Ohio Admin. Code 3333-1-22 - Nurse education assistance loan program
(A) Intent and authority
(1) It is the intent of the chancellor of the
board of regents
department of higher education in promulgating this
rule to establish and administer a nurse education assistance loan program
which will provide financial assistance to eligible students while providing an
incentive for these students to engage in the practice of nursing in the state
of Ohio upon completion of their academic programs.
(2) This rule is adopted under the authority
conferred upon the chancellor by section
3333.28 of the Revised
Code.
(B) Definitions
For purposes of this rule:
(1) A "loan" shall
mean
means the total principal amount of
all nurse education assistance loan program funds awarded to a student plus
interest assessed by the chancellor.
(2) An "approved nurse education program"
shall mean
means a prelicensure nurse education program offered
by an institution which is approved by the Ohio board of nursing under section
4723.06 of the Revised Code or a
postlicensure nurse education program approved by the chancellor under section
3333.04 of the Revised Code or
offered by an institution holding a certificate of authorization issued by the
chancellor under Chapter 1713. of the Revised Code.
(3) An "institution"
shall mean
means a hospital school of nursing, or a private
college, university or vocational school which offers an approved nurse
education program.
(4) An "Ohio
resident" shall mean
means any person who meets the requirements of rule
3333-1-10 of the Administrative
Code. Verification of Ohio residency for these purposes
shall
is to be
provided by the institution in which the student is enrolled. Institutions
shall
are to
provide students with a fair and adequate opportunity to present proof of their
Ohio residency.
(5) "Half-time
enrollment" shall mean
means an academic course load which is at least
one-half of the normal full-time course load as determined by the institution
in which the student is enrolled.
(6) "Educational expenses"
shall mean
means charges assessed by the student's institution
for instructional and general fees ("tuition"), laboratory fees, books and
supplies, room and board, transportation, and other miscellaneous expenses
as indicated in each student's institutional cost of
attendance.
(7) "Expected
family contribution" shall mean
means the measure of a student's or a family's ability
to contribute to the cost of education from the student's or the family's
financial resources. An expected family contribution for these purposes
shall
is to be
calculated by means of a federally approved need analysis formula designated by
the chancellor. The chancellor may use any federally
approved need analysis formula that is a successor to expected family
contribution.
(8) The "direct
clinical practice of nursing" shall
mean
means the equivalent of full-time
employment in an Ohio board of nursing licensed
occupation which requires licensure by the Ohio
board of nursing and in which the employee is required
has to
apply the knowledge and skills gained in her or his nurse education
program.
(9) A "deferment" is an
agreement between the borrower and the chancellor which authorizes the borrower
to temporarily stop performance of the service obligation or repayment of the
loan during specified periods of time. No interest shall
will accrue
during any deferment period.
(10)
"Total service obligation" shall mean
means a period of time--four consecutive years for
those students completing a postlicensure program of study and five consecutive
years for those students completing a prelicensure program of study--following
completion of the approved nurse education program during which time the
borrower is employed in the clinical practice of nursing in the state of
Ohio.
(11) The "designated agency"
shall mean
means a public agency or private firm which provides
services to the board of regents
department of higher education, under a contractual
agreement, for the processing of loans which are in repayment, delinquent or in
default.
(12)
"Full-time employment" means employed at one or more
employers for an average of thirty-two hours a week utilizing nursing
degree.
(C)
Eligibility requirements
To be eligible to receive a nurse education assistance loan a
student must
is
to:
(1) Be an Ohio
resident.
;
(2) Be a
citizen, a national, or a permanent resident of the United States; or be in the
United States for other than a temporary purpose and intend to become a
permanent resident; or be a permanent resident of the Trust Territory of the
Pacific Islands or the Northern Mariana Islands.
;
(3) Be enrolled in or be accepted for
enrollment in an approved nurse education program for at least half-time study.
The chancellor may require
request documentary evidence of compliance with this
requirement
paragraph.
