This announcement solicits applications for the Nurse Faculty Loan Program (NFLP) to increase the number of qualified nursing faculty. The NFLP provides funding to schools of nursing to support the establishment and operation of a distinct, interest-bearing NFLP loan fund. Participating schools of
nursing make loans from the fund to assist registered nurses in completing their graduate education to become qualified nurse faculty. The program offers loan cancellation of up to 85 percent for borrowers that graduate and serve as full-time nursing faculty for the prescribed period of time. Accredited schools of nursing are eligible to apply for funding. Eligible schools must offer an advanced education nursing degree program(s) that will prepare the graduate student to teach.
The United States Department of Health and Human Services (HHS), acting through the Health Resources and Services Administration (HRSA) is authorized to enter into an agreement with the school and make an award to the school in the form of a Federal Capital Contribution (FCC).
The school must use the FCC to establish a distinct account called the NFLP fund.
The school is required to deposit an Institutional Capital Contribution (ICC) that is equal to no less than one-ninth of the FCC. Participating schools make NFLP loans from the loan fund to eligible graduate (masters and doctoral) nursing students to complete the nursing education program. Students may receive NFLP loans up to $35,500 per academic year for a maximum of five years to support the cost of tuition, fees, books, laboratory expenses and other reasonable education expenses. A funding priority is applied for applicants if the school of nursing student loan supports doctoral nursing students. Following graduation from the nursing program, the nursing school will cancel up to 85 percent of the loan principal and interest in exchange for the loan recipients service as a full-time nursing faculty at a school of nursing, with a certain percentage cancelled each year for up to four years.
The loan cancellation over the four-year period is as follows: 20 percent of the principal and interest may be canceled upon completion of each of the first, second, and third years of full time employment, which, after the three year period, totals 60 percent, followed by the cancellation of 25 percent of the principal and interest upon completion of the fourth year of full-time employment as a faculty member in an accredited school of nursing. Repayment on the remaining 15 percent of the loan balance is postponed during the cancellation period. NFLP loans accrue interest at a rate of three percent per annum (per statute Section 846A (c)(6)(A)) for loan recipients who establish employment as nurse faculty.