Nursing Education Loan Repayment Program

Nursing Education Loan Repayment Program, or NELRP, is a US government sponsored loan repayment program.

They have opened up the application process for 2011 funds till February 8th.

This program is to assist nurses that have significant student loans IN NURSING and work in an area of need as determined by the loan repayment criteria.

Because the amount of the loans available per year are always over subscribed, criteria have been set to determine eligibility.

The NELRP- RN Student Loan Forgiveness eligibility requirements:

1. Be a U.S. citizen (either U.S. born or naturalized), U.S. National, or Lawful Permanent Resident;
2. Have received a diploma, an associate degree, a bachelor’s degree, a master’s degree, or a doctoral degree in nursing (see Definitions);
3. Be employed as a full-time RN, defined as at least 32 hours per week, at a public or private nonprofit Critical Shortage Facility;

-OR-

Be employed as a full-time nurse faculty member at a public or private nonprofit school of nursing (see Definitions);

1. Have outstanding qualifying educational loans leading to a degree or diploma in nursing;
2. Have completed the nursing education program for which the loan balance applies; and
3. Have a current, full, permanent, unencumbered, unrestricted license to practice as an RN in the State in which they intend to practice or is authorized to practice in that State pursuant to the Nurse Licensure Compact (see the Nurse Licensure Compact State listing).

From the NELRP Website:

Funding Preference

How does the NELRP determine which nurses will receive loan repayment?

Historically, the number of qualified applicants has exceeded available NELRP funding.  Consequently, the program uses funding preferences to determine the sequential order in which qualified applicants are considered for an award.  As provided in section 846(e) of the Public Health Service Act, as amended, a funding preference will be given to applicants with the greatest financial need, defined as those qualified applicants whose total qualifying educational loans are 40 percent or greater than their base annual salary.  A funding preference will also be given to nurses working in the types of facilities that have the most severe nursing shortage and to nurse faculty.

Applicants will be grouped into one of the preference levels described below based on their debt to salary ratio and type of service site.  The debt to salary ratio is the dollar amount of the applicant’s total outstanding qualifying educational loans divided by his or her base annual salary.  Awards will be made to applicants, starting with the first preference category described below, in order of decreasing financial need until funds are expended.

Example #1:  Amanda received a bachelor’s degree in nursing in May 2009.  Her current outstanding qualifying educational loan debt totals $26,683.57.  Amanda works as an RN at the Maryland Department of Health and Mental Hygiene and her base annual salary is $51,001.
Since Amanda is working at a Public Health Department service site and her debt to salary ratio is 52.320 percent, she will receive a ranking in the First Funding Preference.

Example #2: Tom attended the Frederick Community College taking only nursing prerequisite courses and then transferred to the University of Maryland where he received a bachelor’s degree of nursing in May 2009.  His current outstanding qualifying educational loan debt totals $17,465.04.  Tom works as an RN at the Veterans Administration Hospital and his base annual salary is $46,238.40.

Since Tom is working at a Federal Hospital service site and his debt to salary ratio is 37.772 percent, he will receive a ranking in the Sixth Funding Preference.

The above info is from the NELRP website for accuracy!

If you think you qualify, make sure you fill out your application before February 8th!

And if you are successful, please let us know!!!!

Good Luck!