;
(4)
Provide an expected family contribution value, or
successor/equivalent, which has been determined in accordance with
paragraph (B)(7) of this rule.
;
(5)
Show evidence of
Complete a promissory note stating an intention to
engage in the direct clinical practice of nursing in the state of Ohio upon
completion of her or his academic program.
; and
(6) Not owe a refund to, or be in default on,
any state educational loan program or any federal educational loan or grant
program covered under Title IV of the Higher Education Act, as
amended.
(D) Application
procedures
(1)
Application forms shall be developed and distributed by the
chancellor. Completed application forms shall be submitted to the chancellor's
staff for processing.
Interested applicants are
to complete the free application for federal student aid (FAFSA) prior to
completing the NEALP application. The completion of the FAFSA provides an
expected family contribution (EFC), or equivalent successor measurement, that
may be used to determine NEALP eligibility.
(2)
The chancellor
shall establish and disseminate a timetable for application and loan
processing.
Applications are available
electronically on the NEALP website annually during the application period,
which will be posted on highered.ohio.gov/nealp.
(3)
The applicant
is responsible for completion of an application/promissory note. A statement of
rights and responsibilities must also be signed prior to the disbursal of loan
funds. By signing the application/promissory note, the borrower promises to
repay the loan in accordance with conditions set forth in the
document.
Each applicant is to submit by the
stated close date the completed application, a signed promissory note, a signed
statement of students' rights, and a statement of intent if seeking a master's
of nurse educator's (MNE) degree.
(4) If an applicant is under the age of
eighteen, the applicant will need to have a co-signer
that is eighteen years or older on the promissory noteor
has not established a favorable credit record, the chancellor may ask that the
applicant seek a comaker in the making of a loan. The inability to secure a
comaker will not, however, preclude any applicant from consideration.
(5) Each applicant shall be required
to report an expected family contribution on the application form. The
calculation of a family contribution requires the completion of a federally
approved need analysis application prior to completion of the nurse education
assistance loan application. Documentation of the family contribution must be
provided.
(E)
Maximum awards
amounts
(1)
The
maximum annual loan amount will be the following:
(a)
Ten thousand
dollar for a student enrolled in an eligible postlicensure nurse education
program and who has stated an intent to practice as a faculty member or an
adjunct with the equivalent of full-time employment or a combination of
teaching and direct clinical practice of nursing that is equivalent of
full-time employment at a prelicensure or postlicensure program for nursing in
the state.
(b)
Three thousand dollars for a student enrolled in an
eligible prelicensure nurse education program leading to a registered nurse
license;
(c)
Three thousand dollars for a student enrolled in an
eligible postlicensure nurse education program;
(d)
One thousand five
hundred dollars for a student enrolled in an eligible prelicensure nurse
education program leading to a license in practical nursing.
The listed award amounts are the maximum award a student may receive and each year the award amounts will be set by the chancellor as set forth in paragraph (F) of this rule.
(2)
Loans may be awarded for a maximum of fifteen quarters
or ten semesters or the equivalent and may not exceed the total aggregate loan
amount of thirty thousand dollars.
(3)
Fund balance:
Annually, the chancellor will review the applications, the biennial
appropriations and consult with the board of nursing to determine the
percentage that will remain after awards for a particular year. However, the
money remaining in the fund will not be less than five per cent of the annual
appropriation.
(1)
Each year the
chancellor shall determine the number of loans which are available to be
awarded. Until January 1, 2012, available loans shall be apportioned by
professional category in the following manner:
Each year the chancellor will review the state's needs for
nurse educators, registered nurses and practitioners, and practical nurses and
review the total applications received in identified fields of need to
determine the number of loans to be awarded. The chancellor may determine the
number of loans which are available to be awarded based on available funds.
Available loans may be apportioned by professional category. Prior to a final
apportionment determination, the chancellor will consult with the board of
nursing. For purposes of this rule, consultation with the board of nursing may
include, but is not limited to, submission of recommendations, a report, or
findings by the board of nursing.
