifery education program accredited by
the Division of Accreditation of the American College
of Nurse-Midwives (ACNM).
Following ACNM Certification Council (ACC) certification,
the nurse-midwife has ability to provide independent
management of primary health care for women in the
context of family-centered care focusing particularly
on pregnancy, childbirth, the postpartum period, care
of the newborn, and the family planning and gynecological
needs of women within a health care system that provides
for consultation, collaborative management or referral
as indicated by the health status of the client. This
ability includes the: Assessment of the health status
of women and infants, through health and medical history
taking, physical examination, ordering, performing,
supervising and interpreting diagnostic tests and
making diagnoses; Institution and provision of continuity
of primary health care to women and referral to other
health care providers as appropriate; Prescription
of pharmacological and non-pharmacological therapeutics,
consistent with current standards of care; Provision
of instruction and counseling to individuals, families,
and groups in the areas of promotion and maintenance
of health and disease prevention by actively involving
these individuals in the decision making and planning
for their own health care; and Collaboration with
other health care providers and agencies to provide
and coordinate services to individual women, children,
means a registered nurse who has successfully completed
a Nurse Practitioner Program, as defined below, who
can deliver primary and acute care services in a variety
of settings, such as homes, ambulatory care facilities,
long-term care facilities, and acute care facilities,
using independent and interdependent decision making
with direct accountability for clinical judgment.
The health care services to be provided include: Assessment
of the health status of individuals and families through
health and medical history taking, physical examination,
ordering, performing, supervising, and interpreting
diagnostic tests and making diagnoses; Management
of acute episodic and chronic illnesses; Institution
and provision of continuity of primary health care
to individuals and families and referral to other
health care providers when appropriate; Prescription
of treatments including pharmacological and non-pharmacological
therapeutics, consistent with current standards of
care; Provision of instruction and counseling to individuals,
families, and groups in the areas of promotion and
maintenance of health and disease prevention, by actively
involving these individuals in the decision making
and planning for their own health care; and Collaboration
with other health care providers and agencies to provide,
and where appropriate, coordinate services to individuals
“Nurse Practitioner or Nurse-Midwifery
Program” means an educational program
of study, as defined by the institution, (although
students may be progressing through the program on
a full-time or part-time basis), which meets the Guidelines
prescribed herein. The program's objective is the
education of nurses who will, upon completion of their
studies in the program, be qualified to effectively
provide primary care in a variety of settings, including
in homes, ambulatory care facilities, long-term care
facilities, acute care, and other health care settings.
a clinical learning experience in which the student
is assigned to a faculty member or with oversight
by program faculty to a designated preceptor who is
a nurse practitioner or nurse-midwife or other health
professional for specific aspects of the clinical
learning experience. The preceptorship provides the
student with practice experiences conducive to meeting
the defined goals and objectives of the particular
clinical course. The preceptor is responsible for
the daily teaching and assignment of individuals to
be cared for, supervision, and participation in the
evaluation of the nurse practitioner or nurse-midwifery
student. The preceptor teaches, supervises, and evaluates
the student and provides the student with an environment
that permits observation, active participation, and
management of primary health care. Before and during
this preceptorship, the program faculty visit and
assess the clinical learning sites and prepare the
clinical faculty/preceptors for teaching their students.
“Program” means a program
of study that consists of a combination of identified
courses and other educational or training experiences
at a specified academic level, the sum of which provides
the required competence(s) to practice.
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
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
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:
- a cognizant audit agency for auditing;
- the Department of Justice as required for litigation;
- respond to an inquiry from a Congressional office
about the record of an individual made at the request
of that individual;
- 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
- a Federal agency, in response to its request,
in connection with the letting of a contract, or
the issuance of a license, award or other benefit
by the requesting agency, to the extent that the
record is relevant and necessary to the requesting
agency’s decision on the matter;
- individuals and organizations deemed qualified
by the HHS to carry out specific research related
to the review and award process of the HHS;
- organizations in the private sector with whom
HHS has contracted for the purpose of collating,
analyzing, aggregating, or otherwise refining records
in a system. Relevant records will be disclosed
to such a contractor. The contractor shall be required
to maintain Privacy Act safeguards with respect
to such records; and
- the applicant organization in connection with
performance or administration under the terms and
conditions of the award