Navigating HRSA Nursing Student Loan Programs: Requirements and Eligibility

The Health Resources and Services Administration (HRSA) offers various loan and scholarship programs designed to support aspiring nurses in financing their education and addressing critical healthcare needs. This article provides a comprehensive overview of the HRSA Nursing Student Loan (NSL) program, its eligibility requirements, and related opportunities for loan repayment and scholarships.

Introduction to HRSA Loan Programs

The Health Resources and Services Administration (HRSA), under the Department of Health and Human Services (HHS), administers several student loan programs authorized by the Public Health Service Act (PHSA). These programs aim to address critical needs in the healthcare workforce by providing financial assistance to students pursuing careers in various health professions. Among these, the Nursing Student Loan (NSL) program is specifically designed to support nursing students.

The Active PHSA Loan Programs

The active PHSA student loan programs include:

Health Professions Student Loans (HPSL)
Loans for Disadvantaged Students (LDS)
Primary Care Loans (PCL)
Nursing Student Loans (NSL)
Nurse Faculty Loan Program (NFLP)

Understanding the Nursing Student Loan (NSL) Program

The Nursing Student Loan (NSL) is a federal program funded by HRSA with the goal of increasing the number of nursing students. It provides long-term, low-interest loans to financially needy students pursuing their first undergraduate degree in nursing.

Eligibility Requirements for NSL

To be eligible for the NSL program, students must meet certain criteria:

Be a U.S. citizen, national, or lawful permanent resident.
Be accepted to or enrolled full-time or half-time in an eligible institution (public or nonprofit).
Be enrolled in an eligible nursing program (associate's, bachelor's, or graduate degree).
Maintain good academic standing.
Demonstrate financial need.
Have a clean ISIR (Institutional Student Information Record) on file.
Not be in default on any other educational debts.
Not have already received the annual NSL limit.
Not have exceeded the NSL aggregate limit.

Covered Expenses

The NSL covers reasonable educational expenses, including tuition and fees.

Loan Terms and Conditions

Interest Rate: A fixed interest rate of 5% per year applies to all Nursing Student Loans.
Interest Accrual: Interest is calculated on the unpaid principal balance and begins to accrue at the end of the grace period.
Grace Period: A nine-month grace period starts immediately after a borrower is no longer enrolled in school or drops below half-time enrollment status. During this period, repayment of principal is not required, and interest does not accrue.
Loan Limits: Students may not borrow more than $3,300 per year in initial periods of study, but may borrow up to $5,200 per year in the last two years of study.

Entrance and Exit Counseling

Before receiving an NSL, students must complete entrance counseling, which provides information on program requirements, borrower rights and responsibilities, and disbursement and repayment options. Completion of exit counseling is required before graduating or dropping below half-time attendance.

Nurse Faculty Loan Program (NFLP)

The Nurse Faculty Loan Program (NFLP) is designed to address the shortage of nurse faculty by providing loans to advanced nursing students who agree to serve as nursing faculty after graduation. The NFLP offers loan cancellation benefits to borrowers who complete a service requirement.

Eligibility for NFLP

NFLP loans are available to advanced nursing students (doctoral, master's, or combined bachelor's and master's level) who commit to serving as nursing faculty.

Loan Cancellation

Up to 85% of outstanding loans can be canceled in exchange for four years of service as nurse faculty members at accredited nursing schools. Specifically, 20% of the principal and interest on the unpaid loan balance is canceled upon completion of each of the first, second, and third years of full-time nursing faculty employment, and 25% is canceled upon completion of the fourth year.

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Loan Repayment Programs

Several loan repayment programs are available to nurses who have graduated from nursing school, including:

Nurse Corps Loan Repayment Program: For registered nurses, nurse faculty, and advanced practice registered nurses working at a Critical Shortage Facility or eligible school of nursing.
National Health Service Corps Loan Repayment Programs: For nurses and other health professionals.
Substance Use Disorder Treatment and Recovery Loan Repayment Program: For nurses and others who provide direct patient care in an eligible discipline at an approved treatment facility.
Faculty Loan Repayment Program: For faculty members who serve at eligible health professions schools.

Nurse Corps Loan Repayment Program: Requirements

Participants in the Nurse Corps Loan Repayment Program must meet certain requirements:

Maintain a current, permanent, unrestricted license to practice as an RN or APRN in the state that employs them.
Work under their employer’s verified scope of practice.
Begin full-time service on the effective date of their contract at the critical shortage facility or eligible school of nursing listed in their application.
Continue with the same type of service option (critical shortage facility or eligible school of nursing) during their two-year service period.

Work Hours:

If working at an eligible critical shortage facility: at least 32 hours per week and a minimum of 45 weeks per service year.
If working at an eligible school of nursing: a minimum of nine months per service year and "full-time" as defined by the employer.

Scholarship Opportunities

HRSA also offers scholarships to help students pay for their health professions education, including tuition, fees, and other educational costs.

Nurse Corps Scholarship Program: For eligible nursing students.
Native Hawaiian Health Scholarship Program: For Native Hawaiians pursuing careers in primary and behavioral health disciplines.
National Health Service Corps Scholarship Program: For students pursuing primary care health professions training.

Additional Considerations

Disproportionate Share Hospitals: Legacy Emanuel, Legacy Good Samaritan, and Legacy Mount Hood hospitals each qualify as a Disproportionate Share Hospital for NELRP (Nurse Education Loan Repayment Program) eligibility.
Health Careers Foundation: While opportunities for scholarships and loans were previously available through the Health Careers Foundation, no new scholarships are being offered at this time due to the Foundation's current financial circumstances.
Loan Consolidation: Consolidating the NSL with other federal direct loans may provide benefits such as a single monthly bill, a lower monthly payment, and access to loan forgiveness options. However, consolidating with loans that were not used for nursing school could result in the loss of certain loan cancellation benefits.

My BHW Overview

My BHW is the Bureau of Health Workforce’s secure online portal for program participants. It allows participants to track their service commitment, view their contract, and update personal and financial information.

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