(a) Fifty per cent of available loan
funds shall be awarded as loans registered nurses who are enrolled in
postlicensure nurse education programs and have submitted a letter to the
chancellor stating their intent to practice as a faculty member at a
prelicensure or postlicensure program for nursing in the state upon completion
of the academic program.
(b) Twenty-five per cent of
available loan funds shall be awarded to students enrolled in prelicensure
nurse education programs for registered nurses.
(c) Twenty-five per cent of
available loan funds shall be awarded to students enrolled in nurse education
programs as determined by the chancellor, with preference given to programs
aimed at increasing enrollment in an area of need.
(2)
After January
1, 2012, after consultation with the board of nursing, available loans shall be
apportioned in accordance with division (A) of section 3333.28 of the Revised
Code at the chancellor's discretion and based upon the chancellor's review of
the state's needs for licensed nurses and nurse educators. Following a two-week
public comment period, the chancellor will post the apportionment of loans for
the following academic year on the chancellor's web site in January of each
calendar year. For purposes of this rule, consultation with the board of
nursing may include, but is not limited to, submission of recommendations, a
report, or findings by the board of nursing.
The total number of applications received and available
funds determines the maximum award in each nursing degree category and is
provided to the institutions electronically. The final eligibility number is
finalized by the institutions in the verification process. Institutions are
instructed to verify each applicant's enrollment and eligibility. The
institutions verification process includes but is not limited to; acceptance
and/or enrollment in a nursing program that does not include pre-requisite
courses; reporting the total cost of attendance for the year, the total
estimated financial aid, and the EFC (or successor/equivalent); and verifying
the applicant is not in student loan default with the U.S. department of
education. The verification process and deadline date will be posted on the
department of higher education website each year. Institutions submit this
information in a HEI file which is recorded in the NEALP system of the student
account. The institutions are electronically notified of the final per student
award amount and EFC (or successor/equivalent) cutoff if
applicable.
(3)
If sufficient applications are not received to fully
meet the established categorical apportionment of available loan funds,
remaining loan funds shall be awarded without regard to category on the basis
of relative financial need as evidenced by the expected family
contribution.
If sufficient funds are
available, as determined by the chancellor, loan assistance will be awarded to
all eligible applicants in programs identified as fields of
need.
(4)
If sufficient funds are available, as determined by
the chancellor, loan assistance will be awarded to all eligible applicants. If
available funds are not sufficient to award loans to all eligible applicants,
as determined by the chancellor, all eligible applications received prior to
the established deadline will be ranked within each category on the basis of
relative financial need as evidenced by the expected family contribution with
preference given to the lowest expected family contribution in the awarding of
loans. The chancellor may consider other factors in the ranking of
applications.
If available funds are not
sufficient to award loans to all eligible applicants, as determined by the
chancellor, the chancellor will allocate the available funds among the
professional categories. All eligible applications received prior to the
established deadline will be ranked within each category on the basis of
relative financial need as evidenced by the expected family contribution (or
successor/equivalent), with preference given to the lowest expected family
contribution (or successor/equivalent), in the awarding of loans. The
chancellor may consider other factors in the ranking of
applications.
(5)
The maximum annual loan amount for each student
shall be determined by the chancellor and shall not exceed three thousand
dollars for those students completing a prelicensure program of study and shall
not be less than five thousand dollars for those students completing a
postlicensure program of study. In determining the annual amount of each loan,
the chancellor shall consider the student's educational expenses, the expected
family contribution and other financial aid awarded to the student. Loans may
be awarded for a maximum of twelve quarters or eight semesters or the
equivalent. The total aggregate loan amount shall not exceed twelve thousand
dollars.
In determining the annual amount of
each loan, the chancellor will consider the student's educational expenses, the
expected family contribution (or successor/equivalent), and other financial aid
awarded to the student.
