Thursday, May 2, 2002

Dear Borrower:



The Health Resources and Services Administration (HRSA) has announced that applications are being accepted for the Nursing Education Loan Repayment Program (NELRP) for fiscal year 2002. This year, the amount of available funds is approximately $8,000,000 and it is estimated that 445 Loan Repayment Contracts will be awarded for this program. As a nursing loan recipient, you may be eligible for the following loan repayment benefits.

• These applications are solicited under section 846 of the Public Health Service (PHS) Act, as amended, which authorizes loan repayment, in the amount of 30 percent of the outstanding principal and interest on nursing education loans for each of the first two years of full-time nursing service completed in an eligible health facility, and 25 percent for a third year of service completed.

You are eligible to apply for NELRP, if you: (1) Have received a baccalaureate or associate degree in nursing, a diploma in nursing, or a graduate degree in nursing; (2) have obtained one or more nursing student loans authorized under section 835(a) of the PHS Act, as amended, or any other educational loan for nurse training costs; (3) entered into an agreement to serve as a full-time registered or advanced practice nurse for a period of not less than two years in an “eligible health facility”; and (4) are a U.S. citizen, U.S. national, or a permanent legal resident of the United States.

• An "eligible health facility" is defined as: (1) An Indian Health Service health center; (2) a Native Hawaiian health center; (3) a public hospital (operated by a State, county, or local government); (4) a health center funded under section 330 of the PHS Act (including community, migrant, homeless, and public housing centers); (5) a rural health clinic under Section 1861(aa)(2) of the Social Security Act; or (6) a public or nonprofit private health facility determined by the Secretary to have a critical shortage of nurses.
• For Fiscal Year 2002, the Secretary has defined health facilities with a critical shortage of nurses as any public or nonprofit private health facility: (1) On the NELRP's Fiscal Year 2002 list of facilities with a critical shortage of nurses; (2) located in a county on the NELRP's Fiscal Year 2002 list of counties with a shortage of nurses; (3) located in a currently designated whole county health professional shortage area (HPSA) or (4) classified as one of the following regardless of its location: a public health department, nursing home or rehabilitation center.

Funding Preferences apply to all applicants. They are as follows: A.) As provided in section 846(e) of the PHS Act, as amended, first preference will be given to qualified applicants with the greatest financial need who agree to serve in eligible health facilities located in a county on the NELRP's Fiscal Year 2002 list of counties with a shortage of nurses. Applicants whose total qualifying loans are 40% or greater of their annualized salary will meet the greatest financial need requirement of the funding preference. B.) Remaining funds will be awarded in the following order: (1) To qualified applicants who are employed at an eligible health facility located in a county with a shortage of nurses regardless of the applicant's financial need; (2) to qualified applicants employed at an eligible health facility not located in a county with a shortage of nurses who demonstrate greatest financial need; and (3) other qualified applicants who are serving in States that received few or no new NELRP participants.

You may register online @ http://bhpr.hrsa.gov/nursing (instructions are available on the web). By registering online, you will automatically be sent information regarding application guidance and a list of eligible health facilities, nurse shortage counties, and HPSAs. You may also request a hard copy of the application materials by calling (866) 813-3753.

To be considered for NELRP, your application must be must be postmarked by June 14, 2002 and submitted to: The Division of Nursing (NELRP), Bureau of Health Professions, HRSA, Room 9-36, Parklawn Building, 5600 Fishers Lane, Rockville, MD 20857. Applications postmarked after the deadline date or sent to any address other than the Rockville, Maryland address, may be returned and not processed.

For further information, please contact: Ms. Jacqueline Brown at jbrown1@hrsa.gov, Ms. Leola Bennett at lbennett@hrsa.gov, or Ms. Robin Ingram at ringram@hrsa.gov. Division of Nursing, Bureau of Health Professions, HRSA, Room 9-36, Parklawn Building, 5600 Fishers Lane, Rockville, Maryland 20857. Central telephone is (301) 443-3232. Fax # is (301) 443-0791.