(1)
If the applicant has not been accepted into an approved
nurse education program at the time of application for the loan, documentary
evidence must be provided by the applicant of such acceptance before the loan
is disbursed
The chancellor will disburse the
funds to the verified borrower's institution to cover educational expenses in
equal portions over two or three terms of the academic year provided the
applicant is attending an approved nursing program.
(2) After completion of the
application/promissory note and statement of rights and responsibilities, and
upon receipt of eligibility verification, the chancellor shall disburse the
funds to the borrower's institution to cover educational
expenses.
(G) Influence on other awards The
receipt of a nurse education assistance loan shall not affect a student's
eligibility for assistance, or the amount of that assistance, granted under
section 3333.122, 3333.26, 5910.03, 5910.032 or 5919.34 of the Revised
Code.
(H) Loan renewal
application
(1)
A loan may be
renewed for a maximum of three years following the year in which the initial
loan is made. To qualify for loan renewal, the borrower must continue to meet
all eligibility requirements set forth in paragraph (D) of this rule and must
maintain an academic record which places her or him in good academic standing
as defined by the institution.
Loans are not
automatically renewed. Each year an applicant will have to reapply and be in
good standing on all previous NEALP loans. To qualify for loan renewal, the
borrower will need to continue to meet all eligibility requirements set forth
in paragraph (C) of this rule and maintain an academic record which places her
or him in good academic standing as defined by the institution.
(2) Completion of an application/promissory
note is required
necessary for each year
for loan renewal.
(3) The chancellor shall, in
consultation with the Ohio board of nursing, determine a reasonable percentage
of funds to be held in reserve in order to provide loan renewals for continuing
students.
(I) Loan forgiveness
(1) After graduation from an approved nurse
education program, the borrower may be eligible for debt cancellation
as follows:
-- at a
rate of twenty percent per year, for a maximum of five years for students in a
prelicensure program of study and a rate of twenty-five per cent per year, for
a maximum of four years for students in a postlicensure program of study--for
each year in which the borrower is employed full-time in the direct clinical
practice of nursing or as a faculty member for a prelicensure or postlicensure
program for nursing in the state of Ohio.
(a)
At a rate of
twenty-five per cent per year, for a maximum of four years, for students that
completed a postlicensure program of study for each year in which the borrower
is employed as a faculty member or an adjunct with the equivalent of full-time
employment or a combination of teaching and direct clinical practice of nursing
that is equivalent of full-time employment at a prelicensure or postlicensure
program for nursing in the state of Ohio.
(b)
At a rate of
twenty per cent per year, for a maximum of five years, for students who
completed a prelicensure program of study for each year in which the borrower
is employed in the direct clinical practice of nursing in the state of Ohio for
the equivalent of full-time employment.
(c)
At a rate of
twenty per cent per year, for a maximum of five years, for students who
completed a postlicensure program of study without the intent to teach for each
year in which the borrower is employed in the direct clinical practice of
nursing in the state of Ohio for the equivalent of full-time
employment.
(d)
At a rate of twenty per cent per year, for a maximum of
five years, for students who completed a prelicensure nurse education program
leading to a license in practical nursing for each year in which the borrower
is employed in the state of Ohio for the equivalent of full-time
employment.
(2) To
qualify for loan forgiveness the borrower must
needs to secure
the equivalent of full-time employment
in the direct clinical practice of nursing in Ohio,
or as a faculty member for a prelicensure or postlicensure program for
nursing,
as described in paragraph (B) of this
rule within a period not to exceed six months following graduation from
the approved nurse education program.
(3) While fulfilling the service obligation,
the borrower shall be required
is to provide periodic evidence of
the equivalent of full-time employment as
required
requested by the chancellor.
(4) A deferment of the service
obligation may be granted for up to one year for any circumstances which
constitute an undue hardship, as judged by the chancellor. These circumstances
may include serious illness, pregnancy, disability, inability to secure
employment or involuntary termination of employment.
(5) Borrowers who do not complete an
approved nurse education program are not eligible for loan forgiveness and must
repay the loan in full, plus interest.
(J) Repayment
(3)(2) Repayment of the
principal amount of the loan and interest shall
will be deferred
during the following periods:
(4)(3)
Repayment of the outstanding principal amount of the loan plus interest
shall
will be
made to the board of regents
department of higher education or the designated
agency and shall
will begin on the occasion of one or more of the
following events:
(5)(4)
The terms of repayment, including the length of the repayment period and the
date on which the first payment is due, shall
will be agreed
upon by the borrower and the chancellor or the designated agency and shall be
set forth in a disclosure statement. The disclosure statement
shall
will
also include the total amount of interest owed on the loan.
(6)(5)
The total repayment period shall
will not exceed ten years.
(7)(6) The minimum monthly
repayment amount shall
will be determined by the chancellor or the office of
the Ohio attorney general or the designated agency, as applicable.
(1) The chancellor shall have
has the
authority to enter into a contractual agreement with a public or private agency
for services needed to manage the repayment of nurse education assistance loans
and the collection of delinquent or defaulted loans who
may determine the interest rate and fees.
(2) The interest rate on the loan
shall be set by the chancellor.
(a) While the
borrower is enrolled in an approved nurse education program, provided that the
borrower continues to meet all eligibility requirements;
(b) While the borrower is seeking employment
to fulfill the service obligation, during a period not to exceed six
months;
(c) While the borrower is
fulfilling the service obligation;
(d) During a period not to exceed one
calendar year, after which time a borrower has failed the state nursing
licensing examination for the first time. This deferment period
shall end
ends
thirty days after the borrower passes the state nursing licensing examination
on the second attempt. If the borrower fails to pass the state nursing
licensing examination on the second attempt, the loan plus interest
shall
will go
into repayment immediately;
(e)
During an authorized deferment as granted by the
chancellor which may be granted for up to one year for any circumstances which
constitute an undue hardship, as judged by the chancellor. These circumstances
may include continued nursing education, serious illness, pregnancy,
disability, inability to secure employment or involuntary termination of
employment.
(f)
While the borrower is deployed on active duty service
outside the state.
(g)
While the borrower joins a spouse deployed on active
duty outside the state.
(a) The borrower drops out
of school without an approved deferment;
(b) The borrower is not in good academic
standing for more than two consecutive terms;
(c) The borrower drops out of the approved
nurse education program;
(d) The
borrower fails to complete the total service obligation.
(K) Delinquency and default
(1) A borrower is delinquent when a loan
payment is a minimum of thirty days late. The chancellor or the designated
agency shall
will use diligent efforts to collect on a delinquent
loan and may seek assistance from the office of the Ohio attorney
general.
(2) A loan is considered
to be in default when it is one hundred twenty days delinquent. A loan which is
in default shall
will be declared due in full and the borrower
shall
will be
disqualified from any debt cancellation benefits. The chancellor or the
designated agency shall
will use diligent efforts to collect on a loan which
is in default and may seek assistance from the office of the Ohio attorney
general.
(L)
Cancellation
(1) The entire debt or service
obligation shall
will be canceled if:
(a) The borrower dies, or
(b) The borrower becomes totally and
permanently disabled and the borrower provides a statement from a licensed
physician verifying this condition.
(M) Promoting the program
The chancellor shall
will promote public awareness of the nurse education
assistance loan program by disseminating information to high school guidance
offices, college financial aid offices and community service agencies. In
addition, special efforts shall
will be made to promote the program and the nursing
profession among groups who have been historically underrepresented in nursing
careers.
(N)
Influence on other awards
The receipt of a nurse education assistance loan will not affect a student's eligibility for assistance, or the amount of that assistance, granted under section 3333.122, 3333.26, 5910.03, 5910.032 or 5919.34 of the Revised Code.
Notes
Promulgated Under: 119.03
Statutory Authority: 3333.28
Rule Amplifies: 3333.28
Prior Effective Dates: 08/21/2000, 12/22/2003, 12/18/2010
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